Citation
The Tribune.

Material Information

Title:
The Tribune.
Uniform Title:
Tribune. (Nassau, Bahamas).
Added title page title:
Nassau tribune
Place of Publication:
Nassau, Bahamas
Publisher:
Tribune
Publication Date:
Language:
English
Physical Description:
v. : ill. ; 58 cm.

Subjects

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

Notes

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

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Source Institution:
University of Florida
Holding Location:
University of Florida
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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 )
9994850 ( OCLC )
UF00084249_02831 ( sobekcm )

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Full Text




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Volume: 103 No.82



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BAHAMAS EDITION



WEDNESDAY, FEBRUARY 28, 2007








Contractor concerns raised

Claim that developer
did sub-standard work
in Excellence Gardens
and has been given
another govt contract

@ By KARIN HERIG
Tribune Staff Reporter

SUBCONTRACTORS and
building material suppliers are

reportedly -threateningâ„¢to-.

expose a developer they claim is
giving the Ministry of Housing a
bad reputation.

A source close to government
yesterday revealed that discon-
tent within the. building com-
munity is growing with a con-
tractor they claim has already
done sub-standard work in
Excellence Gardens, and has
now been given another gov-
ernment contract for a new
housing subdivision.

It is claimed that this devel-
oper keeps getting contracts
although he owns no equipment

_ and has no experience in lay-

ing telephone lines, building
roads or installing water pipes
for new housing developments.

“This man doesn’t even own

"a truck, he has no equipment,
he is.sub-contracting:the work.

out to other people, but not
paying anyone for their work.
People are getting fed up and
are now threatening to expose
him,” the source told The Tri-
bune.

It is further alleged that the
developer in question has
instructed the Department of
Housing to pay him directly,
and not his sub-contractors.

“He’s already done work in
Excellence Gardens where the
work was fifth rate,” the source
alleged, adding that it was “time

SEE page seven

Ninety still scheduled to go on trial

E By CHESTER ROBARDS

FT LAUDERDALE, Florida - Accused drug “kingpin” Samuel
‘Ninety’ Knowles is still scheduled to go on trial April 9 ina Ft Laud-
erdale court despite his request for dismissal of his case.

Last week, the United States entered a response to Knowles’ motion
to dismiss his case for lack of jurisdiction days before he was to appear

in court to challenge it.

The United States’ response concisely argued the legitimacy of
Knowles’ extradition with regard to the extradition treaty between the
USA and The Bahamas, and the unambiguous language of the courts
of the Bahamas, which acceded the extradition.

Within the response, the United States cited rulings of the Bahamas
Supreme Court as evidence against the validity of Knowles’ dismissal
request, saying: “In closing, the Supreme Court unambiguously

SEE page seven


























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POLICE remove the body of a man who was stabbed to death on Boyd Road last night.

Police said the victim, in his 30s, was leaving DNC Takeaway around 6pm, when a man
threw a rock at him before stabbing him multiple times about the body. .

An ambulance was called to the scene and the victim was pronounced dead.

A man is in custody in connection with the incident after being caught by an off-duty police
officer and a civilian. This homicide brings the year’s murder count to 12.
(Photo: Felipé Major/Tribune staff)

Industrial —

unrest —
avoided at
Cotton Bay |

lm By ALEXANDRIO
MORLEY
Tribune Staff Reporter

INDUSTRIAL unrest was :
avoided at Eleuthera’s Cotton ;
Bay project which emerged when :

construction workers.did not }

receive their pay cheques on Fri- }
day, The Tribune learned. :
An inside source said the work-

ers were so upset over not receiv- ;
ing their salaries that they decid- :

paid.

Monday.

SEE page seven »

However, Wim Steenbakkers, :
the project’s managing director, :

BPSU president says
sovt has to be more

_ proactive in addressing |

workers’ concerns

m@ By BRENT DEAN

GOVERNMENT has to be }
: more proactive, and less reac- :
: tive, in addressing the concerns
: of workers, declared John Pin- :
der, president of the Bahamas

Public Services Union.

Mr Pinder
remarks in an interview with
The Tribune yesterday.

i In the face of widespread }
i industrial discord, some of }
which has been resolved by gov-
: Es i ernment, The Tribune asked Mr }
ed to stop working until they were | pinder what is behind some of }
: the problems.
He said that “a lot of the }

: : industrial agreements are not }
said the matter was resolved on ! being adhered to in their full |

Local entrepreneur Franklyn content.” And many of these

Wilson is the majority sharehoid- ; disputes have been long-stand- ;

SEE page seven

made these :

Call for parties
to make the
environment

_ election issue

: lm By KARIN HERIG
: Tribune Staff Reporter

BOTH the PLP and the FNM
: are being urged to make the
: preservation of the environment
? an election issue.
i} Ata time when new develop-
? ments and major construction
i projects are being announced
: almost daily, Bahamians are
: being encouraged to challenge
political candidates in the next
general election to commit to the
protection of the environment.
Save the Bahamas — an umbrel-
la organisation for non-govern-
: mental groups that are promoting
legislation for protection of the
environment — in a statement yes-
: terday said that Bahamians have
: to learn to take the preservation
: of the country’s natural resources

SEE page seven



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Pensioners to.
see increase
on monthly

payments

OLD age and non-contrib-
utory pensioners will see an
increase in their monthly pay-
ments, effective March 1.

This was confirmed by
Works and Utilities Minister
Bradley Reberts in a recent
contribution to debate on a
Bill to amend the Prime Min-
ister’s Pension Act.

Mr Roberts said, “I wish to
inform that the Government
has approved the reconimen-
dation to increase payments
to all old age pensioners and
non-contributory pensioners
to National Insurance Board
effective from March 1, 2007.

“These increases will bring
much needed relief to the
senior citizens throughout
The Bahamas.” -

The details of the increases
will be announced shortly by
Prime Minister Perry Christie,
or the Minister responsible
for National Insurance, Sena-
tor, Dr Bernard Nottage, he
said.

SEE page seven

BUT officials
are set to meet
with director and
minister of labour

@ By ALISON LOWE
Tribune Staff Reporter

IN A move that seems likely
to offset strike action — at least
for the time being — Bahamas
Union of Teachers officials are
scheduled to meet with the direc-
tor and minister of labour next
week.

President of the BUT, Ida
Poitier-Turnquest, confirmed yes-
terday that union officials were
approached by the labour offi-
cials on Monday, who requested
to meet to discuss teacher's pay
grievances.

This comes after a week during
which there was no approach
made to the union by the labour
department despite the filing of a
trade dispute on Friday, Febru-
ary 16.

By law, government had sev-
en days — until Spm last Friday
— to contact the union, but failed
to do so.

SEE page seven








PAGE 2, WEDNESDAY, FEBRUARY 28, 2007

Ra ee a ee ea
i ‘A new era’ for the
ahamas Postal Service

Haitian
migrants
fleeing the
Bahamas
‘end up in
Jamaica’

A GROUP of 23 Hait-
ian migrants attempting to
flee to The Bahamas in a
20-foot sailboat were
reportedly blown off
course and ended up on
the shores of Port Anto-
nio, Jamaica.

According to The
Jamaica Observer newspa-
per, the Port Antonio
police, immigration and
health officials have “quar-
antined” the group and will
shortly begin to process
them for subsequent
deportation.

The 19 men and four
women told Jamaican
authorities they were flee-
ing their homeland because
of “violence and kidnap-
ping.”

The members of the
group, whose ages ranged

-from 17 to 44 years, said

they were sailing to The
Bahamas but went off
course.

Fidel Castro
calls in to
Chavez show

ll CARACAS, Venezuela

CUBAN leader Fidel Cas-
tro called in to Venezuelan
President Hugo Chavez's radio
talk show on Tuesday, declar-
ing he's "more energetic,
stronger" and his country is
running smoothly without him
at the helm, according to Asso-
ciated Press. :

"I feel good and I'm hap-
py," Castro said in“a phone
call to Chavez's weekday radio
program. "I can't promise that
I'll go’ over there soon, but,
yes, I'm gaining ground."

The 80-year-old Castro
transfetred control of Cuba's
government to his brother
Raul after undergoing intesti-
nal surgery in July and
dropped out of public view,
fueling speculation about his
condition.

He thanked Chavez for
spreading news about his recu-
peration and complained that
his supporters have "the habit,

ly. "

"But I ask for patience, calm
... the country is marching
along, which is what is impor-
tant," Castro said in a soft but
steady voice.

"And IJ ask for tranquility
also for me so that I can fulfill
my new tasks," he said.

In Havana, Cuban state
television's nightly Roundtable
program reported briefly on
the telephone exchange and
bits of the conversation were
broadcast across the island.

the vice of getting news dai- 4



THE Bahamas Postal Service is
reforming the way it does business
to satisfy its customers, Transport
and Aviation Minister Glenys
Hanna-Martin revealed at the
Sandyport Post Office.

“The first time ever Cluster
Mailboxes has 3,529 mail boxes —
2,940 small and 588 medium —
and we all at the Ministry of Trans-
port and Aviation are pleased with
the number of requests that we
have been receiving for them from
business and individuals alike,”
said Mrs Hanna-Martin.

Approach

Having embarked upon a new
era, the Bahamas Postal Service
has taken a new approach towards
customer service and productivity
standards, she said.

This initiative resulted in major
transformation in postal services
globally, she added.

“For us to do this we must then
achieve greater levels of efficiency,
implement strategies to ensure
diversified use of its products and
services, and also expand on addi-
tional products and services to
meet the increasing demands of
its customers,” said Mrs Hanna-

The Bahamas Postal Service has
the competitive advantage, since
it has the capacity to generate
greater revenue and is strategical-
ly located throughout the country.

“As a member of the Universal
Postal Union (UPU) — the inter-
national body which governs and
regulates post offices around the
world — this administration is
mandated to attain and maintain a
quality of service standard. “This
criterion makes it almost impossi-
ble to be lagging behind but
encourages us to strive for excel-
lence,” she said.

In the Savings Bank Money
Order section, electronic money
order machines were introduced,
she added.

“These machines were put in
place to speed up the money order
processing time, while minimising
fraud and errors.

“New stainless steel private
mailboxes were installed at the
General Post Office to replace the
old steel ‘dinosaur’ type that was in
place for decades.”

- This stainless steel is not prone
to erosion from surrounding ele-
ments.

Several areas in the postal ser-
vice were computerised in stages.
They include savings bank, mail

THE TRIBUNE

processing inbound, mail process-
ing outbound, parcel processing
inbound and outbound and inter-
national high-speed mail.

“As a result of global advances
in the postal system, almost every
postal item in the postal system is
now bar-coded,” she said. “This

_ bar-coded system allows for postal

itemis to be tracked.” ~ ~~

Connected

Additionally, she added, the
Express Mail Service Office is ful-
ly computerised and connected to
more than 230 member countries
globally.

“This service provides track and
trace capabilities over the Inter-
net, hence making it accessible to
everyone,” she said.

Mrs Hanna-Martin said the bulk
mail service of the General Post
Office is equipped with modern
processing machines and
has increased its clientele signifi-
cantly.

“We have even taken this ser-
vice to another level, whereby we
provide ‘Postage by Phone’. We
have been conducting excellent
business in this area with the vari-
ous local and international busi-

Martin.

SSS

@ TRANSPORT and Aviation Minister Glenys Hanna-Martin

°

Mother hits out at neighbour's
alleged destructive activities |

@ By ALISON LOWE
Tribune Staff Reporter

..A MOTHER is sick and tired

of the destructive activities of
her neighbour, which have
threatened her livelihood and
ruined her immediate environ-
ment over a period of years.

Having called upon govern-
ment and police for help with
no results she has come to the
conclusion that she has no rights,
and the neighbour must be
"above the law."

Ernestine Kauffman moved
into a quiet part of the
Yamacraw area around 15 years
ago, investing her "whole life
savings" in building three town
houses, two of which she rents to
provide for her children.

However, for the past five
years, she says, her peace and
quiet have been shattered, her
property wrecked, and her
health and safety threatened by
a neighbour who is working on
land next to her property. She
questions whether he has a per-
mit to do the type work he is
doing.

The neighbour, who owns sev-
eral apartments behind hers, has

NOTICE

started what would appear to be
a soil sifting and dumping busi-
ness on five lots that are next to

her apartment, and in front of

his. :

On a daily basis, sometimes
starting as early as 6am and fin-
ishing as late as 3am, the neigh-
bour runs loud and heavy trucks
and machinery on the land —
sifting soil for sale, digging so
deep that he's "scraping the
rocks", she claimed.

"He has a big soil sifting
machine. It's a big business," she
said angrily. "He stores (rock)
in the back of my apartment on
the main road, what's supposed
to be a cul-de-sac," she said.

Demolished

And the activities do not end
there — he has also demolished
the wall around her property,
and caused 95 feet of telephone
cable to have to be replaced,
such is the voracity of his
appetite for removing soil and
rocks from the land.

"There's no Sunday for me,
no Monday — all through my
week I have gasoline in my bed-














WE HAVE MOVED
LIFE CHIROPRACTIC CENTRE

HAS MOVED TO THE REAR OF
OUR FORMER OFFICE

#7B VILLAGE ROAD

PHONE: 393-2774
FAX: 394-3067

room, I'm smelling diesel," she
complained.
This leaves the inside of her

property. regularly covered in a’

layer of dirt, thrown up off the
nearby site. "In the morning the
coffeébn the table is full of
dust!"'she said.

"T have two new tenants and

God knows that I'm not losing

my tenants because of this guy,"
she said, adding that "every ten-
ant has moved out because of
him" so far.

"T can't take it, I can't .

sleep...trucks and tractors 'chase'
me out of bed every day," she
said.

On one particularly memo-
rable occasion, fires were started
on debris dumped around her
property. eRe

"Tt was burning for five days.
Firemen tried to out it about
three times, (but) they couldn't
because it's so deep under the
dirt."

Her home was filled with thick
smoke, and her daughter suf-
fered a number of asthma
attacks as a result.

"It was like five days of death
— this mossy, dirty wood, the
dust and everything mixed, it
almost killed you," she said.

Mrs Kaufmann said she has
approached the man on many
occasions requésting that he stop
his destructive activities. How-
ever, in response she has repeat-
edly been threatened or ignored.

After one argument, the con-
frontational neighbour wrote the
words "Holy War" across the
side of one of his trucks, she
sald,

She claims to have attempted
to contact director of environ-
mental health, Ron Pinder, up
to 15 times, leaving messages for

him with his secretary, but has
had no response.
This was the same for other

environmental health officials;*

she added.

Adding insult to injury, she ,

described how ten years ago she
had received a four page letter
from the zoning department stat-
ing that she would be unable to
erect a sign on her property to
direct her massage clients to her
house, as it was not in a com-
mercial zone.

Meanwhile, her neighbour has
put up a large sign advertising
the sale of soil and fill on the
property with impunity.

Police have "taken her for
granted," she said. "They look at
me like oh, a woman, she's com-
plaining:..".

Contact

Yesterday, Mr Pinder said he
was surprised to hear that Mrs
Kaufmann had been trying to
contact him, and seemed
unaware of her situation.

He asked that The Tribune
forward his cellphone number
to Mrs Kaufmann.

In February, the minister of
agriculture and marine resources
said there needed to be tougher
regulations relating to the ille-
gal removal of soil and fill, and
claimed that a new land policy is
being developed to deal with
cases where landfill is removed
without proper authorisation.

This new policy will see indi-
viduals fined up to $20,000 in
addition to the confiscation of
their equipment, he said, after
a raid of two such sites.

However, in the meantime,
Mrs Kaufmann is receiving no
relief.

SS







ness houses,” she said.




Pea lire
expecting 3,600
spring breakers

i By DENISE
MAYCOCK
Tribune Freeport Reporter










FREEPORT - Thousands of
spring break students are expect: «| 11
ed to arrive on Grand Bahama, ..} i}:
beginning March 1,.over the next~|;
eight weeks, Ministry of Tourism. |. >
officials announced yesterday.

Betty Bethel, executive direc-
tor at the Ministry of Tourism,
announced that some 3,600 stu- 4
dents are expected to travel to ‘
Grand Bahama over the spring 2
break season. .

The Ministry, she said, has
planned a ‘Konk and Kalik :
Springbreak Fest’ from March
1 to April 18 at two new venues
- Taino Beach and Georgies on
the Beach — this year.

Ms Bethel said the fest will
take place on Thursdays, starting



Crore toe

March 1 to March 28 at Taino |: -~

Beach, and at Georgies from }
March 29 to April 18. :
“We believe that these two
new venues will really enhance
the visitor experience and allow
us to put on fun activities like
tug-of-war, beach volleyball,
dancing competitions, and other
activities that will enhance their
stay here on the island,” she said. *
According to Ms Bethel, | _ *
’ Springbreak Travel, which has .
been bringing students to the
island for 19 years, is bringing
the bulk of spring breakers to
the island. These students are
expected to spend anywhere
from $250 to $400 during their
Stay. é
Ms Bethel said that while 4
spending is not going to be very
high, spring breakers represent
_ the potential future business for
Grand Bahama. ,
“Tt is very important that the
community understands this. -
They are not just students, they n
are our future return visitors. It )
is important they have a grand }
experience,” she said.
The ministry has also part- (
nered with the Royal Bahamas
Police Force, as well as its very
own Safety and Security Coun- =
cil, to ensure that visiting stu-
dents will be safe and secure
while enjoying the island’s 4
amenities. ’
Ms Bethel said the ministry 2
has partnered with several enti- e
ties, including Burns House, to
provide Kalik, Pat and Diane,
Tony Macaroni at Taino Beach,
and Georgies to provide and
promote a fun cultural experi-
ence for the students. J
Supt Clarence Russell said \
police will be on heightened
alert to ensure that spring break-
ers are Safe. “We have been giv-
en a mandate to heighten aware- >
ness and put in strategic plans
with respect to accommodating \
spring breakers and the ministry ;
can rest assured that we are on
board to ensure safety while they
are on the island.”

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THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 3



0 In brief

Two brothers
are shot by
masked
gunman

TWO brothers —
aged 31 and 29 — were
shot in the chest and
face by a masked gun-
man as they tried to
help another man. One
is in critical condition.

The incident occurred
around 7pm on Monday
when the pair ran to
help a screaming man
who was being held up
for money at gunpoint
on Jennie Street. The
victim was in his twen-
ties.

As they approached,
the young man's
assailant he turned and
opened fire, said police
press liaison officer,
Walter Evans.

The 31-year-old, who
was hit in the chest, is
in critical condition at
Princess Margaret Hos-
pital, while the 29 year
old, also in hospital, is
described as in a stable
condition.

Police have yet to
make any arrests in con-

nection with the attack. .

An investigation is
underway.

Govt denies
FNM claims
over plans
for airports

GOVERNMENT has
refuted claims by the
FNM that it is just now
racing to implement
plans for Family Island
Airports that were left
in place for-them in

2002. Wee

The Ministry of
Transport and Aviation
in a press release yes-
terday said that the cur-
rent exercise of
installing emergency
runway lighting is part
of a comprehensive plan
which commenced in
November 2006 follow-
ing the signing of a con-
tract with Carmanah
Enterprises at a cost of
$2,244 ,526.00.

“(It is) a systematic,
comprehensive exercise
comprising a two-phase
approach beginning
with the installation of
emergency lights at 16
airports, all of which
have already been com-
pleted,” the ministry
said.

Commentary

The FNM in its week-
ly commentary had
accused the government
of delaying the installa-
tion of emergency
landing lights at 14
Family Island airstrips
during the past five
years.

The opposition said
that the governing party
raced in the first two
months of this year to
complete a project
that was ready for
implementation in
2002.

“And they are not
embarrassed to list this
very late completion
amongst their accom-
plishments, indeed, to
use it as a part of their
election campaign pro-
paganda,” the FNM
said.

However, the Ministry
of Transport and Avia-
tion, yesterday refuted
these assertions, stating
that no such plan was
left in place by the for-
mer government.

The ministry further
said that phase two of
the plan to upgrade

the Family Island air-
ports will soon com-
mence.

This phase will
involve five airports:
Deadman’s Cay, Stella
Maris, North Andros,
Fresh Creek and Nor-
man’s Cay.

@ By ALEXANDRIO

MORLEY
Tribune Staff Reporter

THE Bahamas Electrical
Workers Union and govern-
ment have reached a “tenta-

tive” agreement in the dis-—

pute between the Bahamas
Electricity Corporation’s
management and hundreds
of line staff.

But, Stephano Greene, sec-
retary general of the BEWU,
said he would not rule out
future industrial action,
because the union still has
numerous outstanding issues
that need to be addressed.

Earlier this month, BEWU
officials threatened to take

But union’s secretary general
says he will not rule out
future industrial action



industrial action should their
concerns remain unresolved.

However, former Labour
Minister Shane Gibson said
that such action would not
be necessary.

"We have been working,

along with management and
the union to resolve these
matters, but my understand-

ing was that the arbitrator —
Bishop Neil Ellis — has
reached an agreement with
the union on most of the
issues," Mr Gibson said.

Mr Gibson was speaking of
long-standing concerns the
BEWU has been raising.

The BEWU claims that

’ line staff members at BEC

Claim that School
Policing Unit officers
are contemplating —
industrial action

m@ By ALEXANDRIO MORLEY
Tribune Staff Reporter



OFFICERS of the School Policing Unit are
upset bécause the government has “back-
tracked” their employment contracts, a source
disclosed yesterday.

The source claimed the officers were so frus-
trated that they were contemplating industrial
action.

Earlier this month, The Tribune reported
that the officers were frustrated because their
employment contracts had not beén renewed.

The source claimed that the officers, who
are referred to as SRO’s (school resources offi-
cers) and SRA’s (school resource assistants),
had reached “boiling point” after informing
senior police officers and education officials
about their numerous labour concerns - only to
be ignored.

The source explained: “We’re supposed to
get our contracts renewed every year, but right
now we have officers who have been without a
contract since September, and every time we
ask them about it they give us excuses.”

The source also said that officers in the unit —

don’t receive any increments, benefits, or a
uniform allowance, and most officers believe
their insurance coverage is “not legit.”

Yesterday, the source told The Tribune that
some of their concerns had been addressed,
but now the terms of their employment con-
tracts had been changed.

The source said: “In the beginning, officers
signed contracts for one year, from
September to September, but we just signed a
new contract last month, and now officers
are only contracted from January to Septem-
ber.”

The source said persons had joined the
School Policing Unit because they believed it
would provide them with job security - but
they now feel that their current contracts, which
expire in less than a year, make their positions
unstable.

“The officers were hired as permanent work-
ers,” the source said, “but they now feel like
temporary staff.”

The source also claimed that the Ministry
of Education has not followed through on its
promise to give the officers extra benefits,
including a uniform allowance.

He said the officers were contemplating
walking off the job or calling in sick.

The Commissioner’s policy statement for
2006 says the aim of the School Policing Unit is
io investigate and stem criminal and gang activ-
ities in schools.

It also says the unit seeks to advise ‘at risk’
youth on the dangers of drugs and other illegal
substances and activities.

But at the moment, the source said, officers
fee] unappreciated and morale is low.

The Tribune tried to contact the Ministry of
Education for comment, but calls were not
returned up to press time.

Pelican Bay Resort donates to
Lewis Yard Primary School

i By DENISE MAYCOCK
Tribune Freeport ~
Reporter

FREEPORT - Pelican Bay
Resort has responded to a call
for assistance by donating gro-
cery items to Lewis Yard Pri-
mary School to help with their
student feeding programme.

Judy Duncombe, director of
human resources at Pelican Bay
Resort, said its eight- member
management team felt com-
pelled to make a donation to
the school after learning of the
plight of students there.

Late last year, teacher Kel-
ley Albury highlighted prob-
lems facing students during a
presentation at the Rotary
Club. She revealed that students
from poor families often came
to school without having hot
breakfast and lunch.

Additionally, she noted that
students were in need of cloth-
ing and shoes. The teacher also
said some children had con-
tracted a severe skin rash.

Ms Duncombe said that Peli-
can Bay plans to make several
other donations to the school
during the school year.

“This is a very worthy cause.

This (donation today) is just the |

first...of several other dona-
tions,” she said.

Principal Rodney Smith said
response from the community
had been tremendous.

“Our main objective is to
develop the child holistically,
and since the co-ordinators’ pre-
sentation to Rotary we made
an appeal for food items and
clothing etc, which have been
going very well.”

Mr Smith believes it is impor-
tant that a child functions prop-
erty in the classroom. He said
the presentation was not intend-
ed to upstage anyone, but to
inform the public about the
reality facing students at the
school.

He said that government also
does what it can through social
services and the Ministry of
Health regarding welfare of the
children.

Vice-principal Jacquelyn Pin-
der said that, although teachers
work hard to educate students,
children cannot learn on an
empty stomach, or if they are
cold and have no sweaters to
wear.

Ms Pinder said churches had
also come forward to assist,
including the National Church
of God, which provides break-
fast on a daily basis, and The
New Methodist Church, which
provides clothing and grocery
items.

“People are really coming out
and helping us. It has become a
real community effort,” she
said.

Ms Pinder said even though
the program has improved,
there is still need for more assis-
tance. “We feel that if every
business did what happened this
morning the need will be less-
ened, and our children of course
would eventually develop into
the whole persons that we
desire,” she said.

When asked about the health
issues at the school, Mr Pinder
said the matter had been
addressed by Grand Bahama
Health Services.

“They have been addressed,

but we still have concerns
because the children are still
here and some of the children
are facing some of the same
health problems we brought to
the attention of health services.
Health services have assured us

: that the children are fine, and so

we rely upon their expertise and
respect that, so we had to accept
that,” she said.

are owed $9 million in back
pay after working more than
the 40-hour work week for
more than two years.

However, government has
continuously said that BEC’s
management has no obliga-
tion to pay the workers any
additional money.

Last November, the union
seemed close to ironing out
the issue.

But,. BEWU president
Dennis Williams told
reporters that the matter
remained unresolved.

Yesterday, the secretary

‘general of BEWU told The

Tribune that “about 95 per

cent of the issues have been

agreed to and signed off on.”
Mr Greene said that the
arbitrator of the negotiations,
Bishop Neil Ellis, has been a
very fair person and that he
was working diligently to
bring the matter to an end.
Asked if the government
had decided to pay the elec-
trical workers their back pay,
Mr Greene said: “There ‘is a
tentative agreement on the
table for the back pay and
now it’s just a matter of final-
ising everything so that
everything is completed.”
However, he said, the
union still has a lot of out-
standing issues filed at the
Department of Labour that
have not been resolved.
“And as long as we have
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-BEWU and the government
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contentious, outstanding
issues, there is always a pos-
sibility of some form of
industrial action,” Mr Greene
said.

@ BEWU officials had threat-
ened to take industrial action
earlier this month, should their
concerns remain unresolved —
but former Labour Minister
Shane Gibson (above) said that
such action would not be nec-
essary.

The union has also taken
issue with shift worker meal
breaks, charging that. there
are employees in BEC to
whom management has
refused to allow a lunch
break. r












PAGE 4, WEDNESDAY, FEBRUARY 28, 2007

me) ae a =e)

~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.

Published Daily Monday to Saturday

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

TELEPHONES

Publisher/Editor 1972-

Switchboard (News, Circulation and Advertising) 322-1986
Advertising Manager - (242) 502-2352
Circulation Department - (242) 502-2387
Nassau Fax: - (242) 328-2398
Freeport, Grand Bahama: 1-(242)-352-6608





WASHINGTON — For former Vice Pres-
ident Al Gore, these are the best of times.
The worst of times lasted several years after a
partisan Supreme Court denied him the pres-
idency he had won in the 2000 popular vote.

But he’s back. Maybe he never left and we
just didn’t notice. Basking in the Oscar’s glow
isn’t quite lording it over the world from the
White House, but it’s a good alternative.
Nobody dies, for starters. (Unless we don’t lis-
ten to him and everybody drowns along the
flooded coasts).

And Gore’s film, “An Inconvenient Truth, ”
won an Oscar (actually, two of them) for
something that Gore has long championed
— environmental protection. His sincere con-
cern for this cause is unassailable. In the late
1980’s, as he was preparing to seek the 1988
Democratic presidential nomination, I inter-
viewed Gore in his Senate office. I wanted
to talk politics, naturally. He wanted to lecture
me on the dangers of global warming. He
produced a fat globe and proceeded to. edu-
cate me on what he saw as a crisis. around
the world due to destruction of the ozone
layer and its greenhouse effect. Very inter-
esting, if true. But I went back to my office
thinking I had no column.

Gore had no more luck exciting me about
the environment twenty years ago than he
did with others. But he didn’t give up. He
tried to make it an issue in the 1988 primary
campaign.

“I made hundreds of speeches about the
greenhouse effect...that were almost never
reported at all,” he grumbled after he lost
that campaign. “There were several occasions
where I prepared the ground in advance,
released advance texts... and then nothing,
nothing.” Everything in politics, as in life
itself, is in the timing. And while Gore was on
the right track, he was a tad early on the sub-
ject in the 1980’s. We didn’t see for ourselves
the spreading climate changes that now alarm
us, from melting ice flows to unnaturally wild
and wooly weather creating structural havoc
and taking lives.He has transformed “An
Inconvenient Truth” into a blockbuster event
by travelling around the world personally
attending premieres and presiding over what
is essentially a slide show. He has been nom-
inated for the Nobel Peace Prize for alerting
the world to the threat of climate change; for-
mer President Jimmy Carter, himself a winner
of that honour, has been calling repeatedly to
urge Gore to seek the presidency again. It is
a reassuring American story. Man is robbed of
presidency; man grows beard, flails about





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aimlessly; man gets a grip, goes home to Ten-
nessee and revives a favourite once-ignered
cause. Man is rehabilitated! Even President
Bush, who for six years dissed the very idea
that human habits contribute to global warm-
ing, timidly ventured a recent recognition that
there might be a problem..

Wow! Bush acknowledged he has actually
heard of ethanol and alternative fuel sources.
Gore was in the forefront of advocacy for the
Internet, although Republican know-noth-
ings mocked him for claiming to have “invent-
ed” it.

Gore was right to oppose the first Gulf War
and very right about the folly of Bush’s inva-
sion of Iraq in 2003. If Gore were president,
the federal government would have spurred
the development of stem cell research, and
expanded health care for those without insur-
ance,

He never would have tried to gag scien-
tists whose expert evaluations conflicted with
right-wing ideology.

Gore considers the federal budget deficit,
which has ballooned under Bush, to bea “a
fiscal catastrophe.”

But that doesn’t mean he should listen to
the siren songs about running for the White
House again. A second defeat would be hard
to bear. It would be hard for his fans, like

» myself, but harder for his family. He deserves

to bask in the new, very pleasant life he has
found.

He has learned many lessons from the 2000
whirlwind, but the Supreme Court is still a
partisan GOP-dominated operation and the
Republicans are still eager for his throat.
Gore has, in fact, demonstrated admirable
restraint by insisting he has no plans to jump
into the jumbled presidential race. He has
not issued a flat “if nominated, I will not run,
if elected 1 will not serve,” statement, but
then who would? It’s much more fun to let the
speculation simmer and keep the headlines
coming.

And Gore himself seems a happier man.
He never dreamed of himself as a politician,
although his father was a long-serving U.S.
senator.

When he declined to seek a re-match with
Bush in 2004, Gore said he didn’t want to
“focus on the past” but on the future. As with
so many other things, Gore was right. And he
is getting the credit he deserves. How sweet it
must be.

(° This article is by Marianne Means of
Hearst Newspapers ~ © 2007)










a






























THE TRIBUNE

The and |

death of
Anna Nicole

EDITOR, The Tribune.

THE not so surprising death
of Anna Nicole Smith stunned
the Bahamian people. No
sooner had her death been
announced on Fox News, cell
phones and text messages
began spreading the news. For
some it was a bitter-sweet
announcement.

Ms Smith had created more
salacious news worldwide cat-
apulting the Bahamas in
tabloids around the world.
Her “fast track” residency
permit caused most of us to
conclude that something sin-
ister happened between Ms
Smith and PLP Minister of
Immigration Shane Gibson.

These strange dealings cre-
ated an uproar among many
Bahamians who are married
to foreigners and are waiting
for similar status for donkeys
years, the same document that
Ms Smith got in a flash.

There were also some spec-
ulation that Minister Gibson
was more deeply involved
with Smith so much so that it
was rumoured that his mother
was baby-sitting Ms Smith’s
newborn baby. There are just
too many unanswered ques-
tions and her death that would
prevent the Bahamian people
from wanting to know what
really went so drastically afoul.
Minister Gibson’s alleged
presence at Ms Smith’s wed-
ding questions just how deeply
involved he was with the
“porn star”.

Ms Smith was a “lightenihg
rod” for unusual news. Mr
Gibson’s ill-conceived behav-
iour did not see the potential
damage ahead. It is clear that
many were mesmerised by Ms
Smith, one way or the other,
but all who came into contact
with her, soon realised that
her beauty was more of a bait
than anything else. Once in
her clutches, she seemed to
have a “cast a spell” over the
men she touched.

But the end for Ms Smith
came and in her wake she left
a long line of men who were
literally controlled because of
her “loose lifestyle”. The list
included the most powerful
men she could find, which
eventually ended on the
shores of the Bahamas.

In spite of all of that, she is
finally out of her misery of
obvious drugs and alcohol and
confusion that followed her to
the end. My sympathy goes

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tainly Minister of Immigration
and Labour, Shane Gibson.
May her soul finally rest in
peace. Amen.




DAM BES

letters@tribunemedia.net



C E DEMERITTE !
out to her mother, other fam- Nassau,
ily members and most cer- February, 2007.

Minister does not need to
resort to that approach |

EDITOR, The Tribune.

PLEASE allow me space in your daily to take issue with a
line of attack that Minister Mitchell delivered at his rally in
Fox Hill. Please print this letter for all politicians to consider
as we go deeper into this political season.

At the core my purpose is to discourage politicians and
their operatives from attacking or drawing into the fray
family members of their opponents, who in many cases are
and not active politically (and in some cases have attempt-
ed to persuade their spouse or relative from getting
involved).

Minister Mitchell brought into the mix the husband and
I’m told the mother (his words “close relative”) of his female
opponent. Would it be fair to discuss the recent law school
graduate who often shares the same space with the Minister
or his mother in order to pursue victory at the polls?

I say no! Discussing that young gentleman or the Minis-
ter’s mother (close relative) would be inappropriate. They
have their own lives and should not be drawn into the fight.

Minister, your lead in the area is substantial. You do not
need to resort to that approach.

Come on FNMs, PLPs and BDMs, compete fair.



OLGA SMITH
(Old School voter)
Nassau,

February, 2007.

The circus is
back in town

EDITOR, The Tribune. _ Visa Outlet.
The Ballad of Shame and
THE circus is back intown Anna complete with bedroom

featuring the following clowns,
jesters and their acts.

Sidney and the Korean
Connection.

Wisdumb and his House of
Many Debacles.

Kung Fu Keod and his
Kenyatta Punching Bag.

Vincent and the Closet of
Many Dollars.

Fast Freddie's Discount

scenes, no one under eighteen:
admitted without parent.
Ringmaster Cool PC shuf-
fles while Bahamaland burns.
Oops, wrong shuffle, come too
late, but the Show must go on.

JOHN ANTHONY
Nassau,
February 14, 2007.



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3 THE TRIBUNE WEDNESDAY, FEBRUARY 28, 2007, PAGE 5







Judges to
decide the
fate of Anna

Nicole’s body

THE fate of Anna Nicole
Smith’s body is in the hands
of three appeals court judges
in Florida.

They will decide whether
to overturn a trial court ruling
that led to the decision to
bury the former Playboy

isplaymate in the Bahamas

.falong side-her son Daniel.

rh Ms Smith’s mother Virgie
Arthur is challenging a deci-
sion which last week gave
control of the cover girl’s
remains to the court-appoint-
ed guardian of the deceased’s
infant daughter.

Ms Arthur wants her

daughter buried in her native
Texas, not the Bahamas.

Lawyers have until this’

afternoon to respond to the
appeal. A panel of three
judges could seek oral argu-
ments, or they may decide the
case based on the briefs.
& The Supreme Court in the
"Bahamas has scheduled a
'March hearing in the custody
battle over baby Dannielynn.
bA judge has barred Ms
¥Smith’s companion Howard
®K Stern from taking the child
out of the Bahamas until
Athere is a ruling.

‘International

‘investigation
into major
drug seizure

FREEPORT - Bahami-
an and US authorities
have launched an interna-
tional investigation in con-
nection with a major drug
seizure at the container
port which resulted in the
discovery of $4 million
worth of cocaine.

Atcbrding to Supt Basil
Rahming, the illegal drugs
were discovered on Friday
wfoid 230pri during a
search of a 40-foot con-
tainer that arrived
onboard the Mediter-

tyanean Shipping Company
wessel, Yokohama, from
- Drug officers found two
darge blue bags packed
behind two Fiat cars. On
searching the bags, the
pfficers retrieved 132 kilos
of cocaine. The container
was in transit to Rio de
Janeiro, Brazil.

Mr Rahming said offi-
cers interviewed the ship’s
captain and crew, but no

rrests were made. The
illegal drugs were flown
by OPBAT helicopter to

, New Providence.

'



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WEDNESDAY,
FEBRUARY 28TH

6:30am Community Page 1540AM

8:00 Bahamas @ Sunrise

9:00 Bullwinkle & Friends

9:30 King Leonardo

10:00 . International Fit Dance

10:30 Real Moms, Real Stories,
Real Sawvy

11:00 Immediate Response

noon ZNS News Update












1:00 Legends: Paul Thompson

2:00 Island Lifestyles

2:30 Turning Point

(3:00 Paul Lewis

3:30 Don Stewart

4:00 The Fun Farm

5:00 ZNS News Update

5:05 Andiamo :

15:30 The Envy Life

6:00 Tourism Today Special

6:30 . News Night 13

7:00 Bahamas Tonight

8:00 Gillette World Sports:
Featuring Tonique Williams
Darling

8:30 Caribbean Passport

9:00 . Labour Speaks :

9:30 Fight For Life: Bangladesh

Caribbean Newsline

News Night 13

The Bahamas Tonight

Immediate Response

1:30am Community Page 1540AM






























NOTE: ZNS-TV 13 reserves the

right to make last minute
programme changes!





FOR 3 IN 1 LAWN SERVICE



Immediate Response Cont'd

more’ Claim that Anna Nicole’s Horizons

ome on market for $10 million

ANNA Nicole Smith’s home, Hori-
zons on the Eastern Road, is on the
market for $10 million, a Nassau
lawyer claims.

The luxury home, which changed

hands for only $950,000 last year, has »

rocketed ten-fold in value in six
months, according to attorney God-
frey ‘Pro’ Pinder.

And in another six months, the |

property could be worth $20 million,
Mr Pinder added.

His astonishing claims came during
Fox TV’s Greta van Susteren show,
when Mr Pinder floated the idea that
the house and its gardens could
become an Anna Nicole Smith muse-
um. ;

The house, with its fine swimming
pool and Greco-Roman statues, was
once owned by hotel developer Ron
Kelly, the man behind the $90 million

refurbishment of the British Colo-.

nial Hilton.

Anna Nicole and her attorney-
companion Howard K Stern moved
in last summer looking for peace and
quiet, but attracted only controversy
and strife.

The house was sold by liquidators
for $950,000 in a deal which has now
become the subject of litigation
before the Bahamas Supreme Court.

Ben Thompson, a South Carolina
realtor, claims he lent Anna Nicole
the money to buy the house on con-
dition it was repaid in instalments.

Anna Nicole claimed, however,
that Mr Thompson, a former lover,
gave her the property. He later
accused her of “double crossing”
him.

In the aftermath of Ms Smith’s
death earlier this month, Horizons

-_has become a tourist attraction and

the centre of almost constant atten-

- tion from the international press.

Mr Stern is said to be still living

@ SIR Lynden Pindling
(AP Photo)

Bahamians inducted into
Civil Rights Walk of Fame

TWO Bahamians, the late Bahamas Prime Minister Sir Lyn-
den Pindling and actor Sir Sidney Poitier were inducted into the
Civil Rights Walk of Fame in Atlanta this week.

Sir Lynden and Sir Sidney were inducted along with singer
Tony Bennett and the late boxer Joe Louis.

According to the Associated Press, this is the fourth group to
be inducted into the Walk of Fame in the plaza of the Martin
Luther King Jr National Historic Site near downtown Atlanta.

The walk, established in 2004, now includes 50 pairs of foot-
prints, marked in granite, from people who organisers call the
"foot-soldiers" of the civil rights movement.

The walk is a partnership between the Trumpet
Awards Foundation, the organisation that recently honoured
Prime Minister Perry Christie, and the National Parks

Service.

Poitier did not attend the ceremony because of a scheduling
conflict, but he travelled to Atlanta last weekend to be induct-
ed and instead of Sir Lynden, his widow Dame Margurite Pin-

dling had her footprints marked.

Other inductees this year include Atlanta Mayor Shirley
Franklin, civil rights attorney Frankie Muse Freeman, Atlanta
physician Dr Otis Smith, US Rep Maxine Waters, D-California,
Richmond, Va, mayor and former Virginia Governor Douglas
Wilder and civil rights activist Jean Childs Young.

Past honorees include media mogul Ted Turner, former Pres-
ident Jimmy Carter, legendary baseball player Henry "Hank"
Aaron, and performer's Stevie Wonder, Harry Belafonte and

Lena Horne.






Mi SIR Sidney Poitier
(AP Photo/Metropolitan



idence, named ‘Horizons’...



there with Anna Nicole’s baby, Dan-
nielynn, whose guardianship is also
the subject of court action in Nas-
sau.









Photo Service)

THE gate of Anna Nicole Smith's former res-
(AP Photo/Christine Aylen)

Yesterday, a Nassau realtor said
Mr Pinder’s appraisal might be wide
of the mark.

Though the Anna Nicole factor

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could add value to the property,
neighbouring homes of similar size
usually sell for between $1 million
and $3 million, the source said.






SANE

:



PAGE 6, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



2 __—_—< << __—— a

Energy projects, o

ff-shore

finance and the Bahamas

() N A trip to Flori-
da this past week-

end, I picked up several
magazines as a resource for
this column. By chance,
three of them featured sto-
ries that were relevant to the
Bahamas. —

Power from the Ocean

The first was'an article in
The Futurist about a project
by Florida Atlantic Univer-
sity — located just down the
road from my hotel — on
the Gulf Stream's potential
to produce electricity.

The university has a $5
million grant to research
technology to generate elec-
tricity from the Gulf Stream
current that flows from the
Caribbean to Greenland —
between Florida and the
Bahamas — at a top speed
of about four knots.

Florida's electricity use is
expected to rise by 30 per
cent over the next decade,
and the state is heavily
dependent on imported
sources of energy. That's
one reason why there has
been so much interest in bas-
ing liquified natural gas
plants at Bimini and



Freeport (to pipe imported
gas across the Gulf Stream
to Florida power stations).
But this new project will
use tidal current turbines to
generate power in much the
same way that land-based
windmills do — in the form
of an offshore underwater
'wind' farm. Since water is
denser than air, even slow-
moving currents can exert
great force on a turbine,
meaning that smaller rotors

can be used to keep costs |

down. The blades turn slow-
ly in the water and do not
pose a threat to marine life.

A 9-foot diameter proto-
type; turning at 30 revolu-
tions per minute, has already
been tested, producing 22
kilowatts of power. The goal

' is to have a field of 3,520

units in place, each about
100 feet in diameter and sus-
pended 200 feet below the
ocean’s surface, The entire

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Human Resources
Caribbean Banking
Royal Bank of Canada
Bahamas Regional Office

P.O. Box N-7549, Nassau, N.P, Bahamas

Via fax: (242)328-7145

Via email: bahcayjp@rbe.com

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IN | Royal Bank
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TOUGH CALL

LARRY SME

field will produce 8.44:

gigawatts, almost a fifth of
the state's present consump-
tion.

The research will exam-_

ine the cost and logistics of
running electrical cable from
the turbines to shore —
about 10 miles — as well as
the impact on coral reefs and
fish populations of running
the cable ashore.

France already has an
active tidal power station off
Brittany that produces 240
megawatts. A $20 million
tidal turbine generator ts
under construction in New
York's East River. And the
British installed the world's
first open-sea tidal turbine
off the coast of Devon three
years ago. It operates via
remote control and will
eventually produce 300
megawatts — enough to
power 8,000 homes. Experts
say 10 tidal power stations
around the coast could sup-
ply 20 per cent of the UK's
electricity needs.

The research grant (FAU

is one of six Florida univer- -

sities that are receiving
funds) is provided by the
state under the 21st Century
Technology, Research and
Enhancement Act. FAU is
working with a variety of
government agencies, pow-
er companies, technology
companies and marine
research groups.

"This funding will lead to
the establishment of a world-
class centre that will revolu-

‘tionize future energy pro-

duction on our planet,” said
Dr. Larry F. Lemanski, vice
president for research at
FAU. “We are very excited
about developing these inno-
vative, energy-producing
technologies, and we have
put together a strong part-
nership base composed of
industrial, academic and
government partners."

This is a technology that
could power the entire
Bahamas at a competitive
cost — saving hundreds of
millions of dollars in fuel
costs alone. And our total

power consumption is only
a fraction of Florida's.

The State of Solar
Related to this (in some
ways) was an article in Solar
Today magazine on devel-
opments in renewable ener-
gy over the past 20 years.
The most startling fact
was that by 2050 the addi-
tional power needed to sat-
isfy global demand will con-
sume the entire production
of 20,000 new large electric
power plants — each gener-
ating 1,000 megawatts.
Obviously, this magazine



duce steam that turns a tur- -

bine to generate electricity,
currently costs about 11
cents per kilowatt-hour in
the US. It is used in utility-
scale plants in several Amer-
ican states, which are sup-
plemented by natural gas
that generates a quarter of
the output. ,
Projects are now under-
way in the Middle East,
North Africa, Europe and
Latin America. Spain hopes
to generate 500 megawatts
from concentrating solar
power by 2010, and
China is considering a



“Florida's electricity use is
expected to rise by 30 per
cent over the next decade,
and the state is heavily
dependent on imported
sources of energy. That's
one reason why there has
been so much interest in
basing liquified natural gas
plants at Bimini and

Freeport.”



is in favour of using solar
power to meet this rapidly
rising demand. And it
reports that the cost of solar
electricity has dropped in the
US from several dollars to
less than 25. cents per kilo-
watt-hour over the past 20
vears, Through better man-

‘ufacturing, more efficient

devices and'new materials,
the industry expects to cut
that cost to less than 6 cents
within the next two decades.
The current cost of elec-
tricity in Nassau is about 27
cents per kilowatt-hour, but
solar equipment remains
expensive to import and
install. The government is
working on an energy policy
that may introduce incen-
tives to make such installa-
tions more cost-effective.
Concentrating solar pow-
er, which usés special mir-
rors to focus. the sun's ener-
gy on piped water to pro-

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1000 megawatt plant that
could cost more than $2 bil-
lion.

The magazine also report-
ed that the cost to produce
wind energy has dropped
from 40 toas little as 4 cents
per kilowatt-hour at the best
sites. The challenge here,
experts say, is transmission
since most people don't live
in the windiest places. So
researchers are developing
lower-speed turbines and
looking at ways to place
wind farms offshore.

"Much remains to be
accomplished before renew-
able electricity (can form) a
significant part of our energy
supply," the magazine con-
cluded. "More than ever,
policy makers, industry
interests and renewable
energy advocates must work
together to create the equi-
table policies and robust
markets that will make them
available to serve every
house and building."

Perhaps the best recent
example of such collabora-
tion is California Governor
Arnold Schwarzenegger's
10-year, $3.2 billion, solar
incentive programme, which

‘has the goal of installing

3,000 megawatts of photo-
voltaic power on the equiva-
lent of a million roofs
around the state. This
requires the industry to
increase the current installed
capacity six-fold.

The programme includes
financial incentives and mar-
keting campaigns as well as
writing solar technology into
the state's energy code. The
tax and cash incentives can
cover up. to half of the cost
of a solar system.

. We should be sg lucky in
the Bahamas.

OFCs - Good for the
Global Economy?

The Economist featured
a 14-page special report on
offshore finance — in which
the single reference to the
Bahamas was as one of a
group of tax havens that
were blacklisted by the
OECD in 2000.

Meanwhile, competitors



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.

Share your news

like the Cayman Islands,
Bermuda, Jersey, Singapore
and Dubai were cited for
diversifying into more
sophisticated businesses —
focusing on hedge funds,
captive insurance, deriva-
tives and other forms of
structured finance.

The magazine identified
three big problems for
today's globalised economy:

"Money moving instantly
and anonymously across bor-
ders can benefit terrorists,
drug traffickers and rogue
nations in need of cash.

"Footloose capital trans-
mits not just tainted money
but financial crises too,
(because) it is increasingly
difficult to understand where
financial risk lies. .

"Highly mobile financial
flows may take tax revenues
with them, (which) is partic-
ularly serious for rich coun-
tries with aging populations
that they will have to sup-
port in retirement."

So - since the 1990s - the
countries that control the
world's banking system have
been pushing for a stronger
regulatory regime to guard
against the undesirable
effects of financial globali-
sation: "The idea is to prod
financial centres worldwide
to adopt best practice on
bank supervision, the collec-
tion of financial information
and the enforcement of
money-laundering rules."

That's why we had to pass
all those financial laws in a
big rush seven years ago.
The alternative was to be
shut out of the international
banking system.

And recently, Barack
Obama, the African-Ameri-
can Democratic presidential
candidate, introduced a Bill
to prevent tax havens like
the Bahamas from draining
the US Treasury of $100 mil-
lion a year — a third of the
US budget deficit.

But The Economist thinks
tax competition is healthy
because, like all monopolies,
governments tend to become
bloated and competition
encourages high-spending
governments to change. And
after the regulatory vres-
sures of the past cesade,
supervision in most otfshore
centres is as good as iu :s
onshore, the magazine says.

While some offshore cen-
tres continue to be mainly
repositories of the cash of
large companies, rich indi-
viduals and rogues, others
(like Jersey, Bermuda and
Cayman) have become
sophisticated, well-run finan-
cial centres in their own
right, with expertise in nich-
es like structured finance
and insurance, according to
The Economist.

"Although international
initiatives aimed at reducing
financial crime are welcome,
the broader concern over
OFCs is overblown. Well-
run jurisdictions of all sorts,
whether nominally on — or
offshore — are good for the
global financial system."

Well, that's good news for
the Bahamas Financial Ser-
vices Board. Now if our
lawyers, accountants and
bankers could only provide
the kind of sophisticated ser-
vices offered by smaller:
competitors like Bermuda
and Cayman things would be |:
really looking up.

What do you think? Send
comments to

larry @tribunemedia.net

Or visit
www.bahamapundit.com













WZ

-

SF



THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 7



BPSU
president
FROM page one

ing, he said.

Mr Pinder suggested that

workers expect industrial
matters to be resolved before
the end of the government’s
mandate.
' Additionally, he argued
that the upcoming elections
allow workers the opportu-
nity to be more easily heard,
as governments prefer quiet
and industrial peace, rather
than discord, during these
times.

Mr Pinder stated: “This is
political season and we
expect for these matters to
be resolved before the
House is dissolved — from the
government standpoint.

“From a non-governmen-
tal standpoint, where persons
feel as if the government
could get involved and cause
resolution to come to out-
standing issues, they are now

making sufficient noise so’ :

the government could realise
it’s important to have mat-
ters addressed before they
go into a general election.”

Mr Pinder lamented the
current state of discord
before the election.

He said: “I hate to know
that it is the political season
and the voting’ population
has to look at the amount of
industrial unrest that is tak-
ing place in the country to
make their decision. It
should be that — whichever
governing party is in place —
they have performed to the
expectations of the people to
get re-elected.

“But, when they are not
performing up to the peo-
ple’s expectations, the unrest
Starts to happen — and they
lessen their (the governmen-
t’s) chances of being re-elect-
ed.”

Though resolution has
been reached with the prison
officers, and the Nurses
Union, disputes are still
pending with the road traffic
workers, the managers at
Baha Mar and the Teacher’s
Union, which is threatening a
strike that could cripple the
educational system, if their

dispute is not resolved quick-

ly. '



FROM page one

seriously.

Speaking with The Tribune, legal rep-
resentative of Save the Bahamas Fred
Smith said it is time that Bahamians realise
that the environment is the one resource
that will provide all the economic oppor-
tunities for future generations.

“We cannot understand how they (the
political. parties) can permit the environ-
mental destruction that is continuing. Over
the last five years more and more non-gov-
ernmental organisations, home owners
associations and other international envi-

LOCAL NEWS

Environment

ronmental organisations have been speak-
ing out about the rape of the Bahamian
environment.

“We cannot understand why neither the
FNM, nor the PLP have not passed an
environmental protection Act,” he said.

Mr Smith said that in his opinion the
newly-formed Ministry of Energy and
Environment has done little to promote
such an Act. He said he considers the min-
istry “a joke.”

Without laws in place to preserve. the



country’s natural resources, he said, it is
unclear in which manner the ministry is
regulating and enforcing the protection of
the environment.

“The ministry has no teeth. We are pass-
ing every other piece of legislation except
an environmental protection Act,” he said.

Mr Smith also expressed disappointment
in the Ministry of Energy.and Environ-
ment for granting new licences this week to
allow for the exploration for oil on the
Bahamian ocean floor.

“Oil exploration, the destruction of our
mangroves and the total destruction of all

of the creeks throughout the east end of

Grand Bahama, all the environmental sav-
agery that has been allowed. to happen
must stop,” he said. :

Mr Smith added that it cannot be that

Bahamians are “just going to sell our
nation in the short term for quick bucks to
be earned by foreign real estate agents and
developers.
, “It is time we took the environment seri-
ously and Save the Bahamas challenges
the voters of the Bahamas, all 150,000 of
them, to challenge each prospective rep-
resentative, both on the PLP and FNM
tickets, to commit to the environment,” he
said.









Contractor concerns FROM page one

FROM page one

that this sham stops.” It was claimed that the Ministry and Min-
ister Neville Wisdom were “going to end up with a bad name.”
The ‘source predicated that “serious controversy is going to

erupt soon due to this matter.”

The Tribune over the past several months has been reporting
allegations of poor workmanship by contractors in subdivisions
such as Excellence and Dignity Gardens, and Pride Estates.

Residents of those subdivisions said that in some instances their
houses deteriorated severely within weeks of being occupied.

Complaints included uneven floors, cracked tiles, damaged cab-
inets, dented doors, unconnected faucets, leaking pipelines, and

severe water damage.

Earlier this month Minister Wisdom urged all new home-
owners to bring their complaints directly to him.

Industrial unrest avoided

FROM page one

er in Eleuthera Properties Ltd.,
the company developing the first
Bahamian owned and operated
resort on the scale of the Cotton
Bay Estates and Villas.

In an unprecedented move
last year, the Royal Bank of
Canada invested $2 million in
the Cotton Bay development, a
first in the bank’s nearly centu-
ry-long presence in The
Bahamas and the Caribbean.

Investment Minister Vincent
Peet said the investment should

_ prove to be a catalyst, noting

that it realized an equity part-
nership between a commercial
bank and the largest domestic
investor in the country’s prima-
ry industry.

And at the beginning of this
year, the developers announced

that Phase I of the development

will open a few months later
than originally announced.

The opening of Cotton Bay’s
73-room resort was scheduled
for May or June 2007, but
Eleuthera Properties Chairman
Franklyn. Wilson disclosed that it
is‘ now-slated ‘to take place in
November.

Mr Wilson made the

announcement during a contract
signing event for the installation
of water and sewerage in the
first phase of the project.

Yesterday, The Tribune spoke
to the managing director of the
project who explained the cur-
rent position on the industrial
unrest.

According to Mr Steen-
bakkers: “Last Friday there was
a little bit of a glitch with the
bank’s processing of the payroll,
but all of these issues were
resolved yesterday.”

Mr. Steenbakkers said that
at the moment all 120 construc-
tion employees were at work.

Asked if he foresaw any
future problems with the work-
ers on the project, he said that
on projects as large as Cotton
Bay challenges are expected.
“But this was just an isolated
incident where everything has
been resolved,” he said.

Cotton Bay’s Phase I will
comprise two and three bed-
room villas, 114 estate lots and a
26,000-square foot clubhouse.

Future phases will include an
18-hole championship golf
course, wellness centre/
spa, additional real estate devel-
opment and an expanded mari-
na.







ACK
_

Minister Roberts also said
he will donate part of his par-
liamentary pension for the
benefit of the Bain and
Grant’s Town Constituency
and other charitable causes.

Mr Roberts will not be
seeking re-election to the

FROM page one

Contacting the union on Monday, labour officials
pushed for a meeting this week, said Mrs Poitier
Turnquest, however due to her current ill health it
has been postponed to next week.

Depending on the outcome of this meeting, BUT
officials will decide whether to go ahead with the
strike vote, which has been in the pipeline for about
two weeks, said the union president.

If a strike vote is taken, up to 800 teachers coun-
try-wide could leave the classroom.

Teachers have been protesting for several weeks
about numerous long-standing issues relating to

their salaries and status.

These include undelivered backpay, lack of
reassessment for those with additional qualifica-
tions, and monthly rental allowances which have

FROM page one

expressed its opinion that the
time had come to end the litiga-
tion over Defendant’s extradition:
‘The fact of the matter is. that
Samuel Knowles has reached the
end of the road. He and his coun-
sel (and the respondents’ coun-
sel) have fought a long hard fight,
and with considerable credibili-
ty. But it is over. No extra time is
allowed.’”

Furthermore, the response
seeks to nullify Knowles’ claim
that his extradition was unlawful,
due to his having a writ of habeas
corpus outstanding. The United
States contends that the language
of the Supreme Court which stat-
ed that the habeas corpus was
“doomed to fail” and had “less
chance of success that (sic) the
proverbial snowball in Hell,”
unambiguously affirmed the
legality of the extradition.

“Were I to accede to this appli-








Pensioners to see increase

House of Assembly in the
general elections.

Mr Roberts said he came to
the House of Assembly as a
seasoned and successful busi-
nessman who made provisions
in advance for his eventual
retirement.

He said whatever his enti-
tlement is under the contrib-
utory Parliamentary Pensions
Act “will be a bonus which I
shall use in part for the bene-
fit of the constituency of Bain
and Grant’s Town and other
charitable causes.”

BUT officials are set

to meet with director
and minister of labour

gone unpaid for up to six months.
Teachers in both Grand Bahama and New Prov-
idence, claiming to be “at the end of their tether"

with the ministry, have been involved in disruptive

demonstrations and sick-outs.

They allege that negligence on behalf of the min-

ship. >

istry has left many suffering severe financial hard-

In the meantime, Education Minister Alfred Sears

Ninety

cation, it would allow Knowles to
carry on with this impossible task.
After, perhaps another two or
three year’s delay, he would have
ended up. in the same place. I
could order his return to the juris-
diction but in three years, time
after the appeals have been done
he would be back in Miami,” said
the document, quoting a decision
of the Supreme Court.

According to the response, the
Minister of Foreign Affairs’ sign-
ing of the Warrant of Surrender
further bolsters the United States’
claim to jurisdiction with regard
to the extradition treaty, as well as
the Government’s lack of protest
to it.

Judge John Cohn, who heard
Knowles’ appeal for dismissal
Thursday, did not make a ruling
on the issue, but deferred and

said he wouid return later with.,

The management and staff of

_C.A. Christie Real Estate
would like to take this
occasion to congratulate

Confidence Insurance Brokers & Agents Ltd.

Shirley St. (2nd floor The Standard House)
Phone: 323-6920 Fax: 325-8486

In The Insurance Industry

Again....CONGRATULATIONS!

C.A. Christie Real Estate
Seagrapes House

Saunder’s Beach

P.O. Box N-8245

Nassau, Bahamas

Phone: (242) 326-4800

Fax: (242) 326-5684

email: sales@cachristie.com

\

has stated that "extraordinary measures" are being
taken to ensure teachers receive outstanding pay
and reassessments expeditiously. ,



lm SAMUEL ‘Ninety’ Knowles

his decision.

Knowles’ case is being expe-
dited as swiftly as possible by the
federal government because “it
is an aged case” and “the court
finds that the ends of justice
served by the granting of a con-
tinuance (of trial) outweigh the
best interest of the public and the
defendant in a speedy trial.”






















PAGE 8, WEDNESDAY, FEBRUARY:28, 2007

THE TRIBUNE '



Poverty, gender equality among topics

addressed during Population Fund visit

REDUCING poverty,
improving the quality, and
establishing gender equality in
the Bahamas were among the
topics addressed during the vis-
it of the United Nation’s Popu-
lation Fund (UNFPA) repre-
sentative to the Bahamas this
week.

The UNFPA representative
for the English and Dutch-
speaking Caribbean Harold
Robinson has wrapped up a
three-day familiarisation visit
to the Bahamas by meeting with
representatives of key govern-
ment and non-governmental
agencies. ©

Mr Robinson’s visit is expect-
ed to boost UNFPA’s assistance
in the area of gender and devel-
opment in the Bahamas.

Mr Robinson said the over-
all objective of the current
UNFPA Country Programme
in the Caribbean is “to con-
tribute to the reduction of
poverty and to improve the
quality of life of the people of
the region by promoting sexual
and reproductive health and
rights; gender equality and equi-
ty and by integrating popula-
tion ‘related factors into
development strategies and
plans.”

Phedra Rahming of the Min-
istry of Social Services and offi-
cer-in-charge of the Bureau of
Women’s Affairs, described Mr
Robinson’s visit as “quite sig-
nificant.”

She explained that as a result
of the visit the Bahamas should
soon be seeing some assistance
from UNFPA in the area of
gender and development.

“We are very hopeful that in
the ensuing months, we are
going to formalise an agreement
and begin some work beginning
with a needs assessment
throughout our islands and the
preparation of a report and cer-

tainly moving towards the
establishment of a gender poli-
cy for the country,” Mrs Rah-
ming said.

One of the drawbacks facing
local officials in getting UN
assistance in the past, she said,
was that the UN had no estab-
lished programmes in the
Bahamas prior to 2007.

She said that the Bahamas
never qualified for the pro-
grammes “because we are
viewed to be so far up the scale
that no one was considering us.”

“What has happened for the
most part and particularly in
the government agencies is that





@ THE Junior Achievement organisation held an Open House at the National Insurance Board on
Blue Hill Road on Thursday. The National Insurance Company’s Clink group won the open house with
their ‘Bahamian Wedding’ theme.



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21 New Shops,

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we are so accustomed to hear-
ing that we can’t qualify
because it is done on a per capi-
ta basis and because we are
viewed to be so far up the scale,
no one considered us,” Mrs
Rahming said.

Prior to Mr Robinson’s vis-
it, the Ministry of Social Ser-
vices set up strategic meetings
with various entities through-
out the community.

As a result of these meetings,
it is expected that Bahamians
will see more of the non-gov-
ernmental organisations. as well
as government entities putting
forth proposals to UNFPA

“The Bureau of Women’s
Affairs will definitely be seeking
their assistance and I believe
there are some other NGOs
who have said they will do so as
well,” Mrs Rahming added.

UNFPA has provided sup-
port to the Caribbean since
1969 and remains the largest
international source of popula-
tion assistance.

The fund has provided more
than $40 million to govern-
ments, non-governmental
organisations and civil societies,
in support of programmes and
projects at both the national and
regional levels.



@ THE activities continued on Saturday with a step show at St John’s College - featuring BEC’s
group (pictured).

Junior Achievement works in partnership with businesses and educators to help young people
understand the economics of life.

t

! SE



Esso campaign raises $32,000

for hospital foundation

ll SURROUNDED by the Esso team, PMH Foundation members and PMH officials, foundation



chairman Myles Munroe accepts a cheque from Keith Glinton, Esso’s country manager
(Photo: BIS/Kristaan Ingraham)

ESSO’s ‘Help Us Help’ cam-
aign last year raised more than
32,000 for the Princess Mar-

garet Hospital Foundation.

“This creative partnership
made it possible for individuals
in the community to contribute
to the mission of the Princess
Margaret Hospital Foundation
by purchasing fuel from the par-
ticipating Esso stations,” Foun-
dation chairman Myles Munroe
said.

“Funds from the programme
will be used to purchase much-
needed medical equipment to
assist in pediatric care at
Princess Margaret Hospital,
mainly the children’s ward, the
neonatal intensive care units
and the special care baby units,”
he added.

Mr Munroe said the PMH
Foundation wil continue to

promote creative partnerships
with companies and pro-
grammes, such as Esso’s ‘Help
Us Help’, to strengthen the lev-
el of service provided by the
hospital.

The PMH _ Foundation
“thanks all who contributed
unselfishly to the success of the
programme,” said Mr Munroe,
mainly the Esso dealers and
employees, the media and all
who made Esso their choice
during the programme.

A percentage of fuel pur-
chased at participating Esso sta-
tions raised $32,248 in contri-
butions to the programme.

“The ‘Help Us Help’ pro-
gramme allows the driving pub-
lic the opportunity to contribute
to something significant with-
out going through tremendous
effort,” said Esso’s country

manager Mr Keith Glinton.

“We provide the mechanism
and they actually make the deci-
sion to contribute. Anything we
can do to increase the likeli-
hood of those solutions grow-
ing to fruition is very, very nec-
essary.”

Mr Glinton commended the
PMH Foundation for affording
his company an opportunity to
partner with them and assured
them that, as long as they have
the continued support of their
station operators, Esso will do
its best to continue to con-
tribute.

“The united partnership
between Esso and the Princess
Margaret Hospital Foundation
has proven that miracles can
happen through partnership and
community efforts,” Mr
Munroe added.

pgs

me SS

SA SF.



THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 9









90 to work at
children’s home

AS A way of helping the less fortunate, the
Royal Bahamas Defence Force has been involved
in performing myriad tasks with several charita-
ble organisations.

The harbour unit section of the squadron
department visited Bilney Lane Children’s Home,
where they were busy painting and cleaning the
building.

Although it was for just a few days, the marines
planned on making more frequent visits to resi-
dents there, with the hope of doing minor main- a

tenance work. :

The operations section of the Defence Force
visited Unity House, East Street South, where
they also performed charitable work. The marines
removed debris from the property.

_ LEFT: Leading Seaman Leon Pearson paints
the walls of Bilney Lane Children’s Home during
a recent visit.

(RBDF photo by Leading Seaman
Jonathan Rolle)














@ MAR)

im the operations section prepare to discard old wheelchairs at Unity House, East



B® DEFENCE Force marines take a break while performing charity work at Bilney Lane Children’s
Home.

Street South. 'y were at the residence engaged in charitable work.

(RBDF photo by Leading Seaman Mark Armbristér)

Late environmentalist’s
dream to be kept alive
through scholarship

(RBDF photo by Leading Seaman Jonathan Rolle)



FAMILY and friends of the
late noted environmentalist
Ethan Bain have established
a memorial scholarship foun-
dation as a way of keeping his
spirit and love for The
Bahamas’ environment alive.

Through the foundation,
students and professionals can

begin or continue their work in’

the environmental health sci-
ences while helping The
Bahamas to keep its islands
clean as a desirable resort for
national and international vis-
itors.

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dependent on the tourism
trade and, as a resull, we
should continue Ethan’s wish
to have our economy remain
competitive in the ever-
increasing field of destination
selection,” said Mrs Janice
McCants Miller, foundation
vice-chairman.

Students and career profes-
sionals will be awarded schol-
arships either to begin pursu-
ing environmental studies or
to upgrade their credentials in
this field. The foundation aims
to serve as an effective tool in
attracting individuals to envi-

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Strong Verbal & Communication Skills.
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Strong Attention to detail.
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ronmental studies and in
encouraging their retention in
the field.

Officers and members of the
foundation’s executive and
selection councils have’ been
meeting for several months to
develop criteria for selecting
award recipients, expand the
donor database, establish a
website and identify projects.

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Ravel KPMG Telephone 242 393 2007

PO Box N 123 Fax 242 393 1772
Montague Sterling Centre Internet www.kpmg.com.bs
East Bay Street

Nassau, Bahamas

INDEPENDENT AUDITORS’ REPORT
To the Shareholder of The Bank of Nova Scotia International Limited
Report on the consolidated balance sheet

We have audited the accompanying consolidated balance sheet of The Bank of Nova Scotia International
Limited (“the Bank”), as of October 31, 2006, which includes a summary of significant. accounting policies
and other explanatory notes.

Management's responsibility for the consolidated balance sheet —

Management is responsible for the preparation and fair presentation of this 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 this consolidated 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
consolidated balance sheet is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated balance sheet. The procedures selected depend on the auditor's judgment, including the
assessment of risks of material misstatement of the consolidated balance sheet, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the consolidated balance sheet 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 consolidated balance sheet. ‘
é
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 position of
The Bank of Nova Scotia International Limited as of October 31, 2006, in accordance with International
_ Financial Reporting Standards. :

The corresponding figures as of October 31, 2005 were audited by another firm of Chartered Accountants
and their report thereon, dated February 20, 2006, expressed an unqualified ‘opinion.

KPMG

Chartered Accountants

Nassau, Bahamas
February 23, 2007

THE BANK OF NOVA SCOTIA INTERNATIONAL LIMITED

Consolidated Balance Sheet

October 31, 2006, with corresponding figures for 2005
(Expressed in United States dollars)



Note 2006 2005
($'000s) ($'000s)
Assets
Deposits with Central Banks : $ 157.881 170,798
Deposits with banks
Affiliate 1,814,681 1,941,864
Other 1,956,698 1,717,016
3, 19(a)(c)(e) 3,929,260 3,829,678
Loans and advances to customers 4 10,342,239 6,078,750
Accrued income
Affiliates : 29,160 ; 16,139
_ Other 167,563 99,521
Derivative financial instruments 18 126,073 111,652
Investments 5, 19(a)(c)(e) 8,027,704 7,360,591
Assets under repurchase agreements 19(a)(c)(e) 2,250,818 1,890,962
Insurance balances receivable. 13 25,790 17,057
Investment in associates . 645 809
Other assets 6 298,047 66,449
Deferred tax asset - 283
Fixed assets : 50,953 28,338
Investment property 8 , 4,188 3,685
Goodwill 7 6,138 8,138
$ 25,258,578 19,512,052
Liabilities and Equity
Liabilities
Deposits
Affiliates $ 5,971,247 3,882,266
Other 7,256,886 5,395,680
9, 19(a)(c)(e) 13,228,133 9,277,946
Accrued interest payable
Affiliates . 29,272 21,633
Other i 86,703 37,139
Due to : : .
Affiliates ; 295,622 2,124
Other 35,436 -
Derivative financial instruments : 18 + 245,944 255,334
Obligations related to repurchase agreements 19(a)(c)(e) 2,240,004 1,868,479
Obligations related to trading securities sold short i 1,043,601 1,069,451
Insurance liabilities 13 99,360 78,098
Other liabilities 10, 16 563,615 146,482
Tax liabilities 11,960 5,431
Debt securities in.issue 25,314 -
Equity linked note : ll. 747,957 720,508
Redeemable preference shares held by Parent Bank 15 : 59,260 59,260
Total liabilities 18,712,181 13,541,885
Equity
Share capital 14 2,792 © 2,792
Share premium 1,466,559 1,466,559
Contributed surplus 299,748 299,748
. Statutory reserves 14 7,058 . 5,728
Retained earnings 4,667,240 4,092,340
Equity attributable to equity holders of the parent 6,443,397 5,867,167
Minority interest 12 103,000 103,000
Total equity 6,546,397 5,970,167
» $25,258,578 19,512,052

See accompanying notes to consolidated balance sheet.
This balance sheet was approved on behalf of the Board of Directors on February '23, 2007 by the following:

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Director





Notes to Consolidated Balance Sheet

October 31, 2006
(Expressed in United States:dollars)



1. Reporting entity

The Bank of Nova Scotia International Limited (the ‘Bank’) is incorporated under the Companies Act,
1992 of the Commonwealth of The Bahamas and is licensed under the Banks and Trust Companies
Regulation Act, 2000. The Bank is a wholly owned subsidiary of The Bank of Nova Scotia (the ‘Parent
Bank’), a company incorporated in Canada. The registered office of the Bank is located at Scotia House,
404 East Bay Street, Nassau, The Bahamas. The primary activities of the Bank and its wholly owned
subsidiarics (cogether the ‘Group’) are offshore wholesale banking, retail and commercial banking, the
provision of trust, corporate and administrative services, and insurance.

The Bank nas operations in over 11 countries... As at October 31, 2006, the Group employed
approximat


IHE |RIBUNE

2. Basis of preparation and significant accounting policies ,

(a) Statement of compliance

The Bank's consolidated balance sheet has been prepared in accordance with International Financial
Reporting Standards. The accounting policies have been applied consistently to all periods presented
in the consolidated balance sheet and have been applied consistently by Group entities.

(b) Basis of measurement

The consolidated balance sheet has been prepared under the historical cost convention as modified

by the revaluation of certain financial assets and financial liabilities and derivative contracts to fair
value.

(c) Functional and presentation currency

The consolidated balance sheet is presented in United States dollars (USD), which is the Group’s

functional currency. Except as indicated, financial information presented in USD has been rounded
to the nearest thousand.

(d) Use of estimates and judgements

The preparation of the consolidated balance sheet requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts
of assets and Jiabilities and disclosure of contingent assets and liabilities at the balance sheet date.

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 judgements in
applying accounting policies that have the most significant effect on the amount recognized in the
consolidated balance sheet is described in notes 4,7, 13, 16, 18 and 21.

(e) Adoption of changes in IAS and IFRS

~

In December 2003 and March 2004, the IASB approved amendments to a number of existing
standards as a result of the Improvements project and issued several new standards. The objective:
of the Improvements project were to reduce or eliminate alternatives, redundancies and conflict:
within the standards, to deal with some convergence issues and to make other improvements.

On November 1, 2005, the Group adopted the revised versions of IFRS and IAS that were effective a
January 1, 2005 as described below: ;

o IAS 24 — Related Party Disclosures — has affected the identification of related parties and som«
other related party disclosures.

e JAS 39— Financial Instruments: Recognition and Measurement

As part of the Improvements project IAS 32 and IAS 39 were significantly amended. The
amendments became effective for periods beginning on or after 1 January 2005. Corresponding
information was adjusted in accordance with LAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors to ensure the appropriate accounting policies are applied within each
period. ; ‘

The amended IAS 39 introduced a new category of financial instruments (i.e. financial assets and
financial liabilities at fair value through profit or loss). Under the amended IAS 39, designation
of any financial assets or financial liability at fair value through profit or loss is made upon initial
recognition at the Group’s discretion.. The Group shall not reclassify a financial instrument into
or out of the fair value through profit or loss category while it is held or issued. However,
transitional provisions to IAS 39 allowed the Group a one time opportunity to designate a
previously recognized financial asset or financial liability as a financial asset or financial liability
at fair value through profit or loss despite the requirement to make such designation upon initial
recognition. The Company. designated certain investments previously classified as available-for-
sale to fair value through profit or loss due to accounting mismatch.

At November: 1, 2005 certain investments in debt, other fixed income and other securities with
carrying amounts and fair values of $3,285 million were designated at fair value through profit or
loss. In the consolidated balance sheet as of October 31, 2005 these investments were classified
as available-for-sale. ;

Designation of all equity investments at fair value through profit or loss at November 1, 2005 did
not result in any adjustment to their carrying amounts.

(f) Principles of consolidation

The consolidated balance sheet includes the accounts of the Bank and its subsidiaries afte:
elimination of all significant intercompany accounts, transactions and profits. Subsidiaries are those
companies in which the Group has more than one half the voting rights or otherwise has the power to
exercise control over the financial and operating policies. ,

Subsidiaries are consolidated from the date on which control is transferred to the Group and are no
longer consolidated from the date that control ceases. Where necessary, accounting policies of the
subsidiaries have been changed to ensure consistency with the policies adopted by the Bank.





The financial statements of the subsidiaries used in the preparation of the consolidated rat
have been drawn up to October 31, except for Scotia Insurance (Barbados) Limited, wh¥>
are drawn up to.September 30. Adjustments are made for the effects of any significam. S.as or
intra-group transactions that occur between September 30 and the date of the Bank's consolidated

balance sheet.

The Bank owns 100% of the voting shares of the subsidiaries in all cases, with the exception of
Corporacion Interfin S.A. which the Bank owns 99.99% of the voting shares.

The Bank's subsidiaries at October 31, 2006 are as follows:

NAME COUNTRY OF INCORPORATION
BNS Bermuda Limited Bermuda
BNS International (Barbados) Limited Barbados . ‘
BNS International (Panama) S.A. The Republic of Panama
BNS Pacific Limited —- Mauritius
“Corporacion Interfin S.A. Costa Rica
Scotiabank (Bahamas) Limited The Bahamas
Scotiabank Caribbean Treasury Limited The Bahamas

Scotiabank (Belize) Ltd. Belize

Scotiabank (British Virgin Islands) Limited British Virgin Islands
Scotiabank (Hong Kong) Limited Hong Kong
Scotiabank (Ireland) Limited The Republic of Ireland

Scotiabank (Turks and Caicos) Ltd. The,Turks & Caicos Islands
Scotia Corredores de Seguros S. A. Dominican Republic |
Scotia Insurance (Barbados) Limited Barbados

Scotia Insurance de Puerto Rico The United States of America

Scotia Realty Cayman Limited The Cayman Islands
Scotia South America Limited The Bahamas

The Bank of Nova Scotia Asia Limited The Republic of Singapore
The Bank of Nova Scotia Trust Company

(Bahamas) Limited : The Bahamas,

(g) Investments in associates

Investments in -associates are accounted for by the equity method of accounting. Associates are
entities over which the Group generally has between 20% and 50% of the voting rights, or over
which the Group has significant influence, but which it does not control. Unrealized appreciation on
transactions between the Group and its associates are eliminated to the extent of the Group’s interest
in the associates; unrealized depreciation is also eliminated unless the transaction provides evidence
of an impairment of the assets transferred.

(h) Translation of foreign currencies

Items included in the financial statements of each entity of the Group are measured using the
currency that best reflects the economic substance of the underlying events and circumstances
relevant to that entity (the “functional currency”). The consolidated balance sheet is presented in
U.S. dollars which is the functional and presentation currency of the Bank.

Statements of operations and cash flows of foreign entities are translated into the Group's
presentation currency at average exchange rates for the year and their balance sheets are translated at
the exchange rates ruling on October 31,

(i) Originated loans and the provision for loan impairment

Loans originated by the Group by providing money directly to the borrower or to a sub-participation
agent at draw down are categorized as loans originated by the Group and are stated at their principal
amount net of unearned interest and allowance for credit losses. Third party expenses, such as legal
fees, incurred in securing a loan are treated as part of the cost of the transaction.

All loans and advances are recognized when cash is advanced to the borrowers. Loan origination and
associated fees that are material to the Group are recognized over the appropriate lending or
commitment period.

A specific credit risk provision for loan impairment is established to provide for-management's
estimate of credit losses as soon as the recovery of an exposure is identified as doubtful. The amount
of the provision is the difference between the carrying amount and the recoverable amount, being the
estimated present value of expected cash flows, including amounts recoverable from guarantees and
collateral, discounted at the original effective interest rate of loans. In the case of loans to borrowers
in countries where there is an increased risk of difficulties in servicing external debt, an assessment
of the political and economic situation is made, and additional country risk provisions are established
as necessary.

A provision for loan impairment is also established to cover losses that based on experience are
judged to be present in the lending portfolio at the consolidated balance sheet date, but which nave
not been specifically identified as such. This provision is based on an analysis of internal credit
gradings allocated to borrowers, refined to reflect the economic climate in the markets in which the
Group operates.

When a loan is deemed uncollectable, it is written off against the related provision for iinpairments,
subsequent recoveries are credited to the provision for loan losses.

If the amount of the impairment subsequently decreases due to an event occurring atter the write
down, the release of the provision is credited as a reduction of the provision for loan losses.

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(j) Investments

The Group has classified its investments into the following categories: available-for-sale, fair value
through profit and loss, and held-to-maturity. Investments are. classified as available-for-sale if
management intends to hold the investments for an indefinite period of time, but may sell the
investments in response to needs for liquidity or changes in interest rates, exchange rates, or equity

prices. Investments are classified as fair value through profit and loss if they are acquired principally
for the purposes of generating a profit from short-term fluctuations in price or dealers’ margin or if
they are so designated at the time of acquisition. Investments with fixed maturity where management
has both the intent and the ability to hold to maturity are classified as held-to-maturity. Management
determines the appropriate classification of its investments at the time of purchase. Effective
October 1, 2005, the Bank availed itself of the transitional provisions under LAS 39 (revised 2004)

and designated all of its investments previously recognized as available-for-sale to fair value through
profit and loss.

All regular way purchases and sales of investments are recognized on the trade date, which is the
‘date that the Group commits to purchase or sell the asset. Investment securities are initially
recognized at fair value (which includes transaction costs). Fair value through profit and loss
investments are subsequently remeasured at fair value based on quoted bid prices or amounts derived
from valuation techniques, e.g. discounted cash flow models.

Held-to-maturity investments are carried at amortized cost, less any provision for impairment. A
financial asset is impaired if its carrying amount is greater than its estimated recoverable amount.
The amount of the impairment loss for assets carried at amortized cost is calculated as the difference
between the asset’s carrying amount and the present value of expected future cash flows discounted
at the financial instrument's original effective interest rate. By comparison, the recoverable amount
of an instrument measured at fair value is the present value of expected future cash flows discounted
at the current market rate of interest for a similar financial asset.

(k) Fixed assets

Fixed assets are stated at historical cost less accumulated depreciation. With the exception of land,
all fixed assets are depreciated on a straight-line basis over their estimated useful lives, for material
subsidiaries, as follows:

Leasehold improvements Over the term of the lease, plus | renewal term

Office equipment Between 3-5 years

Office furniture and fixtures Between 3-10 years

Motor vehicles Between 3-5 years

Fixed assets are periodically reviewed for impairment. Where the carrying value amount of an asset
is greater than its estimated recoverable amount, it is written down immediately to its recoverable
amount. Gains and losses on disposal of fixed assets are determined by reference to their carrying
amount. All repairs and maintenance costs are expensed as incurred and all major renovation costs
are capitalized. : ,

(qd) Investment property

All property held to generate cash flows independent of the other assets held by the Bank, have been
classified as investment property.

Investment property is reflected at cost less accumulated depreciation and accumulated impairment
losses, if any. Depreciation is provided on the following basis:

Buildings and equipment
Building improvements
Tenant improvements

Depreciated between 20 - 40 years on a straight-line basis.
Amortized over the estimated useful life of the building.
Amortized over the remaining term of the lease.

All repairs and maintenance costs are expensed as incurred and all major renovation costs are
capitalized.

(m) Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired
at the date of acquisition and subsequent to the date of acquisition, is recorded at cost less any
accumulated impairment losses. Goodwill is not amortized but is subject to impairment testing on at
least an annual basis. If there is any indication of impairment, an analysis is performed to assess
whether the carrying amount of goodwill exceeds its fair value either through use or recoverability. Fair
value through use is measured as the present value of future net cash flows.

(n) Pensions

Group companies have various pension schemes in accordance with local conditions and practices in
the countries in which they operate.

Costs relating to defined benefit schemes are assessed in accordance with the advice of qualified
actuaries. Variations from the regular cost are spread over the average remaining service lives of
existing employees.

The Group's contributions to defined contribution plans are charged to the period to which they
relate.



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* 'Securities sold’ With’ an agreement to repurchase, continue to be recognised in the consolidated
balance sheet and are reported as assets under repurchase agreements which are measured in
accordance with the accounting policy for investment securities. The proceeds and securities
received from sale of the investments under repurchase agreements are reported in the consolidated
balance sheet as obligations related to repurchase agreements. Securities purchased with an
agreement to resell (reverse repurchase agreements) are reported in the consolidated balance sheet as
loans and advances to customers. The difference between the sale price and repurchase
consideration is recognised on an accrual basis over the period of the transaction.

(p) Derivative financial instruments

Derivative financial instruments are used predominantly by the subsidiaries in Ireland, Asia, and
Hong Kong. Derivative financial instruments, including foreign exchange contracts, interest rate
futures, forward rate agreements, currency and interest rate swaps, currency and interest rate options
(both written and purchased) and other derivative financial instruments, are initially recognized in
. the consolidated balance sheet at fair value and subsequently are remeasured at their fair value. Fair
values are obtained from quoted market prices, discounted cash flow models and options pricing

models ‘as appropriate. All derivatives are carried as assets when fair value is positive and as
liabilities when fair value is negative.

Certain derivatives embedded in other financial instruments, such as the conversion option in a
convertible bond, are treated as separate derivatives when their risks and characteristics are not
closely related to those of the host contract and the host contract is not carried at fair value.

Certain derivative transactions, where providing effective economic hedges under the Group’s risk
management policies do not qualify for hedge accounting under the specific rules in IAS 39. Changes

in the fair yalue of any derivative instrument that does not qualify for hedge accounting under LAS 39
are recognized immediately.

(q) Reinsurance contracts and actuarial liabilities
Reinsurance contracts
(i) Classification

Contracts entered into by the Group whereby one party (the “reinsurer”) accepts significant insurance
risk from another party (the “reinsured”) by agreeing to compensate the reinsured if a specified
uncertain future event (the “insured event’) adversely affects the reinsured are classified as reinsurance
contracts. The significance of insurance risk is dependent on both the probability of an insurance event
and the magnitude of its potential effect. ;

(ii) Recognition and measurement
(a) Reinsurance contracts assumed

Gross premiums written are recognized as income when due. Unearned premiums are the portion
of premiums written which relate to coverage provided subsequent to the balance sheet date.

Claims are recorded as incurred. Loss reserves represent estimates of future payments of reported
and unreported claims and related expenses with respect to insured events that have occurred up
to the balance sheet date,

Ceding and expense allowances payable are recognised on the same basis as gross premiums
written.

(b) Reinsurance contracts ceded
The Company assumes and cedes insurance risk in the normal course of business.

The obligations of a reinsurer under reinsurance contracts ceded are recognised as reinsurance
balances receivable or payable. Reinsurance balances are measured consistently with the
insurance liabilities to which they relate. :

Reinsurance premiums ceded and related ceding fee income are recognized when due.
Reinsurance claim recoveries are established at the time of the recording of the claim liability.

Actuarial liabilities

Actuarial liabilities are calculated using methods and assumptions considered to be appropriate to the
circumstances of Scotia Insurance (Barbados) Limited (‘SIBL?) and to the policies in force. They
include a provision for losses incurred but not reported and represent the amount, which, in the opinion
of SIBL's actuaries, is required to provide for future benefits on policy contracts reinsured by SIBL.

(r) Cash and cash equivalents

Cash and cash equivalents comprise deposits with original maturities of less than 3 months from the
acquisition date.

(s) Fiduciary activities

Assets held of liabilities incurred together with related undertakings to return such assets to customers
or any collateral or other security arrangement entered into by the Group are excluded from the

consolidated balance sheet where the Group acts in a fiduciary capacity such as a nominee, trustee or
agent.

3.

WEDNESDAY, FEBRUARY 28, 2007, PAGE 11

RASTA RETO Pe. PAE: HER te OY ee ae

|
(t) Taxation and deferred income taxes
The Bank is not subject to taxation in The Bahamas. However, the Bank’s subsidiaries operate in
multiple jurisdictions and are subject to taxation at varying rates.

Deferred taxation is provided using the balance sheet liability method, providing for temporary
differences between the carrying amount of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Temporary differences arising from the initial recognition of assets
or habilities that affect neither accounting nor taxable profit are not accounted for. The amount of
deferred tax provided is based on the expected manner or realization or settlement of the carrying
amount of assets and liabilities, using tax rates enacted or substantially enacted at the consolidated
balance sheet date.

A deferred tax asset is recognised only to the extent that itis probable that future taxable profits will be
available against which the unused tax losses and credits can be utilized. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realized.

(u) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the consolidated balance sheet
when there is a legally enforceable right to set off the recognized amounts and there is an intention to
settle on a net basis, or realize the asset and settle the liability simultaneously.

(vy) Impairment
(i) Financial assets

A financial asset is considered to be impaired if objective evidence indicates that one or more events
have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortized cost is calculated as. the
difference between its carrying amount, and the present value of the estimated future cash flows
discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale
financial asset is calculated by reference to its current fair value.

Individually significant financial assets are tested for impairment on a individual basis. The remaining
financial assets are assessed collectively in groups that share similar credit risk characteristics.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the
impairment loss was recognized.

(ii) Non financial assets

The carrying amounts of the Group’s non-financial assets, are reviewed at each reporting date to
determine whether there is any indication of impairment. Jf any such indication exists then the asset’s
recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or that are
not yet available for use, recoverable amount is estimated at each reporting date.

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 largely are independent from other assets and groups. Impairment losses are recognized
in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill
allocated to the units and then to reduce the carrying amount of the other assets in the unit (groups of
units) on apro rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, 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
assets 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.

Cash and cash equivalents

EE SET RS EE REE ETS AYP ERE PS TE ROP TSE SEES EE EE





Vn ys cee ee Nd = 7 i 7 2006 2005
($’000s) ($’000s

Deposits with banks and Central Banks $ 3,929,260 3,829,678

Less:

Deposits with original maturity dates greater than

3 months from the acquisition date : (399,586) (377,060)

Mandatory deposits with Central Banks (29,023) «(25,468)
$ 3,500,651 3,427,150

Originated loans

Originated loans can be analyzed as follows:

TE TR TSE TE SRE TAGS TP SS ER PY SS TS ES



Pp z= ude Note 2006 2005
($’000s) ($’000s)
Consumer g' "593,178 401,545
Mortgage 1,076,211 760,157
Commercial 8,050,126 4,850,396
Other 87S 9T4 101,038
20(a)(c)(e) 10,385,489 6,113,136
Provision for loan impairment (see below) (43,250) (34,386)



$ 10,342,239 6,078,750

Proyision for loan impairment
ec Ct ee
2006 2005
($'000s) « — ($'000s)

Balance at beginning of year $ 34,386 37,427
Write back of specific provisions : (24,093) (11,976)
Amounts charged for loans written off (2,951)
Provision for loan impairment during the year 32,878 11,854
Exchange adjustment s : EF bo patitc, i LOPES, crept eis



$43,250 34386



HART ECE PR CREED BT SURAT EEE

Provisions for loan impairment are estimates that may change in the short-term. Management believes
that the amounts provided will be adequate to cover any losses due to impairment of the related. assets,
but the actual amount of loan losses will be affected by various future events and may vary materially,
from the amounts provided. ‘The aggregate amount of loans and advances included in the consolidated
balance sheet, which are classified as non-performing is $74,608 million (2005: $93.927 million).
Investments: ;





2006 2005

($'000s)—~—«$"000s)



Available-for-sale — at fair value







Debt, other fixed income and other securities” $ ~ 3,273,488
Jnvestment in mutual funds = 11,427
~ 3,284,915
Fair value through profit and loss — at fair value
Debt, other fixed income and other securities 7,918,572 3,790,644
Investment in mutual funds 5,818 =
7,924,390 3,790,644
Held-to-Maturity — at amortized cost
Debt and other fixed income securities 103,314 285,135
Less provision for impairment pet Pee? seen a)
103,314 285,032
Total investments 8 8,027,704 7,360,591
The movement in investinents may be summarized as follows:
Vair value 2006 2005
Available- through Held-to- Total Total

for-sale profit and loss___ maturity _($’000s)__($"000s)

At beginning of yeat $ 3,284,915 3,790,644 285,032 7,360,591 7,593,619
Reclassifications (Note 2e) (3,284,915) 3,473,043 (188,128) -
Exchange differences 16 - 76 40,429
Additions . - 2,389,963 35,485 2,425,448 3,685,350

Disposals (sale and redemption) (1,702,189) (29,075) (1,731,264) (3,990,267)

Gains/(losses) from changes

in fair value (27,387) (27,387) 31,131
Provision for impaiiment 240 240 329
Atend of year $ 7,924,390 103,314 8,027,704 7,360,591
aeancanncmasd cn iat Zs on annem nae



Investment securities include securities with a carrying value of $829:246 million (2005: $1,218,529
million) that have been pledged as collateral for securities borrowed





Other assets
ot oe 20062005
($'000s) ($'000s)
. Cheques in transit $ 43,587 45,018
Other 254,460 21,431
fe ee ee ee - $ 298,047 66,449



AANA ne SES ES RHC ow

4
{i

ae re ey a eee ee nee eae eee



PAGE 12, WEDNESDAY, FEBRUARY 28, 2007

7. Goodwill :

Goodwill is analyzed as follows:





2006 —__2005,

($'000s) ($'000s

Balance beginning of period a $ 8,138 8,138
Impairment value (2,000) -
$ 6,138 8,138



Upon completion of the impairment test, the Company determined that the unamortized goodwill of $8.138
million, relating to the purchase of a private book of business, was impaired under the new fair-value-based
impairment testing methodology. In testing impairment, management calculated the present value of future
net cash inflows of the private book of business, using the current year’s results discounted at a rate of 10
percent. Revenues were projected to decrease due to the departure of a number of clients, while expenses
were projected to increase annually by 3 percent due mainly to the increase in salaries.

8. Investment property

The estimated fair value of the building and improvements is $12.230 million (2005: $11.647 million)
based on independent valuation appraisals, performed in 2002, adjusted for inflationary factors.

Investment property is leased to subsidiaries within the Group and to third parties. aie income from
subsidiaries within the Group has been eliminated on consolidation.

9. Deposits

Deposits comprise:





2006 -_ 2005

($°000s) ($’000s)
Deposits by banks $ 7,939,448 5,976,445
Customer accounts 5,288,685 3,301,501



$ 13,228,133 9,277,946

10. Other liabilities





2006 2005 _

($’000s) ($’ 000s)

Cheques in transit : $ 54,446 32,529
Unsettled trades 1,229 21,182
Accrued expenses and other 507,940 92,771
: $ 563,615 146,482

11. Equity linked note

On 30 November 2001, the Bank issued a non-interest bearing equity linked note (ELN) with an initial
value of $498.099 million to St. Lawrence Trading Inc., maturing on 30 November 2016. The Bank is
authorized to issue an aggregate additional amount of up to $102 million. The value of the ELN is equal to
the aggregate equivalent value of the equity interests in a basket of funds managed by Global Asset
Management Limited. At October 31, 2006, the cost of the ELN was $578.021 million (2005: $578.320
million) with a fair value of $747.957 million (2005: $720.508 million). The Bank entered into total return
swaps with Scotiabank (Ireland) Limited to hedge its exposure against unfavorable market movements of
the basket of funds. The Bank’s obligations under the ELN are fully guaranteed by the Parent Bank. The
Bank pays a guarantee fee of 10 basis points on the net asset value (NAV) of the basket of investment
securities to the Parent Bank. The fee is accrued monthly and is paid quarterly.

Under the ELN agreement, the Bank earns a service fee of 0.5% of the amount by which the reference assets
NAV exceeds the Purchaser Put Share Value, as defined in the ELN wzreement. The fee is accrued monthly
and maid at each annivocca-y of the issue date and on the maturity date.

edglaady PUPS EI. Se

Oh 25 January 2002, Scotiabank (Ireland) Limited (‘SIL') acquired 83% of the equity of Drake Investments
Limited for total cash consideration of $500 million. SIL's investment in Drake represents 70% of the
outstanding voting shares at the consolidated balance sheet date.

13. Insurance activities : i

Balances and transactions related to insurance activities are summarized below:



- Note 2006 2005
($’000s) ($’000s)

Insurance balances receivable $ 25,790 17,057
; ,

Actuarial liabilities (a) $ 92,711 74,704

Insurance balances payable 6,649 3,394

Insurance liabilities : $ 99,360 78,098
; ;

(a) Actuarial liabilities
hs ennennenee















Unearned Loss and Total
Premium other actuarial
vt Reserve reserves liabilities
($’000s) ($’000s) ($’000s)
Balance at October 31, 2004 $ 17,743. ' 59,128 76,871
Normal decrease for new and existing policies (355) (6,765) (7,120)
Foreign currency translation . 1,121 3,832 4,953
Balance, at October 31, 2005 ; 18,509 56,195 74,704
Normal decrease for new and existing policies 7,960 6,570 14,530
Net actuarial liabilities assumed 779 1,887 "2,666
Net actuarial liabilities recaptured (66) : (994) (1,060)
Foreign currency translation ; 602 1,269 1,871
Balance at October 31, 2006 a ae, DT geA 64,927 92,711
ence SE sess anh
14. Share capital and statutory reserves
2006 2005
($’000s) (S 000s)
Authorized:
Ordinary shares of US$1 each ‘ $ 3,500 3,500 |

Issued and fully paid

Ordinary shares of US$1 each 2,792 2,792

In accordance with local regulations Scotiabank (Belize) Ltd. and Scotiabank (Turks and Caicos) Ltd. are
required to establish a statutory reserve fund equivalent to 25% out of net profits for the year until the
amount of the reserve is at least equal to the fully paid up and outstanding share capital.

15. Redeemable preferred shares

1 6 SS TS ST SF SSS SESS SY it TE TEST ARERR





2006 2005
($'000s) ($° 000s)
Authorized:
7Â¥2% non-cumulative participating redeemable
Series A preferred shares of US$1 each $ 10,000 10,000
10% non-cumulative participating redeemable
Series B preferred shares of US$1 each 500 500
642% non-cumulative participating redeemable
Series C preferred shares of US$1 each : 51 5]
$ 10,551 10,551

SSA SSDS ss ese ney

Issued and fully paid:
7'2% non-cumulative participating redeemable

Series A preferred shares of US$1 each $ 10,000 10,000
10% non-cumulative participating redeemable
Series B preferred shares of US$1 each 493 493

62% non-cumulative participating redeemable
Series C preferred shares of US$1 each =



10,493 10,493





Share premium account:
Premium on .ssue of redeemable sicienied shares 48,767 48,767
$59,260 ___ 59,260

Sa eTRRRREERATOSNEEDN SF = We:



16.

1

—

18.

THE TRIBUNE *

The redeemable preferred shares rank in priority to the ordinary shares of the Bank in the event of a
dividend distribution, Each series of preferred shares ranks equally in all respects except for the dividend
rate accrued thereon ‘ ;

The preferred shares are redeemable in whole or in part by the shareholder by notice in writing sixty (60)
days prior to the redemption date.

In the event of liquidation, dissolution or winding up of the Bank, the holders of the redeemable preferred
Shares shall be entitled to receive the amount paid up thereon together with all dividends declared and
unpaid to the date of distribution before any amounts shall be paid or any assets or property of the Bank

distributed to the holders of the ordinary shares. The holders of the redeemable preferred shares shall not be
entitled to share in any further distribution of the property or assets of the Bank.

Pensions

The Bank and its subsidiaries operate a number of defined benefit and defined contribution plans on behalf
of its employees. ‘

The primary pension plan is offered by the Parent Bank. ‘his plan is a defined benefit plan and
participation by employees is non-contributory. The contributions to the plan are made by the Parent Bank
on an ongoing basis to keep the plan fully funded. The assets of the plan are held in separate trustee
administered funds and the pension plan is funded by payments from corporate headquarters taking account
of recommendations of independently qualified-actuaries. The most recent actuarial valuation of the plan
was at 1 November 2003 and based on that independent valuation, the plan was fully funded, All actuarial
‘information relating to this scheme can be found in the consolidated financial statements of the Parent Bank.
Subsidiaries participating in the primary pension plan include BNS International (Barbados) Limited,
Scotiabank (Bahamas) Limited, Scotiabank (Belize) Ltd., Scotiabank (British Virgin Islands) Limited.,
Scotiabank (Turks and Caicos) Ltd., Scotia Insurance (Barbados) Limited,‘and The Bank of Nova Scotia
Trust Company (Bahamas) Limited.

Defined Benefit Pension Schemes

Certain-subsidiaries of the Bank not participating in the primary pension plan operate independent defined
benefit pension schemes.

SIL operates a defined benefit pension scheme. The scheme is fully funded and the assets of the scheme are
held in a separate trustee administered fund. The most recent independent actuarial valuation of the scheme
was at 1 November 2005. The principal SO in these valuations were that investment returns would

“match annual salary increases.

Major assumpuons

SS SS SSRs SSS SS SSS



bith ; = 2006 2005
Rate of general increase in salaries 4.00% p.a. 4.00% p.a.
Rate of inedical benefit inflation (8% p.a. for next 2 years) 4.50% p.a. 4.50% p.a.
Rate of increase in monetary cap applying to increases
lo pensions in payment 0.00% p.a. 0.00% p.a.
Discount rate for scheme liabilities 4.60% p.a. 4.50% p.a.
Inflation rate 2.25% p.a. 2.25% p.a.

The expected long term rate of returns and market value of the assets of the scheme at October 31, 2006
were as follows:

2006 2006 2005 2005
Market value Expected long Market value’ Expected long
Term rate of - term rate of





Return a return
($’000s) ($’000s)
Equities $ 9,046 7,00% 6,858 6.80%
Bonds 1,463 3.5% 1,415 3.3%
Property, 1,192 5.00% 934 4.8%
Total market value of scheme’ assets 11,701 6.36% 9,207 6.06%
Actuarial value of pensions and benefits (14,233) (12,180)
Actuarial value of medical liabilities (802) : (617)



Net retirement benefits liability ad $ (3,334) ~ (3,590)

Net retirement benefits liability is included in the consolidated balance sheet in other liabilities.

Movement in deficit during the year
oe





2006 2005
($'000s) ($°000s)
Deficit at beginning of year + ‘8 80k $ (3,590) (2,996)
Movement in year: au : hood
Foreign currency movements (164). 140
Current Service cost (723) (585)
‘Past service cost (9) (8)
Contributions 734 504
Other finance cost (20) (22)
Actuarial gain/(loss) 438 (623)
Deficit at end of year ‘ ; $ (3,334) (3,590)

Detined Contribution Pension Schemes ; ;
Subsidiaries operating defined contribution plans include Scotiabank (Bahamas) Limited, Scotiabank
(British Virgin Islands) Limited, Scotiabank (Hong Kong) Limited, Scotia Realty Cayman Limited, The
Bank of Nova Scotia Asia Limited, and The Bank of Nova Scotia Trust Company (Bahamas) Limited. The
plans are operated subject to the provisions of the respective subsidiary’s local regulations.

Defined Contribution Pension Schemes (continued)

Scotiabank (Bahamas) Limited, Scotiabank (British Virgin Islands) Ltd. and Scotiabank (Turks and Caicos)
Lid. also participate in a defined contribution plan established by the Parent Bank covering some of their
employees. As of October 31, 2006, this plan is fully funded. :

. Global employee share ownership. plan

Certain subsidiaries of the Bank participate in the Global Employees Share Ownership Plan (GESOP) of the
Parent Bank, which allows employees to contribute a percentage of their annual salary to the. GESOP. The
contributions are used to purchase shares in the Parent Bank, on the Toronto Stock Exchange at prevailing
market prices. The employer matches a stated percentage of the employees’ contributions and these vests
with the employees after a stated period of participation in the GESOP.

Derivative financial instruments

In the normal course of business, and in order to meet the financing needs of its customers and its Parent
Bank, the Group is party to financial instruments, which involve, to varying degrees, elements of credit and
interest rate risk in excess of the amount reflected in the consolidated balance sheet. The Group mitigates
the risks associated with such financial instruments by transacting only with well-established, high credit
quality ‘financial institutions, including its Parent Bank. The notional amounts represent the amount to
which a-rate or price is applied to determine the amount of cash flows to be exchanged. Notional amounts.
do not necessarily indicate the amounts of future cash flows involved or the current fair value of the
instruments, and therefore do not indicate the Group’s exposure to credit or price risks. The tables below
give the nolional amounts of derivative financial instruments.

‘The Group uses the following derivative financial instruments:

Currency and interest rate swaps are commitments to exchange one set of cash flows for another. Swaps
result in an economic exchange of currencies or interest rates or a combination. No exchange of principal
takes place. The Group's credit risk represents the potential cost to replace the swap contracts if
counterparties fail to perform their obligation. This risk is monitored on an ongoing basis with reference to
the current fair value, a portion of the notional amount of the contracts and the liquidity of the market. To
control the level of credit risk taken, the Group assesses counterparties using the same techniques as for its
lending activities.

Credit default swaps are bilateral financial contracts in which one counterparty (the ‘Protection Buyer’)
pays a periodic fee, typically expressed in basis points on the notional amount, in return for a contingent
payment by the other party, the ‘Protection Seller’, upon the occurrence of one or more specified credit
events with respect to a third party, the ‘Reference Entity’. A credit event is commonly defined as
bankruptcy, insolvency, receivership, material adverse restructuring of debt, or failure to meet payment
obligations when due.

Equity and equity index swaps ate agreements between two parties-in which at least one party pays
periodic amounts of the same currency or a different currency based on the performance of a share of an
issuer, a basket of shares of several issuers, or an equity index. The other party makes a payment that can be
computed in any other agreed way.

‘Total return swaps are agreements between two partics in which one party pays cither a single amount or
periodic amounts based on the total return on one or more loans, debt securities or other financial
instuuments (each a "Reference Obligation") issued, guaranteed or otherwise entered into by a third party
(the "Reference Entity") calculated by reference to interest, dividend and fee payments and any appreciation
in the market value of each Reference Obligation, ‘The other party pays cither a single amount of periodic
amounts determined by reference to a specified notional amount and any depreciation in the market value of
each Reference Obligation. A total return swap may (but need not) provide for acceleration of tts
termination date upon the occurrence of one or more specified events with respect to a Reference Entiiy or a
Reference Obligation with a termination payment made by one party to the other calculated by reference to
the value of the Reference Obligation.

Currency forwards represent. commitments to purchase foreign and domestic currency, including
undelivered spot transactions. Currency forwards call for a cash settlement ata future dite for the
difference between a contracted rate of foreign currency and the current foreign currency rate, based ona
nouonal principal amount.

Forward rate apreements are individually negotiated interest rate futures that call for a cash sett ment at
a future date for the difference between a contracted rate of interest and the current market rate, based on a

notional principal amount



ot owt er gray

pene”

7 ww

ewe et

THE TRIBUNE

Foreign currency and interest rate options are contractual. agreements under which the seller grants the
purchaser the right, but not the obligation, either to buy or sell at or by a set date or during a set period, a
specific amount of a foreign currency ‘or a financial instrument at a predetermined price. In consideration
for the assumption of foreign exchange or interest rate risk, the seller receives a premium from the
purchaser. Options may either be exchange traded or negotiated between the Group and a customer.

ae Fair Values
Notional
Amount Assets Liabilities
($'000s) ($'000s) ($'000s)
As at October 31, 2006
Derivatives held-for-trading
Interest rate swaps $1,632,079 $ 40,343 1,128 ©
Currency, total return and equity swaps 1,604,707 66,897 224,506
Foreign exchange contracts 115,207 1,609 20,108
Options 1,114,592 11,592 -
Futures 300,051 51 -
Credit default swaps — protection bought . - - 200
Credit default swaps — protection sold 749,314 5,581 2
$126,073 245,944
Fair Values
Notional
Amount Assets Liabilities
. ($'000s) ($'000s) ($'000s)
As at October 31, 2005
Derivatives held-for-trading
Interest rate swaps 48,683 3,568 3,299
Currency, total return and equity swaps 3,581,675 31,137 196,145
Foreign exchange contracts 44,045 1,277 932
Options 1,103,000 9,475 328
Credit default swaps — protection bought, 250,000 2 3
Credit default swaps — protection sold - cos 16
. Futures contracts 423,563 66,193 54,611
: 111,652 255,334

Included in interest rate swaps balance is a commitment in the amount of $19,000 million (2005: $18.982
million) in respect of interest rate swap contracts entered into by BNS Asia with the Parent Bank.

19, Financial risk management

The Group engages in transactions that expose it to various types of risk in the normal course of business.
These risks include credit, market, currency, interest rate, liquidity and fiduciary risk. The Group’s financial
performance is dependent on its ability to understand and effectively manage these risks.

(a) Credit risk

The Group takes on exposure to credit nsx which is the risk that a counterparty will be unable to pay
amounts in full when due. Concentration of credit risk may arise from a variety of circumstances
including counterparties with similar economic characteristics or geographical locations. The ability of
such counterparties to meet contractual obligations would be similarly affected by changing economic,
political or other conditions. '

The Group’s credit disciplines are based on a division of authority, a centralized credit review system, a
committee system for dealing with all major exposures and periodic independent review by the audit
department. /
The Group uses a risk rating system to quantify and evaluate the risk of proposed credits and to ensure
appropriate returns for assuming risks. A policy of lending to top quality corporations is pursued.

The table below. summarises the Group's exposure based upon the geographical distribution of
significant financial assets and liabilities at the consolidated balance sheet date:

Lann North

Asia Europe America America Caribbean Other Total
(Expressed in thousands of
dollars)

October 31,2006
Deposits with banks and 430,933 1,683,291 - 282,864 733,536 762,098 36,538 3,929,260

central banks
Loans and advances to

customers (gross) 1,585,704 1,135,458 1,404,939 2,480,626 3,399,038 379,724 10,385,489
Investments 1,242,416 1,839,290 52,105 2,729,781 1,862,415 301,697 8,027,704
Assets under repurchase - 1,129,383 - 1,030,799 - 90,636 2,250,818

agreements
Deposits 2,981,223 3,076,985 1,195,327 1,304,853 4,413,208 256,537 13,228,133
Obligations related to - 2,237,568 - ® - 2,436 - 2,240,004

repurchase agreements : ; :
October 31, 2005
Deposits with banks and .

central banks 328,828 1,840,310 82,189 714,738 "861,592 2,021 3,829,678
Loans and advances to :

customers (gross) 930,490 180,055 393,345 2,052,931 1,046,595 1,509,720 6,113,136
Investments 1,128,570 1,260,086 16,355 3,405,516 1,226,997 323,067 7,360,591
Assets under repurchase

agreements : - 1,890,962 > > - - 1,890,962
Deposits 2,337,874 2,279,217 172,655 977,039 3,270,240 240,921 9,277,946
Obligations related to

repurchase agreements - 1,868,479 - - - - 1,868,479

: (b) Market risk

Market risks arise from open positions in interest rate, currency and equity products, all of Which are
exposed to general and specific market movements. Management constantly monitors market risk by
utilising real-time market information systems.

(c) Currency risk
The Group takes on exposure to effects of fluctuations in the prevailing foreign currency exchange rates on

its financial position and cash flows. The Group enters into cross currency interest rate swaps in respect of
substantially most of its assets contracted in foreign currencies to hedge its foreign currency exposures.

The table below summarises the Group’s exposure to foreign currency exchange rate risk at the consolidated
balance sheet date. Included in the table are the Group’s significant financial assets and liabilities at
carrying amounts, categorised by currency: ;

United Hong

States Canadian British Kong Japanese

dollar Euro dollar _ Pound __ dollar Yen Other Total
(Expressed in thousands of dollars)

October 31, 2006

Deposits with banks and 3,366,230 110,836 134,897 19,685 3,495 157,566 136,551 3,929,260

central banks

Loans and advances to 7,114,015 882,965 4,786 735,400 85,773 141,579 1,420,971 10,385,489
customers (gross)

Investments 5,486,425 1,415,975 839,471 - 83,627 42,769 159,437 8,027,704

Assets under repurchase 1,266,523 984,295 - - - - - 2,250,818
agreements

Deposits 7,397,793 3,320,693 119,288 216,143 650,348 230,329 1,293,539 13,228,133

Obligations related to 2,238,180 - - - - - 1,824 2,240,004

repurchase agreements

October 31, 2005

Deposits with banks and 2,620,163 220,764 603,764 21,470 12,626 218,046 132,845 3,829,678
central banks

Loans and advances to 4,205,721 295,754 378 85,041 336,865 51,651 1,137,726 6,113,136
customers (gross)

Investments 5,669,714 742,408 550,162 26,734 88,052 94,333 189,188 — 7,360,591

Assets under repurchase 787,992 1,081,344 21,626 a - : - 1,890,962
agreements

Deposits ‘ 5,225,788 2,077,179 154,701 137,275 436,166 295,098 951,739 9,277,946

Obligations related to
repurchase agreements 1,868,479 - - - - - - 1,868,479

The table above does not necessarily reflect the currency exposure in the categories listed as currency risks
are usually hedged by derivative contracts which do not meet the requirements for hedge accounting under
Intemational Financial Reporting Standards.

(d) Interest rate risk ~

Differences in maturities or re-pricing dates of financial instruments create an interest rate gap and
expose the group to interest rate risk.

Deposits placed by and with the commercial banking operations of the Group generally attract fixed
interest rates, which are repriced at market rate on maturity of the underlying asset or liability. Loans,
mortgages, overdrafts and credit card receivables generally attract interest based on market rates. The
Group mitigates its interest rate risk by matching the maturity periods of its assets and liabilities
wherever possible. Exposure is generally managed locally by currency and regularly reviewed on a
consolidated basis by executive management.

SIL represents 50% (2005: 55%) of the total assets of the group. Sensitivity analysis in this company
indicates that an iminediaté 1% rise in interest rates would give rise to a change in the mark-to-market
valuation of investments of $88 million (2005: $75 million). This analysis is based on the sensitivity of
the investment portfolio to parallel shifts in interest rates across all currencies.



WEDNESDAY, FEBRUARY 28, 2007, PAGE 13

(e) Liquidity risk

Liquidity risk arises from fluctuations in cash flows. The liquidity risk management process ensures
that the Group is able to honour all of its financial commitments as they fall due. The Group manages
liquidity using policies that include:

® measuring and forecasting cash commitments

° building a large stable base of core deposits from retail and commercial customers

° ensuring immediate availability of large pools of liquid assets to meet unforeseen
events

° diversifying funding sources

° receiving significant group and affiliate deposits that give the Bank access to

considerable funding

The relevant maturity groupings based on the remaining period at the consolidated balance sheet date to
the contractual maturity date are shown below. The maturity profiles of the asset categories do not
necessarily reflect the interest rate sensitivity of the assets.

Upto 3 months to 1 Year to Over
3 months One Year 5 Years 5 Years Total
(Expressed in thousands of
dollars)
October 31, 2006
Deposits with banks and 2,925,888 728,721 269,283 5,368 3,929,260
central banks ;
Loans and advances to 1,418,844 1,606,987 5,320,694 2,038,964 10,385,489
customers (gross) .
Investments 637,949 1,442,715 2,819,184 3,127,856 8,027,704
Assets under repurchase 25,257 340,194 734,986 1,150,381 2,250,818
agreements :
Deposits i 11,321,235 1,861,019 45,879 - 13,228,133
Obligations related to
repurchase agreements 2,240,004 . . - 2,240,004
October 31, 2005
Deposits with banks and 3,147,519 342,127 336,592 3,440 3,829,678
central banks ,
Loans and advances to 1,029,466 880,104 2,709,513 1,494,053 6,113,136
customers (gross)
Investments 690,163 750,116 2,695,216 3,225,096 7,360,591
Assets under repurchase
agreements 27,698 185,133 873,045 805,086 1,890,962
Deposits 7,905,262 , 1,158,369 214,315 - 9,277,946
Obligations related to

repurchase agreements 1,868,479 - 7 - 1,868,479

(f) Fiduciary risk

The Group provides custody, trustee, corporate administration, investment management and advisory
services to third parties which involve the Group making allocation and purchase and sale decisions in
relation to a wide range of financial instruments. Those assets that are held in a fiduciary capacity are
not included in the consolidated balance sheet. These activities give rise to fiduciary risk, which is the
risk that the Group may fail in carrying out certain mandates in accordance with the wishes of its’
clients. To manage this exposure, the Group generally takes a conservative approach in its
undertakings. At the consolidated balance sheet date, the Group had financial assets under
administration of approximately $19 billion (2005: $19 billion).

(g) Fair value of financial instruments

Fair value represents the amounts at which a financial instrument could be exchanged in an arms length
transaction between willing parties and is best evidenced by quoted market prices if one exists.

The fair value of the financial assets and liabilities of the Bank approximates their carrying value.

20. Commitments

In the normal course of business, various indirect credit commitments are outstanding which are not
reflected in the consolidated balance sheet. These may include:

(a) Guarantees and standby letters of credit which represent an irrevocable obligation to pay a third party

when a customer does not meet its contractual financial or performance obligations.

(b) Letters of credit which require the Bank to honour drafts presented by a third party when specific

activities are completed.

(c) Commitments to extend credit which represent undertakings.to-make.credit available in the form of

loans or other financings for specific amounts and maturities, subject to-specific conditions.

(d) Securities lending transactions under which the Group, acting as principal or agent, agrees to lend

21.

22.

securities to a borrower. The borrower must fully collateralize the security loan at all times.

These financial instruments are subject to normal credit standards, financial controls, and monitoring
procedures. The table below provides a detailed breakdown of the Group's off-balance sheet credit
commitments expressed in terms of the contractual amounts of the related commitment or contract:



2006 2005 __
($'000s) ($’000s)
Guarantees and irrevocable letters of credit 385,919 492,790
Undrawn standby facilities, credit lines and other + .
commitments to lend. 1,106,379 752,343
Lease and other commitments 389,177 99,108

1,881,475 1,344,241

Measurement uncertainty

SIBL is exposed to measurement risk in the determination of liabilities for future policy benefits, whicl
require assumptions to be made about the timing and amount of future events. Assumptions include best
estimates and a margin for adverse deviations to account for the risks and uncertainties involved in the
valuation process, With the passage of time, actual experience determines the adequacy of these margins

and any excess margins are released into income.

The valuation of SIBI.’s actuarial liabilities may involve the use of the following actuarial assumptions:

mortality

morbidity (i.e. incidence of disability) and recovery
incidence of unemployment and recovery

lapse or withdrawal rates

investment yields

expense levels

It is reasonably possible based on existing knowledge, that changes in future conditions in the near term
could require a change in the recognised actuarial liability amounts. Given the nature of the underlying
policies that are reinsured by SIBL and the reserving methodologies adopted generally (“group creditor-

type” policies of fairly short term duration), the impact of such a change would be immaterial ‘> *

aggregate consolidated balance sheet information in the near term.

Acquisition

‘

On the 1" September, 2006, the Bank acquired Corporacion Interfin S.A., the parent company of Banco
Interfin in Costa Rica for US$ 293.5 million. Total assets at acquisition were approximately US$1.4 billion.
The Bank has not yet completed its assessment and valuation of the assets acquired and liabilities assumed
for this transaction. As a result, the amount of purchase price in excess of carrying value of the assets and
liabilities has not been fully allocated to the acquired assets and liabilities in the Consolidated Balance

Sheet. Below are key figures for Corporacion Interfin S.A. at October 31, 2006 that have been included

_ the consolidated balance sheet:

23,

2A,

3 RES NS TANTO EEK UY RENTON REA VTS TEREST GPA OTE

Assets ($'000s)
Deposits with banks 322,041
Loan and advances to customers 959,611
Investments in securities 184,005
Other assets 42,043
Fixed assets . 20,069
Liabilities

Deposits 963,742
Other liabilities , 369.774

Related party transactions

in

The Group is a member of a group of affiliated banks and other companies and has extensive transactions
and relationships with members of the group. Related parties (affiliates) comprise the Parent Bank and
other entities in which the Parent Bank is considered to have control or exercise significant influence over
the entities’ financial or operational decisions. Balances with related parties including the Parent Bank are

disclosed as ‘affiliates’ in the consolidated balance sheet and related notes.

Reclassifications
Certain corresponding figures in the consolidated balance sheet and notes have been reclassified
conform with the consolidated balance sheet presentation adopted for the current year.

ener HOARE TS ) RE ARES

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PAGE 14, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



New water park ‘Aquaventure
is finally unveiled at Atlantis —





B ONE of the first to try out the ‘Aquaventure’ water park

ATLANTIS has unveiled its

new 63-acre waterscape, ‘Aqua-
venture’ — the centerpiece of
the resort’s billion-dollar expan-
sion.
This addition is expected to
position Atlantis as the largest
water-themed attraction in the
world, containing over 20 mil-
lion gallons of water altogether.

This non-stop water experi-
ence consists of new water
slides, a mile-long river ride
with high-intensity rapids and
wave surges, and “never-before-
seen” special effects that are
designed to add an extreme lev-
el of excitement to the overall
experience.

Aquaventure will be limited
to resort guests only until some-
time after Easter.

At that time Kerzner Inter-
national will launch a resident
access and school. programme.
Details of the resident access
and school programme will be
unveiled in the coming weeks
by George Markantonis, presi-
‘dent and managing director of
Kerzner International Bahamas.

Aquaventure takes known
water-based attractions such as
water slides, river rapids, water-

all together in a lush environ-
ment that is both immersive and
interconnected,” Kerzner Inter-
national said.

Once guests are situated in
their inner tubes and enter the
attraction, they are propelled
along by water escalators,
waves, water surges and water
coaster technology.

Unlike traditional water
slides that require the partici-
pant to leave the water and
climb back to the start, at Aqua-
venture guests never have to
leave the water as they are pro-
pelled back up the slide tower
via water conveyors.

The Power Tower is the
grand icon of Aquaventure. At
120 feet tall, the tower will offer
guests the choice of four water
slides including the ‘Abyss’, 70-
foot high, 200-foot long body
slide that starts at the top of the
Power Tower.

Other attractions featured at
the Aquaventure park will be
‘The Drop, The Falls and The
Surge’— three inner tube slides
using the “master-blaster” tech-
nology, which effectively cre-
ates roller coasters from jets of
water that propel riders up and

falls and water holes and adds
“first-of-its-kind special effects.
and technology, bringing them:

NASSAU
Robinson and Soldier Roads, Nassau, N.P., Bahamas
P.O. Box CB-12072
Telephone: (242) 394-8043 / (242) 394-8047
Pagers: 340-8043 / 340-4424 / 340-8034 » Fax: (242) 340-8034

downhill at a fast pace.



FREEPORT
11-A East Coral Road, P.0. Box F-42312
Freeport, Grand Bahama, Bahamas
Tel: (242) 373-1471 Fax: (242) 373-3005
Page 340-8043.

FULL MILITARY FUNERAL SERVICE FOR:

Police Sergeant 691

CLOIDE
GREENE, 45

of Cascarilla Street, Pinewood
Gardens, and formerly of
Mangrove Cay, Andros, will
be held on Thursday, March
Ist, 2007 at 11:00 a. m. at
Bahamas Christian Fellowship
Centre, Carmichael Road.
Officiating will be Apostle
Paul Butler, assisted by other:
Ministers. Interment will
follow in Lakeview Memorial
Gardens, John F. Kennedy Drive.



He is survived by his Wife: Ann Greene, Four Children: Lamar,
Preston, Michael and David Greene, Three Brothers: Kelly,
Sherrold, and Julius Greene, Two Sisters: ‘Laurene Saunders
and Daisy Simmons Greene, Mother-in-law: Earlene Williams,
Five Aunts: Ethel Allen, Charlotte McKenzie, Shirley Naomi
Franzel, Goergie Pennerman, and Lillian, Three Uncles: Philip,
Duke, and Adolphus Greene, Four Sisters-in-law: Rhodamae
Greene, Maxine Butler, Sandra Williams, and Birdlyn Greene,
Eight Brothers-in-law: Pastor Paul Butler, James Saunders,
George Simmons, Livingston, Oral, Wendell, Thaddeus, and
Christopher Williams, Nieces: Erica Meus-Saunders, Mary and
Monique Saunders, Stacey Saunders Kemp, and Sophie Saunders,
Desirene Pinder Edmond of Hampton, Virginia, Phyllis Moxey,
Edith Greene Bastiane, Pauline Greene of Hampton, Virginia,
Tanya Simmons, Ophelia Brown, Grethel Greene, Brenda
Lightbourne, Zettamae, Betty, and Sharon, Latoya Williams,
Kimberley McIntosh, Kayshala and Tirrez Gutierrez, Nephews:
Philip Saunders, Kendrick Pinder, Robert, Craig, Lancelot,
Andrew, Robert, and Sherrold Jr., Ronald Simmons, Drexel
McIntosh, Julius, Vincent Greene, Tedaro Edmond of Hampton,
Virginia, Eric Darling, and the Hon. Cynthia Pratt, Deputy Prime
Minister, and a host of other Relatives and Friends including:
Commissioner of Police, Paul Farquharson, A. S. P. Lennox
Major of the R. B. P. F., the S. I. B. Branch of the R. B. P. F.,
The Families of Pastor Curleane Saunders, Wilfred King, Rev.
Doreka Greene, Dorothy Greene, Cyril Greene, Minister of
Health, Bernard J. Nottage, Donnamae Greene, Moody Moxey,
Sister Davi Mary, Rose Belasco, Melva Bastiane, Calvin Sweeting,
Ronnie Outten, Sylvia Greene, Rosemary Kelly, Rosie Ingraham,
Clara Goulds, Joyus Moxey, Bishop Samuel Greene, Marilyn
Meeres, Bahamas Christian Fellowship Church Family, and the
entire Mangrove Cay, Andros Community. Special thanks to:
’ The Staff of Private Surgical Ward, P. M. H., R. Devaughn
Curling and Staff at the Oncology Consultant Western Medical,
Dr. Theodore Ferguson at Doctor’s Hospital, and Eugene Dupuch
Law School.

Viewing will be held in the “Celestial” Suite at Restview
Memorial Mortuary & Crematorium Ltd., Robinson and Soldier
Roads on Wednesday from 1:00 p. m. until 6:00 p. m. and then
again at the church on Thursday from 9:30 a. m. until service
time.

In addition to the numerous
tidal pools and entry points





oe

»
ea
a

o
a





A PANORAMIC view of the new water park at Atlantis

along Aquaventure, guests will
have access to two fresh-water
pools — the Grotto Pool and the
largest pool at the resort, “The
Baths’, containing nearly
750,000 gallons of water and
decorated with hieroglyphic
columns and rock work struc-
tures. |

“In designing Aquaventure,
we challenged the best design-
ers, creative minds and water
ride technologists to work with
us to take the water experience
to a different level. We believe
there is something innate with-



in human beings that cause
them to react to fire and water.
We believe that enhancing
visuals and landscaping within
the experience gives guests
another energy, another layer
of excitement, a feeling that
they are in a place they've nev-
er been before,” Mr Markan-
tonis said,

Executive Chairman, Kerzn-
er International, Sol Kerzner
added, “It is simply not enough
for us to deliver new water
rides. Our goal is to redefine
the concept of a water park.”

love’ for this~~
alentine’s Day

THIS Valentine’s Day KFC
showed the love at Stapledon
School with 30 hot meals and
gifts for each student

KFC Mascot Chicky made
Valentine’s Day a memorable
event for the students with gifts
of t-shirts, backpacks, pencil
cases, and toys in addition to 30

_KFC two-piece meals.

‘98 HYUNDAI ELANTRA Best offer

KFC has been quietly sup-
porting local charities such
as the Stapledon School for
40 years, and is pleased to
continue to have had the
opportunity to celebrate
community spirit with the
incredible and amazing stu-
dents attending Stapledon

School.



‘99 HYUNDAI ELANTRA
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@ COMING to the end of the new attraction eee

sihiptleed truer itarsovasnscegaliveapaeantpatearaeD eeeORTOEST Gniatinens SieaggceesnesT SOS ERNER A cicsvessvecvesssseeesensssenesseserenss Fins hacen he Ggieesmeaedecay Soneaeeananet es ats, theosteaets : my

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Recwo awesome



THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 15



Internet portal launched for Nassau hotels

A NEW website has been
launched to open up new oppor-
tunities for Nassau hotels by
connecting them to various local
businesses via the internet.

NEW Providence has

become the first island in the
Bahamas to have a local city
portal to the internet for

Bahamian businesses, it was
announced yesterday.

Hotels that set
http://www.nassauportal.com as
their home page will give their
guests the opportunity to find
local businesses when they log
onto the internet.

When visitors and residents

use the Nassau portal to search
for a local businesses or other
services, premium advertise-
ments for those establishments
and companies will show up
above free listings.

The web site will also offer
select sponsorship opportunities.

‘Creators of the Nassau portal

hope to make it the premier
internet site that visitors and
residents will use when seeking
local and international news,
local real estate, medical atten-
tion, or a particular service from
a person or organisation in New
Providence.

Much like a ‘Bahamas Hand-

book’, a telephone directory or
an online newspaper, the portal
is designed to provide guidance
to users for finding local infor-
mation using electronic services.

One of the hidden bonuses
of the Nassau portal is its auto-
mated free link submission, and
free classified advertisements,

excluding real estate and auto-
mobile ads.

Using the portal, internet
users in New Providence and
Paradise Island, as well as the
entire Bahamas, will have
-access to a network of city por-
tals in North America and
across the globe. ©



Vessel Atlantis II is being

IF gee EE



.
&
*.
‘e

estored to former

olory

Being brought back to life in Grand Bahama

RS

WHEN the research vessel
Atlantis II was retired by
Woods Hole Oceanographic
Institution i in 1996 the headlines
read: “The end of'an era”.

Since arriving on|the shores of
itsmiew home, Grand Bahama in
lat 2006, Atlantis II has under-
gohe a major restoration and
refit, bringing her back to life.

‘At one time the support ves-
seffor the oceanographic sub-
mersible “Alvin”, Atlantis IT is

perhaps most famous for her

role in assisting in the discov-'

ery and exploration of the
Titanic in 1986.

Now, after 70 days.in dry
dock she boasts a gleaming new
paint job and is finally back in
the water. Extensive refurbish-
ments and renovations through-
out the entire ship are almost
complete. The only thing not
being changed is the ship’s intri-
cate operating equipment, as it

is all still fully functional.

And for the first time in the
history of this epic ship she now
proudly displays her name.

When Atlantis II was being
built, another ship was being
constructed at the same time in
the same shipyard, and the
names were mixed up by ship-
yard builders who welded
“Atlantic Vision” in raised let-
ters on the hull. Although
“Atlantic Vision” was painted

over with Atlantis II, her prop-
er name, the erroneous old
raised letters were never com,
pletely removed from the vessel
until now.

With a rich 33-year history —
no other research vessel has
covered as much of the ocean —
the once ‘retired’ vessel is being
renewed from stem to stern,
and is looking world class once
again. Atlantis II is very near
ready for its next adventure.







Bes

a0 gre
ad

k
“THE International Book Sell-
er§ Association Convention
(CBA) this past week was the
venue for the official release of
the new book by Bahamian
international best selling author
My es Munroe.
fhe book, titled “The Most
Important Person on Earth”
was described by Bob Whitaker
Jr, vice-president of the pub-
lishing company Whitaker
House, as “amazing.”
‘This new book, ‘The most
yortant Person on Earth’, has
breken a number of records
alrgady, selling out its first two
print runs in the first week of its
reléase. This is amazing as most
books do not achieve this mile-
stdne until six to nine:weeks
out, This book is destined to
begome another of Dr
Mifnroe’s bestsellers and we are
proud to be his publisher,” Mr
Whitaker said. |
Whitaker House has also
negotiated an agreement with
the Bahamas Ministry of
Tourism, the Nassau Sandals
Resort and the Chez Willie
Restaurant for a special
Bahamas vacation package in.
connection with the release Mr
Mthroe’s latest book.
his package will include a
on¢:week-all-expense-paid vaca-
tion at the Sandals Resort in
Nassau and a private lunch with
the:author at the Chez Willie
five- -star restaurant.
“Zhis arrangement is the first
of its kind for the company and
the, excitement is overwhelm-
inge, said Mr Whitaker. |
Readers are asked to visit
the"web site “themostimpor-
tantpersononearth. com” to sign
up to win the vacation package.
Speaking of this newest pro-
ject Mr Munroe said:

t

om FAAP oe Le

Me Sree

- “I am very pleased and sur-
prised at the early success of
this latest work as I thought it
would not be a book that the
market would embrace so easi-

-ly, even though I was confident

that the subject matter was rel-
evant and speaks to all areas of
human need. It is my hope that

it will change lives as it did mine
when I wrote.”

Mr Munroe has authored
over 40 books, many of which
have become best sellers and
still maintain record sellers
positions in the top-ten best

selling list throughout the.

world.

-selling pastor releases
new book at convention

His books are available in all
books stores both Christian and
secular as well as Wal-Mart, K-
Mart, Target stores, Books-A-
Million, Walton Bookstores and
Amazon.com.

Mr Munroe is under contract

. with the publishing company

for another two books this year.





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.

and share your story.

Share your news

If so; call son 322-1986-















Southeastern
University.

From:

James, Jamie & Eryn

Farrington

William, Claudia and

Jonathan Knowles

Billy, Marry, Lea and :
: Alyanoa s Knowl

Mey Sere G ontinue To a6 Ss vay

OUMICT

et. Rt



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. oareid
State Ard tba Chg





PAGE 16, WEDNESDAY, FEBRUARY 28, 2007 _





abana AAAI AR AAAS AR ARE AR ARRAN ARRAN SEARLS RAL ACA AN AALS

Write a letter answering the

hah: oon could

FAMILY ESSAY CONTEST







_ following i rer uae

do to be heart
_ smart? 7”

4 hy

6,

_ THE TRIBUNE:

February is National Heart Month
“Remember Good Health Starts With You.’ ?

if
H

jy
4

|

- Cardioman

- Send your letter to Doctors Hospital tha. you can be the winner of $200.

The school with the most entries will win a prize.





rennet

nnn

i
i
t
'

4
8
§









1. Children ages 8-13 may enter.

Write a letter answering the following guest “What are five things you could do to be heart smart.”

form, but not in writing the letter.

3. The body of the letter may not exceed 150 words. Adults may assist the child in filling out the entry — |

4, Limit one letter per child. All entries must be received by ek sues Hospital Marketing Department

before March 31st, 2007.

5. Only letters accompanied by original entry :forris slnded from the newspaper will be accepted. |
Photocopy, fax, carbon or other copies will not be accepted.

6. One winner will be chosen. The decision of the judges is fi nal,

CARDIO

FAMILY ESSAY CONTEST

gids Maier ke gin ee a ea ia

ied ee ode see Date of bitty. eae

School:



ARSC ic Ga ett et ttn ocelot ae Ma P.O. Box:
Poarerit Stegner

PRUE SUI ic cinancacossntnplbicilasniinemhty PRUNE cca taa te tina A LS ai a on

Telephone contact: (H) _ (W)

4
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}

oe Winner must free toa a phota presentation v which will be published i in the newspaper, i ae

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All entries become property of Doctors Hospital and can be used and reproduced for any purpose without compensation.

Oe

OFFICIAL ENTRY FORM __,

28 IE IO A OR TN TF






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WEDNESDAY, FEBRUARY 28, 2007, PAGE 17











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= TAXI DRIVER My wtce: Y Vlewspap'!

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PAGE 18, WEDNESDAY, FEBRUARY 28, 2007 | |







3
2



On behalf of the Santa Claus Christmas Committee, and most importantly the children, we would like to thank all those who contributed in *
making our fundraising efforts of 2006 the success that it was. We raised over $35,000 and were able to provide toys, through your generosity,°.
to over 3,500 children from Acklins, Mayaguana, Crooked Island, North Andros, Berry Islands, St Cecilia and Fox.Hill. Although our list of :

volunteers and sponsors is too long to mention we owe a great deal of gratitude to eve

ryone who helped out this year. It would be remiss of *







dca CC OCC eet

~ The Tribun

Nassau and Bahama Islands’ Leading Newspaper





Andr
of Island G

Pw



ATLANTIS Albany House One@Only
cain Ocean Club 8: J- Audio Visual

Ys Vanessa Kerzner ‘itaniae
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So! Cepaad Foi fut PT



2 THE TRIBUNE WEDNESDAY, FEBRUARY 28, 2007, PAGE 19



us-if we did not metion a couple of people who went far and beyond our call for help: Adam Darville, Allan Leibman of Atlantis Dubai,
Andrew Farkas of Island Global Yachting (IGY), Burton Rogers, Jason Callender of Albany House, Harry and Joann McPike, John Bull, Joey
Jam Productions, Juan Bacardi, Leon Dupuch, Sean Moore, Steve Haughey and Vanessa Kerzner. To these individuals and all those who
helped out we could not have done it without you. We look forward to receiving your help again this year. Thanks again from the children!








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Killy Cone Mr. & Mrs Harry McPike DJ Joey Jam





PAGE 20, WEDNESDAY, FEBRUARY 28, 2007





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WEDNESDAY, FEBRUARY 28, 2007

B BUSINESS

Jaa |

HELPING YOU CREATE AND MANAGE WEALTH

NASSAU OFFICE
Tel: (242) 356-7764



FREEPORT OFFICE
Tel: (242) 351-3010



%

wv

business@tribunemedia.net

Miami Herald Business, Stocks, Analysis, Wall Street.







Inspector of Banks and
Trust Companies resigns

m@ By NEIL HARTNELL
Tribune Business Editor

he Inspector of
Banks and Trust
Companies,
Michael Foot,
has handed in his
resignation and will demit

office at the end of May 2007, .

The Tribune can reveal, a
development that has caused
some concern in the Bahamian
financial services industry.
The Central Bank’s bank
and trust company licencees
were informed yesterday that
Mr Foot was due to step down
from the key regulatory post
that he took up towards the

Foot demitting office at end of May regarded as
‘loss’ by Bahamian financial services industry

end of 2004, and will have held
for some two-and-a-half years
before his term ends.

The note from the Central
Bank, which has been obtained
by The Tribune, said: “Michael
Foot, Inspector of Banks and
Trust Companies, will demit
his post at the end of May
2007. ,

“During the two-and-a-half

Investment
project awaits
Ministry bonds

} m By CARA BRENNEN-

BETHEL.
Tribune Business
Reporter

A BOUTIQUE Eleuthera-
based investment project yes-
terday told The Tribune it was
now only waiting for bonds to
eb issued by the Ministry of
Works and Public Utilities
before it began construction
on its 40-property oceanfront
gated community.

SkyBeach Club will feature
40 homes and villas, covering
610 feet of oceanfront proper-
ty. It will include a clubhouse
boasting a 360 degree view of
both the Atlantic Ocean and
the Caribbean sea, a building
that features a dining room,
fitness centre and cocktail
lounge. The property will also
include an infinity edge pool
with a waterfall.

Micheal Reardon, SkyBeach
Club’s vice-president, yester-
day said they expected to
receive the bonds shortly.
Once that is done, construc-
tion work can begin.

SkyBeach Club is currently
engaged in a pre-sale market-
ing blitz, which has seen
already seen results.

“We have already presold
about nine properties, so when
you consider that we only have
40 properties, we’re almost
there. So we are very happy
about that,” Mr Reardon told
The Tribune in an interview
yesterday.

He added that to date, every
person involved in the pre-
development of the project,
including the placement of
infrastructure, has been a
Bahamian resident of
Eleuthera.

“So far, in all the phases we
have had about 25 persons on
the payroll,” Mr Reardon said.
“Eleuthera people are very
proud people ,and so all of
their work has been very well
done. We are very pleased, and
we had no problems working
with them.”

Mr Reardon added that con-
struction on the pre-sold hous-
es is expected to begin somet
ime in April, with work on the
club house starting in June and
on the oceanfront amenities by
year’s end.

Eleuthera
development
set to begin
construction in
April, having
employed 25.
Bahamians and
pre-sold nine
properties

. He said that in the near
future, SkyBeach Club hope
to have Prime Minister Perry
Christie visit the site for a
ground-breaking and ribbon
cutting.

Mr Reardon describes Sky-
Beach Club as “a once in a life-
time opportunity for real estate
investors and vacationers
alike”.

The resort-style homes
include one-storey, two storey
and split-level designs, with
each home having ocean and
beachfront views. The beach
club will be available to home
owners and guests by reserva-
tion.

SkyBeach Club homeown-
ers will receive 25 hours of pri-
vate jet time from Flight
Options LLC.

“We want to offer investors

convenient, first-class travel to
and from their properties. Our
partnership with flight options
allow us to offer just that ser-
vice,” Mr Reardon said.

He indicated that in order
to drive the highest possible
return on their investment, the
SkyBeach will manage and
market SkyBeach Club to the
most “distinguished travellers
around the world.”

SkyBeach is one of a very
few remaining places worthy
of being called ‘supremely pri-
vate’, Mr Reardon said.

Villas start at a price of
$500,000. Homes start at $2
million.

years spent with the Central |
Bank of the Bahamas, Mr Foot
has made an important contri-
bution to banking supervision
in the Bahamas and tothe on- °
going regulatory reform initia-
tive. ‘ :
“As communicated by Mr
Foot, his initial interest in com-
ing to the Bahamas was to

tory reform of the financial sys-
tem, to which he remains com-
mitted and has expressed a
willingness to assist, notwith-
standing his new appoint-
ment.”

The Central Bank notice
said Mr Foot was returning to
London to take up a post
unconnected to any interna-
tional financial centres.

In the meantime, the Cen-
tral Bank said it has begun the
search for Mr Foot's replace-
ment.

Neither Mr Foot nor Wendy
Craigg, the Central Bank gov-
ernor, could be contacted for
comment yesterday as all the
bank’s phones gave an
‘engaged’ tone when rung.

of state for finance, confirmed:

“J think he gave some notice of

resignation. He’s been offered
a post back in the UK.”
Mr Foot arrived in the
Bahamas with impeccable reg-
ulatory credentials, having
been.a- DEINE mover inthe

SEE page SB

become involved with regula-

But James Smith, minister

Catastrophic insurance fund ‘to
help stabilise Bahamian Budget’

@ By NEIL HARTNELL
Tribune Business Editor

A CATASTROPHIC insurance fund to
protect the Bahamas and other Caribbean
nations.against Jhurricanes and natural dis-
asters: “is likely:to be up and running in a
month or so”, the minister of state for
finance said yesterday, a development that
will bring “stability” to this nation’s Budget
planning.

‘James Smith, speaking to The Tribune

upon his return from Washington, where he -

attended a World Bank meeting to discuss
the fund’s creation, said that it had received
commitments for $47 million in initial seed
capital, well in excess of the expected $30
million.

He added that some 18 countries, includ-
ing the Bahamas, had signed up to partici-
pate in the catastrophic insurance fund pro-
ject, paying $1 million in annual premiums
each to the fund, which would also acquire

the necessary rein-
surance.

A minimum “of
nine countries were
required to sign'up §
to the.programme:to...J
make it viable, Mr
Smith said, accord-.:
ing to actuarial pro-,
jections for the fund.

“We want to get it
up and running for
the 2007 hurricane
season,” Mr Smith said. “We were looking
for $30 million as seed for the fund, and got
$47 million. It’s likely to be up and running
in a month or so.”

The minister explained that the fund
would operate differently from a traditional
property and casualty insurance policy,

‘MJAMES SMITH

which called for loss adjusters to assess the

damage before any payment was made.
When it came to the: catastrophic insur-



ance fund, Mr Smith explained, payments
from the fund to impacted nations would
be triggered by events.

He said that, for example, if a Category
Three hurricane or one of even greater
severity hit the Bahamas, the fund would
“immediately give the Bahamas support”,
Brie it with an instant payment of $20-

25 million to aid with disaster recovery and
other priority items for the Government.

Mr Smith said that in previous years, when
hurricanes impacted the Bahamas, the Gov-
ernment had to “shift things around in the
Budget”, impacting spending in other needy
areas and throwing fiscal projections and
calculations out of line.

“This will help us to stabilise the Bud-
get,” Mr Smith said. “Successive govern-
ments of the Bahamas would benefit from
the stabilisation of fiscal affairs, as they
would get direct Budgetary support when a
Category Three hurricane or above hap-
pens.”

Total Performance through January 31, 2007*

16.40%

Last 12 months

9.11%

Average Annual Return

Since Inception. February 1999

*Stock prices can go down as wellas up. Past performance is no guarantee of future results. Read the Offring Memorandum carefully before you invest

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STOCK. : CORPORATE SU Le MS. h 9
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System failures often
root disaster causes

his series is intended
| to highlight why the
study of risk, crises
and disasters is critical in help-
ing professionals reduce loss
and adequately manage vari-
ous risk associated with crime,
security and safety loss events.
Of interest here is the loss or
damage to reputation ,which
must also be considered an
asset, along with people, prop-
erty and information. Thus
efforts must be made to pro-
tect it, as in many instances it is
a much more difficult item to
protect.

Our discussion will begin
with terms that are used inter-
changeably, but are very dif-
ferent in their meaning. The
terms ‘emergency’, ‘crisis’ and
‘disaster’ are attempts to









SENIOR AUDIT MANAGER

(Based in Barbadas)

RESPONSIBILITIES:

equate the level and intensity
of the loss event or potential
loss event.

Emergencies

These can be defined as sit-
uations requiring a rapid and
highly-structured response,
where risk for critical decision
makers can, to a relative
degree, be defined.

An example is the brakes on
your car not responding when
pressure is applied, and you
are losing control of the vehi-
cle.

Crises

These are defined as situa-
tions requiring a rapid
response (for this reason they
are all too easily misconceived
as emergencies). In contrast,

FirstCaribbean is a major Caribbean Bank offering a full rang
_ Corporate Banking, Retail Banking, Credit Cards, Wealth Management, Capital Markets and Treasury.
We are the largest regionally-listed bank in the English-speaking Caribbean with over 3,500 staff, 100
branches and banking centres, and offices in 17 regional markets, serving 800,000 active accounts.

- INFORMATION TECHNOLOGY & CHANGE MA'

* Effectively and efficiently lead and supervise a team.of Audit
Managers. & Auditors, both on a career management and

assignment basis

® Collegiate responsibility with peers for leadership and
management of the Audit function

e Ownership for a wider portfolio of audit assignments end to
end across. key business areas with an emphasis on Information
Technology & Change Management including responsibility
for ensuring the quality of audit work undertaken

e Relationship management, subject matter expertise and
continuous business monitoring with senior level management
developing audit opinions based on sound technical judgment
in key areas of the business and gaining buy-in te audit results

* Support and deputise for the Audit Director and Executive
Director, Audit at key business meetings including Risk

Committees

* Production of reporting/management information for the

function and to the business

° Delivery of internal projects and key departmental initiatives
supporting Audit’s Continuous Improvement Plan
® Inform and produce macro audit planning for key significant

areas:of the business

¢ Effective delivery of audit verification activity in key business

areas of responsibility








Safe
& Secure

by Gamal Newry

the risk for critical decision-
makers is difficult to define,
owing to ill structure. It is typ-
ical that the effect of a
response either is, or appears
to be, unclear

The crises based on the ‘car
brakes’ scenario described
above would be that there are
school children to your left and
a large pine tree or cliff to your
right. Which direction do you
go in?,

Disaster
In contrast, this would be

e of market-leading financial services in

PREREQUISITES:

defined as a cultural construc-
tion of reality. A disaster is dis-
tinct from both emergencies
and crises only in that, physi-
cally, it represents the product
of the former. Disasters, then,
are the irreversible and typi-
cally overwhelming result of
the ill handling of emergencies
and crises.

The Straw Market Fire in
September 2001, and the colli-
sion of two boats in August
2003, are in my opinion clear
examples of system failure dis-
asters. It was determined that
systems, whatever they were,
failed and the resulting impact
was a disaster where either
property or life have been lost.

System Failure
Regardless of the circum-

4

UNITIES








® Industry experience at middle management level

e Minimum of 5 to 6 years’ post-qualification experience in core
professional qualifications (e.g. ACCA, ACIB, IIA etc)

¢ Should possess a high level Graduate qualification and specialist
training and/or experience in the area of specialty, e.g. CISA,

‘CCSP, CISSP, PMP, GSNA etc

° Good understanding of specialty industry issues ~ including
regulatory requirements and professional standards

¢ Significant experience of leading and coordinating professional
teams/complex technical audit assignments at a Group or
regional level, demonstrating high standards of leadership and

coaching skills

* High standard of influence, negotiation, facilitation, presentation
and communication skills, both oral and written. Sharp analytical

skills and judgment

® Ability to think laterally and be truly flexible and imaginative in
developing and maintaining relationships

¢ Strong skills/recognition of risk and control considerations in
specialist technical areas including Finance, Change
Management and Information Technology

® Position will require a fair amount of regional travel

Applications with detailed résumés with the names of three business references should be submitted no later than

Tuesday 6th March 2007, to:



Rosalind Clarke

Audit Team Support Officer

FirstCaribbean International Bank

Head Office, Warrens
St. Michael, Barbados

Email: Rosalind.Clarke@firstcaribbeanbank.com



Only applicants who are short-listed will be contacted

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iGo i AR A A La

stances, these events all have to
do with the failure of systems.
The persons responsible for
these systems will usually say
they are operating at optimal
level, holding true to the old
adage: ‘A fisherman never calls
his fish stink’. These systems,
over time, have been modified
to deal with the changing envi-
ronmental, social and techno-
logical climate we live in.

What, then, is a ‘system’?
We encounter a term that has
not yet achieved a universally
agreed-upon definition. How-
ever, we have been provided
with 13 essential characteris-
tics:

* A recognisable whole

* Interconnected compo-
nents or elements

* Organised interconnec-
tions

* Components interaction
signifies processes

* Processes imply inputs and
outputs

* Components form hierar-

_ chical structures

'* Adding or removing a
component changes the system
and its characteristics

* Component is affected by
its inclusion in a system

* Means for control and
communication promote sys-
tem survival

* Emergent properties, often
unpredictable

* System boundary

* A system environment out-
side the boundary, which
affects the system

* System ‘ownership’

It is not clear how many of
these elements have to be
missing in order to arrive ata
system failure, but what is clear
is that these factors are depen-
dent on human insight and
understanding.

Management Failure

In order for systems to work
together cohesively, and hope-
fully produce a positive prod-
uct, the system must be man-
aged properly. Thus the
improper management of sys-
tems results in failure, whether
human or technical. Good
management systems should

THE TRIBUNE

possess the following charac-
teristics:

1. A good management sys-
tem has a network that allows
all persons to communicate
effectively, regardless of where
they are located in the organi-
sation.

2. The leadership must
establish and ensure that all
policies and guidelines are ade-
quately communicated at all
levels of the organisation.

3. Information pertaining to ©
the organisation should con-
stantly be reviewed and test-
ed for compliance.

4. The leadership should
ensure that a good cadre of
persons are employed, who
possess the technical skill to
conform to - and intelligently
apply - the standards laid out
by the company, the industry
or government regulatory
board.

It is the failure of systems,
and more detrimentally, the
management failures, that
bring about effects resulting in
disaster.

What appears as several
events having numerous sep-
arate causes and effects, can
often be viewed as one event.
Dombrowsky states: “There is
no separate process that swells
the cheeks to blow. Wind is air
in a specific motion, not a sep-
arate being that makes the air
blow.” This statement does not
suggest that there is no causa-
tion, but rather the inputs and
outputs, action and reactions,
all equate to the ‘effects’.

NB: Gamal Newry is the
president of Preventative Mea-
sures, a loss prevention and
asset protection training and
consulting company, specialis-
ing in policy and procedure
development, business securi-
ty reviews and audits, and
emergency and crisis manage-
ment. Comments can be sent
to PO Box N-3154 Nassau,
Bahamas, visit us at www.pre-
ventativemeasures.net or email
gnewry@preventativemea-
sures.net

‘Redouble’
marketing efforts
in the face of US
passport punch

THE. speculation is over.
The US passport regulations
are in force. Land-based resort

destinations closest to the US -

are feeling the most pain. The
Bahamas and Jamaica are
clearly on the front line. Cruise
shipping has been given a carte
blanche.

As the January numbers
start to be collated by the var-
ious destinations, the picture
is clearly emerging that the
new passport regulations are
hurting.

My information so far this
year tells me that air arrivals
from the US to the Bahamas
and northern Caribbean des-
tinations have been down or
flat, while at the same time
arrivals from other markets
such as Canada, the UK and
continental Europe have been
showing excellent growth.

For Jamaica. from which I
have the most up to date infor-
mation, air arrivals from the
US were down almost 10 per
cent while cruise passengers
arrivals were up over 5 per
cent.

Thank God arrivals from
Canada were up over 28 per
cent, and from Europe over 11
per cent. This made overall
arrivals roughly equal to last
year.

All things being equal,
arrivals from the US should
have been up at least 5 per
cent instead of being down 10



per cent. It would not have
been overly optimistic, taking
into account all the new hotel
projects in Jamaica, to have
had an increase of even 10 per
cent from the US, a 20 per cent
difference.

My information from the
industry in the Bahamas points
to similar patterns. Freeport
will probably be hardest hit.
Additionally, I have not seen
the same spike in close book-
ings and arrivals that usually
follow cold snaps in the weath-
er up north.

I am aware of the efforts that
have been made to have the
new passport regime delayed
or eased. It is now clear,
though, that the US will not
budge.

The only option left for us
is to redouble our efforts pro-
moting the various passport
promotions in place, and for
the various Ministries of
Tourism to redouble their
advertising and promotional
spending and efforts making
the obtaining of a passport a .
cost free component for our
US guests. The cost of the sta-
tus quo will be much greater. |

)

’





*

in U.S. history.





ease easeean



The Miami Herald |



THE MARKETS

STOCKS, MUTUAL FUNDS, 5-6B

DOW 30 12,632.26 -15.22 W
SaP 500 1,449.37 -182 W
NASDAQ 2,504.52 -10.58
10-YR NOTE 463 -.04 W -
CRUDE OIL 61.39 +25 Ah

Market
decline
persists

BY JOE BEL BRUNO
Associated Press

NEW YORK — Wall Street
extended its decline Monday as
concerns about a market cor-
rection offset investor optimism
that acquisition activity is on
pace to set a record this year.

The $45 billion buyout of
electric utility TXU injected
confidence into the market that
merger and acquisition activity
could surpass last year’s record

$4 trillion level. The deal, led by
a consortium led by Kohlberg
Kravis Roberts & Co. and Texas

- Pacific Group, would go down
as the largest leveraged buyout

Other deals included Station
Casinos, which agreed to be
bought by a private equity firm
started by the company’s found-
ing family. Temple-Inland, a
conglomerate that offers every-
thing from packaging material
to financial services, plans to
separate itself into three standa-
lone public companies.

However, stocks were
unable to sustain gains amid
speculation that the market may
be in for a correction. Hanging
over the market is a lack of cata-
lysts that could propel stocks
forward, especially ahead of an

_ expected downward revision, of

_ fourth-quarter gross domestic

" product to be released Wednes-
day...

The Dow Jones industrial
average fell 15.22, or 0.12 per-

~ cent, to 12,632.26..The index has
had 31 record closes since the
beginning of October, and is up
about 8 percent in that time.

Broader stock indicators also —
fell. The Standard & Poor’s 500
index was down 1.82, or 0.13
percent, at 1,449.37, and the
Nasdaq composite index fell
10.58, or 0.42 percent, to
2,504.52. The Nasdaq was the
only index that finished last -
week in positive territory, while
the Dow and S&P dipped.

Bonds continued to rise from
last week’s sell-off, with the
yield on the benchmark 10-year
Treasury note falling to 4.63
percent from 4.68 percent late
Friday. Bonds had been weaker
amid concerns that subprime
lenders would be forced to take
write-downs if consumers
defaulted on mortgage pay-
ments,

The dollar was mixed against
other major currencies, while
gold prices rose.

_ Oil prices rose after a winter
storm plowed across the United .
States, spurring expectations of
strong demand for heating oil.

A barrel of light sweet crude
rose 25 cents to $61.39 on the
New York. Mercantile
Exchange.

Meanwhile, Dow Chemical
spiked $1.54, or 3.5 percent, to
$44.99 on speculation it could
be the target of a leveraged buy-
out.

Station Casinos rose $3.20, or
3.8 percent, to $86.50 after it
agreed to go private in a $5.4 bil-
lion deal, which represents an 8
percent premium over its clos-
ing price on Friday. The deal
still allows Station to solicit:
acquisition proposals from third
parties for 30 days.

Advancing issues barely out-
paced decliners on the New
York Stock Exchange, where
consolidated volume came to
2.82 billion shares, up from 2.59
billion Friday.

' ‘The Russell 2000 index of
smaller companies fell 2.95, or
0.36 percent, to 823.69.

Overseas, Japan’s Nikkei
stock average closed up 0.15
percent. ‘

At the close, Britain’s FTSE
100 was up 0.52 percent, Germa-
ny’s DAX index added 0.50 per-
cent, and France’s CAC-40 rose
0.81 percent.

U.S. POSTAL SERVICE







‘Forever’ postage gets stamp of approval



= The Postal Regulatory
Commission recommended a
new stamp whose purchase value
would remain constant forever.
The panel also suggested a
2-cent hike for first-class stamps
from 39 to 41 cents.

BY RANDOLPH E. SCHMID
Associated Press

WASHINGTON — Say goodbye
to those pesky l- and 2-cent stamps
that used to clutter up desks and
purses every time the price of mail-

ing a letter went up.

Anew “forever” stamp — good for
mailing a letter no matter how much
rates rise — was recommended Mon-
day by the independent Postal Regu-
latory Commission. The panel also
called for a 2-cent increase in first-
class rates to 41 cents, a penny less
than the post office had sought.

In addition, the changes would
sharply scale back the price of heav-
ier letters. ,

“Adoption of this proposal is good
for the Postal Service, postal custom-



ers and our postal system,” commis-
sion chairman Dan G. Blair said at a
briefing. :

A forever stamp would not carry a
denomination, but would sell for
whatever the first-class rate was at
the time.

For example, if the 41-cent rate
takes effect, forever stamps would
sell for 41 cents. If rates later climbed
‘to 45 cents or more, the price of the
forever stamp would also go up at the
counter or machine, but those pur-
chased before the change would still









LM OTERO/AP

A BIG MOVE IN TEXAS: TXU has agreed to a buyout froma private-equity firm for about $32 billion.

_ ELECTRIFYING DEAL

ELECTRICITY PRODUCER TXU PLANS TO GO PRIVATE IN A $32 BILLION DEAL
THAT WOULD RANK AS THE BIGGEST PRIVATE BUYOUT EVER IN THES:

BY DAVID KOENIG
Associated Press

DALLAS — TXU Corp., Texas’
largest electricity producer, said
Monday it has agreed to be sold
to a group of private-equity firms
for about $32 billion in what
would be the largest private
buyout in U.S. corporate history if
shareholders and regulators go
| along.

Kohlberg Kravis Roberts & ‘Co.
| and Texas Pacific led a group that
| included Goldman Sachs & Co. and
three other Wall Street firms that
will pay $69.25 per share for TXU.
They will also assume about $13 bil-
| lion in debt. nV «

_ The firms won support for the
buyout from some environmental-
ists who have criticized TXU by
agreeing to sharply scale back
TXU’s controversial $10 billion plan
| to build ll new coal-fired power
| plants that would produce tons of
| new greenhouse gas emissions.
They also agreed to cut electric-
| ity prices 10 percent, which they said
| would save TXU residential custom-
| ers more than $300 million per year,
| and limit prices until September
|
|

'
i
|
|
'
|



2008.

TXU directors voted Sunday
night to recommend that sharehold-
ers approve the sale. The price rep-

INSURER

@ Following the announcement
that WellPoint CEO Larry
Glasscock will step down and
Angela Braly will take over in
June, the company will become
the largest Fortune 500 witha
woman at the helm.

BY TOM MURPHY
Associated Press
INDIANAPOLIS — WellPoint
surprised some Wall Street analysts
Monday when it announced that a
relatively unknown executive will
replace Chief Executive Larry Glas-
scock after he steps down in June.
Angela Braly, executive vice presi-
dent and general counsel for the Indi-

AONE UED RAT NSLS TET EE EE



An
RR a



DR. SCOTT M. LIEBERMAN/AP

SCALING BACK: Coal moves up a conveyor belt at TXU’s Big-Brown
power plant. The private firm will scale back a controversial
$10 billion plan to build 11 new coal-fired power plants.

resents a 15 percent premium to
TXU’s closing stock price on Friday.
TXU shares closed up $7.91, or
13.2 percent, at $67.93 on the New
York Stock Exchange after briefly
reaching a new 52-week high of
$68.45.

The deal would top the previous
biggest private buyout ever of
$25.1 billion set in 1988 when RJR
Nabisco was acquired by Kohlberg
Kravis.

TXU officials said the company
would get a $1 billion break-up fee if
the buyers can’t close the sale. TXU

WellPoint CEO retires, woman

anapolis-based insurer, will become
president and CEO after Glasscock
steps down June 1. She will make
WellPoint the biggest Fortune 500
company with a woman at the helm.

Glasscock announced his retire-
ment Monday.

WellPoint’s choice for successor
comes as a “major shock,” according
to a report from CIBC World Mar-
kets analyst Carl McDonald.

“We want to emphasize that our
issue is not with Braly herself, as she
very well could be the perfect person
for the role,” McDonald wrote. “We
just don’t know her, and neither does

* TURN TO BRALY, 4B

also has until mid-April to shop for
better offers, although the buyout
firms would get a chance to trump
any new bids.

Private-equity firms have often
steered clear of utilities, viewing
them as highly regulated businesses
with relatively low return on invest-
ment. But Texas deregulated its
electricity market in 2002, and TXU
is generating tremendous amounts
of cash and profit — Wall Street

_expects the company to report today

° TURN TO TXU, 4B



be valid to mail a letter.

So there would be no need to buy
small-denomination stamps to add to
envelopes. ;

Currently, first-class mail costs
39 cents for the first ounce and
24 cents for each additional ounce.

While the first ounce would rise to
4] cents under the proposal, it would
cost just 17 cents for each additional

ounce.

That means the price of sending a
° TURN TO STAMPS, 4B

M may
exchange
equity
stake for
Chrysler

® Rumors continue to mount
surrounding DaimlerChrysler’s
plans for its struggling Chrysler
division, as GM and a Canadian
company may be looking at ways
to purchase the unit.

BY MATT MOORE
Associated Press

FRANKFURT, Germany — Gen-
eral Motors reportedly may be inter-
ested in giving-an equity stake to
DaimlerChrysler in exchange for its
struggling Chrysler unit. Separately,
an analyst said he understands a large
Canadian auto parts supplier may be

‘'studying a Chrysler purchase.

Russia’s second-biggest automo-
tive company denied that it was
interested in the Chrysler business.

The speculation about possible
deals for Chrysler is the latest that
has surfaced since DaimlerChrysler
Chairman Dieter Zetsche said Feb. 14
that all options are on the table for
the money-losing Chrysler business
and he would not rule out a possible
sale.

The Financial Times reported
Monday that DaimlerChrysler was
considering a 20 percent stake in GM
in the form of a payment if a deal to
sell Chrysler were to go forward. .

The Financial Times, citing people
familiar with the situation, said
DaimlerChrysler was weighing the
possibility of trading Chrysler for the
GM stake, but added it was also con-
sidering a cash sale to private equity
firms, including Apollo Management
LP, Blackstone, Cerberus Capital
Management and Carlyle Group,
among others. All four have refused
comment.

DaimlerChrysler did not comment
on the report, reiterating its previous
stance that all options for Chrysler
are being considered. GM also said it
would not comment on what spokes-
man Tony Cervone called specula-
tion.

Also on Monday, KeyBanc analyst
Brett Hoselton said in a note to inves-
tors that his sources tell him Magna
International is seriously considering
a purchase of Chrysler Group. Hosel-
ton said senior Magna executives
have obtained Chrysler financial
information, visited Chrysler

* TURN TO CHRYSLER, 4B

takes over



WELLPOINT

SET TO RETIRE: WellPoint CEO Larry Glasscock, left, announced his
retirement Monday. Angela Braly was an unexpected replacement.





4B | TUESDAY, FEBRUARY 27,2007 INTERNATIONAL EDITION _

INSURER

WellPoint becomes largest
Fortune 500 with female CEO

*BRALY, FROM 1B

the market.”

WellPoint shares fell 37
cents to close at $81.13 in trad-
ing Monday on the New York
Stock Exchange. They are still
near the higher end of their
52-week range of $65.49 to
$84.15.

Glasscock, 58, said he was
retiring as president and CEO
for family reasons but did not
elaborate. He will remain
non-executive chairman of
the board.

His supplemental retire-
ment plan calls for a lump
sum payment of $31 million,
according to Alexandra Hig-
gins, a senior compensation
analyst with The Corporate
Library, a corporate gover-
nance research firm.

But WellPoint spokesman
Jim Kappel said the total
value of that pay won’t be cal-
culated until he retires.

Glasscock also has more
than $55 million in unexer-
cised stock options, but Kap-
pel said not all of those vest
upon retirement.

Braly, 45, joined the com-
pany in 2005. Before that, she
was president and CEO of

TEXAS



Blue Cross Blue Shield of Mis-
souri. Glasscock cited the
membership and profitability
growth her company saw then
as an attribute.

He also noted the impor-
tance of handling public pol-
icy, legislative and regulatory
issues in the future.

“These are all areas that
Angela is incredibly skilled at,
in addition to knowing how to
run a company, so that was a
very important aspect of her
selection as my successor,” he
said.

Braly joined Blue Cross
Blue Shield in 1999 after being
a partner with a St. Louis law
firm. She earned her law
degree from Southern Meth-
odist University and her
undergraduate degree from
Texas Tech University.

She said the company will
focus on expanding member-
ship but also will continue to
look for more merger and
acquisition opportunities to
drive future growth.

WellPoint ranks 38th in the
2006 Fortune 500 list of the
biggest companies. The next
largest company with a
female leader is No. 56,
Archer Daniels Midland,



Gras

DR. SCOTT M. LIEBERMAN/AP



NUCLEAR POWER: TXU’s Comanche Peak Steam Electric
Station near Glen Rose, Texas, is the sole nuclear-fueled

power plant owned by TXU.

TXU planning
to go private

°TXU, FROM 1B

that it earned about $2.5 bil-
_ lion in 2006.

TXU, with more than
2.3 million customers, has
prospered because electric
rates in Texas are tied to the
price of natural gas while
TXU generates much of its
power more cheaply at coal
and nuclear plants.

Still, TXU had flaws that
might make buyers think
twice. Many Texas consum-

ers have switched to other

companies that sell electricity
for less, although most of
TXU’s longtime customers
have stood by it.

Goldman Sachs, Lehman
Brothers, Citigroup and Mor-
gan Stanley intend to be part
of the TXU purchasing group,
TXU said.

TXU also said former Sec-
retary of State James A. Baker
III will serve as advisory
chairman to the new owners,
and former EPA Administra-
tor William Reilly and former
Commerce Secretary Donald
L. Evans will join the TXU
board.

In recent months, environ-
mentalists have blasted TXU
in publications and advertise-
ments, and controversy over
the proposed coal plants was
seen as one reason that TXU’s
stock price had fallen recently
after a mighty four-year rise.

Texas Pacific tapped.
Reilly, one of its partners, to
strike a compromise that won
support for the sale from two
environmental groups in
exchange for cutting back
TXU’s coal program.

Henry Kravis, founding
partner of KKR, pledged to
make TXU into “a more inno-
vative, customer-centric,
environmentally friendly
company.” He said the pri-
vate-equity buyers — who are

often viewed as short-term
investors looking to resell —
see TXU as a long-term asset.

David Bonderman, found-
ing partner of Texas Pacific,
said the new owners’
approach would “better man-
age the delicate balance
between the energy needs of a
growing Texas population,
responsibility to the environ-
ment and the cost concerns of

' Texas businesses and resi-

dents.”

Those remarks could be
read as a rebuke to current
management and Chief Exec-
utive C. John Wilder, who
said he has not signed a con-
tract to stay with the com-
pany.

The investors have
reached out to Texas officials,
including Gov. Rick Perry, in
an effort to smooth regulatory
approvals and hostility. to
TXU in the state Legislature.

Regulatory hurdles have
tripped up previous efforts by
buyout firms to enter the
power business. In late 2004,
investors led by KKR dropped
a bid to buy UniSource
Energy after an Arizona com-
mission rejected the deal.
Federal officials had approved
it.

Oregon regulators rejected
Texas Pacific’s attempt to buy
Portland General Electric in
2005, but a Warren Buffett-
controlled company suc-
ceeded in buying another
Oregon utility, PacifiCorp,
last March for $5.1 billion
after pledging to upgrade the
company’s facilities.

State regulators in Texas

- have no authority to stop the

deal, but they could consider
the effects of the sale on pro-
posed rate hikes, Wilder said.
Officials said the deal would
require approval from federal
antitrust and energy regula-
tors.

Larry Glasscock said
he was retiring as
president and CEO
for family reasons but
did not elaborate.

where Patricia A. Woertz
serves as chairman, CEO and
president.

Braly said she might bring
“great perspective’ to the
new role because of her gen-
der.

“What we know at Well-
Point is that 70 percent of the
healthcare decisions are made
by women, so I think it’s a
very natural place for me to
be, both as a businesswoman
and as a consumer of health-
care for my family,” said
Braly, who is married and has
three school-age children.

McDonald called company
Chief Financial Officer David
Colby the most logical candi-
date to replace Glasscock and

. questioned whether he would

stay with the company now.

Colby said in a conference
call that he was “very happy
to work alongside” Braly.

U.S. POSTAL SERVICE

JPMorgan analyst William
D. Georges stated in a sepa-
rate report that Braly was the
logical choice due to her
acquisitions and public policy
experience. Glasscock joined
Anthem Insurance in 1998 and
helped engineer the largest
deal in company history. In
2004, WellPoint was formed
when Indianapolis-based
Anthem acquired Thousand
Oaks, Calif.-based WellPoint
Health Networks in a
$16.5 billion deal. The com-
bined company changed its
name to WellPoint.

Under Glasscock’s leader-
ship, WellPoint and its prede-
cessor companies grew from
6 million medical members
and $6 billion in revenue to
more than 34 million medical
members and more than
$60 billion in revenue.

Braly will receive an
annual base salary of $1.1 mil-
lion, which doesn’t count
other compensation like
bonuses and stock options.

In 2005, Glasscock earned

$5.2 million in “salary and
bonus and received $3.1 mil-
lion in restricted stock award,
according to. the company’s
latest proxy statement.

New stamp’s
usage would be
valid forever

°* STAMPS, FROM 1B

two-ounce letter would actu-
ally decrease from 63 cents to
58 cents. ;

The proposal also recom-
mended a 2-cent boost, to 26
cents, in the cost of mailing a
post card, also a penny less
than the Postal Service had
sought.

Blair said the rate propos-
als were scaled back because
the higher rates the post
office proposed would have
raised more income than nec-
essary for the service to break
even in 2008.

The proposal also sug-
gested changes in a variety of
other rates including a 17-cent
surcharge on “odd-shaped”
mail that cannot be processed
using letter-sorting machines.

William Burrus, president
of the American Postal Work-
ers Union, called the decision
“a major victory for the
American people.” He said
the union had argued for the
smaller rate increase.

' In addition, Burrus said,
the commission agreed with
his union on limiting dis-
counts large mailers get for
presorting mail.

The trade group The
Greeting Card Association
also said it was pleased the
commission recommended

AUTOMOTIVE

stamp and
the rate

the forever

trimmed back

increase to 2 cents. ;
The matter now goes back

‘:uto the board of governors. of
‘the post office. which can
accept the recommendations

or ask for reconsideration. If
accepted, the new rates could
take effect as soon as May.

The Postal Service applied
for higher rates last May.
Since then the commission
has received 139 pieces of tes-
timony from 99 witnesses and
held 34 days of hearing on the
request in developing its rec-
ommendations.

Under legislation approved
by Congress last year, the
commission will develop a
new, less cumbersome system
of raising rates for use in the
future, and also has more
authority to regulate postal
activity.

Postage rates last went up
in January 2006.

Postmaster General John E.
Potter has pointed out that
“the Postal Service is not
immune to the cost pressures
affecting every household and
business in America.”

For example, each penny

increase in the price of a gal-

lon of gasoline costs the post
office $8 million, and the post
office cannot simply add a
fuel surcharge to its rates.

GM considers

* CHRYSLER, FROM 1B

facilities and met with United
Auto Workers leadership.

A Magna spokeswoman
would not comment on the
report, but confirmed that
Chairman Frank Stronach has
met with DaimlerChrysler
Chairman Dieter Zetsche.
However, spokeswoman
Tracy Fuerst would not say
when the meeting took place.

She said Stronach and
other Magna executives meet
with auto company execu-
tives regularly as part of their
normal course of business.

Hoselton also said in his
report that he thinks a Magna
purchase of Chrysler is possi-
ble but unlikely.

“Since GM is short of cash,
an equity deal would make
sense if it is interested in
Chrysler, and an equity valua-
tion of Chrysler at, say, 3 bil-
lion euros ($3.94 billion),
would wind up giving Daim-

equity exchange

lerChrysler a 20 percent stake
in GM,” said Stephen Chee-
tham, a senior analyst with
Sanford C. Bernstein Ltd. said.

DaimlerChrysler’s U.S.
shares fell 35 cents to close at
$70.57 on Monday on the New
York Stock Exchange. GM
stock fell 29 cents to finish at
$33.97 on NYSE.

Chrysler earlier this month
announced it lost $1.475 bil-
lion in 2006 and said it
expects losses to continue
through 2007.

Parent DaimlerChrysler,
however, earned $4.26 billion
in 2006.

The news was accompa-
nied by plans to shed 13,000
jobs, including 11,000 produc-
tion workers and 2,000 sala-
ried employees as it trims
expenses and factory capacity
to match declining sales.

The automaker also
announced the closure of one
plant and layoffs at several
others.



WORKPLACE

The dark

BY LISA BONOS
Washington Post Service

WASHINGTON — Achiev-
ing work-life balance is
already a juggling act. Throw a
second job into the mix, and it
can become a lot harder to
perform:

More than 5 percent of U.S.
workers hold more than one
job, according to the Bureau of
Labor Statistics. Willie Floyd
Brunson has been part of this
group for decades. A transpor-
tation manager by day and a
security guard by night, Brun-
son says the cost of living in
the Washington area has
driven him to an 80- to 90-
hour workweek.

“To maintain good living
conditions, I have to work two
jobs,” he said.

“You can’t do it on one
job,” he added.

. ..-Brunson, ‘who.is: preparing

for.a second marriage and per-
haps a new family, said he
wouldn’t consider quitting the
night job. He describes himself
as “old school,” saying that as
aman it’s his responsibility to
pay the bills.

It’s not easy — while the
decision to moonlight was
“financially rewarding,” he
said, “emotionally it wasn’t.”

Those who hold two jobs
must occasionally reweigh the
money against the minuses.
For about four years, Tiffany
Guarascio, now a staffer for
Rep. Frank Pallone, D-N,J.,
took on extra work. She had
started waiting tables while a
college senior and kept some
shifts when she got her first
“real job.” But when Guarascio
started working on the Hill in
2004, she cut back to waitress-
ing.on Sundays only, at an
establishment owned by a
friend.

The job was flexible — “It
was very easy to say ‘I need a
month or two off,’ ” she said —
and it became a social outlet.

But last summer, when Guar-

ascio recognized that the ser-
vice she was providing was
starting to reflect her resent-
ment over. working so much,
she quit.

PRODUCTIVITY

Taking an additional job
primarily to make extra
money can be stressful and
unproductive, according to
Renee Lee Rosenberg, an
author and career coach with
the Five O’Clock Club in New
York.

Her clients with second

__MiamiHerald.com | THE MIAMI HERALD



ILLUSTRATION BY KURT STRAZDINS/MCT



Those who hold two
jobs must
occasionally
reweigh the extra
money against the
minuses.

jobs often “get very angry:and::
depressed and.start.resenting:
their primary work. also;
Rosenberg said, and some-
times, with better budgeting, a
second job isn’t really neces-
sary.
She stressed the impor-
tance of researching what a
job requires before saying yes,
so you can know whether “you
can function the next day.”

Some second jobs can lead
to more enjoyable primary
jobs.

“Tt builds an opportunity to
build a new network and ulti-
mately it may develop into a
new career,” said Kathy Blan-

.ton, a career management con-

sultant for Spherion in Nash-
ville, Tenn.

BALANCE AND HARMONY

By day, Mike Graglia man-
ages a team working on educa-
tion in Africa at the World :
Bank in Washington. A few
evenings a week he teaches
yoga.

He wanted to do more yoga
and figured teaching would be
the next logical step in his
practice.

He often schedules his
flights to Africa around his
yoga commitments and swaps
classes with other teachers
when he’s out of town. It’s
common to find Graglia at the
yoga studio with a suitcase —
either coming back from a trip
or on his way out.

“I love both my jobs, and
they balance each other out,”
Graglia said. “Yoga is a genius
one because it keeps you
healthy and keeps you mov-
ing.”

MOONLIGHTING: IS IT WORTH IT?

e@ Reexamine your budget. Is the extra income really neces-
sary or can you change your spending? :
e Are there possibilities for overtime or additional responsi- .

bilities at your primary job?

@ Sketch out a hypothetical schedule with the second job.
Are there enough hours in the week? ~
@ Look for flexible hours. Can you work from home or easily

swap shifts with others?





4pm. 6:35 p.m. Late 4pm. 6:35 p.m. Late
Stock Tkr. ‘dose close Chg. volume Stock Tk. ‘dose close volume
Weyerh WY 82.25 82.25 * 31152 | Amazon AMZN 40.78 40.86 «= +.08 +7913
SPFnel XLF_— 37.30 37.30 * 20013 | SPOR SPY 145.30 145.43 +13 7435
Nasd100Tr QQQQ 45.26 45.27 +01 19814 Supvalu SVU 37.66 37.662 * 7430
CSXs CSX 40.42 40.27, =.15 17250 | Chubbs CB 5302 5302 ° 7000
Clearchan CCU 3647 3647. * 12800 | EMccp EMC 1449 1449 * 6623
Realogyn 29.68 29.68 +00 12640 | Layal3 \WLT = «6.55 654-01 5878
CompsBc CBSS 69.95 69.95 * 12162 | cunMicro SUNW 627 638 «hdl «8494
Kimbclk KMB 70,00 = 70.00 * 11352 | Pelianten RI 8 ;
BrMySq = BMY «27.05 27.06 += +.01 10000 | Relianten 1628 17.00 +72 5024
VivoPart = VIV 3983.98 * 10000 | LongvFbs LFB = 24.59 24,59 5000
Intel INTC 20.76 += 20.81 +.05 = -9953.'| Cisco CSCO 27.51 27.58 = +07 4732
Cocacl KO 47.26 = 47.20 -.06 8911 SiriusS SIRI 3.74 3.73 01 4450
InPhonic INPC 13.25 13,00 = +25 8850 Unisys UIs 9.30 9,30 e 4004

For up-to-date stock quotes, go to www.MiamiHerald.com and click on Business

Neen rrearrrrrrrr rere reer a



THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 5B





Credit union officially
unveils its new name

@ By CARA BRENNEN-
BETHEL
Tribune Business
Reporter

he Bahama Island
CL ieesorts and Casinos
Cooperative Credit
Union (BIRCCCU) has offi-
cially unveiled its new name,
a move designed to provide
more magnetism to attract
employees from those sectors,
than its previous name, the
Paradise Island Resort and
Casino Co-operative Credit
Union.

A sign bearing the new
name was Officially unveiled in
a short ceremony held at the
credit union’s Village Road



FROM page 1B

supervisory consolidation
process in the UK that led to
the Financial Services Author-
ity’s (FSA) creation as a ‘super
regulator’. |

His appointment was viewed
at the time as a precursor to
regulatory consolidation in the
Bahamas, with Mr Foot over-
seeing their integration, given
that this nation was generally
perceived as having too many
supervisory agencies with over-
lapping-responsibilities, creat-
ingadditional bureaucracy and
réd-tape*for Bahamian finan-
cial services providers to wade
through.

Mr Foot’s appointment was
thus warmly welcomed by the
Bahamian financial services
sector, especially given his
international standing and
links to global regulatory bod-
ies, something that helped
smooth relations with these
organisations at a time when
the Bahamas was still being
monitored by the Financial
Action Task Force (FATF).

Unconfirmed reports reach-
ing The Tribune last night sug-
gested that Mr Foot had
become frustrated with the
slow pace of developments in
the Bahamas, particularly over
the reform and potential con-
solidation of the regulatory
structure - the job he was

office, which was attended by
staff, the minister with respon-
sibility for credit unions, V
Alfred Gray, and senior offi-
cials from his ministry.

Paulette Dean, chairperson
of BIRCCCU, said the occa-
sion marked the threshold of a
new era in the credit union’s
history.

“We are more than commit-
ted to providing you the very
best financial services, as we
strive to be the leading credit
union of choice in the coun-

try,” she added.

“As such, we will in the very
near future be venturing into
the Family Islands, in places
such as Exuma and Grand
Bahama, in an effort to pro-

brought into oversee.

‘His departure has also
caused dismay among Bahami-
an bank and trust companies,
plus leading financial services
executives, who have enjoyed
the increased transparency and
communications Mr Foot has
provided via a quarterly
newsletter they have received.

Mr Foot led the production
of a guidebook for interna-
tional regulators on co-opera-
tion with their Bahamian coun-
terparts, explaining the
processes and removing mis-

understandings that had blight- .
ed these relationships in.the .

past. :
Production

As Inspector of Banks and
Trust Companies, he also
headed the production of
guidelines on bank and trust
company physical presence,
business continuity planning,
external auditors, independent
and non-executive bank direc-
tors, and minority investors in

‘Bahamas-based banks and

trust companies.

Several financial services
industry sources yesterday
voiced concerns to The Tri-
bune about Mr Foot’s impend-
ing departure, especially giv-

en the message it might send to |

outside investors, clients and
regulators - especially the fact
that such a recognised name

vide the same quality of ser-
vices which we presently offer
to our current members.

“We realise that our broth-
ers and sisters on the various
Family Islands also have
dreams to improve their finan-
cial future.”

According to the union, the
name was necessary to dispel
any notion that the credit

“union was only available to

persons who worked at Par-
adise Island-based resorts.
Mr Gray noted the credit
union’s achievements and
growth, saying the name
change will help to ensure the
financial stability of Bahami-
ans involved in the hotel sector
throughout the country.

aes of Banks and
Trust Companies resigns

in financial services regulation
was leaving when the Bahamas
still faced scrutiny from the
FATF and other agencies.

Describing it as “a bad mes-
sage” that could be sent, one
source said: “It’s an unfortu-
nate loss. He was very promi-
nent and you can’t question his
experience. It’s not good
news.”

Mr Foot’s standing gave him
the ability to deal with inter-
national regulators, and the
source said: “It gives you the
ability to deal with the IMF
and.CFATF,.when.they came
down here to do their reports.
Whether it’s an ‘irreplaceable
loss, I don’t know.” 10

Another industry source
said: “That’s very bad news.
Being a consumer of the Cen-
tral Bank, it’s been delightful
to have him here, particularly
the quarterly newsletter he’s
given us, as he’s told us every-
thing he’s been thinking.

“I know I’m not going to get
that kind of service in the
future. I’m not at all surprised
[at his departure], and the
banking community will view it
as a tragedy.

“T think they did a very good
thing in bringing him here.
He’!l be a hard act to follow.”

Meanwhile, Mr Smith said
yesterday that while the Reg-
ulatory Review Commission’s
legal affairs sub-committee had
recommended the changes

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A well established Pharmaceutical Company is seekingto hire the

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Experience Skills:

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Excellent organizational and interpersonal skills

He added that this was par-
ticularly significant when the
anchor properties come on
stream in the various Family
Islands.

He also encouraged the
credit union to take their assets
even higher for the further
development of the country.

Mr Gray also present
plaques to three of the credit
union’s longest serving mem-
bers - Lincoln Hercules, Beau-
thie Darville and David Mick-
lewhite - who all joined in
1986, for their commitment to
the credit union.

BIRRCU now boasts more
than 3,000 members with assets
totalling more than $20 mil-
lion.

recently passed by both House
of Parliament that allowed reg-
ulators to more easily and effi-
ciently share information
among each other, the sub-
committee on structure had
not reported yet.

“That’s a lot more involved,
and that determines whether
you go the route of the FSA
in the UK; go with multiple
agencies as in Europe, or in
between, as in Canada, with its
‘twin pillars’,” Mr Smith said.

Any regulatory structural
reform had to address condi-
tions on the ground, he added,
such as a country’s costs,
resources and expertise.



from.



Parent's Guide to Bright,
Healthy, Happy Children

Make sure your child is
mentally and physically fit,
with a well balanced multi-
vitamin and natural appetite
stimulant that will help
them challenge the active
school days. Give them a
vitamin they can benefit

ALL AROUND
OVUM ESA EW

The Mall at Marathon is in need of a seasoned
all around craftsman with experience in the
areas of electrical, plumbing, carpentry,
painting, roofing, drywall, etc.

Apply in person, Mall Management Offices,
Monday thru Saturday 10am to 2pm.

No Phone Calls yd ete

Royal Island (Bahamas) Limited

INVITATION FOR EMPLOYMENT

Royal Island (Bahamas) Limited, the developers of the
Royal Island resort and residential project, an ultra-luxury
resort and private club residential community with private
residences and club, 200 slip marina and boutique hotel and
spa, and a golf course just off North Eleuthera invites suit-
ably qualified individuals to apply for the following position
with the company:

¢ Housekeepers

e Maids

¢ Laundry workers

e Waiters

¢ Beach activity coordinators
° Cooks

¢ Deck Hands

* Groundskeepers

Over 15 positions are to be filled. All persons require suc-
cessful applicants to reside at North Eleuthera OR vicinity.

Interested persons should submit their resumes with cover
letter to:

The H.R. Director
GCM
P.O.Box N 1991
Nassau Bahamas
Fax to: (242) 356-4125
Or Email to: info@gomezcorp.com

Royal Island (Bahamas) Limited thanks all
applicants for their interest, however only those under
consideration will be contacted.











__ NECESSARY FOR GROWTH AGE AND
CONVALESCENCE RECONSTITUENT +

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* enhances metabolic functions of the body

* has pleasant fruity orange flavour

© improves plrysiological functions

| Contains lysine and other essential components that support

All interested persons should mail their resume to:
your child during the critical development stage.

Chief Financial Officer
Commonwealth Drigs & Medical Supplies Co. Ltd
P.O.Box N-1145
Nassau, Bahamas

Fax: (242) 323-2871



Make sure your child is mentally

Email: ksherman@commonwealthdmgs.com and physically fit!



Only applicants who meet the requirements will be contacted.



ae

> PHARMACIES, SUPERMARKETS AND DRUG STC



PAGE 6B, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



Greenspan said what? The
former Fed chair’s recession
comments rocks markets

mi By RACHEL BECK
AP Business Writer

NEW YORK (AP) —A
bullish complacency among
investors worldwide came to a
‘sudden halt this week after
Alan Greenspan spoiled the
fun by warning of a possible
U.S. economic recession later
this year.

In a matter Sf hours, his
forecast wreaked havoc on
global share prices. Chinese

stocks plunged 9 percent from
record levels in their worst ses-
sion in a decade and U.S. mar-
kets suffered their biggest
declines in years.

Some of what spooked
investors was the former Fed-
eral Reserve chairman’s
change in tone. Until recent-
ly, he had been adding some
froth to the big gains in stocks
by giving an upbeat economic
outlook and downplaying the
risks from declining growth.

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PARTS
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All other departments will be open for

ray

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AU

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That positive view seems to
be history — unless he flip-
flops again.

It has been more than a year
since Greenspan left the helm
of the Fed after an 18-year
tenure, and he now runs a con-
sulting firm that bears his
name. But that doesn’t mean
he has shied away from the
spotlight. He still publicly voic-
es his views. on economic
trends, and what he says cer-
tainly carries weight in finan-
cial markets.

That was clear this week
when Greenspan warned that
the current six-year economic
expansion is in danger of expir-
ing by year’s end.

“When you get this far away
from a recession, invariably
forces build up for the next
recession, and indeed we are
beginning to see that sign,”
Greenspan said via satellite
link to a business conference in
Hong Kong. “For example in

the U.S., profit margins ... have
begun to stabilize, which is an
early sign we are in the later
stages of a cycle.”

Investors weren’t expecting
such a bearish view from
Greenspan, who has stressed
in recent months that strong
profit margins and capital
spending are signs of good
times to come. He also has
repeatedly noted that the
“worst is behind us” in the eco-
nomic impact of the housing
market slump.

Greenspan also has down-
played the recessionary link to
the inverted yield curve, which
happens when interest rates on
longer-term U.S. Treasury
notes fall below those of the
overnight federal funds rate
and short-term Treasury bills.
Even though major financial
troubles have historically fol-
lowed such inversions, many
economists now have brushed
off ties between the two

BUSINESS FOR SALE

Well established Fashion Retail
Business. Well known and

respected worldwide Franchisé.
20 years at same prime location.

eT MY OLX Cx LIER

€A LIFEGUAR



Et

DS

NEEDED

Applicants must be certified by the Royal Life
Saving Society and possess first aid and CPR
training. Candidates should also be swimmers.
Successful applicants will be able to give swim
and dive lessons but cannot do such lessons
during regular working shifts. Itis imperative that
applicants be personable, well-groomed, flexible
individuals available to work shifts as needed.

Interested persons should fax resumes with
copies of certificates and telephone contacts to:

The Director, Human Resources
Lyford Cay Members Club
Lyford Cay
Nassau, Bahamas
Fax: #362-6245



around even though the curve
has been inverted for months.

But this week, Greenspan
sang a new tune — “recession”
— and that was enough to send
some investors running for the
first time in a long while.

There hasn’t been anything
in recent months that could
rattle stocks significantly.
Investors have chosen to focus
on the mergers and acquisition
boom, the pullback in oil prices
that have somewhat tempered
inflationary risks and some
healthy economic data — and
discounted most everything
else. And as the rally in U.S.
markets that began last July
has shown no sign of slowing,
more investors wanted to take
part. ,

Before Tuesday’s sell-off,
the Dow. Jones industrial aver-
age had soared 19 percent in
the last eight months to a
record high, while the broader-
market Standard & Poor’s 500
index had jumped 18 percent
to six-year highs since July.

Now many market-players
are taking a step back, at least
for a moment. Stocks on Tues-
day had their worst day of
trading since markets
reopened after the Sept. 11,
2001, terrorist attacks.

Greenspan’s remarks also
panicked global investors, who
worry about a cooling of both
the U.S. and Chinese
economies. A day after send-
ing Shanghai’s Composite
Index to a record, the bench-
mark index tumbled 8.8 per-
cent for its largest decline since
Feb. 18, 1997.

But there may be something
positive in Greenspan’s warn-
ing. Investors needed a bit of
an attitude adjustment, and he

jump-started the process.

It’s not that the outlook
ahead is all gloom, but since
many market participants have
gotten caught up in their buy-
ing spree, they’ve overlooked
some potential concerns.

While the U.S. economy
grew at a surprisingly strong
3.5 percent annual rate in the
fourth quarter of 2006, a sur-
vey released Monday by the
National Association for Busi-
ness Economics showed that
experts predict economic
growth of 2.7 percent this year,
the slowest rate since a 1.6 per-
cent rise in 2002.

The Commerce Department
on Tuesday reported demand
for big-ticket manufactured
goods fell by a sharper-than-
expected 7.8 percent in Janu-
ary, the biggest drop in three
months. And the housing mar-
ket remains in a tough spot,
especially given the recent
implosion in subprime mort-
gages, with a realty group
reporting that average selling
prices for existing homes fell
last month.

Investors might not see it
this way now, but Greenspan’s
warning might actually help
themintheend. |

That could happen if it gives
his successor, current Fed
Chairman Ben Bernanke, the
opportunity to save the day by
cutting interest rates to offset
potential weakness. While that
wasn’t the direction the Fed
has seemed to be leaning, it
surely is what investors want.

¢ Rachel Beck is the nation-
al business columnist for The
Associated Press, Write to her
at rbeck(at)ap.org

Royal Island (Bahamas) Limited
INVITATION FOR EMPLOYMENT

Royal Island (Bahamas) Limited, the developers
of the Royal Island resort and residential projeci,
an ultra-luxury resort and private club residential
community with private residences and club, 200
slip marina and boutique hotel and spa, and a golf
course just off North Eleuthera invites suitably
qualified individuals to apply for the following
position with the company:

HEAD CHEF

Duties and Responsibilities

e Coordinate and manage multiple food venues.
¢ Coordinate and manage all food preparation’

areas.

e Budgeting and purchasing of food supplies.

e Planning of meals for all food venues.

= )FIDELITY.

° Qualifications: Must have 5 star experience ci-
ther in a resturant private residence or yacht. Must
have an “attention to detail” work ethic. Willing
to take directions from management and maintain
a hands on approach. Experience in a “Chefs
table”, “Disgustation” or “tasting menu” style of
dining. The ideal candidate will have to reside on
Eleuthera or its surrounding area.

Today's Close Change
Abaco Markets

Bahamas Property Fund

Bank of Bahamas

‘Benchmark

Bahamas Waste

Fidelity Bank

Cable Bahamas

Colina Holdings

Commonwealth Bank

Consolidated Water BDRs

Doctor's Hospital :

Famguard

Finco

FirstCaribbean

Focol

Freeport Concrete ‘ ‘
ICD Utilities Interested persons should submit their resumes
J.-S. Johnson

with cover letter to:

Bahamas Supermarkets i
Caribbean Crossings (Pref) The H.R. Director
20 RND Holi .
po ifitér Securities GCM

41.00
14.00
0.45
BK Listed Mutat Funds

YTD% Last 12 Months

28.00 ABDAB
14.00 Bahamas Supermarkets
0.35 RND Eola

P.O.Box N 1991
Nassau Bahamas

1.320

9.000
52wk-Low Fund ‘Name Yield %
1.2756
2.6662
2.3241
1.1547
10. 0000

1.329237"
3.0569***

Colina Money Market Fund
Fidelity Bahamas G & | Fund
Colina MSI Preferred Fund
Colina Bond Fund

Fidelity Prime Income Fund

Fax to: (242) 356-4125
Or Email to: info@gomezcorp.com

11. oo.
oa. 94% (2006 34. APR
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

EPS $ - A company'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

BISX AL L SHARE INDEX * 19 Dec 02 = 1,
52wk-Hi - Highest closing price in last 52 weak



Royal Island (Bahamas) Limited thanks all
applicants for their interest, however only those
under consideration will be contacted.

52wk-Low - Lowest closing price in last 52 weeks *- 16 February 2007

Previous Close - Previous day's weighted price for daily volume
Today's Close * -31 January 2007
Change - Change in closing price from day to day
Daily Vol. - Number of total shares traded today

DIV §$ - Dividends per share paid in the last 12 months

P/E - Closing price divided by the last 12 month earnings

- Current day's weighted price for daily volume
*- 31 January 2007

*-31 January 2007



31 January 2007
s
py



“TO TRADE CALLE COLIN PEOR MORE DATA & INFORMATION GALL



THE TRIBUNE



Chrysler workers

are offered up
to $100,000 to

leave company

@ By TOM KRISHER
AP Business Writer

DETROIT (AP) —
Chrysler Group will offer all
49,600. hourly workers in the
U.S: up to $100,000 to leave
the company as part of a recov-
ery plan announced earlier this
month.

The company, which lost
$1.475 billion in 2006 and said
it expects losses to continue
through 2007, said on Feb. 14 it
intends to shed 13,000 jobs,
including 11,000 hourly posi-
tions and 2,000 salaried, as it
tries to further shrink itself to
match reduced demand for its
products.

A company document
obtained by The Associated
Press outlines an early retire-
ment program for hourly
workers near retirement age
and a buyout program for
those with at least one year of
tenure with the company.

The offers were reported
earlier Tuesday by The Detroit
News.

Under the buyout offer,
workers would receive a pretax
lump-sum payment of $100,000
plus six months of medical and
vision coverage in exchange
for their departure.

The early retirement pack-
age includes a $70,000 pay-
ment, health care benefits and
whatever pension a worker
was eligible for based on age
and years of service.

According to the document,
the United Auto Workers
union and DaimlerChrysler
AG’s Chrysler Group agreed
on the offers, which are not as

lucrative as some made to
workers leaving Ford Motor
Co. and General Motors Corp.
under restructuring plans.
“UAW members are once
again stepping forward to
make hard choices,” union

President Ron Gettelfinger .

said in a statement. “Now it’s
up to DaimlerChrysler to
move the company forward,
by using the skill and dedica-
tion of our members to deliver
quality vehicles that customers
want to buy.”

The offers come as Chrysler
tries to reduce production by
400,000 vehicles per year.

Production

All U.S. production workers
will get the offers, including
those at a plant scheduled for
closure in Newark, Del.

Of the production job cuts,
9,000 are in the U.S. and 2,000
are in Canada. All the cuts will
take place during the next
three years. Chrysler’s 10,060
Canadian workers were given
separate offers earlier this
month.

The company document said
that each U.S. facility would
have different timing for work-
ers to take the packages, but
the timing for plants slated to
lose production this year will
be between April and Decem-
ber. Further cuts scheduled for
2008 and 2009. will be done'in
similar fashion. a

To be eligible for early
retirement, workers must have
30 years with the company or
be at least 60 years old and
have at least 10 years of ser-

vice, or be at least 55 years old
and their age and years of com-
pany service must total 85 or
more. A worker also could be
at least 65 and have at least
one year of pension credit to
be eligible, according to the
document.

Chrysler, part of Germany-

‘based DaimlerChrysler AG,

said Feb. 14 that that 11 U.S.
plants would be affected by the
downsizing.

The Delaware plant would
closed during the next two
years, and Chrysler also plans
to cut shifts at plants in War-
ren, Mich., and St. Louis.

Other plants that will see job
losses include a machining
plant in Toledo, Ohio; a
Detroit axle plant; the Mack
Avenue Engine Plant I in
Detroit; an engine factory in

Trenton; stamping plants in .

Sterling Heights, Warren and
Twinsburg, Ohio; and the Indi-
ana Transmission Plant I in
Kokomo.

The company also
announced that a parts distri-
bution center near Cleveland
will close this year.

The targeted factories gen-
erally make components for
slow-selling trucks and sport
utility vehicles, the company
said.

In addition to the cuts at
those facilities, Chrysler plans
to,eliminate,3,000 hourlyjobs
due 'to"expected productivity
gains at ‘yet-to-be identified
plants, said spokesman David
Elshoff. In all, 4,725 hourly
posts will be eliminated this
year, with the remaining 4,275
in 2008 and 2009, Elshoff said.

Ue Le
the #1 newspaper in circulation,



Se Ra ER LC

Requirements:

¢ Ability to multi-task



The Ansbacher Group, specialists in private banking, fiduciary services and wealth management,
has an opening in The Bahamas for a

SECURITIES ADMINISTRATOR/OFFICER

Primary Responsibilities:

* To safeguard and accurately maintain records of all securities held

* Proper execution and settlement of trades and/or any other securities transactions

* To ensure all Securities transactions are accurately processed in the proper accounting period
¢ Liaise between custodians and administrators to ensure client records are updated

* To carry out all duties as they relate to the proper administration of securities

* Assist with the preparation of all securities related documentation

* To accurately post all stock orders, non-cash transactions and dividends

* To update the trade log on a daily basis, to validate, post and settle trades

* To assist with daily call-over routine

Secondary Responsibilities:

* To carry out such duties as may be required from time to time
* To serve as a back-up verifier of swifts

* To assist with departmental cross training, pension payments and sales ledger when necessary

* Bachelors’ Degree in Banking/Accounting/Economics/Management with at least one year

experience in an offshore environment; or
* Relevant associate Degree with three years experience as a Junior Banking of Securities Officer
* Securities certification such as Series 7 or C.S.C.
¢ Highly proficient in Microsoft Office

Please send all resumes to the attention of.

Human Resource Manager

Ansbacher (Bahamas) Limited

P.O. Box N-7768
Nassau, Bahamas
Fax: 325-0524

- E-mail: hrmanager@ansbacher.bs

Deadline for all applications is March 2, 2007

VT onn 0 EN G8 00 G0 80 80 00 28 8 80 2 Be 8 eo oe eo

WEDNESDAY, FEBRUARY 28, 2007, PAGE

7B

VACANCY FOR HEAVY EQUIPMENT MECHANICS |

Qualifications & Experience

e Minimum five (5) years in Heavy Equipment Mechanics
¢ Knowledge of diesel and gasoline engines
_ ¢ Knowledge of hydraulic systems —
¢ Good understanding of 24 V Electrical Systems:
¢ Experience in wire rope rigging would be a plus
e Welding experience also would be a plus

Duties & Responsibilities
-© Perform repairs and preventive maintenance on various heavy
equipment.
alities
¢ Good physical condition
¢ Able to withstand constant exposure to the weather conditions

¢ Must be willing to work shift schedules
e Must be willing to work.at heights

Company offers good benefits and salary is commensurate with ex-
perience and qualifications. Interested persons are invited to submit a

_ resume’ by February 28, 2007 to the following person:

Ramon Taylor

Tropical Shipping Limited
John Alfred Dock

East Bay Street

Nassau, Bahamas

Phone: (242) 322-1012

TAR DD

Cititrust (Bahamas) Limited, a subsidiary of Citigroup, a leading financial institution
with a presence in over 100 countries and over 100 million customers worldwide,
is seeking candidates for the position of Trust Officer in our Trust Administration
department. ,

Role Responsibilities

Reporting to a Trust Administration Team Leader, the position is responsible for the .
ongoing administration of trust and fiduciary products and services to clients of the
Citigroup Private Bank, Smith Barney and Citigroup’s International Personal Banking
divisions including:

Liaising with respective Relationship Managers in the provision of
information/execution of transactions and problem resolution

Managing all associated risks and escalating as appropriate

Preparing and presenting periodic administrative reviews of trust and companies
as required both internally and externally

Liaising with internal partners (Client Reporting/Fee Billing/Document
Management) to ensure the accurate and timely management of associated
client billing and secured document storage

Liaising with internal Compliance/Business Risk Management departments
and external auditors/regulators as required to ensure adherence to all internal
policies / procedures and external regulatory requirements

Ongoing updating and maintenance of the internal trust administration system
as it relates to account management
Projects as assigned

Knowledge/Skills Required

Bachelors degree in Law, Business Administration, Accounting or related field
Minimum 3-5 years experience in Trust and Company administration or related
experience
Strong oral and written communications skills
STEP qualification would be beneficial
Sound knowledge of fundamental trust law, company law and related
administrative practice
Fundamental knowledge of banking products and their application in overall
management and administration of wealth
Basic understanding and working knowledge of accounting concepts and their
applications
Basic knowledge and understanding of investment instruments and credit
concepts
Strong oral and written communication skills
Ability to identify potential risk issues and solutions and to communicate these
effectively to team colleagues
Ability to analyze and evaluate basic investment summaries, accounting
statements, banking and banking products related documentation
Ability to interact, cooperate and work through issues with team members,
managers and clients

¢ Excellent time management, organization and administrative skills

¢ Strong analytical and problem-solving skills

e Strong PC skills; knowledge of 4Series an asset

¢ Spanish/Portuguese/Mandarin language skills an asset

Interested Bahamian candidates should forward a copy of their resume by March
9, 2007 to:

Human Resources,
Cititrust (Bahamas) Limited,
P.O. Box N-1576
Nassau, Bahamas or
Fax: (242) 302-8779
or Email: janice.gibson@citigroup.com







PAGE 8B, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



| = [is Seer i

Crist says he’s not we

any property tax reform idea

@ By BILL KACZOR
Associated Press Writer

TALLAHASSEE, Florida (AP) —
Governor Charlie Crist said Tuesday
he’s not committed to any property tax
reform ideas, and even refused to
defend his own proposals.

The centerpiece of Crist’s reform
package, which he also made a cam-
paign promise last year, is a proposal to
double the exemption on homesteads
— an owner’s primary home — from
$25,000 to $50,000.

House Speaker Marco Rubio, R-

Miami, last week criticized that idea,
saying it would “wipe out entire coun-
ties.” Small rural counties, where prop-
erty values are low, would be hardest
hit.

“I’m not in the push-back mood,”
Crist said Tuesday when asked about
Rubio’s comments. “My objective is to
lower property taxes for the people of
Florida and it doesn’t necessarily have
to be my idea.”

The governor said he was confident
the Legislature would find a consen-
sus among a variety of suggestions.

“Pm not wedded to any of those pro-

posals, necessarily,” Crist said.

The governor’s package also includes
proposals that would allow homeown-
ers to take the three per cent cap on
their annual property taxes, provided
through the Save Our Homes Amend-
ment, with them when they move and
add a similar cap for non-homestead
properties.

Pushing
Rubio, though, is pushing a differ-

ent plan that would abolish property
tax on homesteads and cap it for non-

homestead real estate. It also would
raise the statewide sales tax from six
per cent to 8.5 per cent to partly offset
the property tax losses to local govern-
ments.

The proposals aim to lower property
taxes driven up largely by higher real
estate values and wide disparities in
tax bills caused mainly by the Save Our
Homes Amendment. It has shifted the
tax burden from longtime homeowners
to new buyers and owners of second
homes, rental and commercial proper-
ties.

Crist was unfazed by a lawsuit chal-

lenging the Save Our Homes Amend-
ment, which took effect in 1994. It was
filed Monday in state Circuit Court
here by a group of Alabama residents
who own second homes in the Florida
Panhandle.

The lawsuit alleges the amendment
unconstitutionally shifts an unfair

amount of the tax burden onto them ,

and other owners of non-homestead

property.
Crist agreed Save Our Homes should

be more broadly applied but said, “I »,

think the Legislature is going to come
to the rescue.”

Insurers sued in Florida over building permit costs :

NOTICE

IN THE ESTATE OF BEATRICE A.
RUSSELL, (a.k.a. BEATRICE ANN
RUSSELL) late of 114 Hesketh Street, Chevy
Chase, Montgomery, Maryland, U.S.A.,
deceased

NOTICE is hereby given that all persons having

any claim or demand against or interest in the above
Estate should send same duly certified in writing to
the undersigned on or before 28" March, 2007 after
which date the Executor will proceed to distribute
the assets of the Estate having regard only to the
claims, demands or interests of which she shall then

| have had notice AND all persons indebted to the

| above Estate are asked to settle such debts on or
before 28th March, 2007. |

FREDERIK F. GOTTLIEB & CO.
Attomeys for the Executrix

P.O. Box AB-20405*'

Bay Street, Marsh :Harbour-

Abaco, The Bahamas



ASSISTANT MANAGER
FITNESS CENTRE

We are looking to fill the position of Assistant
Fitness Centre Manager. Among other duties
the successful applicant will be expected to:

| Assist the manager of the fitness centre
in supervision of staff and staff activities;
ensure the comfort of fitness centre patrons;
maintain the cleanliness standards of the
fitness centre; ensure equipment is working
superbly at all times; maintain par level

stocks per the standard and that bathroom/ |

shower facilities are fully stocked and in
an acceptable condition at all times. It
would be an asset if the individual has
some personal training certification from
the Aerobics and Fitness Association of
America or a similar institution and a
minimum of two to three years experience.

The successful applicant must be: highly

| motivated, willing to work flexible hours,
in excellent physical condition and enjoy
working with members and sponsored guests
alike.

| Interested individuals should fax resumes to:

The Director of Human Resources
Lyford Cay Members Club
Lyford Cay Drive
Nassau, Bahamas
Fax: #362-6245



TALLAHASSEE, Florida
(AP) — Three large insurers
underpaid homeowners for
roof damage from storms, and
failed to factor in the cost of
building permits for major

repairs, three lawsuits filed in
Florida allege.

The lawsuits, filed in three
different Florida courts last
week and on Monday, named
Allstate Floridian Insurance
Co., Citizens Property Insur-
ance Corp. and State Farm
Florida Insurance Co. as defen-
dants.

The lawsuits were filed on
behalf of three Florida home-
owners whose houses were
insured by one of the compa-
nies during the last five years

with claims for roof damage
from a hurricane, tornado, or
other natural disaster. They
allege the companies failed to
compensate them for the cost
of a building permit to do the
roof repairs.

The Hurricane Law Group,
which is representing the
homeowners, is seeking class-
action status for all three law-
suits.

“The three suits combined
will impact an estimated
200,000 policyholders who
were not paid for building per-
mits for damages suffered dur-
ing the various hurricanes
which ravaged Florida over
recent years,” the law group
said in a statement released

Tuesday.

The lawsuits seek to have
the homeowners reimbursed,
with interest, for permits and
have their attorneys fees cov-
ered.

The lawsuit against Citizens
was filed Friday by homeown-
er Steven Schlegel in Miami-
Dade County; the lawsuit
against, State Farm was filed
by homeowner Tracy Healy in
Broward County on Friday
and the lawsuit against Allstate
was filed Monday by home-
owner William Clinard in
Hendry County.

While not commenting on

the specifics of the lawsuit, All-

state spokesman Adam Shores

said the company “takes seri- .
ous our obligation to pay cov- ,

ered losses.”

“We’re confident that we’ve
settled our claims appropri-
ately,” Shores said.

State Farm Florida

spokesman Justin Glover said :

complaint records would show
that “the vast majority of our
customers are satisfied with
their settlements,” and also

noted that the company has *.
paid out billions for home-

owners to fix their houses over
the last couple years.

A spokesman for Citizens
said company officials had not
seen the lawsuit and declined
to comment.

NOTICE

NOTICE is hereby given that EDNA MARKS OF
19 FRAZIER ALLOTMENTS, SOLDIER RD., P.O. BOX
N-8313, 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

28th day of February, 2007 to the Minister responsible

for Nationality and Citizenship, P.O.Box N- 7147, Nassau,
a



Royal Island (Bahamas) Limited

INVITATION FOR EMPLOYMENT








































Royal Island (Bahamas) Limited, the developers of the
Royal Island resort and residential project, an ultra-luxury
resort and private club residential community with private
residences and.club, 200 slip marina and boutique hotel and
spa, and a golf course just off North Eleuthera invites suit-
ably qualified individuals to apply for the following position
with the company:

MAINTENANCE MANAGER




¢ Must have sound mechanical qualifications, experience
and skills with all types of vehicles, boats & water toys.

¢ Responsible for the maintenance, upkeep and repair of the
- following inventory:

Boat/ Water fleet
¢ 44’ Morgan
¢ 38’ Jupiter
¢ 26’ Dusky
¢ 15’ Boston Whaler
e 18’ Flats Boat

e Yamaha Jet Skis



Land Fleet
° 6 Polaris Ranger 2x4’s

¢ Golf Carts

¢ Some Construction machinery




¢ Knowledge and experience with electrical, plumbing and
building repairs and maintenance also essential, either in 4
or 5 star resort, or on private property.

¢ Responsible for upkeep of tool/maintenance shed with
particular strength in inventory and stock control and

general order.

‘e Must ensure that all maintenance tools are operated safely
and only by staff qualified to use them.

e Must have excellent organizational and skills, an eye for

detail.



Interested persons should submit their resumes with cover
letter to: ‘

The H.R. Director

GCM
P.O.Box N 1991
Nassau Bahamas
Fax to: (242) 356-4125

Or Email to: info@ gomezcorp.com




Royal Island (Bahamas) Limited thanks all applicants for
their interest, however only those under consideration will
be contacted.

NOTICE

NOTICE is hereby given that KENOLD CIVILMA OF
BAHAMA AVENUE, P.O.BOX N-7499, 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 21ST:day of FEBRUARY, 2007
to the Minister responsible for Nationality and Citizenship,
P.O.Box N- 7147, Nassau, Bahamas.

LLL
JEWELLERY STORE MANAGERS

Discover a rewarding and
_challenging career catering to the
country’s visitors in the exciting
retail jewelry business!!!

Do You Have What it Takes:



ARE YOU...
Confident? ¢ A Leader? ¢ Self Motivated?
¢ Professional? * Mature (25 yrs or older)? ¢ Dedicated?
If the answer isYES then take the next step

FAX RESUME TO 326-2824

SALARY OPPORTUNITY COMMENSURATE WITH EXPERIENCE & QUALIFICATION

APPLY TODAY!



Bimini Sands Condominiums & Resort

JOB FAIR

held on

March Ist and March 2nd 2007,
Place: Culinary & Hospitality Management
Institute;Of The College Of The Bahamas;

in the Demonstration Room.

Time: 9:00am until 2:00pm daily

EMPLOYMENT OPPORTUNITIES:

Accountant
Reservation Clerk
Special Events Coordinator
Chef
Line Cook
Waiters / Waitress
Bus Boys
Bartenders
Maintenance
Security

Appliciants Should bring resume along with them.



f

dded to.

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san AM A A Es A me are aoe a

SL A OM AE NE I a A

WF ecceans: ee

ME MPM TE a a er ED PER BOA OAAESEO BUTE ee

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4



THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 9B



LUT Seok



Midwest CEO fears merger

with AirTran would take
away his airline’s charm.

@ By EMILY FREDRIX
AP Business Writer

MILWAUKEE (AP) — The
head of Midwest Airlines, target
of a hostile takeover by Orlan-
do, Florida-based AirTran Air-
ways, Said he fears a merger
with the low-cost carrier would
result in his airline losing its
charm.

AirTran envisions a merger
that will create a large, low-cost
national airline, said'Tim Hoek-
sema, CEO of Midwest Air
Group, told The Associated
Press. But that would require
more seats, less leg room and
giving up perks such as Mid-
west’s trademark chocolate chip
cookies, he said.

“T think their vision, based on
what you read, is to convert it to

_a commodity carrier that does
not have the focus on service
that we do and to make it into a
high density, low-cost product,
eliminate some of the things that
we offer ... and turn it into Air-
Tran,” Hoeksema said.

The $345 million offer from
AirTran Holdings Inc., parent

of AirTran Airways, to Midwest
shareholders expires on March

Midwest Air-Group’s board
of directors has turned down
three offers from AirTran. In
January, it called the latest offer
“inadequate” and recommend-
ed shareholders not sell their
stock to AirTran.

The board knew what it was
doing in the summer of 2005,
Hoeksema said, when it quietly
declined AirTran’s first buyout
offer of about $78 million, or
$4.50 a share.

“So one can say, ‘Oh boy, that
was about twice what the share
price was,’ but our board of
directors knew what we were
doing, what was coming, what
our strategic plan was and obvi-
ously in retrospect made the
right decision,” he said.

Shares of Midwest closed
Tuesday down 50 cents, or 3.76
per cent, to $12.80 on the Amer-
ican Stock Exchange. Shares of
AirTran fell 27 cents, or 2.51
per cent, to close at $10.48 on

the New York Stock Exchange. ©

The board prefers to expand

Midwest on its own, Hoeksema
said. The Milwaukee-based air-
line plans to add six new desti-
nations this year and 12 new
routes, including a direct flight
from Milwaukee to
Seattle/Tacoma announced
Tuesday. Midwest Air Group,
with 3,500 employees and more
than 340 flights a day, plans to
serve 49 cities in the next few
months.

AirTran currently operates
more than 700 flights a day to 56
cities and has 8,000 employees.
A combined company could
reach 1,000 departures a day in
74 cities, AirTran CEO Joe
Leonard has said.

Hoeksema said that’s just not
feasible.

AirTran said Monday in a fil-
ing with the Securities and
Exchange Commission that it
wants to add 29 destinations
from Milwaukee to cities such as
San Juan, Puerto Rico and
Rochester, N.Y.

But there won’t be enough
passengers out of Milwaukee to
justify that, Hoeksema said.

He also disputed AirTran’s
claim that it would add more
than 1,100 jobs to the Milwau-
kee area with a merger. That
won’t happen after overlapping

jobs are eliminated, Hoeksema
said.

Midwest may be small — it
carries less than one per cent of
all US passengers — but it has
done well by carving its own
niche, he said.

“We want to maintain that
uniqueness and that specialness
so people do pick us and that’s
what it’s all about,” he said.

AirTran could have gone into
Milwaukee and competed
directly, but it wants to work
out a deal, said Tad Hutcheson,
AirTran’s vice president of mar-
keting. The company has
promised to keep serving cook-
ies, he said, and passengers who
want more service can always
fly business class.

“We don’t want to destroy
Midwest,” Hutcheson said.

Hoeksema would not specu-
late on whether Midwest would
consider offers from companies
other than AirTran or engage
in its own takeover efforts.

“We're probably in the
strongest position we’ve ever
been in from a competitive point
of view in terms of low cost and
good service,” he said.

“And that, I think, is the
secret for success going for-

_ward.”

VACANCY

SEV SO RET AY

An established Law firm is seeking suitable applicants |
for the position of Legal Secretary. The following
qualifications and attributes are necessary requirements.

Associate Degree in Secretarial Science or
equivalent ,

A minimum of 3 years working experience in the
specified position
Excellent use of the English language

Strong secretarial and administrative background
Good communication and people skills
Proficient in Microsoft Word and Excel

Experience working in a law firm’s Corporate or

Commercial department would be an asset. The
successful candidate must be able to multi task and work
in a demanding environment.

Qualified persons may apply to the Human Resources
Manager before March 16, 2007. ,

P.O. Box

c/o The Tribune
Nassau, The Bahamas

NOTICE

IN THE ESTATE OF JULES D. GRIFFING, late of
the City of Rutland, Vermont U.S.A., deceased



| NOTICE is hereby given that all persons having

any claim or demand against or interest in the above
Estate should send same duly certified in writing
to the undersigned on or before 28" March, 2007
after which date the Administratrix will proceed to |
distribute the assets of the Estate having regard only

to the claims, demands or interests of which she shall

then have had notice AND all persons indebted to
the above Estate are asked to settle such debts on or |
before 28th March, 2007.

NOTICE

IN THE ESTATE OF EVERETTE ARCHER a.k.a
RICHARD EVERETTE ARCHER a.k.a EDWARD -:
EVERETTE ARCHER a.k.a EVERETTE RICHARD
ARCHER late of Dundas Town, Abaco, The Bahamas
deceased

NOTICE

NOTICE is hereby given that ARMONY JEAN-BAPTISTE OF
* 3RD STREET, GROVE, 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 21ST day of FEBRUARY, 2007 to the Minister
responsible for Nationality.and Citizenship, P.O.Box N- 7147,
Nassau, Bahamas. =ipe

FREDERIK F. GOTTLIEB & CO.
Attomeys for the Executrix
P.O. Box AB-20405
Bay Street, Marsh Harbour
‘ Abaco, The Bahamas



' NOTICE‘is'héreby given that all persons having any claim

NOTICE

NOTICE is hereby given that MICHAEL MARKS OF
19 FRAZIER ALLOTMENTS, SOLDIER RD., P.O. BOX
N-8313, 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
28th day of February, 2007 to the Minister responsible

Nationality and Citizenship, PO.Box N- 7147, Nassau,.

or demand against or interest in the above Estate should



send same daily certified in writing to the undersigned on



or before 26th March, 2007 after which date the Executrix
will proceed to distribute the assets of the Estate having
regard only to the claims, demands or interests of which
she shall then have notice AND all persons indebted to the
above Estate are asked to settle such debts on or before

26th March, 2007.

V.M. LIGHTBOURN & CO.
Attorneys for Executrix
‘P.O. Box AB-20365
, Bay Street, Marsh Harbour

Abaco, The Bahamas

NOTICE

NOTICE is hereby given that DAMIAN MARKS OF
19 FRAZIER ALLOTMENTS, SOLDIER RD., P.O. BOX
N-8313, 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

MANAGER
28th day of February, 2007 to the Minister responsible

ationality and Citizenship, P.O.Box N- 7147, Nassau, | Private club is seeking a restaurant manager
nas : with a minimum of five (5) years managerial

experience in a gourmet style restaurant.
NOTICE

NOTICE is hereby given that WAYDE JOSEPH OF
LUDLOW ST. WEST, P.O. BOX N-8313, 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 28th day of

| February, 2007 to the Minister responsible for Nationality
and Citizenship, P.O.Box N- 7147, Nassau, Bahamas.

OFFICE ASSISTANT NEEDED

To assist in General Office Work. Duties include,
but not limited to, Receptionist, Filing, Typing,
Banking and Postal Duties. Will also be required
to perform some Accounting and Payroll
Functions. Excellent Computer Skills Necessary.

VACANCY
For

RESTAURANT



UBS

UBS (Bahamas) Ltd. is one of the leading Wealth Managers in
the Caribbean. We look after wealthy private clients by
providing them with comprehensive, value-enhancing services.
In order to strengthen our team we look for an additional

The individual’s primary responsibilities
include but are not limited to a willingness
to: work split shifts; attend to employee
discipline; coach and counsel; roster; |
conduct performance appraisals; establish
and maintain necessary controls to erisure
a smooth operation; motivate and train
employees; exercise exceptionally-strong
supervisory skills in any matters involving
subordinate staff and manage by example
in an environment of professionalism
| beginning with being a role model in
professional attire and deportment. |

| Client Advisor Brazil

In this challenging position you will be responsible for the
following tasks (traveling required):



« Advisory of existing clients

« Acquisition of high net worth individuals

= Presentation and implementation of investment solutions
in the client's mother tongue

We are searching for a personality with solid experience in
wealth management, specialized in the fields of customer
relations, investment advice and portfolio management.
‘Excellent sales and advisory skills as well as solid knowledge of
investment products are key requirements. A proven track
record with a leading global financial institution as well as
fluency in English and Portuguese is essential.

Salary is commensurate with qualifications
and experience.

Interested managers should express an
interest by faxing resumes to the attention of:
Ideal candidate will be honest, responsible, :
punctual and self-motivated.



Written applications should be addressed to:

UBS (Bahamas) Ltd.
Human Resources
P.O. Box N-7757
Nassau, Bahamas

The Director, Human Resources:
Lyford Cay Members Club
Lyford Cay
Nassau, Bahamas
Fax: 4362-6245

Salary commensurate with experience.
FAX 326-2824.

HUMAN RESOURCES MANAGER







PAGE 10B, WEDNESDAY, FEBRUARY 28, 2007

FIRSTCARIBBEAN INTERNATIONAL BANK (BAHAMAS) LIMITED

CONSOLIDATED BALANCE SHEET AS OF OCTOBER 31, 2006
(Expressed in thousands of Bahamian dollars)

2006 2005
Notes $ $
‘ (Restated)

ASSETS
Cash and balances with The Central Bank 3 69,143 108,802
Loans and advances to banks 4 298,257 682,859
Derivative financial instruments 5 13983 6,832
Financial assets at fair value through profit or loss 6 809,509 300,211
Other assets 7 121,772 37,338
Investment securities 8 715,370 168,600
Loans and advances to customers 9 2,444,830 1,972,392
Property, plant and equipment 10 29,209 31,764
Retirement benefit assets ll 13,654 13,597
Intangible assets 12 187,747 187,747
Total assets 4,691,474 3,510,142

LIABILITIES

Derivative financial instruments : 5 12,424 267
Customer deposits 13 3,503,903 2,856,737
Other borrowed funds 14 281,344 -
Other liabilities — 15 276,789 81,299
Retirement benefit obligations 1l- 11,608 10,600
Total liabilities 4,086,068 2,948,903

EQUITY
Share capital and reserves 17 435,556 417,281
Retained earnings 169,850 143,958
Total equity 605,406 561,239

Total liabilities and equity

4,691,474 3,510,142

Approved by the Board of Directors on December 15, 2006 and signed on its behalf by:

‘

Michael Mansoor
Chairman ~

_—

Hann reves

Sharon Brown
Managing Director

NOTES TO THE CONSOLIDATED BALANCE SHEET

i,

remeron cm a TT EE a a TT ATES,

General information

The

Bank, which was formerly named CIBC Bahamas Limited (“CIBC Bahamas”) and controlled by

Canadian Imperial Bank of Commerce (CIBC), changed its name to FirstCaribbean International
Bank (Bahamas) Limited on October 11, 2002, following the combination of the retail, corporate and
offshore banking operations of Barclays Bank PLC in The Bahamas and the Turks & Caicos Islands
(“Barclays Bahamas”) and CIBC Bahamas.

The

Bank is a subsidiary of FirstCaribbean International Bank Limited formerly CIBC West Indies

Holdings Limited (the “Parent” or “FCIB”), a company incorporated in Barbados with the ultimate
parent companies being jointly CIBC, a company incorporated in Canada, and Barclays Bank PLC, a

com

pany incorporated in England: In March 2006, CIBC and Barclays Bank PLC signed a non-

binding Letter of Intent for the acquisition by CIBC of Barclays’ 43.7% ownership stake in FCIB.

Upo

The

n completion of the transaction, CIBC would own 87.4% of FCIB.

registered office of the Bank is located at the FirstCaribbean Financial Centre, 2â„¢ Floor, Shirley

Street, Nassau, The Bahamas. At October 31, 2006 the Bank had 812 employees (2005: 811).

Summary of significant accounting policies

2.1

Basis of presentation

This consolidated balance sheet is prepared in accordance with Intemational Financial
Reporting Standards (IFRS) under the historical cost convention, as modified by the revaluation
of available-for-sale investment securities, financial assets and financial liabilities at fair value
through the profit and loss and all derivative contracts.

The preparation of the balance sheet in conformity with IFRS requires management to make
certain critical estimates and assumptions that affect amounts reported in the balance sheet and
accompanying notes. Actual amounts could differ from these estimates. The areas requiring a
higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated balance sheet, are disclased in Note 24.

The following new standards and amendments to standards are mandatory for the Bank’s

accounting periods beginning on or after November 1, 2005. Management assessed the

relevance of these new standards and amendments and concluded that the adoption did not

result in substantial changes to the Bank’s accounting policies. In summary:

e IAS 8, 10, 16, 17, 21, 27, 28, 32 and 33 had no material effect on the Bank’s policies.

e IAS 24 has affected the identification of related parties and some other related party
disclosures. ‘ /

e IAS 39 (revised 2004) has affected the investment and trading securities categories for
disclosure.

e . IFRS 2 has affected the disclosures for share-based payments to employees.

All changes in accounting policies have been made in accordance with the transition provisions

in the respective standards. All standards adopted by the Bank require retrospective application

other than: ‘

e IAS 21 — prospective accounting for goodwill and fair value adjustments as part of foreign
operations; and

e IAS 39 — the de-recognition of financial assets is applied prospectively.

Certain new standards, interpretations and amendments to existing standards have been
published that are mandatory for the Bank’s accounting periods beginning on or after
November 1, 2006 or later periods but which the Bank has not early adopied, as follows:

* IAS 19 (Amendment), Employee Benefits (effective from January 1, 2006). This
amendment introduces the option of an alternative recognition approach for actuarial gains
and losses. It may impose additional recognition requirements for multi-employer plans
where insufficient information is available to apply defined benefit accounting. It also adds
new disclosure requirements. The Bank has not yet determined whether it will change its
accounting policy adopted for recognition of actuarial gains and losses.

e IAS 39 (Amendment), The Fair Value Uption (effective from January 1, 2006). This
amendment changes the definition of the financial instruments classified at fair value
through the profit and loss and restricts the ability to designate financial instruments as part
of this category. The Bank believes that this amendment should not have a significant
impact on the classification of financial instruments, as the Bank should be able to comply
with the amended criteria for the designation of financial instruments classified at fair value
through the profit and loss

e IFRS 7, Financial Instruments: Disclosures, and a complementary amendment to IAS 1,
Presentation of Financial Statements — Capital Disclosures (effective from January 1,
2007). IFRS 7 introduces new disclosures to improve the information about financial
instruments. It requires the disclosure of qualitative and quantitative information about
exposure to risk arising from financial instruments, including specified minimum
disclosures about credit risk, liquidity risk and market risk, including sensitivity analysis to
market risk. It replaces IAS 30, Disclosures in the Financial Statements of Banks and
Similar Financial Institutions, and disclosure requirements in IAS 32, Financial
Instruments: Disclosure and Presentation. It is applicable to all entities that report under
IFRS. The amendment to IAS 1 introduces disclosures about the level of an entity’s capital
and how it manages capital. The Bank assessed the impact of IFRS 7 and the amendment
to LAS 1 and concluded that the main additional disclosures will be sensitivity analysis to
market risk and the capital disclosures required by the amendment to IAS 1,

IFRIC 8, Scope of IFRS 2 (effective from May 1, 2006). IFRIC 8 clarifies that the
accounting standard IFRS 2, Share-Based Payment applies to arrangements where an entity
makes share-based payments for apparently nil or inadequate consideration. The
Interpretation explains that, if the identifiable consideration given appears to be less than
the fair value of the equity instruments granted or liability incurred, this situation typically .
indicates that other consideration has been or will be received. IFRS 2 therefore applies.
Management does not believe that IFRIC 8 will impact the Bank’s operations.

IFRIC 9, Reassessment of Embedded Derivatives (effective from June 1, 2006). IFRIC 9
clarifies certain aspects of the treatment of embedded derivatives under IAS 39, Financial
Instruments: Recognition and Measurement. Management does not believe that IFRIC 9
will impact the Bank’s operations.



2.2

2.3

2.4.

2.5

2.6

THE TRIBUNE BUSINESS

Consolidation

Subsidiary undertakings, which are those companies in which the Bank directly or indirectly has
an interest of more than one half of the voting rights or otherwise has power to exercise control
over the operations, have been fully consolidated. The principal subsidiary undertakings are
disclosed in Note 27. Subsidiaries are consolidated from the date on which the effective control
is transferred to the Bank. They are de-consolidated from the date that control ceases.

All inter-company balances and unrealized surpluses and deficits on balances have been
eliminated. Where necessary, the accounting policies used by subsidiaries have been changed
to ensure consistency with the policies adopted by the Bank.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the
Bank. The cost of an acquisition is measured as the fair value of the assets given, equity
instruments issued and liabilities incurred or assumed at the date of the exchange, plus costs
directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at.their fair values at the
date of acquisition, irrespective of the extent of any minority interest. The excess of the cost of
acquisition over the fair value of the Bank’s share of the identifiable net assets acquired is
recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of
the subsidiary acquired, the difference is recognized directly in the income statement.

Segment reporting

A business segment is a group of assets and operations engaged in providing products and
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 that are different from
those of segments operating in other economic environments. Segments with a majority of
revenue earned from external customers, and whose revenue, results or assets are 10% or more
of all the segments, are reported separately.

Foreign currency translation

Items included in the consolidated balance sheet are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The
functional currency of the Bank is Bahamian dollars, and, this consolidated balance sheet is
presented in Bahamian dollars.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at rates prevailing at the date of the balance sheet and non-monetary assets
and liabilities are translated at historic rates. Realized and unrealized gains and losses on
foreign currency positions are reported in income of the current year. Translation differences
on non-monetary items, such as equities classified as available-for-sale financial assets, are
included in the available-for-sale reserve in equity.

Derivative financial instruments and hedge accounting

Derivatives are initially recognized in the balance sheet at their fair value based on trade date.
Fair values are obtained from discounted cash flow models, using quoted market interest rates.
All derivatives are carried as assets when fair value is positive and as liabilities when fair value
is negative. :

The method of recognizing the resulting fair value gain or loss depends on whether the
derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
The Bank designates certain derivatives as either: (1) hedges of the fair value of recognized
assets or liabilities (fair value hedge); or (2) hedges of highly probable cash flows attributable
to a recognized asset or liability (cash flow hedge). Hedge accounting is used for derivatives
designated in this way provided certain criteria are met:

The Bank’s criteria for a derivative instrument to be accounted for as a hedge include:

4) formal documentation of the hedging instrument, hedged item, hedging objective, strategy
and relationship, at the inception of the transaction;

ii) the hedge is documented showing that it is expected to be highly effective in offsetting the
risk in the hedged item throughout the reporting period; and

Â¥, iii) the hedge is highly effective on an ongoing basis.

(1) Fair value hedge

Changes in the fair value of the effective portions of derivatives that are designated and
qualify as fair value hedges and that prove to be highly effective in relation to hedged
risk, are recorded in the income statement, along with the corresponding change in fair
value of the hedged asset or liability that is attributable to that specific hedged risk.

If the hedge no longer meets the criteria for hedge accounting, an adjustment to the
carrying amount of a hedged interest-bearing financial instrument is amortized to net
profit or loss over the period to maturity.

(2) Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and
qualify as cash flow hedges are recognized in equity. The gain or loss relating to the
ineffective portion is recognized immediately in the income statement.

Amounts accumulated in equity are recycled to the income statement in the periods in
which the hedged item will affect profit or loss (for example, when the forecast sale that
is hedged takes place). :

When a hedging instrument expires or is sold, or when a hedge no longer meets the
criteria for hedge accounting, any cumulative gain or loss existing in equity at that time
remains in equity and is recognized when the forecast transaction is ultimately recognized
in the income statement. When a forecast transaction is no longer expected to occur, the
cumulative gain or loss that was reported in equity is immediately transferred to the

income statement.
Financial assets

The Bank classifies its financial assets into the following categories:
i) Financial assets at fair value through profit or loss

ii) Loans and receivables

iii) Held-to-maturity investments

iv) Available-for-sale financial assets

Management determines the classification of its investments at initial recognition.

. 1) Financial assets at fair value through profit or loss

This category has two sub-categories: financial assets held for trading, and those designated
at fair value through profit or loss at inception. A financial asset is classified in this
category if acquired principally for the purpose of selling in the short term or if so
designated by management. Derivatives are also categorised as held for trading unless they
are designated as hedges.

ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise when the Bank provides
money, goods or services directly or indirectly to a debtor with no intention of trading the
receivable.

ili) Held-to-maturity

Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities that the Bank’s management has the positive intention and
ability to hold to maturity. Were the Bank to sell other than an insignificant amount of
held-to-maturity assets, the entire category would be tainted and reclassified as available-
for-sale,

a
~S

Available-for-sale

Available-for-sale investments are those intended to be held for an indefinite period of
time, which may be sold in response to needs for liquidity or changes in interest rates,
exchange rates or equity prices.

All purchases and sales of financial assets at fair value through profit or loss, held-to-maturity
and available-for-sale that require delivery within the time frame established by regulation or
market convention (“regular way” purchases and sales) are recognized at trade date, which is
the date that the Bank commits to purchase or sell the asset. Otherwise such transactions are
treated as derivatives until settlement occurs. Loans and receivables are recognized when cash

‘ is advanced to borrowers.

Financial assets are initially recognised at fair value plus transaction costs for all financial
assets not carried at fair value through profit or loss. Financial assets are derecognised when
the rights to receive the cash flows from the financial assets have expired or where the Bank
has transferred substantially all risks and rewards of ownership.

Available-for-sale financial assets and financial assets at fair value through profit or loss are
subsequently re-measured at fair value based on quoted bid prices or amounts derived from
cash flow models. Loans and receivables and held-to-maturity investments are carried at
amortized cost using the effective interest yield method, less any provision for impairment.
Third party expenses associated with loans and receivables, such as legal fees, incuned in
securing a loan are expensed as incurred. Unrealized gains and losses arising from changes in
the fair value of securities classified as available-for-sale are recognized in equity, except where
a hedging relationship exists. When the securities are disposed of or impaired, the related
accumulated fair value adjustments are included in the income statement as gains and losses
from investment securities. All realized and unrealized gains and losses arising from changes
in the fair value of securities classified as financial assets at fair value through profit or loss are
included in operating income.

Unquoted equity instruments for which fair values cannot be measured reliably are recognised
at cost less impairment.

aes



THE TRIBUNE BUSINESS

2.7

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2.8

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2.10

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Offsetting financial instruments

Financial assets and liabilities are offset and the net amount teported in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to
settle on a net basis, or realize the asset and settle the hability simultaneously.

Sale and repurchase agreements

Securities sold subject to linked repurchase agreements (“repos”) are retained in the financial
Statements as investment securities or financial assets at fair value through profit or loss and the
liability to the counter party is included in other borrowed funds under liabilities. Securities
purchased under agreements to resell are recorded as loans and advances to other banks or
customers as appropriate. The difference between sale and repurchase price is treated as
interest and accrued over the life of repurchase agreements using the effective interest yield
method.

Impairment of financial assets

The Bank assesses at each balance sheet date whether there is objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of financial
assets is impaired and impairment losses are incurred if, and only if, there is objective evidence
of impairment as a result of one or more events that occurred after the initial recognition of the
asset (a ‘loss event’) and that loss event (or events) has an impact on the future cash flows of
the financial asset or group of financial assets that can be reliably estimated. Objective
evidence that a financial asset or group of financial assets is impaired includes observable data
that cofmes to the attention of the Bank about the following loss events:

i) significant financial difficulty of the issuer or obligor;

11) a breach of contract, such as a default or delinquency in interest or principal payments;

ii) the Bank granting to a borrower, for economic or legal reasons relating to the borrower’s
financial difficulty, a concession that the lender would not otherwise consider;

iv) it becoming probable that the borrower will enter bankruptcy or other financial
reorganisation;

v) the disappearance of an active market for that financial asset because of financial
difficulties; or

vi) observable data indicating that there is a measurable decrease in the estimated future cash
flows from a group of financial assets since the initial recognition of those assets, although
the decrease cannot yet be identified with the individual financial assets in the group,
including:
- adverse changes in the payment status of borrowers in the group; or
- national or local economic conditions that correlate with default on the assets in the
group.

If there is objective evidence that an impairment loss on loans and receivables or held-to-
maturity investments carried at amortised cost has been incurred, the amount of the loss is
measured as the difference between the carrying amount and the recoverable amount, being the
estimated present value of expected cash flows, including amounts recoverable from guarantees
and collateral, discounted based on the current effective interest rate.

| il
When a loan is uncollectible, it is written off against the related provision for impairment;
subsequent recoveries are credited to the provision for impairment losses. If the amount of the
impairment subsequently decreases due to an’ event occurring after the write-down, the release
of the provision is credited to the provision for loan loss impairment in the income statement.

In circumstances where Central Bank guidelines and regulatory rules require provisions in
excess of those calculated under IFRS, the difference is accountéd for as an appropriation of
retained earnings and is included in a non-distributable general banking reserve.

Intangible assets
Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the net
identifiable assets of the acquired subsidiary undertaking at the date of acquisition and is
reported in the balance sheet as an intangible asset. Goodwill is tested annually for impairment
and carried at cost less accumulated impairment losses. Goodwill 1s allocated to lowest levels
for which there are separately identifiable cash flows (cash-generating units) for the purpose of
impairment testing. An impairment loss is recognized for the amount by which the asset’s
carrying value exceeds its recoverable amount. The recoverable amount is the higher of an
asset’s fair value less costs to sell and value in use.

Property, plant and equipment
Land and buildings comprise mainly branches and offices. 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.

_ Subsequent costs are included in the asset’s, carrying amount orate recognised as a separate

set, as appropriate, only when it is probable that future gconomic benefits associated with the
item will flow to the Bank and the cost of the item can, be measured reliably... All, other repairs

and maintenancé are charged to the income statement during the financial period in which they
are incurred. ;

Land is not depreciated. Depreciation on other assets is computed using the straight-line
method at rates considered adequate to write-off the cost of depreciable assets, less salvage,
over their useful lives.

The annual rates used are:

- Buildings 22%

- Leasehold improvements 10% or shorter life of the lease
- Equipment, furniture and vehicles 20 - 50%

Assets that are subject to depreciation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. Where the carrying
amount of an asset is greater than its estimated recoverable amount, it is written down
immediately to its recoverable amount. The asset’s recoverable amount is the higher of the
asset’s fair value less costs to sell and the value in use.

Provisions

' Provisions are recognized when the Bank has a present legal or constructive obligation as a

Ta or ga

‘da 2.13

result of past events, it is more than likely that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable estimate of the amount of the
obligation can be made.

Retirement benefit obligations
1) Pension obligations

The Bank operates a pension plan, the assets of which are held in a separate trustee-
administered fund. The pension plan is funded by payments from employees and the
Bank, taking account of the recommendations of independent qualified actuaries. The
plan has defined benefit sections and a defined contribution section.

A defined benefit plan is a pension plan that defines an amount of pension benefit to be
provided, usually as a function of one or more factors such as age, years of service or
compensation. A defined contribution plan is a pension plan under which the Bank pays
fixed contributions into a separate entity (a fund) and will have no legal or constructive
obligations to pay further contributions if the fund does not hold sufficient assets to pay
all employee benefits relating to employee service in the current and prior periods.

‘Vhe liability recognised in the balance sheet in respect of defined benefit sections of the
plan is the present value of the defined benefit obligation at the balance sheet date minus
the fair value of plan assets, together with adjustments for unrecognized actuarial
gains/losses and past service costs. The defined benefit obligation is calculated
periodically by independent actuaries using the projected unit credit method. The present
value of the defined benefit obligation is determined by the estimated future cash
outflows using interest rates of government securities which have terms to maturity
approximating the terms of the related liability. The pension plan is a final salary plan
and the charge for such pension plan, representing the net periodic pension cost less
employee contributions is included in staff costs.

Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to income over the expected average service lives of
the related employees. Past service costs are recognised immediately in income, unless
the changes to the pension plan are conditional on the employees remaining in service for
a specified period of time (the vesting period). In this case, past service costs are
amortised on a straight-line basis over the vesting period.

For the defined contribution section of the plan, the Bank makes contributions to a
private trustee-administered fund. Once the contributions have been paid, the Bank has
no further payment obligations. The regular contributions constitute net periodic costs
for the year in which they are due and as such are included in staff costs. The Bank’s
contributions in respect of the defined contribution section of the plan’ are charged to the
income statement in the year to which they relate.

(11) Other post retirement obligations

The Bank provides post-retirement healthcare benefits to its retirees. The entitlement to
these benefits is usually based on the employee remaining in service up to retirement age
and the completion of a minimum service period. The expected costs of these benefits
are accrued over the period of employment, using a methodology similar to that for
defined benefit pension plans. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged or credited to income over
the expected average service lives of the related employees. These obligations are valued
periodically by independent qualified actuaries.



TUESDAY, FEBRUARY 28, 2007, PAGE 11B

2.14 Borrowings
Borrowings are recognized initially at fair value and are subsequently stated at amortized cost,
and any difference between net proceeds. and the redemption value is recognized in the income
statement over the period of the borrowings, using the effective interest yield method.

4.45 Share capital and dividends
1) Share issue costs

Shares issued for cash are accounted for at the issue price less any transaction costs
associated with the issue. Shares issued as consideration for the purchase of assets, or a
business, are recorded at the market price on the date of the issue.

i) Dividends on ordinary shares

Dividends on ordinary shares are recognized in equity in the period in which they are
declared. Accordingly, dividends in respect of the current year’s net income that are
declared after the balance sheet date are not reflected in the consolidated balance sheet.

2.16 Fiduciary activities

The Bank commonly acts as trustees and in other fiduciary capacities that result in the holding
or placing of assets on behalf of individuals, trusts, retirement benefit plans and other
institutions. These assets and income arising thereon are excluded from this consolidated
balance shect, as they are not assets of the Bank.

2.17 Comparatives

Where necessary, comparative figures have been adjusted to comply with changes in
presentation in the current year as noted in accounting policy 2.1.
Cash and balances with The Central Bank

2006 2005

$ $

Cash ; : 24,543 28,290
Deposits with The Central Bank - non-interest bearing 44,600 80,512
Cash and balances with The Central Bank 69,143 108,802
Less: Mandatory reserve deposits with The Central Bank (43,209) (49,550°
Included in cash and cash equivalents as per below 25,934 59,252

Mandatory reserve deposits with ‘The Central Bank represent the Bank’s regulatory requirement to
maintain a percentage of deposit liabilities as cash or deposits with The Central Bank. These funds
are not available to finance the Bank’s day-to-day operations and as such, are excluded from cash
resources to arrive at cash and cash equivalents.

Cash and balances with The Central Bank are non-interest bearing.
Cash and cash equivalents

2006 2005
$ $
Cash and balances with The Central Bank as per above 25,934 59,252

Loans and advances to banks, including accrued '
interest (Note 4) 154,150 682,859
180,084 : 742,111

Loans and advances to banks

2006 2005
$ 3
Included in cash and cash equivalents (Note 3) 151,847 679,695

Greater than 90 days to maturity from date of acquisition 144,107 -

295,954 679,695
Add: Accrued interest receivable 2,303 3,164

298,257 682,859

Loans and advances to banks comprise deposit placements and include amounts placed with other
FirstCaribbean Bank entities of $86 (2005 - nil) and deposit placements with CIBC and Barclays
Bank PLC entities of $230,778 (2005 - $518,562). The'effective yield on deposit placements during
the year was 3.3% (2005 ~ 2.7%). : .

$5. Derivative financial instruments

The Bank uses interest rate swaps for both hedging and non-hedging purposes. Interest rate
swaps are commitments to exchange one set of cash flows for another. The Bank uses
interest rate swaps as fair value hedges to reduce the exposure of fair value changes due to
fluctuation in market interest rates resulting from fixed rates binding to customers and from
available-for-sale securitics. The swaps result in an economic exchange of interest rates
(fixed rate for floating rate). No exchange of principal takes place. The Bank’s credit risk
represents the potential cost to replace the swap contracts if counterparties fail to perform
their obligation. The counterparties to the swaps are Barclays and Lehman Brothers.

Currency forwards represent commitments to purchase foreign currency including
undelivered spot transactions. The counterparty is Royal Bank of Canada.

The notional and fair value amounts under these contracts at October 31 are shown below:

Contract
/Notional
Amount Fair Values
Assets Liabilities
$ $ $
October 31, 2006
1) Derivatives held for trading
-Interest rate swaps 383,320 1,933 -
i) Derivatives designated as fair value hedges
- Interest rate swaps . ; 270,834 50 (12,414)
- Currency forward 10227600 (10)
1,983 (12,424)
--October 31, 2005
1) Derivatives held for trading
- Interest rate swaps 204,700 6,015 -
1) Derivatives designated as cash flow hedges
- Interest rate swaps 95,433 817 (267)
6,832 (267)
Financial assets at fair value through profit or loss
2006 2005
$ $
trading securities
Government bonds 495 1,566
Corporate bonds 241,556 134,931
Asset-backed securities 561,360 159,429
Other debt securities - 906
803,411 296,832
Add: Interest receivable 6098 3,379



Total trading securities
The effective yield on the trading securities during the year was 5.7% (2005 - 6.1%).

Other assets

2006 2005

$ $

Due from brokers 9141) :

Amount due from related patty 3,000 12,630

Prepayments and deferred items 1153 1,398

Other accounts receivable 26208 2310
121,772 37,33

The amount due from related party is due on demand from Barclays Bank PLC and is interest-tiee.





OE 12B, WEDNESDAY, FEBRUARY 28, 2007

Investment securities











11

RUAKSON

. Retirement benefit assets and obligations

THE TRIBUNE BUSINESS

i

The Bank has an insured group health plan and a pension plan. The pension plan is’ mixture ol :

2006 2005 defined benefit and defined contribution schemes. The defined benefit sections of the scheme are

. $ $ non-contributory and allow for additional voluntary contributions. The insured health plan allows for — '

Loans and receivables relirées to continue to receive health benefits during retirement. The plan is valued by independent a

actuarics every three years using the projected unit credit method. ;

Issued or guaranteed by Governments ;

— Debt securities 156,898 158,823 ]

The amounts recognized on the balance sheet are aevermined as follows: (

Total loans and receivables ___ 156,898 158,823 Lae : : P

ain) Defined benefit Post retirement - ‘i

Available-for-sale securities peusion plans medical benefits :

2006 t 2006 2005 i

Government bonds 411,655 - $ ' Ss . $s $ 4

erporete ont ee Fair value of plan assets 83,149 71, A58 : dat

Total avallable-fiescale seoucities 545,018 7,500 Present value of funded obligations ; (56,398) . (50,440) (9,368) (8,910 4

* 7 . : ¥

701,916 166,323 Unneconnedare ee 26,751 - 27,018 (9,368) (8,910)

ade tnicrectreceivakle 13.454 2277 Jnrecognized actuarial gain (13,097) (13,421) (2,240) (1,690) ®
Total investment securities 715,370 _ 168,600 Berge nanny) a - seal a — US)

Debt securities issued or guaranteed by the Government of The Bahamas amounted to $136,700
(2005 - $131,546).

Government bonds include US Treasury Notes of $369,492, of which $279,337 have been pledged in
support of the repurchase agreements described in Note 14. ‘The effective yield during the year on
investment securities was 6.2% (2005 - 6.0%).

The movement in investment securities may be summarised as follows:



‘The pension plan assets include 100,000 ordinary shares in the Bank.

The actuarial return on plan assets for the defined benefit sections of the pension plan is
$6,494 (2005: $5,570). nr te .

The movements in the net asset/(liability) recognized on the balance sheet are as follows:

Post retirement

Defined benefit
pension plans medical benefits 5
Loans and Available 2006 2005 2006 2005

receivables -for-sale Total $ $ $ $

$ $ $
Balance, beginning of year 13,597 13,167 (10,600) (9,064) i
Balance, beginning of year 158,823 7,500 166,323 Charge forthe year 65 430 (1.113) (1,641) !
Additions 9,350 533,774 543,124 a ;

: . (11,275) 6.257 Contributions paid (8) : m - f
Disposals - sale and redemption , (4,982) (16,257) Employer premiums for existing retirees . "ee =n
Gains from changes in fair value (Note 17) _ . 8,726 | 8,726 Se eS i

alance, end of yee
Balance, end of year 156,898 545,018 701,916 Balance, ead of year 13,654 13,597 11,608 10,600

Included in gains from changes in fair value are unrealized net gains of $8,295 on available-for-sale
securities that are included in the statement of income, due to these securities being included in fair
value hedging relationships. The remaining $431 represents unrealized net gains on available-for-sale



The principal actuarial assumptions used at the balance sheet date are as follows:

securities that are not included in hedging relationships. pers iene
$ 2006 2005
Discount rate 6.5% 7.0%
Loans and advances to customers Expected return on plan assets 8.0% 8.5%
Future salary increases _ 45% 5.3%
ae ar Future pension increases 15% 1.8%
Mortgages 1,025,949 860,265 hohe bencti
Personal loans 333,866 288,667 2006 2005.
Business loans 1,064,035 857,180 :
Government securities purchased under Discount rate 6,5% 7.0%
Tesals agreemer is ' 52,185 - ' 4.5% 5.0%
2,476,035 2,006,112 64 “64
Add: Interest receivable 16,035 9,297
Less: Provisions for impairment (47,240) (43,017)

2,444,830 1,972,392

Movement in provisions for impairment is as fullows:







The latest actuarial valuation of the pension plan was conducted as at November 1, 2004 and revealed
a fund surplus of $20 million. a ; .



12. Intangible assets /
aan 2006 = 2005
aes So: $
; \ Specific credit Inherent risk stall hadsvidctve
risk provision provision Goodwill a
$ 3 Carrying amount, October 31 187,747 187,747
Balance, October 31, 2004 (36,269) (9,348)
‘ 13. Customer deposits
Doubtful debt expense (6,889) 2,971 ,
Recoveries of bad and doubtful debts (865) - / x pica
Bad debts wri , . . Payable Payable ayable - ow
ad debts written off 7,383 = on ae re 2006 . 2005
; demand notice fixed date .. Total .. Total
Balance, October 31, 2005 (36,640) (6,377) $ $ $s. $ $
Doubtful debt expense * (4,141) (1,183) Individuals 131,803 181,215 747,980 1,060,998 — 1,013,248
Recoveries of bad and doubtful debts (1,344) - Business and Governments 699,729 31,991 1,156,011 1,887,731 1,747,846
Bad debts written off 2,445 ; - Banks 1,154 - 534,317 535,471 81,476
832,686 213,206 2,438,308 3,484,200 2,842,570
Balance, October 31, 2006 (39,680) (7,560) Add: Interest payable _230 273 19,200 - 19,703 14,167
832,916 213,479 2,457,508 3 503,903 - 2,856,737
The average interest yield during the year on loans and advances was 8.4% (2005 -- 8.2%). Impaired
2 2 Ci i i ; 7 . * eae ‘
ene : en erent ae ihe I aa Ps ae ea eis oy Included in deposits’ trom vanks are deposits from other FirstCaribbean Bank entities of $484,877
Toons eared Hoe nnaica totalling $88,754, which are pledged in favour of that bank in support 0 (2005 - $13,199) and deposits from CIBC and Barclays Bank PLC entities of $12,757 (2005 - _
loans granted to certain of its customers. $17,550) :
,990). °
The effective rate of interest on deposits during the year was 3.8% ( 2005 — 2.1 %).
. Property, plant and equipment
14, Other borrowed funds
2006 2005
Equipment, $ $
: 4 and furniture Leasehold Total ;
ulldings and vehicles improvements 2006 .
. $ . $ $ Repurchase agreements 280,692
Cast “A. | 652 -
Balance, November 1, 2005 20,436 30,524 11,445 62,405 Add: Interest payable
* Purchases 450 1,438 84 1,972 281,344 -
Disposals (1,214) (191) 5 (1,405)
Transfers (1,137) 615 _ 522 -
Balance, October 31, 2006 18,535 32386 1051 62,972 ' The Bank’sold under repurchase agreements, investment securities having a fair value of $279,337.
The effective rate of interest on these borrowings during the year was 5.17%.
Accumulated depreciation
Balance, November 1, 2005 5,282 19,898 5,460 30,640 aes
Depreciation 322 2,614 600 3,536 15, Other liabilities
Disposals (224) (189) - (413) 2006 2005
Transfers 7a (54) . 39 LS - $ $
Balance, October 31, 2006 oe eee erm Leer TLE Accounts payable and accruals 35,204 26,963
; ; Due to brokers 239,389 | 53,119
Net book value, October 31, 2006 13,209 Oe etl cat ites Amount due to related parties 2196 1,217
unt a
——276,789___81,299
Equipment, , ‘ :
ane furniture Leasehold Total :
- and vehicles improvements puis ‘The amount due to related parties refers to balances due to other FirstCaribbean Bank entities as well
; $ $ as CIBC and Barclays Bank PLC or their subsidiaries. ; :
Cost '
Balance. November 1, 2004 25,970 27,042 10,314 63,326
Purchases 1,374 2,146 209 3,729
Disposals (3,651) (102) (897) (4,650) 16, Share capital
Transfers (3,257) 1,438 1,819 = Ce
‘The Bank’s authorised capital is $20 million, comprising 150 million ordinary. shares with a par
Balance, October 31, 2005 20,436 30,524 W445 62,405 value of $0.10 each and 50 million preference shares also having a par value of $0.10 each. All
issued shares are fully paid. At October 31, 2006 and 2005, the issued share capital was as follows:
Accumulated depreciation :
Balance, November J} 7°04 5,628 17,632 4,732 27,992
Depreciation 533 2,338 964 3,835 Number of Share Share
Disposals (878) (72) (236) (1,186) shares par value premium Total
$ $ $
Balance, October 31, 2005 5,283 19,898 5,460 30,641.
Net book value, October 31, 2005 15,153 10,626 5,985 31,764 Ordinary shares, voting 120,216,204 12,022 465,208»! 477,230









THE TRIBUNE BUSINESS | WEDNESDAY, FEBRUARY 28, 2007, PAGE 13B

17. Share capital and reserves 22. Business segments



1 2006 2005 The Bank operates four main lines of business organised along customer segments, but also includes
' $ $ treasury operations as a reportable segment.
; Share capital (Note 16) . 477,230 477,230. I Retail Banking is organized along four product lines: Premier Banking (dedicated |
relationship management), Home Finance (mortgages), Consumer Finance & Credit Cards E
k Reserves and Asset Management & Insurance. :
Statutory reserve fund — Turks & Caicos Islands 6,800 2,800 Z Corporate Banking comprises three customer sub-segments: Corporate Business, Commercial
Statutory loan loss reserve — Bahamas ; 14,661 - Business and Business Banking. Corporate Banking offers deposit and investment products,
Revaluation reserve — available-for-sale investment securities ; 431 - borrowing and cash management products, merchant card services and trade finance. i
817 ;

Revaluation reserve — cash flow hedges

Reverse acquisition reserve (63,566) (63,566)

3. International Wealth Management is organized into four segments: International Personal,
International Premier, International Mortgages and International Corporate. The Personal







N Total reserves (41,674) (59,949) Banking segment specializes in currency accounts, deposit accounts, U.S. dollar credit cards
f and international mutual funds. The Premier Banking segment offers each client a personal
» Total share capital and reserves 435,556 417,281 relationship manager in addition to all of the products and services offered by the Personal
n Banking segment. The International Mortgage group provides funding in U.S. dollars, to non- Al
‘ residents seeking to purchase second homes for personal use or as an investment. The i
In accordance with the Banking (Amendment) Ordinance 2002 of the Turks and Caicos Islands (TCD, anaes ae ae eau ee Aas services to
the Bank was required in 2004 to assign capital to the TCI operations in the amount of $24 million. :
4. The Capital Markets segmii.. pov rssee soourss anid investors with access to larger pools of
capital and greater investment opportunities. It acts for and on behalf of large business and
q The movements in reserves were as follows: ‘ sovereign clients who seek both equity and debt capital instruments and facilitates the
iq 2006 2005 expansion of the existing secondary market capabilities in the region. ;
$ $
Statutory reserve fund — Turks & Caicos Islands The Treasury Group manages the interest rate, foreign exchange and liquidity risks of the
; : a ae Bank. In addition, the Treasury Group conducts foreign exchange transactions on behalf of
Balance, beginning of year , 2,800 700 clients, where possible, and hedges fixed rate loans and’investments with interest rate swaps.
Transfers from retained earnings A ae Transactions between the business segments are generally on normal commercial terms and
Balance, end of year 6,800 2,800 eons :
1 Funds are ordinarily allocated between segments, resulting in funding costs transfers fa
. disclosed in operating income. Interest charged for these funds is based on the Bank’s funds 5
k in accordance with the Banking (Amendment) Ordinance 2002 of the TCI, the Bank is required to transfer pricing, There are no other material items of income or expense between the F
maintain a statutory reserve fund of not less than the amount of its assigned capital. Where it is less segments. ; B
than the assigned capital, the Bank is required to annually transfer 25% of its net profit earned from . : 4
| its TCI operations to this fund. During the year the Bank transferred $4,000 (2005: $2,100) from Segment assets and liabilities comprise operating assets and liabilities, being the majority of b
retained earnings to the statutory reserve fund. the balance sheet, but exclude items such as borrowings. E
Internal charges and transfer pricing adjustments have been reflected in the performance of :
‘ ‘ : : each business. ~ i
i : Ne ~ Q
4 2 4 ‘ “ Retail Corporate International Capital Is
Revaluation reserve — available-for-sale investment securities Banking Banine Wealth Mgt Markets Treasury Other Eliminations Total li
$ $ $ $ a) $ $ $
Balance, beginning of year i : October 31, 2006
Net gains from changes in fair value of available-for-sale : : Segment assets 1,241,828 1,054,552 1,314,637 11,257 __770,771__ 313,970 (15,541) 4,691,474
investment securities (Note 8) a 8,726 - ‘
Transfer to profit and loss for hedging purposes ot B95) on Segment liabilities 790,623 864,807___1,364,016__—-_1,062,197_18,966 _(14,541) 4,086,068
Other segment items 3
Balance, end of year Jo eee Capital Spedine 1,972 19722. |
2006 2005 xxetail. Corporate iniernational Capital
$ $ Banking Banking ‘VealthMgt Markets Treasury Other Total
Revaluation reserve — cash flow hedges $ $ $ $ $ $ $ :
October 31, 2005 Es
Balance, beginning of year 817 - ;
Net gains (loss) from changes in fair value (817) 817 Segment assets 1,028,603 836,412 1,325,098 996 261,084 57,949 3,510,142 F
Segment liabilities 564,476 759,472 __1,304,993 - 303,025 16,937 __2,948,903
_ Balance, end of year - 817 oa
Other segment items
2006 2005 Capital expenditure : 3,729 3,729
$ $
Statutory loan loss reserve - Bahamas Capital expenditure comprises additions io property, plant and equipment (Note 10).
_ Balance, beginning of year : ie Geographical segments are set out in Note 75 (c). :
Transfers from retained earnings 14,661 - F
: : 23. Financial risk management le
Balance, end of year : OL a A. Strategy in using financial instruments
Banking Regulations of The Central Bank of The Bahamas require a general provision in respect of By its nature the Bank’s activities are principally related to the use of financial instruments. The
eqthe performing loans of at least one percent of these loans. To the extent the inherent risk provision Bank accepts deposits from customers at both fixed and floating rates and for various periods and
= for loans and advances to customers is less than this amount, a statutory loan loss reserve has been seeks to earn-above average interest margins by investing these funds in high quality assets. The
established and the required additional amount has been appropriated from retained earnings, in Bank seeks to increase these margins by consolidating short-term funds and lending for longer
accordance with IFRS. periods at higher rates whilst maintaining sufficient liquidity to meet all claims that might fall
due.
Reverse acquisition reserve Sb make ; oot . 2
2006 2005 The Bank also seeks to raise its interest margins by obtaining above average margins, net of
provisions, through lending to commercial and retail borrowers with a range of credit standing.
$ $ Such exposures involve not just on-balance sheet loans and advances but the Bank also enters
Reverse acquisition reserve, beginning and end of year (63,566) (63,566) into guarantees and other commitments such as letters of credit and performance and other bonds.
At October 11, 2002, the equity of the Bank comprised the equity of Barclays Bahamas together with B. Credit risk
the fair value of the consideration given to acquire CIBC Bahamas. However, legally the share .
capital of the Bank comprised the issued share capital of CIBC Bahamas plus the shares issued to The Bank takes on exposure to credit risk which is the risk that a counter party will be unable to 3
effect the combination, recorded at fair value. The reverse acquisition reserve is therefore the pay amounts in full when due. The Bank structures the levels of credit risk it undertakes by k
difference between the legally required share capital together with the retained earnings of Barclays placing limits on the amount of risk accepted in relation to one borrower, or groups of borrowers, i
Bahamas, and the equity of the Bank presented in accordance with IFRS. and to geographical and industry segments. Such risks are monitored on a revolving basis and
subject to an annual or more frequent review.
18. Dividends ;
ne The exposure to any.one borrower including banks and brokers is further restrict ; sub-limi
At the Board of Directors meeting held on December 15, 2006, a final dividend of $0.25 per share covering on and off-balance sheet chee and daily delivery risk limits in ee ae
amounting to $30,054 in respect of the 2006 net income (December 2005: $0.30 per share, items such as forward foreign exchange contracts. Actual exposures against limits ar itored R
amounting to $36,065) was proposed and declared. The consolidated balance sheet as of October daily. e roa y .
31, 2006 dos not reflect this resolution, which will be accounted for in equity as a distribution of : fi
retained earnings in the year ending October 31, 2007. 3 “to . e
Exposure to credit risk is managed through regular analysis of the ability of borrowers and
19. Related party balances , potential borrowers to meet interest and capital repayment obligations and by changing these
i lending limits where appropriate. Exposure to credit risk is also managed in part by obtaining
The Bank’s major shareholder is FirstCaribbean International Bank Limited which owns 95.2% of collateral and corporate and personal guarantees, but a significant portion is personal lending
the Bank’s ordinary shares and is itself jointly owned by CIBC and Barclays Bank PLC which where no such facilities can be obtained.
collectively own 87.4% of the voting share capital, The remaining shares are widely held.
A number of banking transactions are entered into with related parties in the normal course of prin
business. Outstanding balances at year-end are as follows: The Bank maintains strict control limits on net open derivative positions, that is, the difference
: between purchase and sale contracts, by both amount and term. At any one time the amount
Directors and key Major shareholder and Ultimate “subject to credit risk is limited to the current fair value of instruments that are favorable to the
PES aae personnel associated banks shareholders Bank (i.e. assets), which in relation to derivatives is only a small fraction of the contract or
ae a we ae ne ea notional values used to express the volume of instruments outstanding. This credit risk exposure —
‘Key related party ‘ is managed as part of the overall lending limits with customers, together with potential exposures
balances and transactions from market movements. Collateral or other security is not usually obtained for credit risk
exposures on these instruments, except where the Bank requires margin deposits from
Balances: counterparties. :
Deposit placements - : 86 - 230,778 518,562
Loans ‘ 2,011 2,827 88,754 46,500 - - .
Deposit liabilities 5,869 4,033 484,877 «13,199 ~—=—«12,757_-—Ss«17,550 Master netine syaneeeny
20. Contingent liabilities and commitments The Bank further restricts its exposure to credit losses by entering into master netting
arrangements with counterparties with which it undertakes a significant volume of transactions.
The Bank conducts business involving guarantees, performance bonds and indemnities, which are not - Master netting arrangements do not generally result in an offset of balance sheet assets and
reflected in the balance sheet. At the balance sheet date the following contingent liabilities and liabilities as transactions are usually settled on a gross basis. However, the credit risk associated
Aa aERS RIED : with favorable contracts is reduced by a master netting arrangement to the extent that if an event
of default occurs, all amounts with the counterparty are terminated and settled on a net basis. The
2006 2005 Bank’s overall exposure to credit risk on derivative instruments subject to master netting
$ 5 arrangements can change substantially within a short period since it is affected by each
; transaction subject to the arrangement.
Letters of credit 60,881 42,966 ;
Loan commitments . 358,191 351,109 ‘
Guarantees and indemnities . 16,067 14,586 ° Credit related commitments
The primary purpose of these instruments is to ensure that funds are available to a customer as
____ 435,139 408,661. required. Guarantees and standby letters of credit, which represent irrevocable assurances that the
Bank will make payments in the event that a customer cannot meet its obligations to third parties,
The Bank is the subject of legal actions arising in the normal course of business. Management carry the same credit risk as loans. Documentary and commercial letters of credit, which are
considers that the liability, if any, of these actions would not be material. written undertakings by the Bank on behalf of a customer authorizing a third party to draw drafts
“4 on the Bank up to a stipulated amount under specific terms and conditions, are collateralized by
21. Future rental commitments under operating leases the underlying shipments of goods to which they relate and therefore carry less risk than a direct
borrowing.
As at October 31, 2006 the Bank held leases on buildings for extended periods. The future rental
commitments under these leases are as follows:
2006 2005 Commitments to extend credit represent unused portions of authorizations to extend credit in tne
$ $ form of loans, guarantees or letters of credit. With respect to credit risk on commitments to
extend credit, the Bank is potentially exposed to loss in an amount equal to the total unused
; Not later than'l year 2,695 3,122 commitments. However, the likely amount of loss is less than the total unused cor imitments
/ Later than 1 year and not more than 5 years 6,104 7,556 since most commitments to extend credit are contingent upon customers maintaining specific
Later than 5 years 2,428 2,436 credit standards. The Bank monitors the term of maturity of credit commitments because longer-
term commitments generally have a greater degree of credit risk than shorter-term commitments.
11,227 13,114
THEY GORE NIE AUCTRILERTRIRGAN AA A SO BUTT NENA UIT RE 3
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PAGE 14B, WEDNESDAY, FEBRUARY 28, 2007

@

C. Geographical concentration of assets, liabilities and off-balajice sheet items

The following note incorporates IAS 32 credit risk disclosures, IAS 30 geographical
concentrations of assets, liabilities and off-balance sheet sites disclosures and a_ public
enterprise’s IAS 14 secondary segment disclosures. Al gy






by Sef

Total otal’ Credit Capital
assets liabilitles commitments —_ expenditure
$ - ‘se. $ $

October 31, 2006 :
Bahamas 4,131,165 3,575,731 332,371 1,265
Turks & Caicos Islands 560,309 510,337 102,768 . 707

____ 4,691,474 4,086, (bE

October 31, 2005 y }

Bahamas 3,062,151 2,54 14917 371,124 2,984
Turks & Caicos Islands eS 447,991 406,986 37,537,745
339 10,142 2,948,903 408,661 3,729

The Bank is managed based on the five business segments, and it operates in two main
geographical areas. The Bank’s exposure to credit risk is concentrated in these areas.

Capital expenditure is shown by geographical area in which the property, plant and equipment are
located. ;

Geographic sector risk concentrations within the customer loan portfolio were as follows:

& 2006 2006

2005 2005
$ % $ %

Babanias 2,252,842 92 1,819,464 92
Turks & Caicos Islands 191,988 8 152,928 8
2,444,830 100 __ 1,972,392 100

D. Currency risk

The Bank takes on exposure to effects of fluctuations in the prevailing foreign currency
exchange rates on its financial position and cash flows. The Board of Directors sets limits on the
level of exposure by currency and in total for both overnight and intra-day positions, which are
monitored daily. The table below summarizes the Bank’s eiposure to foreign currency
exchange rate risk at October 31., The of!-balance sheet net notional position represents the
difference between the notional amounts of foreign currency derivative financial instruments,

which are principally used to reduce the Ban’:’s exposure to currency movements, and their fair
values, ’

$ Concentrations of assets, liabilities and credit commitments:

BAH US Other Total
October 31, 2006 $ $ $s $
Assets
Cash and balances with The Central Bank 62,192 6,727 224 69,143
Loans and advances to banks 1,415 196,474 100,368 298,257
Derivative financial instruments . - 1,983 - 1,983
Financial assets at fair value through profit
or loss oo 809,509 - 809,509
Other assets 684 104,832 256 121,772
Investment securities 12 °,025 562,795 13,550 715,370
Loans gnd advances to customers 1,434 409 1,008,419 2 2,444,830
Property, plant and equipment 20,391 6,738 80 29,209
Retirement benefit assets y 869 1,785 - 13,654
Intangible assets 1°. 582 1,165 : 187,747
Total assets 1, 7 2,700,427 114,480 4,691,474
Liabilities
Derivative financial instruments 12,424 12,424
Customer deposits 1,954,116 215,096 3,503,903
Other borrowed funds ‘ 281,344 - 281,344
Other liabilities 265,788 507 276,789
Retirement benefit obligations ' Su 389 - 11,608
Total liabilities ‘ 2,514,061 215,603 * 4,086,068
Net.on balance sheet position 520 163 186,366 (101,123) 605,406
" Credit commitments Bast: V74.94t 258,395 1,903 . 435,139
October 31, 2005 ‘ :
Total essets 1,740,054 1,529,111 240,977 | 3,510,142
Total liabilities 1,301,024 1,412,704 235,175 2,948,903
Net ox balance sheet position 439,030 116,407 5,802 561,239
Credit commitments __ 218,758 189,104 799 408,661

E. Cash flow and fair value interest rate risk

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-interest rate risk is the risk that
the valué of a financial instrument will fluctuate because of changes-in market interest rates. The
Bank takes on exposure to the effects of fluctuations in the prevailing levels of market interest
rates on both its fair value and cash flow risks, Interest margins may increase as a result of such
changes but may reduce or create losses in the event that unexpected movements arise. Limits

are set on the level of mismatch of interest rate repricing that may be undertaken, which are
monitored on an ongoing basis. :

Expected repricing and maturity dates do not differ significantly from the’ contract dates, except
‘for the maturity of deposits up to 1 month, which represent balances on current accounts
considered by the Bank as a relatively stable core source of funding of its operations.
Â¥F. Liquidity risk

The Bank is exposed to daily calls on its available cash resources from overnight deposits, current
accounts, maturing deposits, loan draw downs, guarantees and from margin and other calls on
cash settled derivatives. The Bank does not maintain cash resources to meet all of these needs as
experience shows that a minimum level of reinvestment of maturing funds can be predicted with
a high level of certainty. The Board sets limits on the minimum proportion of maturing funds
available to meet such calls and on the minimum level of interbank and other borrowing facilities
that should be in place to cover withdrawals at unexpected levels of demand.

The table below analyses assets, liabilities and credit-commitments of the Bank into relevant
maturity groupings based on the remaining period at balance sheet date to the contractual
maturity date.

‘Maturities of assets and liabilities



3-12 1-5 Over 5
months years years Total
October 31, 2006 $ $ $ $
Assets :
Cash and balances with central banks - - - 69,143
Loans and advances to banks 78,224 63,000 - 298,257
Derivative financial instruments - - - 1,983
Financial assets at fair value through
profit or loss - oo - 809,509
Other assets - - - 121,772
Investment securities 111,987 323,758 266,171 715,370
Loans and advances to customers 251,124 620,621 1,064,069 2,444,830
Property, plant and equipment - - 29,209 29,209
Retirement benefit asset - - 13,654 13,654
intangible assets - - 187,747 187,747
Total assets 1,681,940 441,335 1,007,379 1,560,850 4,691,474
Liabilities
Derivative financial instruments 12,424 - - oe 12,424
Customer deposits 2,940,975 376,205 13,076 173,647 3,503,903
Other borrowed funds 2813344 - - “ 281,344
Other liabilities 276,789 - - - 276,789
Retirement benefit obligations Boe - - 11,608 11,608
Total liabilities _3,511,532_ 376,205 13,076 185,255 4,086,068

Net on balance sheet position - (1,829,622) 65,130 994,303 1,375,595 605,406

Credit commitments

25,953 409,186 - - 435,139
October 31, 2005
Total assets 1,265,940 392,172 618,714 1,233,316 3,510,142
Total liabilities 2,309,958 415,732 3,861 | 219,352 2,948,903

en

Net on balance sheet position (1,044,018) (23,560) _ 614,853___1,013,964 561,239
Credit commitments 17,318 391,343 - - 408,661

HMR LN RPS CRU STE 9A



THE TRIBUNE BUSINESS

The matching and controlled mismatching of the maturities and interest rates of assets and
liabilities is fundamental to the management of the Bank. It is unusual for banks ever to be
completely matched since business transacted is often of uncertain term and different types. An
unmatched position potentially enhances profitability, but also increases the risk of losses.

The maturities of assets and liabilities and the ability to replace, at an acceptable cost, interest-

bearing liabilities as they mature, are important factors in assessing the liquidity of the Bank and
its exposure to changes in interest rates and exchange rates.

Liquidity requirements to support calls under guarantees and standby letters of credit are ‘
considerably less than the amount of the commitment because the Bank does not generally expect
the third party to draw funds under the agreement. The total outstanding contractual amount of
commitments to extend credit does not necessarily represent future cash requirements, since
many of these commitments will expire or terminate without being funded.

Fair values of financial assets and liabilities

Q |

The following table summarizes the carrying amounts and fair values of those financial assets and
liabilities not presented on the Bank's balance sheet at fair value. Bid prices are used to estimate
fair value of assets, whereas offer prices are applied for liabilities. :

Carrying value Fair value
2006 * 2005. 2006 2005
Total Total Total Total
$ $ $ $
Financial assets
Loans and advances to banks 298,257 682,859 298,257 | 682,859
Loans and advances to customers 2,444,830 1,972,392 2,437,737 1,972,392
Investment securities
-loans and receivables 158,983 161,100 - 168,561 161,100
Financial liabilities
Customer deposits 3,503,903 2,856,737 3,504,793 2,856,737
Other borrowed funds 281,344 - 281,240 .

Loans and advances to banks

Loans and advances to banks include inter-bank placements and items in the course of collection.
The fair value of floating rate placements and overnight deposits is their carrying amount. The
estimated fair value of fixed interest bearing deposits is based on discounted cash flows using
prevailing money market interest rates for debts with similar credit risk and remaining maturity.
Their carrying values approximate their fair values.

Loans and advances to customers

The estimated fair value of loans and advances represents the discounted amount of estimated _
future cash flows expected to be received. Expected cash flows are discounted at current market
rates to determine fair value. The balances are net of specific and other provisions for
impairment and their net carrying amounts reflect their fair values.

Investment securities

Fair value for investments designated as loans and receivables is based on market prices or
broker/dealer price quotations. Where this information is not available, fair value has been
estimated using quoted market prices for securities with similar credit, maturity and yield
characteristics. Where fair values still cannot be measured reliably, these securities are carried at
cost less impairment. Available-for-sale securities are rneasured at fair value.

Customer deposits and other borrowed funds

The estimated fair value of deposits with no stated maturity, which includes non-interest-bearing
deposits, is the amount repayable on demand. The estimated fair value of fixed interest bearing
deposits and other borrowings without quoted market price is based on discounted cash flows
using interest rates for new debts with similar remaining maturity.

24. Critical accounting estimates and judgements in applying accounting policies

25.

26.

27.

FirstCaribbean International Land Holdings (1'C1) Limited

Estimates and judgements are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
circumstances. The estimates and judgements that have a significant risk of causing material

adjustments to the carrying amounts of assets and liabilities within the next financial year are
discussed below.

i) Impairment losses on loans and advances

The Bank reviews its loan portfolios to assess impairment at least on a quarterly basis, In
determining whether an impairment loss should be recorded in the income statement, the Bank
makes judgements as to whether there is any observable data indicating that there is a
measurable decrease in the estimated future cash flows from a portfolio of loans before the
decrease can be identified with an individual loan in that portfolio. This evidence may include

. observable data indicating that there has been an adverse change in the payment status of
borrowers in a group, or national or local economic conditions that correlate with defaults on -
assets in the group.._Management uses-estimates- based on historical loss experience for assets
with credit risk characteristics and objective evidence of impairment similar to those in the
portfolio when scheduling its future cash flows. The methodology and assumptions used for
estimating both the amount and timing of future cash flows are reviewed regularly to reduce
any differences between loss estimates and actual loss experience. .

ii) Retirement benefit obligations

Accounting for some retirement benefit obligations requires the use of actuarial techniques to
make a reliable estimate of the amount of benefit that employees have earned in return for their
service in the current and prior periods. These actuarial assumptions are based on
managements’ best estimates of the variables that will determine the ultimate cost of providing
post-employment benefits and comprise both demographic and financial assumptions.
Variations in the financial assumptions can cause material adjustments in the next financial
year, if it is determined that the actual experience differed from the estimate.

ili) Loan fee recognition estimate

The Bank’s current processes and information technology systems do not support the treatment
of loan fee income and the related direct costs as an adjustment to the effective interest rate and
deferred. As a consequence, management has to estimate the effect of this treatment.

In accordance with IAS 18 Revenue, loan origination fees, relating to loans that have a high
probability of being. drawn down, are to be deferred (together with related direct costs) and
recognized as an adjustment to the effective interest yield on the loan. This accounting
treatment was not applied in the past as previous estimations indicated the adjustment to be
immaterial. This year management has estimated the impact using the last four year’s historical

data along with certain key assumptions about the maturity profile of the loan portfolio prior to
2004 and the level of fees booked prior to 2002.

The recording of this impact has been applied retrospectively, and the comparative balance
sheet for 2005 has been restated, as follows:

$000

Total liabilities as previously reported 2,930,422
Adjusted for: ; :
Increase in other liabilities 18,481
Total liabilities as restated 2,948,903
Total equity as previously reported 579,720
Adjusted for:

Decrease in retained carmmings (18,481)
Total equity as restated 561,239

Fiduciary activities

The Bank provides custody and trustee discretionary investment management services to third
parties. Those assets that are held in a fiduciary capacity are not included in these financial

statements. At the balance sheet date, the Bank had investment assets under administration on behalf
of third parties amounting to $201.

Post balance sheet event

On October 25, 2006 the Bank offered through.a private placement $20 million redeemable floating
rate notes. Interest on the notes will be payable at a rate of Bahamas Prime plus 0.75% per annum,
and the notes will mature on November 3, 2011. The notes, which are unsecured, may be redeemed
after one year at the option of the Bank. The closing date of the offer is November 3, 2006 and
accordingly it is not reflected in the balance sheet as of October 31, 2006.

Principal subsidiary undertakings

Name Country of incorporation

FirstCaribbean International Finance Corporation (Bahamas) Limited Bahamas
FirstCaribbean International (Baharnas) Nominees Company Limited Bahamas

Turks & Caicos Islands

All subsidiaries are wholly owned. :

(Continued) YPAGE 15B |

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THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 15B



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S PRICEWATERHOUSE(COPERS

PricewaterhouseCoopers
Providence House

East Hill Street

P.O. Box N-3910

Nassau, Bahamas

Website: www.pwe.com
E-mail: pwcbs@bs.pwe.com
Telephone (242) 302-5300
Facsimile (242) 302-5350

‘INDEPENDENT AUDITORS’ REPORT

To the Shareholders of
FirstCaribbean International Bank (Bahamas) Limited

We have audited the accompanying consolidated balance sheet of FirstCaribbean International Bank
(Bahamas) Limited (the Bank) as of October 31, 2006. This consolidated balance sheet is the
responsibility of the Company’s management. Our responsibility is to express an opinion on this balance _
sheet based on our audit.

We conducted our audit in accordance with International Standards on Auditing.. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the balance sheet is free
of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts
and disclosures in the balance sheet. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall balance sheet presentation.
We believe that our audit provides a reasonable basis for our opinion.

CAP be TOE SFE BEEN LMI SOA a FS

~
ay

In our opinion, the accompanying consolidated balance sheet presents fairly, in all material respects, the
financial position of the Bank as of October 31, 2006 in accordance with International Financial
Reporting Standards.

Without qualifying our opinion, we emphasise that the accompanying consolidated balance sheet does not
comprise a complete set of financial statements in. accordance with International Financial Reporting
Standards. Information on consolidated results of operations, changes in equity and cash flows is

necessary to obtain a complete understanding of the financial position, performance and changes in
financial position of the Bank.

Picante Ansel

“ Chartered Accountants
December 15, 2006

FPP AAI IF PE le Oe

NOTICE

é
NOTICE IS HEREBY GIVEN of the loss of Bahamas Governiment Registered Stock Certificate as follows:

(%)
0.8125 APR

. Bahamas Government Registered Stock 45-117 14 June 2010 316,400

Nassau, Bahamas.

APR = Above Prime Rate



FU A RT SEER PO PEE APO GL Bes a

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“FO THE WORLD
or

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The Bahamas Telecommunications Company Ltd.
P.O.Box N-3048 Nassau, Bahamas "
Tel: (242) 302-7000

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wa es

THE BAHAMAS TELECOMMUNICATIONS COMPANY LTD.

TENDER FOR NEW VEHICLE & EQUIPMENT *

Fig PSF AN A a aa PF Ba

The Bahamas Telecommunications Company Ltd is pleased to
Ainvite qualified companies to apply for tender for New Vehicle and

“BE
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B
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Interested companies can pick up a specification document from
‘BTC’s Administration Building John F. Kennedy Drive and The
Mall Drive Freeport, Grand Bahama February 5, to February 21,
2007 between the hours of 9:00am to 5:00pm Monday to Friday.

Tender should be sealed in an envelope marked

“VEHICLE & EQUIPMENT TENDER”

and delivered to the attention of: - .

Mr. Leon Williams
President & CEO
The Bahamas Telecommunications Company Ltd.
P.O. Box N-3048
Nassau, Bahamas

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| ‘Bids should reach the company’s administration office on

ohn F. Kennedy Drive by 4:00 p.m. Monday February, 19th, 2006.
Scombunies submitting bids are invited to attend the bid opening on
1 ‘Thursday, February 22nd, 2007 at 10:00 A.M. at BTC’s Perpall
“Tract location.

‘

BTC reserves the right to reject any or all tenders.

§ 4 a aku,



I intend to request The Registrar to issue a replacement certificate. If this certificate is found, please write to P.O. Box N7788,

Wall Street plummets,
sending Dow down
415 after Chinese
stocks take big hit

"By MADLEN READ

AP Business Writer

NEW YORK (AP) —
Stocks plummeted Tuesday,
briefly hurtling the Dow Jones
industrials down nearly 550
points as Wall Street suc-
cumbed to a global market
plunge sparked by growing
concerns that the United States
and Chinese economies are

‘cooling and that equities prices .

have become overinflated.

A nine per cent slide in Chi-
nese stocks, which came a day
after investors sent Shanghai’s
benchmark index to a record
high close, set the tone for US
trading. The Dow began the
day falling sharply, and the
decline accelerated through-
out the course of the session
before stocks took a huge
plunge in late afternoon as
computer-driven sell programs
kicked in.

The Dow fell 546.02, or 4.3
per cent, to 12,086.06 before
recovering some ground in the
last hour of trading to close
down 415.86, or 3.29 per cent,
at 12,216.40, according to pre-
liminary calculations. Because

the worst of the plunge took —

place after 2:30 pm, the New
York Stock Exchange’s trad-
ing limits, designed to halt such
precipitous moves, were not
activated.

The decline was the Dow’s
worst since September 17,
2001, the first trading day after
the terror attacks, when the
blue chips closed down 684.81,
‘or 7.13 per cent.

The drop hit every sector of
stocks across the market.
Riskier issues such as small-
cap and technology stocks suf-
fered the biggest declines.

Investors’ dwindling confi-
dence was knocked down fur-
ther by data showing that the
economy may be decelerating
more than anticipated. A Com-
merce Department report that
orders for durable goods in
January dropped by the largest
amount in three months exac-
erbated jitters about the direc-
tion of the US economy, just a

day after former Federal .

Reserve Chairman Alan
Greenspan said the United

' States may be headed for a

recession. nas
“Tt looks more and more like

‘the economy is a slow growth

economy,” said Michael
Strauss, chief economist at
Commonfund. “Moderate eco-

. nomic growth is good — an

abrupt stop in economic
growth scares people.”

The market had been
expecting the government on
Wednesday to revise its esti-
mate of fourth-quarter GDP
growth down to an annual rate
of about 2.3 per cent from an
initial forecast of 3.5 per cent,
and grew increasingly nervous
on Tuesday that the figure

could come in even lower.

The housing market, which
the Street had been hoping had
bottomed out, also looked far
from recovery after a Standard
& Poor’s index indicated that
single-family home prices
across the nation were flat in
December. A later report from
the National Association of
Realtors said existing home
sales climbed in January by the
largest amount in two years,
but the data didn’t erase hous-
ing-related concerns, as medi-
an home prices fell for a sixth
straight month.

But a growing feeling that
Wall Street, which has had a
‘big run-up since October, was
due for a correction also
played into Tuesday’s decline.

“T think that the market was

prepared to pull back. The
constellation of issues that
were worrying the market
came to a head,” said Quincy
Krosby, chief investment
strategist at The Hartford.
- Just a week ago, the Dow
had reached new closing and
trading highs, rising as high as
12,795.92.

The broader Standard &
Poor’s 500 index was down
50.18, or 3.46 per cent, at
1,399.19, and the tech-domi-
nated Nasdaq composite index
was off 96.65, or 3.86 per cent,
at 2,407.87.

A suicide bomber attack on
the main US military base in
Afghanistan where Vice Pres-
ident Dick Cheney was visit-
ing also rattled the market.

China’s stock market plum-
meted Tuesday ‘from record
highs as investors took profits
when concerns arose that the
Chinese government may try
to temper its ballooning econ-
omy by raising interest rates
again or reducing more of the
money available for lending.

“Corrections usually happen
because of a catalyst, and this
may be it,” said Ed Peters,
chief investment officer at
PanAgora Asset Management.
“The move in China was a sur-
prise, and when a major mar-
ket has a shock it ripples
through the rest of the market.
With all the trade that goes on
with China, there tends to be a
knee-jerk reaction with that
kind of drop.”

The Shanghai Composite
Index tumbled 8.8 per cent to
close at 2,771.79, its biggest
decline since it fell 8.9 per cent
on February 18, 1997. Since
Chinese share prices doubled
last year as investors poured
money into the market after
the completion of sharehold-
ing reforms, trading in Shang-
hai has been very volatile.

Hong Kong’s benchmark
Hang Seng Index dropped 1.8
per cent, and Malaysia’s Kuala
Lumpur Composite Index fell
2.8 per cent. Japan’s Nikkei
stock average fell a more mod-

BKG/410.03

ADVERTISEMENT FOR THE BAHAMAS
GOVERNMENT TREASURY BILLS

Sealed Tenders for B$59,100,000.00 of 91-day
Treasury Bills will be received by the Banking
Manager, The Central Bank. of the Bahamas,
Frederick Street, Nassau up to 3:00 p.m. on Friday,
March 2, 2007. Successful Tenderers, who will be
advised should take up their bills against payment

on Tuesday, March 6, 2007. These bills will be in
minimum multiples of B$100.00. Tenders are to be
on special forms obtainable from The Central Bank
of the Bahamas or Commercial Banks.

Tenders must state the net price percent (in multiples

of one cent) and should be marked

“ Tender” The

Central Bank of The Bahamas reserves the right to

reject any or all tenders.



(



erate 0.52 per cent, but Euro-
pean markets were rattled —
Britain’s FTSE 100 lost 2.31
per cent, Germany’s DAX
index dropped 2.96 per cent,
and France’s CAC-40 fell 3.02
per cent.

Bond prices shot higher as
investors bought into the safe-
haven Treasury market, push-
ing the yield on the benchmark

10-year Treasury note down to
4.47 per cent, its lowest level so
far this year, from 4.63 per cent
late Monday. The bond buy-
ing was sparked primarily by
the durable goods orders,
which the Commerce Depart-
ment said fell 7.8 per cent,
much more than what the mar-
ket expected.

The durable goods drop
raised the chance of the Fed-
eral Reserve easing interest
rates later in the year — a pos-
sibility that makes the bond
market an attractive place to
be right now.

The hope for slowing infla-
tion could be dashed, though, if
energy costs keep rising. Oil
prices initially fell Tuesday on
worries that Chinese demand
could be dampened should its
economy slow down, but later
rose on escalating tensions in
the Middle East. Light, sweet
crude for April delivery fell 62
cents a barrel to $60.77 on the
New York Mercantile
Exchange.

The dollar slipped against
other major currencies, while
gold also fell.

The Dow has been climbing
at a steady rate since last sum-

. Mer, but over the past few

trading sessions, stocks have
pulled back on the worry that
the market is due-for a correc- -
tion. Many analysts have noted
that the Dow hasn’t seen a two
per cent decline in more than
120 sessions.

Data indicating a slower
economy had recently been
giving stocks a boost on the
hopes that the Fed will lower
interest rates, which could rein-
vigorate consumer spending
and the struggling housing
market. But the.market may
fall further before that hap-
pens, analysts said.

“Tf in a week or two, the psy-
chology in the US market turns
to the realization that we’re in
a modest growth economy of
two to three per cent growth,
that will help temper inflation
pressures going forward.

“Tf that perception evolves,
there’s an increase in the like-
lihood that the Fed will be low-
ering rates rather than raising
rates. Structurally, it’s a devel-
opment that should be good
for the equity market, but it
might be an event that unfolds
after prices are lower,” Strauss
said.

Declining issues outnum-
bered advancers by about sev-
en to one on the New York
Stock Exchange, where vol-
ume came to 2.38 billion
shares.

The Russell 2000 index of
smaller companies dropped
30.96, or 3.76 per cent, at
792.74.

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.



PAGE 16B, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



[SE 5 ime meen ene LET UTETT NS Pl |
-work injunction

Baker’s Bay opponents seeking stop

@ By NEIL HARTNELL

Tribune Business Editor

pponents of the $175

million Baker’s Bay

Golf & Ocean Club
project have filed a motion with
the Court of Appeal seeking an
injunction to stop the developers
working on the Great Guana
Cay-based development, alleg-
ing that if the investment is
allowed to continue it will cause
“irreparable damage” to their
rights.

An affidavit sworn by Troy
Albury, a member of the Save
Guana Cay Reef Association,
said the motion seeking an
injunction to halt work by San
Francisco-based developer, Dis-

covery Land Company, had
been consolidated with the
developers’ application to the
Court of Appeal that the Asso-
ciation should enter “security
for costs”.

In his affidavit, Mr Albury
said: that Fred Smith, the Asso-
ciation’s attorney, had told him
there were “important points of
law involved in the determina-
tion of [the] appeals, which are
of grave public importance to
the Commonwealth of the
Bahamas”.

He alleged: “In the meantime,
if prior to the determination of
the appeals, the developers and
the respondents are permitted
to continue to proceed with the
development, there will be



@ SMITH

irreparable harm occasioned to
the environment and the tradi-
tional rights of usage and other
public law rights of the mem-
bers of the Appellants.”
The Association is seeking an
injunction as part of its appeal
against a ruling delivered by act-
ing Supreme Court Justice Nor-

After more than 20 years of: providing our: daltted
industry with sound financial services eas I

eRe!

ris Carroll late last year, which
threw out its attempts to halt the
Baker’s Bay project. Since then,
Discovery Land Company has
proceeded with work on the pro-
ject.

Mr Albury recalled how Dis-

_ covery Land Company previ-

ously gave an undertaking to the
Court of Appeal in an earlier
action in the case, on Novem-
ber 22, 2005, that it would not
proceed with work on Great
Guana Cay prior to the outcome
of a hearing on the merits of the
Association’s arguments and
application for a judicial review
of the project’s Heads of Agree-
ment.

Mr Albury alleged that the
undertaking was given after the

partment Communitie

RRA SRA SRURERAN on Labi

for ad rates

Court of Appeal expressed con-

cern “that there should be no
irremediable damage to the

environment and the appellants’
rights pending the determina-
tion of the judicial review pro-
ceedings.

“Were there to be such dam-
age, then the Judicial Review
proceedings (whose object is, in
large part, to prevent such dam-
age ever occurring) and these
appeals would be rendered
pointless.”

Mr Albury alleged that noth-
ing had changed, arguing: “The
rationale behind the giving and
the acceptance of the undertak-
ing remain as forceful today as
when the undertaking was first
given and accepted.



“Were the development to
proceed there would be sub-
stantial, irreparable damage to
the appellants’ rights and the
environment. If the judicial pro-
ceedings were to succeed on
appeal, and the development
and or the process declared
unlawful, then this damage could
not be reversed. In short, the
proceedings would have been
rendered pointless.”

He alleged that the Discovery
Land Company project was a
10-year development, and little
time would be lost while the par-
ties waited for the Court of
Appeal judgement, “a few
months at most”.

Mr Albury argued that the
Great Guana Cay project was
“not a matter of critical national,
social, political and economic
importance”, and “little eco-
nomic benefit is accruing to
Bahamians” bécause the Heads
of Agreement waived the pay-
ment of most taxes by the devel-
operts.

Meanwhile, Mr Albury said
the Hope Town District Council
on February 22 deferred hear-
ings on six permit applications
by Discovery Land Company for
buildings ranging in value from
$600,000 to $1.6 million to
March 5, 2007.

In his letter to the ‘Cound.
Mr Smith asked for it to provide
his clients with copies of BEST
Commission reports and Envi-
ronmental Impact Studies relat-
ing to Great Guana Cay. *

Mr Smith wrote: “Our clierfts
have only just been made aware
that these applications are
before the council, and not hav-
ing had the benefit of any details
with respect thereto, and given -
the fact that the applications will
be considered so soon, our
clients will not be ina position to
be properly informed so as fo
be able to make sensible, ratio-
nal and: constructive pony,

“May we also ask that, in the
spirit of transparency, account-
ability and in the interest of nat-
ural justice, and having regard
to our clients’ rights to be heard,

hat we be provided with’ copies
so that-we can take: ‘they into
account when making represen-
tations. Our clients are preparéd
to pay the cost of any copies,
and are prepared to collect them
at your convenience.”





mS

@ MIAMI HERALD
SPORTS INSIDE







aa GTEC

WEDNESDAY, FEBRUARY 28, 2007

SECTION







okt tn

y
‘iim sng Sacpenertte
‘ —

Von

Fax: (242) 328-2398

E-Mail: sports@100jamz.com

Coach reflects

on Cobras
Hugh Campbell
title triumph =

@ BASKETBALL
By BRENT STUBBS
Senior Sports
Reporter

IN JUST his first year on
the job, coach Ian 'Wire'
Pinder guided the CC
Sweeting Cobras to the
Hugh Campbell Basketball
Classic's championship.

Pinder and the Cobras
snapped the CI Gibson Rat-
tlers' three-year champi-
onship reign with a thrilling
performance on Monday
night at the Kendal Isaacs
Gymnasium.

The tournament’s Cin-
derella team turned the
game around in the second
half and held off the Rat-
tlers for a 74-70 victory and
it left Pinder claiming that
he felt he was on "top of
the world."

Going into the game,
which was marred by a
power failure and a slippery
court in the third and fourth
quarters respectively, the
Cobras were the underdogs,
but they showed how to
bring the champions down.

"I didn't know (what to
expect), but I said as long
we play defence, anything
is possible," said Pinder,
who finally got the thrill of
victory after he suffered the
agony of defeat for two
years as.a former player
with the SC McPherson
Sharks.

"We couldn't ask for a
better game. It was a close
finish all the way to the
end."

Pinder said he's con-
vinced now that his Cobras'
confidence has soared to
another level that he can't
wait to complete the year
by going after the Govern-
ment Secondary Schools
Sports Association's cham-
plonship crown.

Gallant

While that will have to
wait a little longer, it was
time for the Cobras to cele-
brate as the 1-2 combina-
tion of Cruz Simon and :
Eugene Bain made it all. }
happen down the stretch as
Rattlers made a gallant
attempt to keep their hopes
alive for one more champi-
onship feat.

Simon, named the most
valuable player after he
pumped ina game high 29
points, said all they did was
carry out the instructions
that Pinder gave them.

"I waited for this too
long." he insisted.

Not even the fatigue from:
having to pull off a double |;
overtime victory over the
Jordan Prince William Fal-
cons in the semifinal earlier
in the day was going to
deter the Cobras from their
goal.

"We just went out there
and did what we had to do
and we came out with the
victory," Simon pointed out.
"From the beginning of the
game, I knew we were
going to pull it off."

Bain, who made some
crucial turnovers with the
long passes, but made up
for it with some key
rebounds, said they could
have tasted the victory from
the tournament started.

"This is my final year and
I really wanted to go out
with the title," he pro-
claimed. "From the tourna-
ment started, we knew that
we were going to win it. But
me and Cruz knew that we
were the do-or-die combi-
nation and we made sure
that it happened."

Coach Kevin 'KJ' John-
son and his Rattlers were
on the brink of history

SEE page two
[

: â„¢ TRACK AND FIELD

By BRENT STUBBS
Senior Sports
Reporter

THE CH Reeves Raptors
have taken the lead in five
of the six divisions at the
end of day one of the Gov-
ernment Secondary Schools
Sports Association’s 14th
annual Junior High Track
and Field Championships.

Yesterday at the Thomas
A. Robinson Track and
Field Stadium, the Cobras
emerged out front in the
bantam girls, junior girls and
boys and intermediate girls
and boys divisions.

The only division they are

_not controlling going into

the final day of competition
today is the bantam boys.
That division is being led by
the SC McPherson Sharks.

Day one of the champi-
onships were highlighted by
the 100 and 400, 300 and 400
hurdles and 4 x 100 metre
relay finals on the track.

There were a number of
events contested on the field
as well.

Rhonesia Johnson of AF
Adderley turned in one of
the most outstanding per-
formances on the track
when she doubled up in the
bantam girls 100 (13.99 sec-
onds) and 400 (1:09.57 for
the Tigers.

“It was good,” said the [1

‘was very



@ U15 boys in action in the 100m sprints at the Government Secondary Schools Sports Asso

.
eae |
Fae 9 .
¢ 4



ciation’s 14th annual J





unior High Tra

r. |

ck and Field Championships.







(Photo: Tim Clarke/Tribune staff)

Raptors claw their way to
the front at championships

GSSSA 14th Annual Junior
High Track and Field event



year-old seventh grader.
“The 100 was shorter, so I
liked how J ran that race.”

Roniqua Stubbs of SC
McPherson got second in
the 100 in 14.07 with
Ronieker Ferguson of CH
Reeves third in 14.35.
Garvinisha Carey of CH
Reeves was second in the
400 in 1:10.01 and Eddicia
Carey of HO Nash was third
in 1:11.49.

In the bantam boys divi-
sion, LW Young’s Audley
Butler took the 100 in 14.10
over Kieron Gibson of CH
Reeves (14.48) and Leonar-
do Scavalla of SC McPher-
son was third in 14.62.

Challenging

“It was very good and it
challenging
because they could run,”
said Butler, a 11-year-old
seventh grader. “I had to
run hard to win.”

The junior girls’ century
was won by Vashti Cole-

-brooke of DW Davis in

13.21. She held off LW
Young’s Marva Etienne

(13.28) and Katrina Sey-
mour of AF Adderley
(13.43).

“It was good, but every-
body was saying that the girl
from LW young was going
to beat me. I just had to
overpower her,” said 13-
year-old Colebrooke, who
pulled away at the 50 mark.

Seymour came back in the

one-lapper and turned the
tables on Etienne when she
won the race in 1:02.11. Eti-
enne was second in 1:05.43
and Randeca Johnson of
HO Nash was third in
1:08.51.
. “It was hard. I just wanted
to get over it because it was
long,” said Seymour, who
felt she won the race when
she got to the 200 mark.

Seymour, a 13-year-old
ninth grader, admitted that
she got out of the blocks too
late to finish any higher in
the 100.

The junior boys 100 was
won by Shaquille Moxey of
CH Reeves in 11.86.
Davaine Farrington of SC
McPherson (12.19) held off
his team-mate Tre Adder-

ley (12.23) for second.

“J ran good. I liked how I
ran. It was a good start, but
I feel I could do a lot bet-
ter,” said Moxey, the 14-
year-old 10th grader.

Tonia-Kaye Johnson of
CH Reeves repeated as the
intermediate girls 100 in
13.76. Second was Denaire
Pickstock of LW Young in
13.88 and Cache Kelly of
CH Reeves was third in
14.22.

Doubled

Johnson also doubled in
the long jump with a win-
ning leap of 4.38 metres.
Kelly was second with 4.31
and Christia Taylor of LW
young came in third with
3.82.

“It wasn’t a problem for
us because I won and my
team-mate came third,” stat-
ed Johnson, a 14-year-old
ninth grader. “These girls
are really competitive. I had
to push hard to win.”

In the intermediate boys’
division, Ulysses Hinsey
sped down the straight away

to claim the glory in 11.87.
His nearest rival was Pargin
Patton of CC Sweeting
(12.10) and third was Junior
Joassum (12.11).

“Tt was great. I ran a good
race,” stated 14-year-old
eighth grader Hinsey, who
improved on his sixth place
finish last year. “I didn’t
know I was going to win it.”

Also on the track,
Vashanique Lewis of AF
Adderley won the interme-
diate girls 300 hurdles in
52.10 with Rashan Darling
of CH reeves second (52.11)
and Felicity Lightbourne of
CC Sweeting third (54.74).

Lewis also posted a dou-
ble, winning the 1500 in
6:06.53 over Kellyann Pin-
nock (6:16.69) and Ernesha
Watt (6:36.22), both of SC
McPherson.

Melvin Henfield of CH
Reeves won the intermedi-
ate boys 400 hurdles in
1:01.3 with Rashad Sturrup
of LW Young second
(1:04.4) and Troy Laguerre
of CH Reeves third (1:04.9).

Vicknel Serveus of DW
Davis won the intermediate
boys 1500 in 4:46.48, while
Lopez LaFleur of SC
McPherson took the junior
boys’ 1500 in 4:49.14.

In some of the field
events, Lashanta Deveaux
of AF Adderley took the

SEE page two





TRIBUNE SPORTS

EBRUARY 28, 2007

eee SPORTS

ent Secondary Schools Sports Association's
ir

PAGE 2E, WEDNESDAY, F










Governm
Junio









Coach reflects
on Cobras’
Hugh Campbell
title triumph

FROM page one

again. They were that close to
becoming the first coach and
team to win five straight.

But Johnson, who is tied
with two other coaches in
winning four titles, said i
just wasu't meant to be.

"CC wanted it more. They
had the intensity. My guys
were flat. CC wanted it
more. Hats off to them," said
Johnson, who admitted that
they were simply out-played
down the stretch.

Johnson said they have to
go back to the drawing
board and hopefully regain
their composure when they
resume the road to the GSS-
SA championship.

"I'm disappointed that we
lost," he charged. "But CC
wanted it more, they fought
and they got it."



The Rattlers certainly had
every! ling going for them,
but it was a hard pill for

point guard Danny McKen-
zie and the rest of his CI
Gibson team-mates to swal-
low.

"We played hard, but they
wanted it more than us and
they got it," he noted. "We
never thought that we lost
the game. That was why we
never gave up. But when the
time ran out, we knew that it
was over."

It was a great finish to a
fantastic tournament that
saw none of the teams from
hiberl delle

It also gave the fans some-
thing to look forward to as
the GSSSA playoffs
approach.










The Tribune wants to hear
from people who are
making news in their

! neighbourhoods. Perhaps

|

fora
j ibility,

lor improvements in the

area or have won an

award,

If so. call us on 322-1986

and share your story.

sere rans CRC

High Track and Field Championships











@ ABOVE: Jaran Hinsey easily clears the bar in the boys U15 high jump — he won with a jump

of 1.75m (5.9ft).





@ LEFT: Mallon Lianchell cruises to victory in the boys U15 400 metres.

FROM page one

Digest

bantam girls’ long jump
with.a leap of 3.69; CC
Sweeting’s Hollina Sears
soared 1.37 metres to win
the junior girls’ high jump;
Giovanna Gordan of CC
Sweeting won the interme-





~ #1-954-880-0781

k for Ana, Dan, or Humberto
Fax +1-954-880-0785 Email usa@japanesevehicles,com

Call Now -

(Photos: Tim Clarke/Tribune staff)

diate girls shot put with a
heave of 8.92 metres.

On the boys’ side, Ken-
ton Gibson of AF Adder-
ley cleared i,/3 metres to
win the intermediate boys’
high jump; Ramean Gibson
of SC McPherson took the
intermediate boys triple
jump with a leap of 11.44





and Leslie Sama of CH
Reeves won the intermedi-
ate boys discus with a
throw of 86.02.

Kadeem Young of AF
Adderley threw the junior
boys’ javelin 33.92 and Lee-
wood Swann of CH Reeves
won the junior boys discus
with a heave of 33.04.



.





IN MY OPINION

GREG COTE

gcote@MiamiHerald.com

Wade should
think long-term,
have the surgery

wyane Wade wants a second
1D opinion?
I thought he’d never ask.

OK, maybe he meant that he wants



. asecond medical opinion on his sepa-_.

rated left shoulder before choosing
a course of action. And I’m no doctor
(though I occasionally play one in the
newspaper).
But if a young man in the throes of
indecision nearly a week after his
injury might entertain an opinion that
doesn’t require any degree except
a degree of
presumptuous-
ness, then
here it is:
Forget

what’s left of
this living
nightmare of a
season. Wade
should do what

‘is best for him-
self, long-term,
because at 25
he is just get-
ting started
here, and his
future and the

: 5 Heat’s are

RONHOSKINS/GETTY IMAGES inseparable.



OUCH: Dwyane. They are the
i j same. ;
Wade is hurting. With any? s

luck, D-Wade will be drilling and;
thrilling long after Shaquille O’Neal
has retired to a TV studio and Pat
Riley is done coaching. This franchise
has its trophy. Now it must make sure
that the player who gives it a chance
to win more is protected:

Forget the focus on this godfor-
saken Heat season, which has fol-
lowed last summer’s NBA champion-

- ship parade the way the world’s worst
hangover follows the best party.

Forget what this Heat team
maybe/might/could do in April and
May if Wade returned.

This decision should not be about
salvaging a Heat season that, if it were
a flight, would have seen the oxygen
masks drop at least three times by
now while harrowed passengers
groaned and reached for barf bags.

» The decision should be about making
sure Wade’s shoulder is 100 percent.

That would seem to suggest sur-
gery now, then recovery time heavy
on care and caution. Meaning Wade’s
season is done, and no risk-taking this
summer with Olympic qualifying,
either. Meaning we'll see you return.

in October, Dwyane.

DON’T RUSH THINGS.

_ To instead rest and rehab for six |
weeks means Wade could return for
the playoffs. But the risk is Wade’s
competitiveness, a force perhaps
more powerful than his rational mind.
His internal magnet would be draw-
ing him back — maybe too soon.

“I told him he has to be patient,
[not] rush it,” Wade’s buddy LeBron

' James told reporters here Sunday. “I
had a friend in high school that had
the same injury, and he tried to rush
it, and it kept popping back out.”

Could Wade muster sufficient

patience when he’s close but not quite
ready? When his team is struggling,
maybe fighting for that last playoff
spot? Why chance getting reinjured
and it becoming something that per-
sists or turns chronic?

(Quick aside: Riley and team vis-
ited the White House on Tuesday.
Could there be two more beleaguered
leaders in one room than George W.
Bush and Riley? The way Heat luck
has been running this season, the
team was fortunate to escape the Rose
Garden without Udonis Haslem being
sent to Iraq.)

WHAT IS TO GAIN?

This Heat season plainly is
ill-fated. Even if Wade returned and .
wasn’t reinjured, and if somehow the
Heat beat the odds and got to the
NBA Finals, the Dallas Mavericks —
now on a 33-2 run — wait in a crush-
ing mood. So would the Phoenix Suns.

So let the Heat make what it can of
the rest of this potholed season with-
out Wade. See how much heavy lift-
ing Shaq has left in him. See if Riley,
with guile and an inspiring parable or
two, can goad his team to rise. See if
Gary Payton and Antoine Walker,
running on career fumes, can find the
gas pedal one last time.

It might be human nature to wish
that Wade would hurry back.

But it might be smarter to hope
that he does no such thing.

- investigating the latest inci-

BY TERESA M. WALKER
Associated Press

NASHVILLE — Gornerback
Adam “Pacman” Jones’ might
finally have worn out his welcome
with the Tennessee Titans.

Jones has had one legal problem
after another since the Titans
drafted him out of West Virginia in
2005. He has kept his job because
of his talent, and because the
Titans haven’t had the sala-
ry-cap room to replace him.

Now Las Vegas police are

dent — a Feb. 19 triple shoot-
ing that left one man para-
lyzed — and Jones has become a
public-relations nightmare who
might be too costly to keep, espe-
cially now that the Titans have an
estimated $36 million in cap room.
At the NFL Combine, Titans
head coach Jeff Fisher tried to
deflect questions about Jones.
“Once we're able to gather the
facts on this one, we'll be able to

COLLEGE BASKETBALL |



PRESSURE, PRESSURE: Peahecees defenders Duke Crews, top right, and Ramar Smith
disrupt Taurean Green’s drive to the basket, leading to a charging call in the first half.

BY BEN WALKER
Associated Press

NEW YORK — The Hall of
Fame has blanked ’em again.

Ron Santo, Jim Kaat, Marvin
Miller and all the other candidates
were left out Tuesday when the
Veterans Committee admitted no
new members for the third consec-
utive election.

The blank slate could lead to
some changes before the commit-
tee’s next vote, in 2009.

“We’re being blamed because
something hasn’t happened,” Hall
of Fame member and Veterans
Committee vice chairman Joe Mor-
gan said. “If you’re asking me, ‘Do



SACS COTO DHE TER LLEE SIO ICDS SOLEUS LSS SELENE LENA D EOE BEE

PRO FOOTBALL | TENNESSEE TITANS

Pacman’s problems dog Titans

address his future and those other
types of things,” Fisher said.

The Titans are leaving the
investigation of the shooting at the
Minxx Gentleman’s Club to the Las
Vegas police, who said in an affida-
vit last week that they had seized
$81,000 that they believed Jones
brought to the club.

The club’s co-owner, Robert
Susnar, has led the charge against

Jones, saying that the gun-
' man suspected of shooting
two bouncers and a cus-
tomer arrived and left with
Jones. Susnar was not at the
club when the shooting hap-
pened, but he said he learned what
happened from his staff.

This is the eighth time Jones has
been in trouble and the police have
been involved; Jones has been
arrested three times. Charges from
a Nashville nightclub incident in
July 2005 were dismissed in March
2006. Four weeks ago, on Feb. 1,
a judge dismissed a simple assault



CHRIS McGRATH/GETTY IMAGES
TROUBLE MOUNTS: Pacman Jones.

charge for spitting on a woman.
But Jones, who has not com-
mented publicly since the shooting
in Las Vegas, could risk having his
expungement revoked for an arrest
on public-intoxication and disor-

INTERNATIONAL EDITION

-derly-conduct charges from last
August. In January, a judge agreed
to expunge the charges if Jones
stayed out of trouble until July 5.

Titans fans have blistered radio
airwaves and online forums since
news broke about the Las Vegas
incident. Many fans want Jones
released, which reportedly would
cost the Titans $5.4 million. against
the salary cap this year.

On Monday night, Nashville’s
WTVE-TV aired a wire-tapped
‘phone conversation from a drug
investigation in which one of
Jones’ acquaintances talks about
rumors of the player’s drug use.

“You know, I was talkin’ to
[Jones] the other day about
smokin’ [pot], and he was like,
“Man, if I didn’t smoke, I couldn’t
take all the stress that I’m dealing
with right now,”’ said Darryl
Moore, who faces charges includ-
ing conspiracy and possession of
cocaine and marijuana for resale.

e MORE FOOTBALL

TENNESSEE 86, NO. 5 FLORIDA 76

hammer Gators

Lofton scores 21,
and road gets rocky
for reigning champs

BY ELIZABETH A. DAVIS
Associated Press

KNOXVILLE, Tenn. — Chris Lofton scored



_ wrapping up the SEC regular-

21 point for Tennessee, and the Volunteers
pulled away from No. 5 Florida in the first half
Tuesday night and held on for an 86-76 victory.

JaJuan Smith had 16 points for the Vols, and
Ramar Smith and Dane Bradshaw each had 10.

The Gators (25-5, 12-3 Southeastern Confer-
ence) continued a troubling
trend for the defending national
champions, who have lost three
of four after a 17-game winning
streak. Their chances for a No. 1
seed in the NCAA Tournament
are slipping away after easily

season title last week.

Al Horford led Florida with 17
points, and Chris Richard and
Corey Brewer each scored had 12. Joakim Noah
contributed 11 rebounds, and Horford had 10.

But this was the Volunteers’ night.

With Lady Vols coach Pat Summitt dressing
as a cheerleader and singing Rocky Top and
Super Bowl MVP Peyton Manning watching his
alma mater, Tennessee (21-9, 9-6) finished the
regular season 16-0 at home.

The Vols dominated Florida until the Gators
started making a run late in the second half.

Tennessee had a 17-0 run in the first half and
was ahead by 19 points at halftime — and as
many as 27 in the second half. The Vols were ~
leading 65-40 with 11:54 left when Florida had a
14-2 run that included eight points by Noah. His
dunk with 9:22 remaining cut it to 67-54.

Tennessee scored again, but the Gators
answered with a 7-0 run to pull to 69-61 with



‘6:08 to go. A drive by Lofton started a 6-0 run

for the Vols, and the Gators couldn’t get any
closer after that.

Noah had another subpar night, scoring all
eight of his points in Florida’s late run.

The Vols finished undefeated at home for the
first time since 1975-76, and a near-capacity
crowd of 24,047 watched the home finale.

e MORE GAMES

BASEBALL | HALL OF FAME VOTING

Veterans Committee pitches another shutout

we lower our standards to get
more people in?’, my answer would
be no.”

Santo came the closest to the
required 75 percent. A nine-time
All-Star, the former Chicago Cubs
third baseman was picked on
57 of 82 ballots (70 percent)
Election required 62 votes

Kaat, a 283-game winner f

who was strongly backed by
Hall of Fame member Mike
Schmidt, drew 52 votes. Gil
Hodges, who hit 370 home runs,
received 50 votes, and three-time
American League batting cham-
pion Tony Oliva had 47.

Umpire Doug Harvey received

52 of the necessary 6] votes on the
ballot for managers, umpires and
executives. Miller, the union head
who led players to free-agent
riches, showed a strong increase in
getting 51 of the potential 81 votes.
The Veterans Committee
was revamped after charges
of cronyism when it elected
Bill Mazeroski in 2001. That
marked the eighth consecu-
tive year the 15-member
panel had sent someone.to the
shrine in Cooperstown, N.Y.
After that, the panel was
expanded to include all living Hall
of Famers. The new committee
votes every other year for players

and every four years for the others.
“We are disappointed that no
one has been elected in the three
voting cycles,” Hall of Fame chair-
man Jane Forbes Clark said. “We
will be evaluating this process.”
Cal Ripken Jr. and Tony Gwynn
were elected to the Hall by the
Baseball Writers’ Association of
America in January. They will
stand alone at the induction cere-
monies, July 29 in Cooperstown.
The 84 eligible voters on the
Veterans Committee included
61 Hall of Fame members, 14 broad-
casters, eight writers and one
holdover from the previous panel.
e BASEBALL REPORT





4B, | WEDNESDAY, FEBRUARY 28, 2007

Arsenal, Chelsea face charges

From Miami Herald Wire Services

Arsenal and Chelsea were
charged with misconduct on
Tuesday over the mass brawl
at the end of the League Cup
final.

Arsenal players Emmanuel
Eboue and Emmanuel Ade-
bayor were also separately
charged by England’s Football
Association for their role in
the injury-time melee which
marred Chelsea’s 2-1 victory
on Sunday in Cardiff, Wales.
Three players were sent off.

However, Chelsea manager
Jose Mourinho and his Arse-
nal counterpart Arsene Wen-
ger escaped any charges for
going onto the field to calm
down their players.

The FA charged the clubs
with failing to ensure that
their players or officials “con-
ducted themselves in an
orderly fashion and/or
refrained from. provocative
and/or violent behavior.”

The clubs have until March
14 to respond.

Eboue was charged with
violent conduct for striking
Chelsea’s Wayne Bridge dur-
ing the brawl. The defender
has until tonight to respond,
and the case will be heard
Thursday by a disciplinary
commission.

Adebayor was charged with
reacting aggressively and fail-
ing to leave the field of play
immediately after being sent
off. He also has until tonight to
respond, and his case will be
heard next Tuesday. The
striker can request a personal
hearing.

On Monday, Chelsea and
Arsenal each filed appeals
against the red cards issued to
John Obi Mikel and Adeba-
yor. The melee started with
Arsenal defender Kolo Toure
and Mikel tangling after a
tackle. Cesc Fabregas and
Frank Lampard also got
involved, followed by others
— some trying to fight and
others trying to pull them
apart.

Referee Howard Webb

SPORTS ROUNDUP

INTERNATIONAL EDITION

SOCCER | BOXING | ETC.

SOCCER



/ TOM HEVEZI/AP
OK, HERE WE GO: Things got
ugly on Sunday during the
League Cup final between
rivals Arsenal and Chelsea.

conferred with his assistants
and, after he red-carded Mikel
and Toure, he then sent off
Adebayor.

Arsenal accepted the red
card given to Toure.

e Elsewhere: Manchester
United scored three times in
the first six minutes to reach
the English FA Cup quarterfi-
nals with a 3-2 victory over
Reading. Gabriel Heinze,
Louis Saha and Ole Gunnar
Solksjaer all scored in the
fifth-round replay at the
Madejski Stadium. The Red
Devils withstood a late surge
from Reading, which missed
the chance to push the game
into extra time when Brynjar
Gunnarsson hit the crossbar
in injury time. United will next
play Middlesbrough, which
beat 10-man League Champi-
onship club West Bromwich
Albion 5-4 on penalty kicks in
its fifth-round replay. . . . Tot-
tenham’s Robbie Keane had

his appeal against a red card
. rejected and will serve a one-
“match suspension. Keane was

sent off for a hand ball in the
36th minute of Sunday’s 4-1

Holyfield aims
to be champ
for fifth time

From Miami Herald Wire Services

Evander Holyfield is try-
ing to do more than become
the first five-time heavyweight
champion.

At 44, he’s trying to show
‘he’s still a force, less than
three years after New York
boxing officials revoked his
license because of “diminished
skills and poor performance.”

“T want to be the two-time
undisputed heavyweight
champion,” Holyfield said
Tuesday at a news conference
at a Manhattan barbecue res-
taurant,

Holyfield began his come-
back last year with two victo-
ries, and will next fight New
Yorker Vinny Maddalone on
March 17 in Corpus Christi,
Texas.

Holyfield (40-8-2, 26 KOs)
looks at the non-title fight —
his third as a pro in Corpus
Christi — as part of his effort
to unify the heavyweight titles
and retire in 2008.

“[’ve been shooting for this
goal ever since 1993,” he said.

It’s been nearly 17 years
since he held the undisputed
title when he defeated James

“Buster” Douglas — the
holder of the IBF, WBC and
WBA crowns — in three
rounds.
ETC.

e Tennis: Defending

champion Rafael Nadal, play-
ing his first match since the
Australian Open quarterfinals,
rallied past Marcos Baghda-
tis 3-6, 6-2, 6-3 in the first
round of.the Dubai Open.
Third-seeded Nikolay Davy-
denko, fifth-seeded Tommy

Haas and seventh-seeded
Novak Djokovic also
advanced.... Two-time Grand
Slam winner Marat Safin won
his first match in Las Vegas,
defeating Stefan Koubek of
Austria 7-5, 6-2 in the Tennis
Channel Open round robin. ...
Defending champion Luis
Horna lasted just two games
before retiring with an injury
against fifth-seeded. Gaston
Gaudio in the first round of
the Mexican Open in Aca-
pulco. Horna, who won his
first career title at the event a
year ago and his second earlier
this month in Chile, pulled up
with a right-leg injury while
serving at 1-1. In first-round
women’s play, top-seeded
Marion Bartoli of France
overcame a sluggish start to
defeat compatriot Camille Pin
7-6 (9-7), 6-2. ... Kateryna
Bondarenko beat seventh-
seeded Anna-Lena Groene-
feld of Germany 7-5, 4-6, 6-3
to advance to the second
round of the Qatar Open in
Doha.

e NFL: Quarterback
Damon Huard has agreed to a
three-year contract with the
Kansas City Chiefs... . Defen-
sive tackle Hollis Thomas has
agreed to a four-year, $12 mil-
lion contract with the New
Orleans Saints. ... The New
England Patriots have hired
Duke University offensive
coordinator Bill O’Brien as an
offensive assistant coach....
The New York Giants re-
signed long snapper Ryan
Kuehl. ... San Francisco 49ers
linebacker Derek Smith
underwent surgery to repair a
damaged muscle connected to

Premier League victory over
Bolton.

TV replays appeared to
show the ball hit Keane’s chest
and then his arm before falling
to the ground. However, the
Football Association called it
“an obvious goal-scoring
opportunity.” The Ireland
striker will miss Sunday’s Pre-
mier League match against
West Ham. ... British Prime
Minister Tony Blair wants
Premier League clubs to lower
their ticket prices.

“Anyone who watches the
Premiership can just notice, in
the past year or couple of
years, the rows of empty
seats,” Blair said Tuesday at
his monthly news conference.

“It’s something I do not
recall seeing in the same way
four or five years back so I
think there are very sensible
market-based reasons for peo-
ple to make sure the ticket
prices aren’t beyond the reach
of the ordinary fan. It’s a deci-
sion for them but I think the
logic of it is pretty clear.”

Almost 80 lawmakers have
signed a motion protesting
ticket prices “beyond the
reach of many fans.”

AROUND THE GLOBE

e Germany: Naohiro
Takahara scored two goals to
help Eintracht Frankfurt reach
the semifinals of the German
Cup with a 3-0 victory over

second-division Kickers
Offenbach. :
Frankfurt, last season’s

finalist, joined Nuremberg and
Wolfsburg in the final four.
Nuremberg beat Hannover 96
4-2 on penalties, while Wolfs-
burg eased past Alemannia
Aachen 2-0.

Stuttgart plays Hertha Ber-
lin today in the last quarterfi-
nal. ... Schalke playmaker
Lincoln was banned for five
matches, ruling hin: out of key
games in the Bundesliga lead-
er’s attempt to capture its first
championship in 49 years. Lin-
coln got a red card after the
final whistle of Sunday’s 1-0



loss to Bayer Leverkusen for
punching Bernd Schneider.
_., Juergen Klinsmann, who
coached Germany to a third-
place finish at last year’s
World Cup, will finally receive
the country’s highest honor
today ata private ceremony at
the chancellery. The time of
the ceremony was: not
revealed. Klinsmann was
awarded the Federal Order of
Merit for his team’s showing
during the tournament. He did
not show up for a ceremony in
August, when the players
received their distinctions, not
of the same rank. Klinsmann
will now get the honor from
Chancellor Angela Merkel,
government officials said
Tuesday.

e® Spain: Samuel Eto’o
was left off FC Barcelona’s
squad for today’s Copa del
Rey quarterfinal match against
Zaragoza. Barcelona coach
Frank Rijkaard is reportedly
resting Eto’o for crucial games
agaifst Sevilla, Liverpool and
Real Madrid over the next two
weeks.

e Italy: Fiorentina has
signed Italy under-21 striker
Arturo Lupoli from Arsenal
on a five-year contract. The
Serie A team announced the
transfer of the 19-year-old
Lupoli on Monday. No finan-
cial details were disclosed.

Lupoli joined Arsenal in
2004 from Parma and started
six games. He was on loan this
season at League Champion-
ship team Derby County.

e Bulgaria: Two referees
were banned for life by the
Bulgarian soccer federation
after corruption allegations.
Federation president Borislav
Mihailov said the two referees
— Momchil Vraikov and
Dimitar Dimitrov. —
deserved the punishment.

e Netherlands: Dutch

coach Guus Hiddink was con-
victed of tax evasion, fined
$60,000 and given a six-month
suspended prison sentence.
He will not serve any time
behind bars.

STAN HONDA/AFP-GETTY IMAGES

READY TO RUMBLE: Evander Holyfield, left, will try to take
a step toward becoming the first five-time heavyweight
champion on March 17 when he fights Vinny Maddalone.

his left eye, a delicate injury
that hampered his play last
season... . Safety and special-
teams standout Quintin
Mikell signed a four-year con-
tract to remain with the Phila-
delphia Eagles.

e Golf: The PGA Tour is
returning to the nation’s capi-
tal with a guy who carries
more clout than anyone in
golf: Tiger Woods.

Woods will join Arnold
Palmer and Jack Nicklaus as
hosts of a PGA Tour event,
although still to be announced
was a title sponsor and a golf
course for the new tourna-
ment in the Washington, D.C.,
area during Fourth of July
week. The Tiger Woods Foun-
dation will run the tourna-
ment.

e College football: Hop-
ing to get the Cotton Bowl
back on college football’s
national stage, the board that
oversees the game voted to
move it to the new Dallas
Cowboys stadium starting in
2010. Cotton Bowl Athletic
Association Chairman Bruce
Gadd declined to reveal

details of the contract with the
Cowboys but said it will last
more than a decade. ... A
Duke player has been charged
in the traffic death of another
driver after a weekend acci-
dent. Raphael Chestnut, 20,
was charged with misde-
meanor death by vehicle fol-
lowing the accident at about
11:30 a.m. EST on Sunday,
according to the state High-
way Patrol in North Carolina.
He also faces a charge of driv-
ing left of the center line. ...
Georgia linebacker Akeem
Hebron has been suspended
for the first two games of the

2007 season following his |

arrest by university police for
underage possession of alco-
hol.

e Steroids probe: A New
York prosecutor said celebri-
ties were customers of a phar-
macy that was raided Tuesday
as part of a yearlong investiga-
tion by that state into illicit
steroid sales over the Internet.
Federal and Florida narcotics
agents seized drugs and docu-
ments at two Signature Phar-
macy stores in Orlando.

_ exchanged hugs and hand-

‘MiamiHerald.com | THE MIAMI HERALD

Ty

NEW YORK YANKEES"



AP PHOTO/TOPPS

JOKE OF A CARD: In this undated digitally altered image
provided by the Topps baseball card company,
President Bush smiles and waves from the stands,
right, and Mickey Mantle looks on from the dugout at
left, as Derek Jeter swings his bat. Someone within
the company had inserted Bush and Mantle as a joke.



Jeter’s famous onlookers

As President Bush smiled and waved from the stands and
Mickey Mantle looked on from the dugout, Derek Jeter
swung his bat. Talk about pressure.

The game never happened, of course. It was just some-
one’s idea of a visual gag — pulled off in a recent Topps base-
ball card through digital manipulation.

“We saw it in the final proof and we could have axed it,”
Topps spokesman Clay Luraschi told The Associated Press
on Tuesday. “But we decided to let it run. We wanted to print

it. We thought it was hilarious.”

The card will be changed when Topps issues a complete

set at midseason, Luraschi said.

Jeter said he had not seen the card.
“J don’t know anything about it,” the All-Star shortstop
said after New York’s workout Tuesday in Tampa, Fla. “I

can’t tell you anything.”

Luraschi did not identify the person at Topps who made
the alteration on Jeter’s card, No. 40 in the set. Luraschi said
that fixing it before it was released would have caused ship-

ping delays.

It’s not the fitst card to have silly errors or odd prints, said
T.S. ©’Connell, the editor of Sports Collector’s Digest.

“For collectors, there’s a real giggle factor for something
like this,” he told The New York Daily News.

The Daily News put the story on its front page Tuesday,

and Newsday also reported it.

The Jeter card could join other famed oddball cards, like
the 1969 Topps of Aurelio Rodriguez. That card featured a
photo of a bat boy instead of the infielder.

Another collector said the joke would raise the price of the
card, which currently goes for $2 on eBay.

Back in Oklahoma

Kelvin Sampson | \
returned to Oklahoma on
Monday night to escort his
son during the Sooners’
senior day.

Sampson, who left Okla-
homa in April to become ~
Indiana’s new head coach,
exchanged hugs with some
of his former players in a
tunnel leading to the court
at Lloyd Noble Center
before accompanying his
son, Kellen, to midcourt |
along with his daughter and |
wife.

First-year Oklahoma |
coach Jeff Capel '

shakes with members of the
Sampson family.

“Tm excited to be here as
a parent and support Kel- |
len,” Sampson said before-
hand. “It’s really the first
time I’ve seen him.

“J saw him for 48 hours at
Christmas. I haven’t had a
chance to see him since
then.”

Kellen Sampson, a 6-1
guard, earned a degree in
communications in Decem- |
ber and has enrolled in grad- —
uate classes at Oklahoma.

‘You cannot defend 45 free
throws. That is ridiculous. | just
think our guys deserve much
better than that. They played

their keisters off.’

- BERNIE BICKERSTAFF, Charlotte coach,
after the Bobcats had just 23 free-throw
attempts compared to the Clippers’ 45 ina

Memory lapse

Chelsea captain John
Terry can’t remember the
kick that knocked him
unconscious in his team’s 2-1
victory over Arsenal in the
League Cup final.

Terry was accidentally .
kicked in the head by Arse-
nal defender Abou Diaby in
the 58th minute Sunday
while diving for a header.
He was removed from the
field on a stretcher but
recovered in time to rejoin
his teammates for the tro-
phy celebrations at the Mil-
lennium Stadium in Cardiff,
Wales.

“I was just saying to the
lads I don’t remember,”
Terry told Chelsea TV on
Monday. “I remember walk-
ing out for the second half
and nothing else until wak-
ing up in the ambulance on
the way to the hospital.”

Terry has had a series of
injuries and had been a
doubtful starter for the first
cup final of the English sea-
son.

“J had the scan, and they
said it’s OK,” Terry said.
“T’m still feeling a bit groggy,
though.”



100-93 loss Monday night at Los Angeles.

FLASHBACK

On this day in history:



1971 — In golf, Jack Nicklaus captures the PGA Champi-

onship by beating Billy Casper by three strokes.





THE MIAMI HERALD | MiamiHerald.com



BASEBALL

SPRING TRAINING REPORT



__ INTERNATIONAL EDITION WEDNESDAY, FEBRUARY 28, 2007 | 5B



Marlins mad: Girardi helped Lieber

From Miami Herald Wire Services

JUPITER, Fla. — Florida Marlins
otficials were unhappy to hear that
their manager last year, Joe Girardi,
gave rival pitcher Jon Lieber helpful
tips during the season.

Lieber said his season with the
Philadelphia Phillies turned around
shortly after he was roughed up by
the Marlins last July 31, and he credits
a phone call from Girardi, a former
catcher. They played together with
the Chicago Cubs from 2000-02.

“He just mentioned that the hitters
said everything that was coming in
was just very flat,” Lieber told the
Philadelphia Daily News. “I wasn’t
on top of the ball like I should have
been.”

Both teams contended for the
National League wild-card berth, and
Lieber beat the Marlins twice in Sep-
tember.

Florida general manager Larry
Beinfest declined to comment Tues-
day, but another team official said the
front office was angry about the mat-
ter. The official requested anonymity
because Beinfest wouldn’t comment.

There’s no indication the front
office knew last year about Girardi’s
conversation with Lieber. Girardi’s
relationship with management
quickly soured in-his only season
with Florida, and he was fired in
October — then was chosen NL Man-
ager of the Year.

Marlins left-hander Dontrelle
Willis shrugged off the comments
about Girardi helping Lieber.

“What are you going to do now?”
Willis said. “He doesn’t even work
here anymore. You can’t dock his,
pay.

“J don’t think it’s a big deal. If w
lost the wild card by two games, OK.
But there are so many different other
factors.”

Left-hander Scott Olsen agreed.

“If you would have told me that
last July when it happened, I proba-

bly would say a little more,” Olsen :

said. “But it doesn’t mean anything
right now.”

~The ‘Marlins: finished 10 games
behind NL wild-card winner Los
Angeles and seven games behind



CHUCK BURTON/AP

THANKS, PAL: Phillies right-hander Jon Lieber, above, said his season
turned around shortly after he was roughed up by the Marlins last

July 31, and he credits a phone call from then-Marlins manager Joe
Girardi. Lieber and Girardi were teammates with the Chicago Cubs.

Philadelphia.
Girardi’s agent didn’t return a call
seeking comment.

SABATHIA WANTS EXTENSION

WINTER HAVEN, Fla. — The
Cleveland Indians have started talks
with the agent for C.C. Sabathia on
a contract extension.

The left-hander is due to make

$8.75 million this year and $9 million
in 2008. He is eligible for free agency
after the 2008 World Series.

He saw Barry Zito, Jason
Schmidt and other starting pitchers
get big contracts during the offsea-
son. “The market was great for pitch-
ing this time,” Sabathia said. “We'll
see how it goes the next couple of
years.” oer

’ With a 81-56 record, his .591 win-
ning percentage ranks with those of
Zito (.585) and Schmidt. Sabathia will
be 28 in 2008. :

“I hope I can stay healthy the next
couple years and be in the position
those other guys were in this winter,”
Sabathia said.

The Indians’ front office could be
facing some other difficult financial
decisions in the upcoming months.

Right-hander Jake Westbrook,
44-34 the past three years, can
become a free agent after the season.
Designated hitter Travis. Hafner,
who hit 42 homers with 117 RBIs last
season despite missing the last 29
games with a broken hand, also can
be a free agent after next season. ©

Considering the Indians’ status as
a mid-market team, signing all three
would seem unlikely.

“That doesn’t mean we wouldn’t
be able to get something done in the
offseason with any of the three or

next year with C.C. and Travis,” gen- .

eral manager Mark Shapiro said.

’ Shapiro has talked to agents for
Westbrook and Hafner. It’s been Sha-
piro’s policy to suspend contract
talks if a deal can’t be completed dur-
ing spring training. ... Manager Eric
Wedge isn’t sure when outfielder
Trot Nixon will play in an exhibition
game. Nixon had back surgery in
December.

ELSEWHERE

@ Twins: The club and reliever
Jesse Crain agreed to a three-year,
$3.25 million contract.

Crain, 25, went 4-5 with a 3.52 ERA
in 68 games last season, finishing
strong to help the Twins rally for

‘their fourth American League Cen-

tral title in five seasons.

In his final 22 appearances, the
right-hander was 2-0 with a 0.38 ERA
and gave up just 14 hits.

-@ Yankees: Kei Igawa was the
center of attention even before he
threw a pitch Tuesday in Tampa, Fla.

About 20 photographers from his

homeland lined up behind the plate ©

to record the Japanese left-hander’s
first warmup toss before a New York
Yankees’ intrasquad game. The







quick-working Igawa needed just 19
pitches to roll through two scoreless
innings.

“He was good,” manager Joe
Torre said. “There’s really no wasted
motions. He’s very compact and he
goes after it. I think that’s a sign of
knowing what you want to do.”...
Right fielder Bobby Abreu, who
strained his right oblique during bat-
ting practice Monday, underwent
treatment. He expects to be ready for
Opening Day on April 2. ... Right;
hander Carl Pavano threw on level
ground, three days after being hit on
the instep of the left foot by a liner
during batting practice. He is to have
a bullpen session Thursday and is
scheduled to start Sunday.

e Mets: Outfielder Carlos Bel-
tran and catcher Paul Lo Duca were
late scratches from Tuesday’s intras-
quad game in Port St. Lucie, Fla., for
precautionary reasons. Beltran said
his neck and quadriceps were sore.
Both are expected to play today

_ against Detroit.

e Pirates: Outfielder Xavier
Nady left the team Tuesday after-
noon to fly to Pittsburgh for more
tests on his inflamed intestine.

e Giants: Starting second base-
man Ray Durham isn’t playing the
first exhibition game as he regains his
strength from having food poisoning.
How’s he feel? “Good,” Durham said.
“Back strong.”

e Rangers: Miguel Ojeda likely
will be the backup catcher behind
Gerald Laird. Ojeda was playing in
the Mexican League last summer
when the Rangers acquired him in a
trade with Colorado.

e Orioles: Right-hander Hayden
Penn is day-to-day with a mild
sprain of his left ankle. He noted sig-
nificant improvement Tuesday.

e Frank Torre update: Former
major leaguer Frank Torre could
undergo a kidney transplant in the

‘next couple of months after tests

determined two of his children are a
match for the procedure. The brother

‘of New York Yankees manager Joe

Torre needs the opération because of
medication he’s taken since receiving
a new heart more than a decade ago.





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6B | WEDNESDAY, FEBRUARY 28, 2007_ INTERNATIONAL EDITION

OLD DEVILISH TRICKS: Ryan Malone, right, of th
Brodeur made 31 saves for his NHL-leading

Brodeur blanks Penguins again

2 yt ui

EASTERN CONFERENCE

From Miami Herald Wire Services

PITTSBURGH — Martin
Brodeur made 31 saves for his
NHL-leading 12th shutout of
the season, and Jamie Langen-
brunner scored as the New
Jersey Devils beat the Pitts-
burgh Penguins 1-0 on Tues-
day night.

Brodeur set a new career
high for shutouts in a season
with the 92nd of his career.
He’s third on the career list,
two behind George Haines-
worth and 11 behind leader
Terry Sawchuk.

It was the second time this

season Brodeur blanked the
Penguins, who fell ll points
behind the Atlantic Division-
leading Devils by losing for the
third time in four outings since
having a 16-game point streak
snapped.

SENATORS 4,
HURRICANES 2

RALEIGH, N.C. — Wade
Redden scored the go-ahead
goal with 4:48 left to lead the
Senators.

Dany Heatley and Anton
Volchenkov also scored and
Jason Spezza had an empty-net
goal and two assists for the
Senators, who scored three
third-period goals to win their
seventh in eight games.

RANGERS 4, CANADIENS O

NEW YORK Marcel
Hossa scored two goals for the
Rangers and Henrik Lundqvist
made 19 saves in his third shut-
out this season.

Hossa found the net twice
in the second period, giving
the emerging left winger eight
goals in Il games.

Playing on a line with cap-
tain Jaromir Jagr and Michael
Nylander, in the absence of
injured forwards Martin
Straka and Brendan Shanahan,
Hossa matched his career high
of 10 goals set last season.

PANTHERS 6, -
CAPITALS 5 (SO)

WASHINGTON — Olli
Jokinen scored three goals,
and the Panthers won their
first shootout of the season on
goals by Jozef Stumpel and
Ville Peltonen.

The Panthers were 0-7 in
shootouts and 1-13 in games
that extended beyond regula-
tion.

STARS 2,

LIGHTNING 1 (OT)

_ TAMPA, Fla. — Ladislav

Nagy scored with 3:25 left in
vertime to give the Stars a

victory.

Nagy scored from the slot
off a pass from Mike Ribeiro,
who was positioned behind
the net.

Jere Lehtinen had the other
Dallas goal and Marty Turco
made 19 saves. The Stars have
won eight in a row at Tampa
Bay.

Brad Richards scored for
the Lightning, who are still
17-2-5 over their past 24 games.

SABRES 6, MAPLE LEAFS 1

TORONTO Jochen
Hecht scored twice and had an
assist to lead the Sabres in the
rout.

Jason Pominville, Drew
Stafford, Derek Roy and
Clarke MacArthur also scored
for the Eastern Conference-
leading Sabres, who com-
pleted four trades to bolster an
injury-wracked lineup.

ISLANDERS 6,
FLYERS 5 (OT)

UNIONDALE, N.Y.
Trent Hunter scored his sec-
ond goal on a power play with
30.7 seconds left in overtime
to lift the Islanders.

Hunter took the puck in the
slot and beat Antero Niitty-
maki for his 19th goal, as the
Islanders moved into a tie for
seventh place in the Eastern
Conference with Montreal.

RED WINGS 4,
BLACKHAWKS 1

CHICAGO Tomas
Holmstrom scored two goals
and Dominik Hasek made 24
saves to lead the Red Wings to
the victory.

Kyle Calder had a goal and
an assist in his first game with
Detroit, which is 10-2-2 in its
past 14 games.

Johan Franzen also had a
goal and an assist for the Red
Wings, who improved to 5-0-0
against Chicago this season
and are ll-1-1 against the Black-
hawks over the past two years.

BLUES 3, CANUCKS 1

ST. LOUIS — Doug Weight
scored twice in the third
period, getting the game-win-
ner on a breakaway and lead-
ing the Blues to the victory.

TRADE DEADLINE REPORT

The New York Islanders
kept their leading scorer and
stole the one that makes the
Edmonton Oilers go.

Just minutes before the
NHL trading deadline expired
on Tuesday, the Islanders
plucked Ryan Smyth away

HOCKEY

HOCKEY



e Penguins can’t get a second-period shot past Devils go
12th shutout, and his second against Pittsburgh this seaso

SOUTHEAST Ww eL OL SLPTS GF
Tampa Bay 36:25: “3 1 76 207
Atlanta 32 23 7 3 = 74 196
Carolina 32 26° 3 4 71 195
Florida 25 26 6 7 63 186
Washington 24 29 2 #9 59 193
ATLANTIC Ww eL OL SLPTS GF
New Jersey 40 18 O 6 86 171
Pittsburgh 33 20 4 #5 75 2il
N.Y. Islanders 32 23 4 4 72 189
N.Y. Rangers 30 27 3 3 66 184
Philadelphia 16637 «5 ~~ 65 42 «166
NORTHEAST wie OL SLPTS GF
Buffalo 42 16 2 3. 89 240
Ottawa 37.22 2 «2 78 219
Montreal 33 27 «1 5 72 191
Toronto 30 25 3 6. 69 203
Boston 30 28 #1 3 64 180

WESTERN CONFERENCE



CENTRAL Ww L OL SL PTS GF
Nashville 42 18 2 2 88 219
Detroit 40 16 4 4 88 199
St. Louis 27-275 4 63 164
Columbus 24-33" 32 5 55 158
Chicago 23-- 31. 2 7 255-155

WL OL SLPTS GF

36-22: 32 3 77 165
Minnesota 35 23 1 4 75 181
Calgary 33 21 4 «5 75 205
Edmonton 30 27 3 3 66 172
Colorado * 90 29 2 3 65 208
PACIFIC === WL OL SLPTS. GF
Anaheim a7 Af 3 7 84 204
Dallas 38 21 O 3 79 167
San Jose 38 24 O 1 77 189
Phoenix 26° 330) 2 1 55 165
Los Angeles 21 32 5 5 52 178

GA HOME - AWAY DIV
198 18-14-1-0 18-11-2-1 15-7-1-0
206 14-10-4-2.-:18-13-3-1 13-5-5-1
202. 16-13-1-3. -16-13-2-1 14-7-0-2
207 ~—-:17-10-3-1 8-16-3-6 7-11-2-1
225 14-13-1-5 = -10-16-1-4 . 8-11-1-3
GA HOME AWAY DIV
149 22-7-0-4 =: 18-11-0-2 19-5-0-1
194 18-9-2-2 15-11-2-3 15-7-1-1
179 = 18-10-3-1 —:14-13-1-3 12-9-2-0
178 =: 13-14-3-1_——-17-13-0-2 9-11-0-2
241 5-18-3-4 — 11-19-2-1 4-14-2-4
GA HOME AWAY —_—O*IV
183 22-7-1-2 20-9-1-1 14-9-1-2
173 -20-11-1-1—-17-11-1-1 16-9-0-2
200 19-12-0-3 14-15-1-2 11-8-0-4
211 -12-14-2-3.-18-11-1-3— 10-11-2-2
224 = 16-13-0-2.-14-15-1-1:12-12-0-1
GA HOME = AWAY DWV
164 23-5-2-2 19-13-0-0 19-5-1-0
156 22-3-1-3. 18-13-3-1 14-4-2-1
191 = 16-15-2-1 11-12+3-3 11-13-2-2
200 © 14-15-1-3 10-18-1-2 7-13-0-4
190 12-15-1-3 11-16-1-4 —-11-14-1-0
GA HOME AWAY DW
159 19-9-1-1 17-13-1-2-13-11-0-1
161 22-5-1-3 13-18-0-1 11-6-1-2
71 26-6-0-1 7-15-4-4 12-7-1-2
182. 18-11-1-1 12-16-2-2 9-13-1-0
907 18-14-1-2 -12-15-1-1 —-11-10-1-0
“GA HOME AWAY DWV
167 19-5-2-5 18-12-1-2 16-6-0-2
147 21-9-0-1 — 17-12-0-2 18-6-0-0
162. 18-12-0-1 20-12-0-0 12-12-0-1
214 = 14-13-2-0 = -12-20-0-1 7-13-2-1
219 = 12-13-4-4 9-19-1-1 7-14-0-3

Note: Two points for a win, one point for a tie and overtime loss

RESULTS AND SCHEDULES

Tuesday’s results

Florida 6, Washington 5 (SO)
Ottawa 4, Carolina 2
Rangers 4, Montreal 0
Buffalo 6, Toronto 1

Dallas 2, Tampa Bay 1 (OT)
New Jersey 1, Pittsburgh 0
Islanders 6, Phil. 5 (OT)

St. Louis 3, Vancouver 1
Detroit 4, Chicago 1
Colorado 3, Columbus 2
Phoenix at Edmonton, late

Tonight’s games

Carolina at Ottawa, 7:30
Minnesota at Calgary, 10
Nashville at San Jose, 10:30

Monday’s results

Atlanta 3, Boston 2
Montreal 5, Toronto 4
Calgary 5, Phoenix 2
Anaheim 3, San Jose 2

j NT

Through Monday



SCORING GOALIES
Player, team GP G A Pts Player, team GP MIN GA AVG
Crosby, Pit 58 26 71 97 Lalime, Chi 4 242 5 1.24
St. Louis, TB 64 38 47 85 Caron, CHI-ANA 2 88 2 1.36
Lecavalier, TB 64 41 43 84 Smith, Dal 16-820 27 1.98
Savard, Bos 62 21 61 82 Hasek, Det 45 2669 92 2.07
Hossa, Atl 65 36 44 80 Brodeur, NJ. 60 ©3631 127 2.10
Thornton, SJ 63 16 64 80 Giguere, Ana 45 2576 97 2.26
Heatley, Ott 62 36 43 79 Backstrom, Minn + 25 1367 52 2.28
Briere, Buf 62 27 50 7 Mason, N'ville 340-1973 76 2.31

from the Oilers after deciding
to hold onto Jason Blake.

The big deal trumped those
made earlier in the day that
sent Bill Guerin from the St.
Louis Blues to the San Jose
Sharks, Todd Bertuzzi from
Florida to Detroit, and long-
time Kings captain Mattias
Norstrom from Los Angeles to
Dallas.

‘True to form, the final deal
ing day of the season was very
busy.

The 25 trades made in the
final six hours before the dead:
line matched last year for the
most active in NHL history
The 30 clubs moved 44 play
ers, two shy of the mark set in
2003.

Smyth leaves Edmonton

MiamiHerald.com | THE MIAMI HERALD



after ll-plus seasons in which
he grew into the heart and soul
of the Oilers and less than a
year after he helped the club to
a surprising run to Game 7 of
the Stanley Cup finals.

New York sent first-round
picks Robert Nilsson (2003)
and Ryan O’Marra (2005),
along with the Islanders’ first-
round choice in this year’s
draft to Edmonton for Smyth,
who has 31 goals and 53 points
in 53 games this season.

While that one came as a
surprise, Guerin’s departure
didn’t. The rugged forward’s
days in St. Louis were clearly
short because of his upcoming
unrestricted-free-agent status,
and it became more clear that
he wouldn’t be staying once
the Blues dealt Keith Tkachuk
to Atlanta a few days before
the deadline.

The Sharks sent Finnish left
wing Ville Nieminen to the
rebuilding Blues.

Bertuzzi was traded by the
Florida Panthers after playing
only seven games with them in
an injury-plagued season, and
none since back surgery in
November. The Panthers
acquired forward Shawn Mat-
thias and up to two conditional

_ draft picks in the deal.

The Buffalo Sabres took a
big step toward replenishing
their injury-ravaged lineup by
making four deadline-day
deals. The biggest brought
Lithuanian forward Dainius
Zubrus to town from Wash-
ington.

The Sabres also dealt
backup goalie Martin Biron to
the Philadelphia Flyers for a
second-round pick and then
acquired Columbus Blue Jack-
ets backup goalie Ty Conklin
for a fifth-round pick in this
year’s draft.

Along with Zubrus, a con-
sistent offensive forward, Buf-
falo also landed prospect and
Swiss defenseman Timo
Helbling The Sabres dealt
rookie Czech forward Jiri
Novotny who’s ready to
return trom a_high-ankle
sprain, and a first-round pick
to the Capitals.

The Sabres then traded a
fourth-round draft pick to
Nashville for minor league
Finnish defenseman Mikko
Lehtonen.

Sweden’s Norstrom, the
Kings captain sincé 2002, was ©
sent with Kazakh right wing
Konstantin Pushkarev and two
draft picks to the Dallas Stars
for Czech defenseman Jaroslav
Modry and three draft choices.




GENE J. PUSKAR/AP

alie Martin Brodeur as Colin White, left, and John Madden (11) help defend. -
n. The Devils now lead the Penguins by 1 points in the Atlantic Division.

The New York Rangers
sent Aaron Ward to the Bos-
ton Bruins for fellow defense-
man Paul Mara, and traded
newly acquired forward Pascal
Dupuis to the Atlanta Thrash-
ers for a third-round draft pick
and prospect Alex Bourret.

The Pittsburgh Penguins
took steps to win now, adding
veteran leadership and muscle
to their young ‘forward lineup.

Joining blossoming. stars
Sidney Crosby and Evgeni
Malkin are 40-year-old “ary
Roberts and noted figivver
Georges Laraque. ‘N

To land Roberts, who
waived a no-trade clause,
Pittsburgh sent defenseman :
Noah Welch to Florida. For-
ward prospect Daniel Carcillo
and a 2008 third-round pick
were shipped to Phoenix for
Laraque. The Penguins then »
dealt Dominic Moore to Min- °
nesota for a third-round pick
and acquired defenseman Joel
Kwiatkowski from Florida for
a fourth-round choice.

Among other deals:

e Chicago sent left winger
Karl Stewart and a sixth-round
pick in the 2008 draft to
Tampa Bay for right wing
Nikita Alexeev.

e Phoenix sent Russian left
winger Oleg Saprykin and a
seventh-round draft choice to
Ottawa for a second-round
pick next year.

OILERS HONOR MESSIER.

EDMONTON Mark
Messier skated onto the ice at
Rexall Place in full equipment
and hoisted the Stanley Cup
tor an Oilers crowd that
seemed to cherish him more
than ever.

Atter his No. ll jersey had
been raised to the ceiling on
Tuesday night, Messier took a .
final lap of the ice in the old
building where he helped turn
the Oilers into a dynasty.

The sold-out crowd roared
loud enough to shake the
arena,

Messier captured six Stan-
ley Cups — five with Edmon-
ton — two Hart Trophies and
a Conn Smythe ‘Trophy.

LATE MONDAY

e Ducks 3, Sharks 2:
Teemu Selanne scored the go-
ahead goal midway through
the third period to lift visiting .
Anaheim.

e Flames 5, Coyotes 2:
Wayne Primeau scored his
first two goals since coming to

Calgary, leading the host

Flames to victory.

v!



THE MIAMI HERALD | MiamiHerald.com

the Nets won their third in a row and handed
the Wizards their third consecutive loss.

THAT’S A STRETCH ... Devin Harris of the Mavericks leans hard as he drives to the

BASKETBALL

INTERNATIONAL EDITION





Tuesday’s results

Pho. 103, Ind. 92 Miami at Was.

Tonight’s games
il: N.Y. 99, Miami

WEDNESDAY, FEBRUARY 28, 2007 | 7B

PRO BASKETBALL Pe eee
— - EASTERN CONFERENCE
SOUTHEAST W L _ Pct. GB L10 Str. Home Away Conf
s Washington 31 24 .564 - 4-6 L-3 21-7 10-17 20-12
Orlando 28 30 .483 4% 3-7 W-1 18-12 10-18 16-20
Miami 27 -29~«A82 4% «6A LL 16-10 11-19 14-16
Atlanta 22 35 386 10 4-6 L-2 10-17 12-18 12-21
Erom Miami Herald Wire Services aE na mmm = Charlotte 22 35 «386 «10, 4-6 L-2 13-16 9-19 14-21
MINNEAPOLIS — Dirk Nowitzki had as | ATLANTIC. = «WL Pet. GB L10_ Str, Home Away Conf
23 points and 14 rebounds, and Josh Howard Toronto 31 26 544 - 7-3 IL-l 20-8 11-18 22-11
: ‘ New Jersey 28 30 483 3% 6-4 W-3 17-14 1L16 21-14
bounced back from a sprained ankle the New York 26 32 »~448 5! «G4 Wel 16-13 10-19 16-20
night before, leading the Dallas Mavericks to Philadelphia 19 38 333 12 4-6 W-l 11-15 823 13-20
their 13th consecutive victory, 91-65 over the Boston 14 42.250 16% 2-8 W-l S21 921 9-24
Minnesota Timberwolves on Tuesday night. CENTRAL WL Pet. GB LI0 Str. Home Away Conf
Howard scored 17 points. Jason Terry Detroit 36.19 655 - 91 W-4 19-10 17-9 26-10
added 18 points and seven assists for Dallas, Cleveland 3324 5794 «64 Wl 21-8 12-16 19-16
which improved to a league-best 48-9. The ee 4 a a e ce ee ae Hae. Se
. . . ndiana 72 i ~12
Mavs, who never trailed in this one, are 1-0 Milwaukee 2) 3% «362 16% 3-7 W-2 1242 825 10-24
on the second night of back-to-back games.
Kevin Garnett led the lethargic Timber- WESTERN CONFERENCE
wolves with 15 points and 13 rebounds. Ricky
Davis scored 15 points, and Mark Blount | SOUTHWEST -W L_ Pet. GB LiO Str Home | Away Conf
added 10 points. They shot a franchise-worst Dallas = 4B BAL 10-0 W-13 2/3 21-6 32-6
rs é -for-81). San Antonio 39 18 «684 99 3 WH HD 20-10 23-11
22,6 ce from = field Oe ies ra Houston 35 2) 625 124% 64 LL 208 1513, 19-17
Howard, injured against the tanta New Orleans. 27 30-474. 21, 64 LL B11 9-19 16-19
Hawks when he landed on the foot of Atlan- Memphis 15 43 25933 37 LL t1B 4-25 9-28
ta’s Joe Johnson while following through one NORTHWEST Ww L_ Pct. GB 110 Str. Home Away Conf
jump shot, helped the Mavericks sail through con a7 18 66 Sea ea IB
the first half. They took a 42-27 lead, and Denver . 27°28 «491 92 4-6 Wel i415 13-13 12-20
Howard had 15 points on 6-for-7 shooting. Minnesota 26 31 «ASG 112 4-6 Led W712 9-19 15-21
Portland 4 340 ANA 14 G2 13-15 11-19 15-19
NETS 113, WIZARDS 101 Seattle 22 34 «393 15) 55 Wel 16-13 6-21 11-22
EAST RUTHERFORD, NJ. — Jason Kidd PACIFIC = W L_ Pet. GB L10 Str. Home Away Conf
had 26 points, nine assists and eight Presi sa ‘ a a i ve ae oe fils
i . ise- -A. Lakers 5. 569 114 4 5 . :
rebounds, and the Nets hit a franchise-record LA. Clippers 27. 29-482: 16% 3-7 W2 19-10 8-19 15-18
16 3-pointers. Golden State 26 32 .448 184 46 1-3 20-10 6-22 14-19
Vince Carter added 27 points and Bostjan Sacramento .24-32—«.429:19¥2 4-6 LL 16-12, 8-20 12-21
Nachbar came off the bench to score 23 as ass
TOM OLMSCHEID/AP RESULTS AND SCHEDULES

Monday’s results

93

Gilbert Arenas had 26 points on 7-of-25 hoop in the third quarter. The Mavs won 91-65, posting their 13th victory in a row. Cle. 97, N.O. 89 Pho. at Phi., 7 Phil. 89, Sac. 82

. + ith- ; NJ. 113, Was. 101 N.Y. at Bos., 7:30 Denver 111, Mem. 107

shooting for the Wizards, who played with . : : 3 . Dal. 91, Min. 65 Utah at Mem., 8 S.A. 107, Toronto 91

out All-Star forward Caron Butler (back Hernaube O’Neal led Indiana with 28 Los Angeles won at home after losing point Mil. 122, G.S. 101 ALL vs, NO. 8 Orlando 94 Chi. 87

spasms) for the second game in a row and points, 13 rebounds and six blocked shots and guard Shaun Livingston in the first quarter Gs. at chi, 6:30 Dallas 110, alata 8
Orl. at Den., 9 L.A.L 102, Utah 94

Antawn Jamison, who has been sidelined
with a knee injury since late January.
CAVALIERS 97, HORNETS 89

CLEVELAND — LeBron James scored 35
points, hitting two 3-pointers in the last min-

tied his career high with seven assists.

BUCKS 122, WARRIORS 101

MILWAUKEE — Michael Redd scored 31
points, with six 3-pointers, to lead the Bucks.
Charlie Bell added 20 points and Mo Wil-

with a dislocated left kneecap.

Livingston was injured while driving to
the basket on a fast break. He missed a layup,
then crumpled to the floor in severe pain.

He could miss eight to 12 months.

e Celtics 77, Rockets 72: Paul Pierce



Cha. at Sac., 10

Sea. at L.A.C.,

10:30

Seattle 97, Port. 73
LA.C 100, Char. 93

nae Ewan : :

Through Monday





ute to finally put New Orleans away. liams had 16 and a season-high 13 assists. scored 28 points, and Boston rallied from a éourtic REDOUNDING
James knocked down a 25-footer with Monta Ellis scored 17 points for the War- 13-point, fourth-quarter deficit to end a ev MEEP BISaNE Ore REM TOT ANG
49.9 seconds left, then nailed another 3 from _riors, and Al Harrington added 15. 12-game skid on the road. Tracy McGrady, Anthony Den. 40 458 2861224 30.6 Garnett, Minn, 55 146 556 702 12.8
26 feet with 24.2 seconds to go, helping the who was ill, did not play for the Rockets. Arenas, Wash. 54 496 436 1579 29.2 Chandler, NOk. 54.230 442 672 12.4
Cavaliers outscore the Hornets I-6 over the “LATE MONDAY Oars 102, Jaze 94: Kobe Bryant | SWS eueati as Goniy‘oen eit G4 Se Its
final 4 minutes. e Mavericks 110, Hawks 87: Dirk Now- scored 35 points, making 21 of 24 free throws, eee ee er Piatt Rie aa qe Se
David West had 25 points for the Hornets. itzki had 27 points and eight rebounds, and for Los Angeles. The host Jazz played with- Allen, Sea. 46 428 2331221 26.5 Jefferson, Bos, 49 173 365 538 11.0
the Mavericks extended their franchise- out guard Deron Williams (strained groin). james Cle eet Ser ale BOS MUMS Bee aan eae
SUNS 103, PACERS 92 record home winning streak to 20 games. e Magic 94, Bulls 87: Dwight Howard Carter, N.J. 57 S11 314 1445 25.4 Wallace, Chi, 56 224 360 584 10.4

INDIANAPOLIS — Steve Nash had 25 Josh Howard had 20 points for the Mavs _ had 21 points and had 16 rebounds, and Darko FIELD GOALS ASSISTS

points and ll assists, and the Suns rallied before leaving in the fourth quarter because Milicic added 14 points and a career-high FG FGA PCT G _AST AVG
from 18 points down in the third quarter. of a sprained right ankle. X-rays were nega- 16 rebounds, as Orlando won in Chicago. Biedrins, G.S. 259 422.614 Nash, Phoe. 50595 11.9
Amare Stoudemire had 23 points and 18 _ tive, and he was listed as day-to-day. “"e Sonics 97, Trail Blazers 73: Rashard | Leah on: Se ek a eee ee
rebounds for the Suns, and Shawn Marion e Clippers 100, Bobcats 93: Corey Lewis scored 29 points and grabbed seven ~ | ae ee ene Sean eae
Boozer, Utaf ** 4271751 569 Miller, Phil. 5 ATL

added 22 points.

COLLEGE BASKETBALL

Maggette scored a season-high 25 points and

tebounds, and host Seattle never trailed.





Pittsburgh routs WVU;
Michigan helps its cause

Motorized Awnings
also available! <



From Miami Herald Wire Services

Aaron Gray and Levon
Kendall wore down West Vir-
ginia with their inside scoring
and rebounding, and No. 12
Pittsburgh remained in con-
tention for the Big East reg-
ular-season title, beating the
visiting Mountaineers 80-66
on Tuesday night behind a
dominating second half..

Gray, hampered by a badly-
sprained ankle for 10 days and
not much of a factor in a 61-53
loss at now-No. 9 Georgetown
on Saturday, keyed a 9-0 run at
the start of the second half that
reversed a three-point half-
time deficit and put the Pan-
thers up 38-32. Gray scored the
first four points of the run,
which was finished off by Lev-
ance Fields’ 3-pointer.

West Virginia got to within
three points, at 54-51, with
about 8 minutes remaining,
but Mike Cook hit a 3-pointer
and two free throws and Fields
made another off-balance
3-pointer while nearly falling
out of bounds during another
9-0 run that gave Pitt (25-5,
12-3 Big East) its first double-
digit lead. The Panthers never
looked back.

The Mountaineers (20-8,
8-7) dropped their fourth in
six games and might need to
win at least once during the
Big East tournament to land
an NCAA Tournament bid —
prompting some Pitt fans to
chant “NIT! NIT!” as the game
came to a close.

e Michigan 67, Michigan
State 56: Dion Harris scored
24 points, including 10 in a row
during a pivotal first-half run,
to lead the host Wolverines.

Michigan (20-10, 8-7 Big



E|

KEITH SRAKOCIC/AP

ONE TOO MANY HANDS: Aaron
Gray of Pitt goes up fora
dunk, draws a foul by Alex
Ruoff of West Virginia.

The Spartans (21-9, 8-7) had
won four games in a row,
including a victory over
then-No. 1 Wisconsin, to
improve their chances of mak-
ing the NCAA Tournament for
the 10th consecutive year.

e Oklahoma State 84,
Kansas State 70: Terrel Har-
ris scored 16 of his career-high
22 points in the second half,
leading the Cowboys at home.

Harris matched his career-
high with four 3-pointers as
Oklahoma State (20-9, 6-8 Big
12) snapped a four-game losing
streak and took the first step
toward salvaging any remain-
ing NCAA Tournament hopes.

JamesOn Curry snapped
out of a two-game shooting
slump and also scored 22
points for the Cowboys, and

half to lead the Wildcats, who
fell to 20-10 (9-6 Big 12).

BIG SOUTH TOURNAMENT

e Winthrop 72, Charles-
ton Southern 42: Craig Brad-
shaw scored 20 points, leading
the top-seeded Eagles to vic-
tory at home in the tourna-
ment quarterfinals.

Winthrop (26-4) won its
16th game in a row overall and
advanced to play No. 5 seed
North Carolina-Asheville in
the semifinals Thursday night.

The Eagles — whose only
losses this season were against
North Carolina, Maryland,
Wisconsin and Texas A&M —
led by three with 15 minutes
left in the first half before
going on a 15-2 run over the
next 4 minutes that put the
Eagles ahead 24-8.

Winthrop was up 42-24 at
halftime and led by at least 16
points the rest of the way.

The Eagles shot 52 percent
(26-of-50) from the field, com-
pared with only 34 percent
(18-of-53) for the Buccaneers
(8-22).

Winthrop outrebounded
Charleston Southern 36-24 to
extend its home winning
streak to 21 games.

Dwayne Jackson led the
Buccaneers with 16 points;
Donnell Covington added
seven points and six rebounds.

Torrell Martin scored 15
points for the Eagles.

e N.C.-Asheville 77,
Coastal Carolina 64: KJ.
Garland scored 19 points and
added seven assists, leading
the visiting Bulldogs (12-18) to
their fourth victory in a row.

The two teams were tied at
30 at at halftime, but Asheville




Ss






ses

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PAGE 8E, WEDNESDAY, FEBRUARY 28, 2007 TRIBUNE

WEDNESDAY EVENING












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TRIBUNE SPORTS

KPMG. KPMG

Telephone 242 393 2007
Fax 242 393 1772

42
PO. Box N:128 www.kpmg.com.bs

Montague Sterling Centre internet
East Bay Street
Nassau, Bahamas

INDEPENDENT AUDITORS’ REPORT

To the Shareholder of Scotiabank (Bahamas) Limited

Report on the balance sheet

We have audited the accompanying balance sheet of Scotiabank (Bahamas) Limited (“the Bank”)
as of October 31, 2006, and a summary 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 this 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 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 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 involves performing procedures to obtain audit evidence about the amounts and
‘disclosures in the balance sheet. The procedures selected depend on the auditor’s judgment,
‘including the assessment of risks of material misstatement of the balance sheet, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to
the entity’s preparation and fair presentation of the balance sheet 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 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 balance sheet presents fairly, in all material respects the financial position of
Scotiabank (Bahamas) Limited as of October 31, 2006 in accordance with International Financial
Reporting Standards, ;

The corresponding figures as of and for the year ended October 31, 2005 were audited by another
firm of Chartered Accountants and their report thereon, dated February 22, 2006, expressed an
unqualified opinion.

yim

Chartered Accountants
Nassau, Bahamas
February 26, 2007

SCOTIABANK (BAHAMAS) LIMITED

Balance Sheet

October 31, 2006, with corresponding figures for 2005
(Expressed in Bahamian dollars)

ep eres ng SE SEE SED SR ST ES



2006 2005
Note ($'000s) _—_——_—($"000s)
Assets
Cash and balances with ;

The Central Bank of The Bahamas 4&15 $ 54,858 86,643
Treasury bills : 5,000 18,847
Loans and advances to banks , 5 &15 592,443 1,392,082
Investment securities , 6 & 15 67,856 67,419

_ Loans and advances to customers, net 7,8 & 15 1,399,682 1,134,980
Property and equipment 9 : 17,904 17,539
Receivables and other assets 10 49,483 31,715
fit a Pe ee es ae eh Nie See SS Ne

$ 2,187,226 2,749,225
Liabilities and Equity
Liabilities
Deposits 11 &15 $ 1,663,032 2,331,297
Payables and other liabilities 12 75,104 _ 41,312
1,738,136 2,372,609
Equity : ’
Share capital : 5213 25,000 25,000
Share premium 14 40,000 40,000
Retained earnings : 3 384,090 311,616
449,090 376,616
Commitment & contingencies 16 &17



$ 2,187,226 2,749,225

See accompanying notes to balance sheet.

This balance sheet was approved on behalf of the Board of Directors on February 26, 2007 by the
following:





ais

_ Notes to Balance Sheet

October 31, 2006
(Expressed in Bahamian dollars)



1. Reporting entity

_ Scotiabank (Bahamas) Limited (“the Bank”) is incorporated under the Companies Act, 1992
of the Commonwealth of The Bahamas and is licensed under The Bank and Trust Companies
Regulation Act, 2000. The Bank is wholly owned by The Bank of Nova Scotia International
Limited (“the Parent”), a Bahamian company, also incorporated in the Commonwealth of The
Bahamas, pursuant to the merger of Scotia Subsidiaries Limited and the Parent on December
12, 2003. The ultimate parent company is the Bank of Nova Scotia (“BNS”), a company
incorporated in Canada.

The Bank provides commercial and retail banking services, including the accéptance of
deposits, granting of loans and the provision of foreign exchange services. The Bank’s
registered office is located on Bay Street and Rawson Square, Nassau, The Bahamas.

Pursuant to terms of a purchase and sales agreement dated August 1, 2006, the Bank sold its
Caribbean Treasury Unit (“CTU”) to Scotiabank Caribbean Treasury Limited (“SCTL”),
which is incorporated in the Commonwealth of The Bahamas and is wholly owned by the
Parent, The sale of CTU represents a transaction between entities under common control
and, as such, is outside the scope of International Financial Reporting Standard 3: Business
Combinations. The assets and liabilities of CTU were transferred to SCTL at book value and
the difference between the purchase price and the net book value has been accounted for as
an adjustment to equity.

2. Basis of preparation and significant accounting policies
(a) Statement of compliance

The balance sheet has been prepared in accordance with International Financial
Reporting Standards (“IFRS”). The accounting policies set out below have been applied
consistently. ,

(b) Basis of measurement

The balance sheet has been prepared on the historical cost basis, except where otherwise
noted below.

(c) Functional and presentation currency

The balancé sheet is presented in Bahamian dollars (“B$”), which is the Bank’s’
functional currency, Except as indicated, financial information presented in B$ has been
rounded to the nearest thousand.-

Director Beth. Metal ow

{Pipa Baa eae ok eae ioe ahs Ueda i Ne by Lhe GoD Lanes cobb UE Mah caida ts NOUR ESR Sek LE le

\



WEDNESDAY, FEBRUARY 28, 2007, PAGE 9E

(d) Use of estimates and judgements

(e) Foreign currency translation

(f) Financial assets and liabilities

(g) Loans and advances to customers

(h

=

The preparation of the balance 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 sheet and the accompanying notes.
These estimates 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 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 affected,

Transactions in foreign currencies are translated at exchange rates prevailing at the dates
of the transactions. Monetary assets.and liabilities denominated in foreign currencies at

(i) Classification
Financial assets that are loans and advances and accrued interest receivable are
classified as loans and receivables originated by the Bank,

Financial assets that are treasury bills and investment securities are classified as held-
to-maturity investments,

Financial assets that are derivative financial instruments are considered to be
financial assets held-for-trading and are classified as investments at fair value
through profit or loss.

Financial liabilities that are not at fair value through profit or loss include deposits
and accrued interest payable.



(ii) Recognition ‘

The Bank initially recognizes loans and advances and deposits on the date that they
are originated or accepted, as applicable. All other financial assets and liabilities
(including assets and liabilities designated at fair value through profit or loss) are
initially recognized on the trade date at which the Bank becomes a party to the
contractual provisions of the instrument.

(ili) Derecognition

The Bank derecognizes a financial asset when the contractual rights to the cash flows
{rom the asset expire, or it transfers the rights to receive the contractual cash flows on
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 or cancelled or expire.

(iv) Measurement

1

Financial instruments are measured initially at fair value plus, in the case of a
financial asset or financial liability not at fair value through profit or loss, transaction
costs that are directly attributable to the acquisition or issue of the financial asset or
financial liability. Transaction costs on financial instruments at fair value through
profit or loss are expensed immediately.

Subsequent to initial recognition, loans and receivables and financial assets and
financial liabilities that are not at fair value through profit or loss are carried at
amortized cost less impairment losses where applicable using the effective interest
rate method. :

The amortised cost of a financial asset or liability is the amount at which the financial
asset or liability is measured at initial recognition, minus principal repayments, plus
or minus the cumulative amortization using the effective interest method of ‘any
difference between the initial amount recognised and the maturity amount, minus any
reduction for impairment. ‘





Subsequent to initial recognition, derivatives are valued at fair values. They are
carried as assets when fair values are positive and as liabilities when fair values are
negative.

The determination of fair values is based on quoted market prices or dealer price
quotations for financial instruments traded in active markets. For all other financial
instruments fair value is determined by using valuation techniques. Valuation
techniques include net presént-yalue techniques, the discounted cash flow method,
- comparison. to similar. instruments for which market “observable prices exist, and
valuation models; ; :,,.The:,, Bank; juses widely), recognized yaluation models for ,

determining the fair value of common and more simple instruments like interest rate
swaps. For these financial instruments, inputs into models are market observable.

s



(iv) Measurement (continued)

* Derivative instruments designated as “‘asset/liability management” are those used. to
manage The Bank’s interest rate and foreign currency exposures. ,

(v) Identification and measurement of impairment

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 collective
level. All. individually significant financial assets are assessed for specific
impairment.. All significant assets found not to be specifically impaired are than
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 amortised cost) with
similar risk characteristics. :

Objective evidence that financial assets 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, or other observable data relating to a
group of assets such as adverse changes in the payment status of borrowers.

In assessing collective impairment the Bank uses statistical modeling of historical
trends of the probability of default, timing of recoveries and the amount of loss
incurred, adjustee for thanagement’s judgement as to whether current economic and
credit condition are such that the actual losses are likely to be greater or less than
suggested by hisworical modeling. Default rates, loss rates and the expected timing
of future recoveries are regularly benchmarked against actual outcomes to ensure that
they remain appropriate.



Impairment losses on assets carried at amortised 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. Losses
are recognized in the statement of income and reflected in an allowance account,
against loans and advances. Interest on the impaired asset continues to be recognized
through the unwinding of the discount. :

i
!

SET

2a

Loans and advances are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market and that the Bank does not intend to sell :
immediately or in the near term. Loans are stated at their principal amount net of
unearned interest and allowance for credit losses. Advances to customers are carried at
amortized cost and are due on demand.

A loan is classified as non-accrual when in management's opinion there is no longer i
reasonable assurance of timely collection of the full amount of principal and interest. 4

If payment on a loan is contractually 90 days in arrears, the loan is classified as non- i
accrual unless it is fully secured and collection efforts in progress are reasonably i
expected to result in repayment of the loan or restoration to current status,

A loan that is contractually 180 days in arrears is classified as non-accrual in all
situations. When a loan is classified as non-accrual, recognition of interest in accordance
with the terms of the original loan ceases. Loans are generally returned to accrual status
when the timely collection of both principal and interest is reasonably assured and all
delinquent principal and interest payments are brought current.

Allowance for credit losses

The Bank’s management conducts on-going credit assessments of the portfolio on an
account-by-account basis and establishes specific and general provisions.

Specific provisions reflect the amounts required to reduce the carrying value of loans to 4
their estimated realizable amount. q

General provisions reflect the amounts required to cover losses where there is objective
evidence that probable losses are present in components of the loan portfolio at the
balance sheet date. These have been estimated based upon historical patterns of losses in f
each component, the credit ratings allocated to the borrowers and reflecting the current
economic climate in which the borrowers operate, and are classified as provisions for
inherent risk in the loan portfolio,

When a loan is deemed to be uncollectible, it is written off against the related provision for

impairments; subsequent recoveries are credited to the bad and doubtful debt expense in the '
statement of income. f



EN PSTN DATA NSA OTTER TN AENEAN

t

t



1S 688

PAGE 10E, WEDNESDAY, FEBRUARY 28, 2007

(i) Property and equipment

Items of property and equipment are measured at cost less accumulated depreciation and

provisions for impairment losses.

The estimated useful lives for the current and comparative periods are as follows:

Land - Nil
Buildings - 40 years

Leasehold improvements - Term of lease plus one renewal option period

Furniture and equipment - 3 to 10 years

Property and equipment are periodically reviewed for impairment. Where the carrying value
amount of an item of property and equipment is greater than its estimated recoverable
amount, it is written down immediately to its recoverable amount.

(j) Related parties

A number of transactions are entered into with related parties in the normal course of
business. Balances resulting from such transactions are described as balances with affiliates.

3. Sale of Caribbean Treasury Unit

As disclosed in Note 1, effective August 1, 2006 the Bank sold its Caribbean Treasury Unit to
Scotiabank Caribbean Treasury Limited. The book value of the assets iand liabilities sold on that date

fora purchase consideration of US$2 million was: .

(US$"000s)

Loans and advances to banks
Equipment
Other assets

1,917,198
50
2,546

Total assets

Deposits
Other liabilities

1,919,794

(1,903,599)
(16,195)

Book value of net assets sold

rr ee Oc a

The adjustment to equity was as follows:

+ RRS FPR:

Cash proceeds
Less: book value of net assets sold

'S$"000s)

2,000

Equity adjustment (to retained earnings)

4. Cash and balances with The Central Bank of The Bahamas

2,000

Cash (note. 17)

Balances with The Central Bank of The Bahamas
- unrestricted (note 17)
- restricted

2006
($’000s)

22,045

3,807
29,006

2005
($'000s)

18,803

41,102
26,738

i

54,858

86,643

5. Loans and Advances to Banks

Loans and advances to banks ©
- affiliates ;
- other (note 17)

2006
($°000s)

575,789
16,654

2005
($’000s)

1,047,113
344,969

ee LEU EEE EE EE EEE SERS = ang ARES a> SRE AREER Ean

6. Investment securities

592,443

1,392,082

The following are securities issued or guaranteed by the Government of The Bahamas:

A Se

a a na ae

2006 2005
($'000s) ($'000s)
Bahamas Government Bonds 1,044 1,044
Bahamas Government Registered Stock 66,802 66,375
67,846 67,419
Other 10 -
67,856 67,419
7. Loans and advances to customers, net
er
2006 2005
($'000s) ($'000s)
Mortgages 501,725 384,352
Personal loans 305,134 265,046
Business loans 595,939 487,986
. 1,402,798 1,137,384
Add:. Accrued interest receivable © 10,037 7,845
Less: Provision for credit losses (note 8) (13,153) (10,249)
es se eee Oe ee Se
1,399,682 1,134,980

The effective interest rate earned on the loan portfolio for the current year was 8.71% (2005

— 8.46%).

8. Provision for credit losses



Specific Inherent

Credit risk . risk General 2006 2005

Provisions rovisions Provision Total Total

($’000s) ($°000s) ($"000s) ($°000s) ($’000s)

Balance, beginning of year 2,840 7,409 7 10,249 11,471
Doubtful debt expense (678) 5,378 4,337 9,037 3,324
Write-offs (555) (5,578) - (6,133) (4,546)
Balance, end of year 1,607 7,209 4,337 13,153 10,249

The aggregate amount of non-performing loans on which interest was not being accrued
amounted to approximately $40,784,000 (2005 - $26,166,000). For the year ended October
31, 2006 amounts totaling $3,202,000 (2005 - $3,677,000), which represent recoveries on
loan balances written-off in prior years, were included in provision for credit losses, net of

recoveries.

During the year, a general provision was established to comply with the provisions of
guidelines for the management of credit risk issued by The Central Bank of The Bahamas
(‘the Central Bank”). The general provision is expected to be 1% of the balance of the loan
portfolio as defined by the Central Bank and is to be made in two installments, the first being
before October 31, 2006 and the other in 2007. At October 31, 2006 the general provision
was $4,337,000. The remaining portion of the general provision will be considered by
management in assessing the adequacy of the total provisions for credit losses in 2007. Any
excess provisions resulting from the additional general provisions will be accounted for as an
appropriation of retained earnings with no impact on the statement of income.

9, Property and equipment

7? > @ le 2 2s

Furniture
Leasehold and
Land Buildings _ Improvements Equipment Total
($’000s) ($’000s) ($'000s) ($'000s) — ($’000s)
Cost
October 31, 2005 2,156 8,221 13,229 10,925 34,531
Additions - . 454 670 1,515 2,639
Disposals : - - (15) (218) (233)
Disposals through sale of unit (see note 3 - - (25) 70) 95
October 31, 2006 2,156 8,675 13,859 12,152 36,842
Accumulated depreciation
October 31, 2005 - 4,376 7,247 5,369 16,992
Charge for the period - 238 529 1,382 2,149
Disposals - - (21) (137) (158)
Disposals through sale of unit (see note 3) - - (10) 35 45
October 31, 2006 - 4,614 7,745 * 6,579 18,938
Net book value October 31, 2006 2,156 4,061 G,114 5,573 17,904
5,556 17,539

Net book value October 31, 2005 2,156 3,845 5,

The Bank owns and occupies eight buildings in The Bahamas.

10. Receivables and other assets

TRIBUNE SPORTS



Accrued interest receivable
Cheques and other items in transit
Other

em

11. Deposits

Tore LT FE OeH EK

a Thin he. Va Va ea

Customers %
Deposits from affiliates
Deposits from other banks

2006 = —S«(2005

($’000s) ($’000s)
3,520 1,153
38,344 23,149
7,619 7,413
49,483 31,715
2006 2005

($'000s) ($’000s)
1,209,515 1,128,039
449,255 1,059,629
4,262° 143,629
2,331,297

1,663,032

The effective interest rate paid on deposits for the current year was 2.46% (2005 — 2.12%).

12. Payables and other liabilities

Accrued interest payable — affiliate banks

2006 2005
($°000s) ($’000s)



4,224 6,061
Accrued interest payable — other 2,851 4,854
Cheques and other items in transit 54,446 22,221
Other 13,583 8,176
75,104 41,312
13. Share capital =
2006 2005
($’000s) ($’000s)
Authorized, issued and fully paid igs
25,000,000 ordinary shares of par value $1.00 each ‘ 25,000 25,000
14, Share premium
ra
2006 2005

25,000,000 shares issued at a premium of $1.60 each

15. Geographical Analysis of Assets and Liabilities

Significant assets and liabilities at October 31 are classified by geographical area, based on _

the domicile of the counterparty, as follows:



The North
Bahamas Europe America Other _ Total
($'000s) ($’000s) ($’000s) ($'000s) ($’000s)
October 31, 2006
Cash and balances with The Central
Bank of The Bahamas $4,858 - - - 54,858
Loans and advances to banks 579,789 327 12,327 - 592,443
Investment securities 67,846 - - 10 67,856
Loans and advances to customers, net 1,384,056 2,321 13,234 a 1,399,682
Deposits 1,610,735 1,040 | 37,663 13,594 1,663,032
Undrawn commitments 488,014 396 3,661 - 492,071
October 31, 2005
Cash and balances with The Central
Bank of The Bahamas ' 86,643 - - - 86,643
Loans and advances to banks 58,458 . 195,638 137,316 1,000,670 1,392,082
Investment securities 67,419 - - - 67,419
Loans and advances to customers, net 1,115,823 - 1,188 9,386 8,583 1,134,980
Deposits 1,101,296 1,931 223,739 1,004,331 2,331,297
. Undrawn commitments 291,738 1,200 7,441 - 300,379

16. Lease commitments

The Bank has obligations under long-term, operating ‘leases for buildings. Future minimum

lease payments for such commitments are as follows:



1 year or less
Over 1 year to 5 years

17. Guarantees and Lines of Credit

In the normal course of business various credit related arrangements are entered into toaneet
the needs of customers and earn income. These financial instruments are subject to the

Bank’s standard credit policies and procedures.

As of October 31, these credit related arrangements were as follows:

Undrawn lines of credit and loan commitments $
Guarantees and letters of credit

$

18. Pension plan

2006 ° 2005
($'000s) _ ($’000s)
471,166 227,475
20,905 72,904
492,071 300,379

Substantially all of the Bank’s employees are members of BNS' defined benefit pension plan.
The plan provides pension benefits based on length of service and final earnings with
contributions being made by BNS on an ongoing basis to keep the plan fully funded. All
rights and obligations of the defined benefit pension plan are borne by BNS. The last
actuarial valuation of the plan was as of November 1, 2003 and based on that independent
valuation, the plan was fully funded. An actuarial valuation is performed on the plan at least
once every three years. All actuarial information relating to this scheme can be found in the

consolidated financial statements of BNS.

The Bank also participates in a contributory plan established by BNS covering some

employees. As of October 31, 2006, this plan is also fully funded.
19. Global Employee Share Ownership Plan

The Bank participates in the Global Employee Share Ownership Plan (“GESOP”) of BNS,
which allows employees of the Bank to contribute between 1% and 6% of their annual salary.
The contributions are used to purchase shares in the ultimate parent Company, on the Toronto
Stock Exchange, at the prevailing market prices on a semi-monthly basis. The Bank matches
fifty percent (50%) of the employees’ contributions and this vests with the employees after

two years of participation in GESOP.
20. Related party transactions

Key management personnel have transacted with the Bank during the year as follows:

er yr
2006 2005

* ($'000s) ($'000s)
Loans and advances to customers $ 3,108 2,783
Deposits $ (869) (1,414)

Interest rates charged on balances outstanding are a half of the rate

that would be charged in

an arm’s length transaction for credit cards and at B$ prime rate for most mortgages. Most of
the other sundry loans bear interest at the annual rate of 3.5%. The mortgages granted are

secured by the property of the respective borrowers.

No impairment losses have been recorded against-balances outstanding during the period with
key management personnel, and no specific provisions have been made for impairment losses

on balances with key management personnel at the year end.
21. Financial risk management

Credit risk

Credit risk is the risk of financial loss to the Bank if a counterparty to a financial instrument
fails to meet its contractual obligations, and arises principally from the Bank’s loans and
advances to customers and banks and investment securities. The Bank structures the levels of

+

credit risk it undertakes by placing limits on the amount of risk accepted in relation to one

borrower, or groups of borrowers, and to geographical and industry segments. Credit
disciplines are based on a division of authority, a centralized credit review system, &
committee system for dealing with all major exposures, and periodic independent review by

BNS.

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Credit risk (continued)

The Bank used a risk rating system to quantify and evaluate proposed credits in order to assist
- officers in understanding the risks inherent in credit proposals and, if they are acceptable to

ensure appropriate returns, In this analytical process, the Bank is particularly sensitive to risks
posed to credit quality by environmental exposures. ;

Retail credits are assessed and authorized daily in branches within lending criteria established
by the Bank. Computer driven scoring systems ensure credit policies are applied consistently
and objectively. Consumer credit portfolios are reviewed monthly using statistical techniques.
Credit lines for off-balance sheet instruments such as foreign exchange contracts, letters of
credit and guarantees are managed as an integral part of this same process. ;

Exposure to credit risk is managed through regular analysis of the ability of borrowers and
potential borrowers to meet interest and capital repayment obligations and by changing these
lending limits where appropriate. Exposure to credit risk is also managed in part by obtaining
collateral and corporate and personal guarantees, but a significant portion is personal lending
where no such facilities can be obtained. .

Interest rate risk

Interest rate risk arises when there is a mismatch between positions, which are subject to
interest rate adjustment within a specified period. Exposure is generally managed locally by
currency and regularly reviewed on a consolidated basis by executive management.

For the year ended October 31, 2006, the rates of interest, which approximate the effective
yields of these balance sheet assets and liabilities, were as follows:

Assets

Cash and balances with the Central Bank of The Bahamas 0%
Treasury bills 0.11% - 057%
Loans and advances to banks 1.86% - 4.92%
Investment securities 5.97% - 5.99%
Loans and advances to customers, net 4.57% -17.71%
Liabilities

Customers deposits 2.52% - 4.14%
Deposits from affiliates 1.58% - 5.38%
Deposits from other banks 3.05% - 3.68%

Interest rate risk (continued)

For the year ended October 31, 2005, the rates of interest, which approximate the effective
yields of these balance sheet assets and liabilities, were as follows:

Assets
Cash and balances with the Central Bank of The Bahamas: -0%
Treasury bills 4 0.08% - 0.30%
Loans and advances to banks ; 1.68% - 4.50%
Investment securities 5.97% - 6.43%
Loans and advances to customers, net 4.69% -17.23%
Liabilities
Customers deposits . 0.00% - 3.93%
Deposits from affiliates 1.77% ~- 3.83%
Deposits from other banks 2.12% - 3.64%
Liquidity risk

Liquidity risk is the risk that the Bank will encounter difficulty in meeting obligations from
its financial liabilities. The liquidity risk management process ensures that the Bank is able to
honour all of its financial commitments as they fall due. The Bank manages liquidity using
policies, which include: ‘

e measuring and forecasting cash commitments;
e building a large stable base of core deposits from retail and commercial customers;

e ensuring immediate availability of large pools of liquid assets to meet unforeseen
events;

e maintaining a strong credit rating to ensure timely access to borrowing on favourable
rates and terms;

e diversifying funding sources and

e maintaining the ability to securitize the Bank's assets.




At October 31,2006 Uptod aa B BPR oe ATS, SK ea eon.
ore gFTPREL EY wf ” Months" ‘Months =—Ss Years =—s«Overr Total
($7000s) ($"000s) ($’000s) ($’000s) ($’000s) ($000s)
Assets ;
Cash and balances with The Central
Bank of The Bahamas 54,858 - = - = 54,858
Treasury bills 5,000 - - - - 5,000
Loans and advances to banks 316,862 244,700 ”30,881 - = 592,443
Investment securities = 2,022 1,000 11,065 53,769 67,856
Loans and advances to
customers, net ; 361,896 27,511 51,236 384,510 574,529 1,399,682
Property and cquipment re - - 1,694 16,210 17,904
Receivables and other assets 47,263 1,020 228 142 830 49,483
Total assets ; 785,879 275,253 397,411 645, 2,187,226
Liabilities —
Deposits 1,300,544 239,465 116,446 6,577 = 1,663,032
Payables and other liabilities 71,755 2,185 1,059 105 on 75,104
Total liabilities 1,372, 241,650 117, ° 6,682 = 1,738,136
Net Liquidity gay 586,420) 33,603 34,160) 390,729 645,338 449,090
October 31, 2005
Total assets 1,028,873 224,037 253,785 713,465 529,065 2,749,225
Total liabilities : 1,555,467 412,916 217,850 186,376 7 2,372,609
Net liquidi ‘526,594 188, 35,935 527,089 529,065 376,616

Currency risk

The Bank takes on exposure to the effects of fluctuations in the prevailing foreign currency
exchange rates on its financial position and cash flows. The Board sets limits on the level of
exposure by currency and in total for both overnight and intra-day positions, which are
monitored on a daily basis. The table below summarises the Bank’s exposure to foreign
currency exchange rate risk at October 31. Included in the table below are the Bank’s assets
and liabilities at carrying amounts, categorized by currency.

BSD USD Other Total
($'000s) ($'000s) ($'000s) ($’000s)
At October 31, 2006
Assets
Cash and balances with A ;

The Central Bank of The Bahamas 49,783 4,959 116 54,858
Treasury bills 5,000 - - 5,000
Loans and advances to banks 4,000 521,243 67,200 592,443
Investment securities ; 67,846 - 10 67,856
Loans and advances to

customers, net 950,153 433,187 , 16,342 1,399,682
Property and equipment 17,904 - = 17,904
Receivables and other assets : 23,041 20,798 5,644 * 49,483
Total assets 1,117,727 980,187 89,312 2,187,226
Liabilities
Deposits 726,783 857,974 78,275 1,663,032
Payables and other liabilities i 22,244 32,017 20,843 75,104
Total liabilities 749,027 889,991 99,118 1,738,136
Net balance sheet position "368,700 90,196 (9,806) 449,090
Credit commitments 74, B 417,602 161 492,071
At October 31, 2005
‘Total assets 4 ° . 974,161 1,736,439 38,625 2,749,225
Total liabilities i 688,687 1,645,561 38,361 2,372,609
Net balance sheet position 285,474 90,878 264 376,616

Credit commitments © 87,977, 212,253 149 300,379

22. Fair value of financial instruments

Fair value amounts represent estimates of the consideration that would be agreed upon
between knowledgeable willing parties who are under no compulsion to act and is best
evidenced by a quoted market price if one exists. The majority of the Bank’s financial
instruments are carried at historical cost and are not adjusted to reflect increases or decreases
in fair value due to market fluctuations including those due to interest rate changes.

The fair values of investment securities, loans and advances to banks and customers, and
deposits approximate their carrying values, which are at amortised cost, due to their short
term nature and interest rates earned or paid approximate rates otherwise available to the
Bank for similar facilities.

23. Corresponding figures

Certain corresponding figures have been Teclassified to conform with the presentation

adopted in the current year.
; ee

WEDNESDAY, FEBRUARY 28, 2007, PAGE 11E











Storming start puts Man United ©
on the path to FA Cup victory

beates after'scoring Against Reading during their FA.

#



MANCHESIER United's Gabriei Heinze ce
Cup 5th round replay soccer mateh'at the Madejskii Stadium in Reading, Tuesday, Feb. 27, 2007. Unit-

ed won 3-2 after scoring their three goals in the first six minutes. s
(AP Photo/Matt Dunham) ~*



MIDDLESBROUGH!'S Duich midiivider, George Boateng left, battles tor the ball with West
Bromwich Albion midfielder Jason Koumas, during their fifth-round FA Cup reply at the Hawthorns,
West Bromwich, England, on Tuesday, Keb. 27, 2007. The match ended 1-1 with Middlesbrough win-
ning the tie 5-4 on penalties.

(AP Photo/Simon Dawsen)



TRIBUNE SPORTS:

PAGE 12E, WEDNESDAY, FEBRUARY 28, 2007
SPORTS



Two primary schools
have a swin

|



@ BASEBALL
& SOFTBALL
By BRENT:STUBBS
Senior Sports
Reporter

THERE were perfect runs
through the Primary Schools
Sports Association’s boys
and girls baseball and soft-
ball tournament for Claridge
and Columbus Primary
Schools yesterday.

Just across the road from
the start of the Government
Secondary Schools Sports
Association’s Inter-School
Track and Field Champi-
onships at the Thomas A.
Robinson Track and Field
Stadium, both teams were
making their own waves at
the Anthony McKenzie Lit-
tle League Baseball Park.

Claridge held off Thelma
Gibson 5-3 to clinch the
Lawrence Sweeting’s Base-
ball tournament title for
boys, while Columbus Pri-
mary nipped Garvin Tynes
5-4 ‘for the. Frederick
Carey’s Softball Tourna-
ment crown for girls.

“Winning the baseball was"

good,” said Claridge’s coach
Nikkita Taylor. “We actual-
ly thought we should have
won it last year, but we
came fourth.

“This year, the boys came
more prepared and they
played much better than
they did last year. We hard-
ly allowed any of our oppo-
nents to score that many
runs.”

Taylor attributed his
team’s success to his
defence, particularly his
infield. But he was more
than pleased with the per-
formance of mainstay pitch-
er Rommel Munroe, who
went undefeated in seven
games.

Ali Bethel, coach of Thel-
ma Gibson, said they played
as well as they could, but
Claridge wanted it a little
more. ;

“The boys had a big heart,
but a few minor mistakes
here and there caused us the
game,” said Bethel, who
thanked Freedom Farm
Baseball League for assist-
ing his team. “Claridge just
played better than we did.”

Shaprio Ebanks pitched a
stellar tournament for Thel-
ma Gibson up until they
played in the final. Third
baseman Rashad Thompson
kept them in the game
offensively.

Lawrence Sweeting said

his Columbus team certain- *

ly improved on their perfor-
mance in softball. They were
runners-up last year, but
they went the extra step to
win it all.

“I’m quite proud of
them,” Sweeting stated.

Patrice Ferguson, an all-
around player, led the way
for Columbus Primary at
shortstop.

Both Sweeting and Carey
were being honoured by
their association for their
long-time service. Both
coaches have hinted that
they might be leaning

towards retirement very,

soon,

For Sweeting, it was a
thrill to be recognised in the
way he was.

“They like to give people
things when they die, but it’s

“good that they recognised
me and Carey because we
are the oldest members in
the primary schools. sports
association,” said Sweeting,
‘who has been at Columbus
for the past 24 years.

Sweeting said he had
hoped that his boys would
make the final in baseball,
but they were eliminated by
Claridge.

Carey, who showed up to
officiate the games, said he
was a little surprised when
they informed him that he
was being honoured.

“T was surprised,” he con-
cluded. “I’m glad they did
something for me before I
quit.”

Carey has been the phys-
ical education instructor for
Uriah McPhee Primary
School] for the past 23 years.

Dawn Knowles, who is in
charge of the primary

schools sports division at the
Ministry of Education, said
she was pleased with what
occurred.

“T want to congratulate all
of the winners because I feel
all my coaches are winners,”
she stated. “We had 23
teams and that’s almost 100
per cent participation.

“I’ve seen the improve-
ment in baseball ever since
we got it started. The skills
are getting better and bet-
ter, so I am very proud of
all of the coaches.”

Up next on the primary
schools’ agenda is basket-
ball, which is scheduled to
be held at the end of March
at the Kendal Isaacs Gym-
nasium.

@ RIGHT: Columbus Pri-
mary School celebrate with
their Frederick Carey girls
softball championship tro-
phies after they beat
Garvin Tynes 5-4 in the
final yesterday at the
Queen Elizabeth Sports
Centre.

@ BELOW: Claridge Pri-
mary célebrate with their
trophies after winning the
Lawrence Sweeting boys
baseball title with a 5-3
decision over Thelma Gib-
son yesterday at the Queen
Elizabeth Sports Centre.

pS astute ae re

|

at

oe

























































@ TWO young
pitchers in action
yesterday during
the Lawrence
Sweeting baseball
event at the Queen
Elizabeth Sports
Centre.

(Photos:
Felipé Major/
Tribune staff)









Full Text




jacvest

i'm lovin’ it. |



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t



LOW
‘eo. SHOWER,



Volume: 103 No.82



| eam. CLOUDS & SUN |

Inspector of
pr toe tt es
eon gets tee

PULL ane

The Tribune



| ti FAL ms | if
~| She Miami Herald

BAHAMAS EDITION



WEDNESDAY, FEBRUARY 28, 2007








Contractor concerns raised

Claim that developer
did sub-standard work
in Excellence Gardens
and has been given
another govt contract

@ By KARIN HERIG
Tribune Staff Reporter

SUBCONTRACTORS and
building material suppliers are

reportedly -threateningâ„¢to-.

expose a developer they claim is
giving the Ministry of Housing a
bad reputation.

A source close to government
yesterday revealed that discon-
tent within the. building com-
munity is growing with a con-
tractor they claim has already
done sub-standard work in
Excellence Gardens, and has
now been given another gov-
ernment contract for a new
housing subdivision.

It is claimed that this devel-
oper keeps getting contracts
although he owns no equipment

_ and has no experience in lay-

ing telephone lines, building
roads or installing water pipes
for new housing developments.

“This man doesn’t even own

"a truck, he has no equipment,
he is.sub-contracting:the work.

out to other people, but not
paying anyone for their work.
People are getting fed up and
are now threatening to expose
him,” the source told The Tri-
bune.

It is further alleged that the
developer in question has
instructed the Department of
Housing to pay him directly,
and not his sub-contractors.

“He’s already done work in
Excellence Gardens where the
work was fifth rate,” the source
alleged, adding that it was “time

SEE page seven

Ninety still scheduled to go on trial

E By CHESTER ROBARDS

FT LAUDERDALE, Florida - Accused drug “kingpin” Samuel
‘Ninety’ Knowles is still scheduled to go on trial April 9 ina Ft Laud-
erdale court despite his request for dismissal of his case.

Last week, the United States entered a response to Knowles’ motion
to dismiss his case for lack of jurisdiction days before he was to appear

in court to challenge it.

The United States’ response concisely argued the legitimacy of
Knowles’ extradition with regard to the extradition treaty between the
USA and The Bahamas, and the unambiguous language of the courts
of the Bahamas, which acceded the extradition.

Within the response, the United States cited rulings of the Bahamas
Supreme Court as evidence against the validity of Knowles’ dismissal
request, saying: “In closing, the Supreme Court unambiguously

SEE page seven


























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on lana

oN SuyNa:





Eleuthera | Exuma









ve) HA |

Eu



POLICE remove the body of a man who was stabbed to death on Boyd Road last night.

Police said the victim, in his 30s, was leaving DNC Takeaway around 6pm, when a man
threw a rock at him before stabbing him multiple times about the body. .

An ambulance was called to the scene and the victim was pronounced dead.

A man is in custody in connection with the incident after being caught by an off-duty police
officer and a civilian. This homicide brings the year’s murder count to 12.
(Photo: Felipé Major/Tribune staff)

Industrial —

unrest —
avoided at
Cotton Bay |

lm By ALEXANDRIO
MORLEY
Tribune Staff Reporter

INDUSTRIAL unrest was :
avoided at Eleuthera’s Cotton ;
Bay project which emerged when :

construction workers.did not }

receive their pay cheques on Fri- }
day, The Tribune learned. :
An inside source said the work-

ers were so upset over not receiv- ;
ing their salaries that they decid- :

paid.

Monday.

SEE page seven »

However, Wim Steenbakkers, :
the project’s managing director, :

BPSU president says
sovt has to be more

_ proactive in addressing |

workers’ concerns

m@ By BRENT DEAN

GOVERNMENT has to be }
: more proactive, and less reac- :
: tive, in addressing the concerns
: of workers, declared John Pin- :
der, president of the Bahamas

Public Services Union.

Mr Pinder
remarks in an interview with
The Tribune yesterday.

i In the face of widespread }
i industrial discord, some of }
which has been resolved by gov-
: Es i ernment, The Tribune asked Mr }
ed to stop working until they were | pinder what is behind some of }
: the problems.
He said that “a lot of the }

: : industrial agreements are not }
said the matter was resolved on ! being adhered to in their full |

Local entrepreneur Franklyn content.” And many of these

Wilson is the majority sharehoid- ; disputes have been long-stand- ;

SEE page seven

made these :

Call for parties
to make the
environment

_ election issue

: lm By KARIN HERIG
: Tribune Staff Reporter

BOTH the PLP and the FNM
: are being urged to make the
: preservation of the environment
? an election issue.
i} Ata time when new develop-
? ments and major construction
i projects are being announced
: almost daily, Bahamians are
: being encouraged to challenge
political candidates in the next
general election to commit to the
protection of the environment.
Save the Bahamas — an umbrel-
la organisation for non-govern-
: mental groups that are promoting
legislation for protection of the
environment — in a statement yes-
: terday said that Bahamians have
: to learn to take the preservation
: of the country’s natural resources

SEE page seven



nt

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Pensioners to.
see increase
on monthly

payments

OLD age and non-contrib-
utory pensioners will see an
increase in their monthly pay-
ments, effective March 1.

This was confirmed by
Works and Utilities Minister
Bradley Reberts in a recent
contribution to debate on a
Bill to amend the Prime Min-
ister’s Pension Act.

Mr Roberts said, “I wish to
inform that the Government
has approved the reconimen-
dation to increase payments
to all old age pensioners and
non-contributory pensioners
to National Insurance Board
effective from March 1, 2007.

“These increases will bring
much needed relief to the
senior citizens throughout
The Bahamas.” -

The details of the increases
will be announced shortly by
Prime Minister Perry Christie,
or the Minister responsible
for National Insurance, Sena-
tor, Dr Bernard Nottage, he
said.

SEE page seven

BUT officials
are set to meet
with director and
minister of labour

@ By ALISON LOWE
Tribune Staff Reporter

IN A move that seems likely
to offset strike action — at least
for the time being — Bahamas
Union of Teachers officials are
scheduled to meet with the direc-
tor and minister of labour next
week.

President of the BUT, Ida
Poitier-Turnquest, confirmed yes-
terday that union officials were
approached by the labour offi-
cials on Monday, who requested
to meet to discuss teacher's pay
grievances.

This comes after a week during
which there was no approach
made to the union by the labour
department despite the filing of a
trade dispute on Friday, Febru-
ary 16.

By law, government had sev-
en days — until Spm last Friday
— to contact the union, but failed
to do so.

SEE page seven





PAGE 2, WEDNESDAY, FEBRUARY 28, 2007

Ra ee a ee ea
i ‘A new era’ for the
ahamas Postal Service

Haitian
migrants
fleeing the
Bahamas
‘end up in
Jamaica’

A GROUP of 23 Hait-
ian migrants attempting to
flee to The Bahamas in a
20-foot sailboat were
reportedly blown off
course and ended up on
the shores of Port Anto-
nio, Jamaica.

According to The
Jamaica Observer newspa-
per, the Port Antonio
police, immigration and
health officials have “quar-
antined” the group and will
shortly begin to process
them for subsequent
deportation.

The 19 men and four
women told Jamaican
authorities they were flee-
ing their homeland because
of “violence and kidnap-
ping.”

The members of the
group, whose ages ranged

-from 17 to 44 years, said

they were sailing to The
Bahamas but went off
course.

Fidel Castro
calls in to
Chavez show

ll CARACAS, Venezuela

CUBAN leader Fidel Cas-
tro called in to Venezuelan
President Hugo Chavez's radio
talk show on Tuesday, declar-
ing he's "more energetic,
stronger" and his country is
running smoothly without him
at the helm, according to Asso-
ciated Press. :

"I feel good and I'm hap-
py," Castro said in“a phone
call to Chavez's weekday radio
program. "I can't promise that
I'll go’ over there soon, but,
yes, I'm gaining ground."

The 80-year-old Castro
transfetred control of Cuba's
government to his brother
Raul after undergoing intesti-
nal surgery in July and
dropped out of public view,
fueling speculation about his
condition.

He thanked Chavez for
spreading news about his recu-
peration and complained that
his supporters have "the habit,

ly. "

"But I ask for patience, calm
... the country is marching
along, which is what is impor-
tant," Castro said in a soft but
steady voice.

"And IJ ask for tranquility
also for me so that I can fulfill
my new tasks," he said.

In Havana, Cuban state
television's nightly Roundtable
program reported briefly on
the telephone exchange and
bits of the conversation were
broadcast across the island.

the vice of getting news dai- 4



THE Bahamas Postal Service is
reforming the way it does business
to satisfy its customers, Transport
and Aviation Minister Glenys
Hanna-Martin revealed at the
Sandyport Post Office.

“The first time ever Cluster
Mailboxes has 3,529 mail boxes —
2,940 small and 588 medium —
and we all at the Ministry of Trans-
port and Aviation are pleased with
the number of requests that we
have been receiving for them from
business and individuals alike,”
said Mrs Hanna-Martin.

Approach

Having embarked upon a new
era, the Bahamas Postal Service
has taken a new approach towards
customer service and productivity
standards, she said.

This initiative resulted in major
transformation in postal services
globally, she added.

“For us to do this we must then
achieve greater levels of efficiency,
implement strategies to ensure
diversified use of its products and
services, and also expand on addi-
tional products and services to
meet the increasing demands of
its customers,” said Mrs Hanna-

The Bahamas Postal Service has
the competitive advantage, since
it has the capacity to generate
greater revenue and is strategical-
ly located throughout the country.

“As a member of the Universal
Postal Union (UPU) — the inter-
national body which governs and
regulates post offices around the
world — this administration is
mandated to attain and maintain a
quality of service standard. “This
criterion makes it almost impossi-
ble to be lagging behind but
encourages us to strive for excel-
lence,” she said.

In the Savings Bank Money
Order section, electronic money
order machines were introduced,
she added.

“These machines were put in
place to speed up the money order
processing time, while minimising
fraud and errors.

“New stainless steel private
mailboxes were installed at the
General Post Office to replace the
old steel ‘dinosaur’ type that was in
place for decades.”

- This stainless steel is not prone
to erosion from surrounding ele-
ments.

Several areas in the postal ser-
vice were computerised in stages.
They include savings bank, mail

THE TRIBUNE

processing inbound, mail process-
ing outbound, parcel processing
inbound and outbound and inter-
national high-speed mail.

“As a result of global advances
in the postal system, almost every
postal item in the postal system is
now bar-coded,” she said. “This

_ bar-coded system allows for postal

itemis to be tracked.” ~ ~~

Connected

Additionally, she added, the
Express Mail Service Office is ful-
ly computerised and connected to
more than 230 member countries
globally.

“This service provides track and
trace capabilities over the Inter-
net, hence making it accessible to
everyone,” she said.

Mrs Hanna-Martin said the bulk
mail service of the General Post
Office is equipped with modern
processing machines and
has increased its clientele signifi-
cantly.

“We have even taken this ser-
vice to another level, whereby we
provide ‘Postage by Phone’. We
have been conducting excellent
business in this area with the vari-
ous local and international busi-

Martin.

SSS

@ TRANSPORT and Aviation Minister Glenys Hanna-Martin

°

Mother hits out at neighbour's
alleged destructive activities |

@ By ALISON LOWE
Tribune Staff Reporter

..A MOTHER is sick and tired

of the destructive activities of
her neighbour, which have
threatened her livelihood and
ruined her immediate environ-
ment over a period of years.

Having called upon govern-
ment and police for help with
no results she has come to the
conclusion that she has no rights,
and the neighbour must be
"above the law."

Ernestine Kauffman moved
into a quiet part of the
Yamacraw area around 15 years
ago, investing her "whole life
savings" in building three town
houses, two of which she rents to
provide for her children.

However, for the past five
years, she says, her peace and
quiet have been shattered, her
property wrecked, and her
health and safety threatened by
a neighbour who is working on
land next to her property. She
questions whether he has a per-
mit to do the type work he is
doing.

The neighbour, who owns sev-
eral apartments behind hers, has

NOTICE

started what would appear to be
a soil sifting and dumping busi-
ness on five lots that are next to

her apartment, and in front of

his. :

On a daily basis, sometimes
starting as early as 6am and fin-
ishing as late as 3am, the neigh-
bour runs loud and heavy trucks
and machinery on the land —
sifting soil for sale, digging so
deep that he's "scraping the
rocks", she claimed.

"He has a big soil sifting
machine. It's a big business," she
said angrily. "He stores (rock)
in the back of my apartment on
the main road, what's supposed
to be a cul-de-sac," she said.

Demolished

And the activities do not end
there — he has also demolished
the wall around her property,
and caused 95 feet of telephone
cable to have to be replaced,
such is the voracity of his
appetite for removing soil and
rocks from the land.

"There's no Sunday for me,
no Monday — all through my
week I have gasoline in my bed-














WE HAVE MOVED
LIFE CHIROPRACTIC CENTRE

HAS MOVED TO THE REAR OF
OUR FORMER OFFICE

#7B VILLAGE ROAD

PHONE: 393-2774
FAX: 394-3067

room, I'm smelling diesel," she
complained.
This leaves the inside of her

property. regularly covered in a’

layer of dirt, thrown up off the
nearby site. "In the morning the
coffeébn the table is full of
dust!"'she said.

"T have two new tenants and

God knows that I'm not losing

my tenants because of this guy,"
she said, adding that "every ten-
ant has moved out because of
him" so far.

"T can't take it, I can't .

sleep...trucks and tractors 'chase'
me out of bed every day," she
said.

On one particularly memo-
rable occasion, fires were started
on debris dumped around her
property. eRe

"Tt was burning for five days.
Firemen tried to out it about
three times, (but) they couldn't
because it's so deep under the
dirt."

Her home was filled with thick
smoke, and her daughter suf-
fered a number of asthma
attacks as a result.

"It was like five days of death
— this mossy, dirty wood, the
dust and everything mixed, it
almost killed you," she said.

Mrs Kaufmann said she has
approached the man on many
occasions requésting that he stop
his destructive activities. How-
ever, in response she has repeat-
edly been threatened or ignored.

After one argument, the con-
frontational neighbour wrote the
words "Holy War" across the
side of one of his trucks, she
sald,

She claims to have attempted
to contact director of environ-
mental health, Ron Pinder, up
to 15 times, leaving messages for

him with his secretary, but has
had no response.
This was the same for other

environmental health officials;*

she added.

Adding insult to injury, she ,

described how ten years ago she
had received a four page letter
from the zoning department stat-
ing that she would be unable to
erect a sign on her property to
direct her massage clients to her
house, as it was not in a com-
mercial zone.

Meanwhile, her neighbour has
put up a large sign advertising
the sale of soil and fill on the
property with impunity.

Police have "taken her for
granted," she said. "They look at
me like oh, a woman, she's com-
plaining:..".

Contact

Yesterday, Mr Pinder said he
was surprised to hear that Mrs
Kaufmann had been trying to
contact him, and seemed
unaware of her situation.

He asked that The Tribune
forward his cellphone number
to Mrs Kaufmann.

In February, the minister of
agriculture and marine resources
said there needed to be tougher
regulations relating to the ille-
gal removal of soil and fill, and
claimed that a new land policy is
being developed to deal with
cases where landfill is removed
without proper authorisation.

This new policy will see indi-
viduals fined up to $20,000 in
addition to the confiscation of
their equipment, he said, after
a raid of two such sites.

However, in the meantime,
Mrs Kaufmann is receiving no
relief.

SS







ness houses,” she said.




Pea lire
expecting 3,600
spring breakers

i By DENISE
MAYCOCK
Tribune Freeport Reporter










FREEPORT - Thousands of
spring break students are expect: «| 11
ed to arrive on Grand Bahama, ..} i}:
beginning March 1,.over the next~|;
eight weeks, Ministry of Tourism. |. >
officials announced yesterday.

Betty Bethel, executive direc-
tor at the Ministry of Tourism,
announced that some 3,600 stu- 4
dents are expected to travel to ‘
Grand Bahama over the spring 2
break season. .

The Ministry, she said, has
planned a ‘Konk and Kalik :
Springbreak Fest’ from March
1 to April 18 at two new venues
- Taino Beach and Georgies on
the Beach — this year.

Ms Bethel said the fest will
take place on Thursdays, starting



Crore toe

March 1 to March 28 at Taino |: -~

Beach, and at Georgies from }
March 29 to April 18. :
“We believe that these two
new venues will really enhance
the visitor experience and allow
us to put on fun activities like
tug-of-war, beach volleyball,
dancing competitions, and other
activities that will enhance their
stay here on the island,” she said. *
According to Ms Bethel, | _ *
’ Springbreak Travel, which has .
been bringing students to the
island for 19 years, is bringing
the bulk of spring breakers to
the island. These students are
expected to spend anywhere
from $250 to $400 during their
Stay. é
Ms Bethel said that while 4
spending is not going to be very
high, spring breakers represent
_ the potential future business for
Grand Bahama. ,
“Tt is very important that the
community understands this. -
They are not just students, they n
are our future return visitors. It )
is important they have a grand }
experience,” she said.
The ministry has also part- (
nered with the Royal Bahamas
Police Force, as well as its very
own Safety and Security Coun- =
cil, to ensure that visiting stu-
dents will be safe and secure
while enjoying the island’s 4
amenities. ’
Ms Bethel said the ministry 2
has partnered with several enti- e
ties, including Burns House, to
provide Kalik, Pat and Diane,
Tony Macaroni at Taino Beach,
and Georgies to provide and
promote a fun cultural experi-
ence for the students. J
Supt Clarence Russell said \
police will be on heightened
alert to ensure that spring break-
ers are Safe. “We have been giv-
en a mandate to heighten aware- >
ness and put in strategic plans
with respect to accommodating \
spring breakers and the ministry ;
can rest assured that we are on
board to ensure safety while they
are on the island.”

0,

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TROPICAL fi
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THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 3



0 In brief

Two brothers
are shot by
masked
gunman

TWO brothers —
aged 31 and 29 — were
shot in the chest and
face by a masked gun-
man as they tried to
help another man. One
is in critical condition.

The incident occurred
around 7pm on Monday
when the pair ran to
help a screaming man
who was being held up
for money at gunpoint
on Jennie Street. The
victim was in his twen-
ties.

As they approached,
the young man's
assailant he turned and
opened fire, said police
press liaison officer,
Walter Evans.

The 31-year-old, who
was hit in the chest, is
in critical condition at
Princess Margaret Hos-
pital, while the 29 year
old, also in hospital, is
described as in a stable
condition.

Police have yet to
make any arrests in con-

nection with the attack. .

An investigation is
underway.

Govt denies
FNM claims
over plans
for airports

GOVERNMENT has
refuted claims by the
FNM that it is just now
racing to implement
plans for Family Island
Airports that were left
in place for-them in

2002. Wee

The Ministry of
Transport and Aviation
in a press release yes-
terday said that the cur-
rent exercise of
installing emergency
runway lighting is part
of a comprehensive plan
which commenced in
November 2006 follow-
ing the signing of a con-
tract with Carmanah
Enterprises at a cost of
$2,244 ,526.00.

“(It is) a systematic,
comprehensive exercise
comprising a two-phase
approach beginning
with the installation of
emergency lights at 16
airports, all of which
have already been com-
pleted,” the ministry
said.

Commentary

The FNM in its week-
ly commentary had
accused the government
of delaying the installa-
tion of emergency
landing lights at 14
Family Island airstrips
during the past five
years.

The opposition said
that the governing party
raced in the first two
months of this year to
complete a project
that was ready for
implementation in
2002.

“And they are not
embarrassed to list this
very late completion
amongst their accom-
plishments, indeed, to
use it as a part of their
election campaign pro-
paganda,” the FNM
said.

However, the Ministry
of Transport and Avia-
tion, yesterday refuted
these assertions, stating
that no such plan was
left in place by the for-
mer government.

The ministry further
said that phase two of
the plan to upgrade

the Family Island air-
ports will soon com-
mence.

This phase will
involve five airports:
Deadman’s Cay, Stella
Maris, North Andros,
Fresh Creek and Nor-
man’s Cay.

@ By ALEXANDRIO

MORLEY
Tribune Staff Reporter

THE Bahamas Electrical
Workers Union and govern-
ment have reached a “tenta-

tive” agreement in the dis-—

pute between the Bahamas
Electricity Corporation’s
management and hundreds
of line staff.

But, Stephano Greene, sec-
retary general of the BEWU,
said he would not rule out
future industrial action,
because the union still has
numerous outstanding issues
that need to be addressed.

Earlier this month, BEWU
officials threatened to take

But union’s secretary general
says he will not rule out
future industrial action



industrial action should their
concerns remain unresolved.

However, former Labour
Minister Shane Gibson said
that such action would not
be necessary.

"We have been working,

along with management and
the union to resolve these
matters, but my understand-

ing was that the arbitrator —
Bishop Neil Ellis — has
reached an agreement with
the union on most of the
issues," Mr Gibson said.

Mr Gibson was speaking of
long-standing concerns the
BEWU has been raising.

The BEWU claims that

’ line staff members at BEC

Claim that School
Policing Unit officers
are contemplating —
industrial action

m@ By ALEXANDRIO MORLEY
Tribune Staff Reporter



OFFICERS of the School Policing Unit are
upset bécause the government has “back-
tracked” their employment contracts, a source
disclosed yesterday.

The source claimed the officers were so frus-
trated that they were contemplating industrial
action.

Earlier this month, The Tribune reported
that the officers were frustrated because their
employment contracts had not beén renewed.

The source claimed that the officers, who
are referred to as SRO’s (school resources offi-
cers) and SRA’s (school resource assistants),
had reached “boiling point” after informing
senior police officers and education officials
about their numerous labour concerns - only to
be ignored.

The source explained: “We’re supposed to
get our contracts renewed every year, but right
now we have officers who have been without a
contract since September, and every time we
ask them about it they give us excuses.”

The source also said that officers in the unit —

don’t receive any increments, benefits, or a
uniform allowance, and most officers believe
their insurance coverage is “not legit.”

Yesterday, the source told The Tribune that
some of their concerns had been addressed,
but now the terms of their employment con-
tracts had been changed.

The source said: “In the beginning, officers
signed contracts for one year, from
September to September, but we just signed a
new contract last month, and now officers
are only contracted from January to Septem-
ber.”

The source said persons had joined the
School Policing Unit because they believed it
would provide them with job security - but
they now feel that their current contracts, which
expire in less than a year, make their positions
unstable.

“The officers were hired as permanent work-
ers,” the source said, “but they now feel like
temporary staff.”

The source also claimed that the Ministry
of Education has not followed through on its
promise to give the officers extra benefits,
including a uniform allowance.

He said the officers were contemplating
walking off the job or calling in sick.

The Commissioner’s policy statement for
2006 says the aim of the School Policing Unit is
io investigate and stem criminal and gang activ-
ities in schools.

It also says the unit seeks to advise ‘at risk’
youth on the dangers of drugs and other illegal
substances and activities.

But at the moment, the source said, officers
fee] unappreciated and morale is low.

The Tribune tried to contact the Ministry of
Education for comment, but calls were not
returned up to press time.

Pelican Bay Resort donates to
Lewis Yard Primary School

i By DENISE MAYCOCK
Tribune Freeport ~
Reporter

FREEPORT - Pelican Bay
Resort has responded to a call
for assistance by donating gro-
cery items to Lewis Yard Pri-
mary School to help with their
student feeding programme.

Judy Duncombe, director of
human resources at Pelican Bay
Resort, said its eight- member
management team felt com-
pelled to make a donation to
the school after learning of the
plight of students there.

Late last year, teacher Kel-
ley Albury highlighted prob-
lems facing students during a
presentation at the Rotary
Club. She revealed that students
from poor families often came
to school without having hot
breakfast and lunch.

Additionally, she noted that
students were in need of cloth-
ing and shoes. The teacher also
said some children had con-
tracted a severe skin rash.

Ms Duncombe said that Peli-
can Bay plans to make several
other donations to the school
during the school year.

“This is a very worthy cause.

This (donation today) is just the |

first...of several other dona-
tions,” she said.

Principal Rodney Smith said
response from the community
had been tremendous.

“Our main objective is to
develop the child holistically,
and since the co-ordinators’ pre-
sentation to Rotary we made
an appeal for food items and
clothing etc, which have been
going very well.”

Mr Smith believes it is impor-
tant that a child functions prop-
erty in the classroom. He said
the presentation was not intend-
ed to upstage anyone, but to
inform the public about the
reality facing students at the
school.

He said that government also
does what it can through social
services and the Ministry of
Health regarding welfare of the
children.

Vice-principal Jacquelyn Pin-
der said that, although teachers
work hard to educate students,
children cannot learn on an
empty stomach, or if they are
cold and have no sweaters to
wear.

Ms Pinder said churches had
also come forward to assist,
including the National Church
of God, which provides break-
fast on a daily basis, and The
New Methodist Church, which
provides clothing and grocery
items.

“People are really coming out
and helping us. It has become a
real community effort,” she
said.

Ms Pinder said even though
the program has improved,
there is still need for more assis-
tance. “We feel that if every
business did what happened this
morning the need will be less-
ened, and our children of course
would eventually develop into
the whole persons that we
desire,” she said.

When asked about the health
issues at the school, Mr Pinder
said the matter had been
addressed by Grand Bahama
Health Services.

“They have been addressed,

but we still have concerns
because the children are still
here and some of the children
are facing some of the same
health problems we brought to
the attention of health services.
Health services have assured us

: that the children are fine, and so

we rely upon their expertise and
respect that, so we had to accept
that,” she said.

are owed $9 million in back
pay after working more than
the 40-hour work week for
more than two years.

However, government has
continuously said that BEC’s
management has no obliga-
tion to pay the workers any
additional money.

Last November, the union
seemed close to ironing out
the issue.

But,. BEWU president
Dennis Williams told
reporters that the matter
remained unresolved.

Yesterday, the secretary

‘general of BEWU told The

Tribune that “about 95 per

cent of the issues have been

agreed to and signed off on.”
Mr Greene said that the
arbitrator of the negotiations,
Bishop Neil Ellis, has been a
very fair person and that he
was working diligently to
bring the matter to an end.
Asked if the government
had decided to pay the elec-
trical workers their back pay,
Mr Greene said: “There ‘is a
tentative agreement on the
table for the back pay and
now it’s just a matter of final-
ising everything so that
everything is completed.”
However, he said, the
union still has a lot of out-
standing issues filed at the
Department of Labour that
have not been resolved.
“And as long as we have
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-BEWU and the government
reach ‘tentative’ agreement

contentious, outstanding
issues, there is always a pos-
sibility of some form of
industrial action,” Mr Greene
said.

@ BEWU officials had threat-
ened to take industrial action
earlier this month, should their
concerns remain unresolved —
but former Labour Minister
Shane Gibson (above) said that
such action would not be nec-
essary.

The union has also taken
issue with shift worker meal
breaks, charging that. there
are employees in BEC to
whom management has
refused to allow a lunch
break. r









PAGE 4, WEDNESDAY, FEBRUARY 28, 2007

me) ae a =e)

~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.

Published Daily Monday to Saturday

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

TELEPHONES

Publisher/Editor 1972-

Switchboard (News, Circulation and Advertising) 322-1986
Advertising Manager - (242) 502-2352
Circulation Department - (242) 502-2387
Nassau Fax: - (242) 328-2398
Freeport, Grand Bahama: 1-(242)-352-6608





WASHINGTON — For former Vice Pres-
ident Al Gore, these are the best of times.
The worst of times lasted several years after a
partisan Supreme Court denied him the pres-
idency he had won in the 2000 popular vote.

But he’s back. Maybe he never left and we
just didn’t notice. Basking in the Oscar’s glow
isn’t quite lording it over the world from the
White House, but it’s a good alternative.
Nobody dies, for starters. (Unless we don’t lis-
ten to him and everybody drowns along the
flooded coasts).

And Gore’s film, “An Inconvenient Truth, ”
won an Oscar (actually, two of them) for
something that Gore has long championed
— environmental protection. His sincere con-
cern for this cause is unassailable. In the late
1980’s, as he was preparing to seek the 1988
Democratic presidential nomination, I inter-
viewed Gore in his Senate office. I wanted
to talk politics, naturally. He wanted to lecture
me on the dangers of global warming. He
produced a fat globe and proceeded to. edu-
cate me on what he saw as a crisis. around
the world due to destruction of the ozone
layer and its greenhouse effect. Very inter-
esting, if true. But I went back to my office
thinking I had no column.

Gore had no more luck exciting me about
the environment twenty years ago than he
did with others. But he didn’t give up. He
tried to make it an issue in the 1988 primary
campaign.

“I made hundreds of speeches about the
greenhouse effect...that were almost never
reported at all,” he grumbled after he lost
that campaign. “There were several occasions
where I prepared the ground in advance,
released advance texts... and then nothing,
nothing.” Everything in politics, as in life
itself, is in the timing. And while Gore was on
the right track, he was a tad early on the sub-
ject in the 1980’s. We didn’t see for ourselves
the spreading climate changes that now alarm
us, from melting ice flows to unnaturally wild
and wooly weather creating structural havoc
and taking lives.He has transformed “An
Inconvenient Truth” into a blockbuster event
by travelling around the world personally
attending premieres and presiding over what
is essentially a slide show. He has been nom-
inated for the Nobel Peace Prize for alerting
the world to the threat of climate change; for-
mer President Jimmy Carter, himself a winner
of that honour, has been calling repeatedly to
urge Gore to seek the presidency again. It is
a reassuring American story. Man is robbed of
presidency; man grows beard, flails about





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aimlessly; man gets a grip, goes home to Ten-
nessee and revives a favourite once-ignered
cause. Man is rehabilitated! Even President
Bush, who for six years dissed the very idea
that human habits contribute to global warm-
ing, timidly ventured a recent recognition that
there might be a problem..

Wow! Bush acknowledged he has actually
heard of ethanol and alternative fuel sources.
Gore was in the forefront of advocacy for the
Internet, although Republican know-noth-
ings mocked him for claiming to have “invent-
ed” it.

Gore was right to oppose the first Gulf War
and very right about the folly of Bush’s inva-
sion of Iraq in 2003. If Gore were president,
the federal government would have spurred
the development of stem cell research, and
expanded health care for those without insur-
ance,

He never would have tried to gag scien-
tists whose expert evaluations conflicted with
right-wing ideology.

Gore considers the federal budget deficit,
which has ballooned under Bush, to bea “a
fiscal catastrophe.”

But that doesn’t mean he should listen to
the siren songs about running for the White
House again. A second defeat would be hard
to bear. It would be hard for his fans, like

» myself, but harder for his family. He deserves

to bask in the new, very pleasant life he has
found.

He has learned many lessons from the 2000
whirlwind, but the Supreme Court is still a
partisan GOP-dominated operation and the
Republicans are still eager for his throat.
Gore has, in fact, demonstrated admirable
restraint by insisting he has no plans to jump
into the jumbled presidential race. He has
not issued a flat “if nominated, I will not run,
if elected 1 will not serve,” statement, but
then who would? It’s much more fun to let the
speculation simmer and keep the headlines
coming.

And Gore himself seems a happier man.
He never dreamed of himself as a politician,
although his father was a long-serving U.S.
senator.

When he declined to seek a re-match with
Bush in 2004, Gore said he didn’t want to
“focus on the past” but on the future. As with
so many other things, Gore was right. And he
is getting the credit he deserves. How sweet it
must be.

(° This article is by Marianne Means of
Hearst Newspapers ~ © 2007)










a






























THE TRIBUNE

The and |

death of
Anna Nicole

EDITOR, The Tribune.

THE not so surprising death
of Anna Nicole Smith stunned
the Bahamian people. No
sooner had her death been
announced on Fox News, cell
phones and text messages
began spreading the news. For
some it was a bitter-sweet
announcement.

Ms Smith had created more
salacious news worldwide cat-
apulting the Bahamas in
tabloids around the world.
Her “fast track” residency
permit caused most of us to
conclude that something sin-
ister happened between Ms
Smith and PLP Minister of
Immigration Shane Gibson.

These strange dealings cre-
ated an uproar among many
Bahamians who are married
to foreigners and are waiting
for similar status for donkeys
years, the same document that
Ms Smith got in a flash.

There were also some spec-
ulation that Minister Gibson
was more deeply involved
with Smith so much so that it
was rumoured that his mother
was baby-sitting Ms Smith’s
newborn baby. There are just
too many unanswered ques-
tions and her death that would
prevent the Bahamian people
from wanting to know what
really went so drastically afoul.
Minister Gibson’s alleged
presence at Ms Smith’s wed-
ding questions just how deeply
involved he was with the
“porn star”.

Ms Smith was a “lightenihg
rod” for unusual news. Mr
Gibson’s ill-conceived behav-
iour did not see the potential
damage ahead. It is clear that
many were mesmerised by Ms
Smith, one way or the other,
but all who came into contact
with her, soon realised that
her beauty was more of a bait
than anything else. Once in
her clutches, she seemed to
have a “cast a spell” over the
men she touched.

But the end for Ms Smith
came and in her wake she left
a long line of men who were
literally controlled because of
her “loose lifestyle”. The list
included the most powerful
men she could find, which
eventually ended on the
shores of the Bahamas.

In spite of all of that, she is
finally out of her misery of
obvious drugs and alcohol and
confusion that followed her to
the end. My sympathy goes

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tainly Minister of Immigration
and Labour, Shane Gibson.
May her soul finally rest in
peace. Amen.




DAM BES

letters@tribunemedia.net



C E DEMERITTE !
out to her mother, other fam- Nassau,
ily members and most cer- February, 2007.

Minister does not need to
resort to that approach |

EDITOR, The Tribune.

PLEASE allow me space in your daily to take issue with a
line of attack that Minister Mitchell delivered at his rally in
Fox Hill. Please print this letter for all politicians to consider
as we go deeper into this political season.

At the core my purpose is to discourage politicians and
their operatives from attacking or drawing into the fray
family members of their opponents, who in many cases are
and not active politically (and in some cases have attempt-
ed to persuade their spouse or relative from getting
involved).

Minister Mitchell brought into the mix the husband and
I’m told the mother (his words “close relative”) of his female
opponent. Would it be fair to discuss the recent law school
graduate who often shares the same space with the Minister
or his mother in order to pursue victory at the polls?

I say no! Discussing that young gentleman or the Minis-
ter’s mother (close relative) would be inappropriate. They
have their own lives and should not be drawn into the fight.

Minister, your lead in the area is substantial. You do not
need to resort to that approach.

Come on FNMs, PLPs and BDMs, compete fair.



OLGA SMITH
(Old School voter)
Nassau,

February, 2007.

The circus is
back in town

EDITOR, The Tribune. _ Visa Outlet.
The Ballad of Shame and
THE circus is back intown Anna complete with bedroom

featuring the following clowns,
jesters and their acts.

Sidney and the Korean
Connection.

Wisdumb and his House of
Many Debacles.

Kung Fu Keod and his
Kenyatta Punching Bag.

Vincent and the Closet of
Many Dollars.

Fast Freddie's Discount

scenes, no one under eighteen:
admitted without parent.
Ringmaster Cool PC shuf-
fles while Bahamaland burns.
Oops, wrong shuffle, come too
late, but the Show must go on.

JOHN ANTHONY
Nassau,
February 14, 2007.



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3 THE TRIBUNE WEDNESDAY, FEBRUARY 28, 2007, PAGE 5







Judges to
decide the
fate of Anna

Nicole’s body

THE fate of Anna Nicole
Smith’s body is in the hands
of three appeals court judges
in Florida.

They will decide whether
to overturn a trial court ruling
that led to the decision to
bury the former Playboy

isplaymate in the Bahamas

.falong side-her son Daniel.

rh Ms Smith’s mother Virgie
Arthur is challenging a deci-
sion which last week gave
control of the cover girl’s
remains to the court-appoint-
ed guardian of the deceased’s
infant daughter.

Ms Arthur wants her

daughter buried in her native
Texas, not the Bahamas.

Lawyers have until this’

afternoon to respond to the
appeal. A panel of three
judges could seek oral argu-
ments, or they may decide the
case based on the briefs.
& The Supreme Court in the
"Bahamas has scheduled a
'March hearing in the custody
battle over baby Dannielynn.
bA judge has barred Ms
¥Smith’s companion Howard
®K Stern from taking the child
out of the Bahamas until
Athere is a ruling.

‘International

‘investigation
into major
drug seizure

FREEPORT - Bahami-
an and US authorities
have launched an interna-
tional investigation in con-
nection with a major drug
seizure at the container
port which resulted in the
discovery of $4 million
worth of cocaine.

Atcbrding to Supt Basil
Rahming, the illegal drugs
were discovered on Friday
wfoid 230pri during a
search of a 40-foot con-
tainer that arrived
onboard the Mediter-

tyanean Shipping Company
wessel, Yokohama, from
- Drug officers found two
darge blue bags packed
behind two Fiat cars. On
searching the bags, the
pfficers retrieved 132 kilos
of cocaine. The container
was in transit to Rio de
Janeiro, Brazil.

Mr Rahming said offi-
cers interviewed the ship’s
captain and crew, but no

rrests were made. The
illegal drugs were flown
by OPBAT helicopter to

, New Providence.

'



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WEDNESDAY,
FEBRUARY 28TH

6:30am Community Page 1540AM

8:00 Bahamas @ Sunrise

9:00 Bullwinkle & Friends

9:30 King Leonardo

10:00 . International Fit Dance

10:30 Real Moms, Real Stories,
Real Sawvy

11:00 Immediate Response

noon ZNS News Update












1:00 Legends: Paul Thompson

2:00 Island Lifestyles

2:30 Turning Point

(3:00 Paul Lewis

3:30 Don Stewart

4:00 The Fun Farm

5:00 ZNS News Update

5:05 Andiamo :

15:30 The Envy Life

6:00 Tourism Today Special

6:30 . News Night 13

7:00 Bahamas Tonight

8:00 Gillette World Sports:
Featuring Tonique Williams
Darling

8:30 Caribbean Passport

9:00 . Labour Speaks :

9:30 Fight For Life: Bangladesh

Caribbean Newsline

News Night 13

The Bahamas Tonight

Immediate Response

1:30am Community Page 1540AM






























NOTE: ZNS-TV 13 reserves the

right to make last minute
programme changes!





FOR 3 IN 1 LAWN SERVICE



Immediate Response Cont'd

more’ Claim that Anna Nicole’s Horizons

ome on market for $10 million

ANNA Nicole Smith’s home, Hori-
zons on the Eastern Road, is on the
market for $10 million, a Nassau
lawyer claims.

The luxury home, which changed

hands for only $950,000 last year, has »

rocketed ten-fold in value in six
months, according to attorney God-
frey ‘Pro’ Pinder.

And in another six months, the |

property could be worth $20 million,
Mr Pinder added.

His astonishing claims came during
Fox TV’s Greta van Susteren show,
when Mr Pinder floated the idea that
the house and its gardens could
become an Anna Nicole Smith muse-
um. ;

The house, with its fine swimming
pool and Greco-Roman statues, was
once owned by hotel developer Ron
Kelly, the man behind the $90 million

refurbishment of the British Colo-.

nial Hilton.

Anna Nicole and her attorney-
companion Howard K Stern moved
in last summer looking for peace and
quiet, but attracted only controversy
and strife.

The house was sold by liquidators
for $950,000 in a deal which has now
become the subject of litigation
before the Bahamas Supreme Court.

Ben Thompson, a South Carolina
realtor, claims he lent Anna Nicole
the money to buy the house on con-
dition it was repaid in instalments.

Anna Nicole claimed, however,
that Mr Thompson, a former lover,
gave her the property. He later
accused her of “double crossing”
him.

In the aftermath of Ms Smith’s
death earlier this month, Horizons

-_has become a tourist attraction and

the centre of almost constant atten-

- tion from the international press.

Mr Stern is said to be still living

@ SIR Lynden Pindling
(AP Photo)

Bahamians inducted into
Civil Rights Walk of Fame

TWO Bahamians, the late Bahamas Prime Minister Sir Lyn-
den Pindling and actor Sir Sidney Poitier were inducted into the
Civil Rights Walk of Fame in Atlanta this week.

Sir Lynden and Sir Sidney were inducted along with singer
Tony Bennett and the late boxer Joe Louis.

According to the Associated Press, this is the fourth group to
be inducted into the Walk of Fame in the plaza of the Martin
Luther King Jr National Historic Site near downtown Atlanta.

The walk, established in 2004, now includes 50 pairs of foot-
prints, marked in granite, from people who organisers call the
"foot-soldiers" of the civil rights movement.

The walk is a partnership between the Trumpet
Awards Foundation, the organisation that recently honoured
Prime Minister Perry Christie, and the National Parks

Service.

Poitier did not attend the ceremony because of a scheduling
conflict, but he travelled to Atlanta last weekend to be induct-
ed and instead of Sir Lynden, his widow Dame Margurite Pin-

dling had her footprints marked.

Other inductees this year include Atlanta Mayor Shirley
Franklin, civil rights attorney Frankie Muse Freeman, Atlanta
physician Dr Otis Smith, US Rep Maxine Waters, D-California,
Richmond, Va, mayor and former Virginia Governor Douglas
Wilder and civil rights activist Jean Childs Young.

Past honorees include media mogul Ted Turner, former Pres-
ident Jimmy Carter, legendary baseball player Henry "Hank"
Aaron, and performer's Stevie Wonder, Harry Belafonte and

Lena Horne.






Mi SIR Sidney Poitier
(AP Photo/Metropolitan



idence, named ‘Horizons’...



there with Anna Nicole’s baby, Dan-
nielynn, whose guardianship is also
the subject of court action in Nas-
sau.









Photo Service)

THE gate of Anna Nicole Smith's former res-
(AP Photo/Christine Aylen)

Yesterday, a Nassau realtor said
Mr Pinder’s appraisal might be wide
of the mark.

Though the Anna Nicole factor

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could add value to the property,
neighbouring homes of similar size
usually sell for between $1 million
and $3 million, the source said.






SANE

:
PAGE 6, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



2 __—_—< << __—— a

Energy projects, o

ff-shore

finance and the Bahamas

() N A trip to Flori-
da this past week-

end, I picked up several
magazines as a resource for
this column. By chance,
three of them featured sto-
ries that were relevant to the
Bahamas. —

Power from the Ocean

The first was'an article in
The Futurist about a project
by Florida Atlantic Univer-
sity — located just down the
road from my hotel — on
the Gulf Stream's potential
to produce electricity.

The university has a $5
million grant to research
technology to generate elec-
tricity from the Gulf Stream
current that flows from the
Caribbean to Greenland —
between Florida and the
Bahamas — at a top speed
of about four knots.

Florida's electricity use is
expected to rise by 30 per
cent over the next decade,
and the state is heavily
dependent on imported
sources of energy. That's
one reason why there has
been so much interest in bas-
ing liquified natural gas
plants at Bimini and



Freeport (to pipe imported
gas across the Gulf Stream
to Florida power stations).
But this new project will
use tidal current turbines to
generate power in much the
same way that land-based
windmills do — in the form
of an offshore underwater
'wind' farm. Since water is
denser than air, even slow-
moving currents can exert
great force on a turbine,
meaning that smaller rotors

can be used to keep costs |

down. The blades turn slow-
ly in the water and do not
pose a threat to marine life.

A 9-foot diameter proto-
type; turning at 30 revolu-
tions per minute, has already
been tested, producing 22
kilowatts of power. The goal

' is to have a field of 3,520

units in place, each about
100 feet in diameter and sus-
pended 200 feet below the
ocean’s surface, The entire

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IN | Royal Bank
LUX@ CO) MOTE el-]

TOUGH CALL

LARRY SME

field will produce 8.44:

gigawatts, almost a fifth of
the state's present consump-
tion.

The research will exam-_

ine the cost and logistics of
running electrical cable from
the turbines to shore —
about 10 miles — as well as
the impact on coral reefs and
fish populations of running
the cable ashore.

France already has an
active tidal power station off
Brittany that produces 240
megawatts. A $20 million
tidal turbine generator ts
under construction in New
York's East River. And the
British installed the world's
first open-sea tidal turbine
off the coast of Devon three
years ago. It operates via
remote control and will
eventually produce 300
megawatts — enough to
power 8,000 homes. Experts
say 10 tidal power stations
around the coast could sup-
ply 20 per cent of the UK's
electricity needs.

The research grant (FAU

is one of six Florida univer- -

sities that are receiving
funds) is provided by the
state under the 21st Century
Technology, Research and
Enhancement Act. FAU is
working with a variety of
government agencies, pow-
er companies, technology
companies and marine
research groups.

"This funding will lead to
the establishment of a world-
class centre that will revolu-

‘tionize future energy pro-

duction on our planet,” said
Dr. Larry F. Lemanski, vice
president for research at
FAU. “We are very excited
about developing these inno-
vative, energy-producing
technologies, and we have
put together a strong part-
nership base composed of
industrial, academic and
government partners."

This is a technology that
could power the entire
Bahamas at a competitive
cost — saving hundreds of
millions of dollars in fuel
costs alone. And our total

power consumption is only
a fraction of Florida's.

The State of Solar
Related to this (in some
ways) was an article in Solar
Today magazine on devel-
opments in renewable ener-
gy over the past 20 years.
The most startling fact
was that by 2050 the addi-
tional power needed to sat-
isfy global demand will con-
sume the entire production
of 20,000 new large electric
power plants — each gener-
ating 1,000 megawatts.
Obviously, this magazine



duce steam that turns a tur- -

bine to generate electricity,
currently costs about 11
cents per kilowatt-hour in
the US. It is used in utility-
scale plants in several Amer-
ican states, which are sup-
plemented by natural gas
that generates a quarter of
the output. ,
Projects are now under-
way in the Middle East,
North Africa, Europe and
Latin America. Spain hopes
to generate 500 megawatts
from concentrating solar
power by 2010, and
China is considering a



“Florida's electricity use is
expected to rise by 30 per
cent over the next decade,
and the state is heavily
dependent on imported
sources of energy. That's
one reason why there has
been so much interest in
basing liquified natural gas
plants at Bimini and

Freeport.”



is in favour of using solar
power to meet this rapidly
rising demand. And it
reports that the cost of solar
electricity has dropped in the
US from several dollars to
less than 25. cents per kilo-
watt-hour over the past 20
vears, Through better man-

‘ufacturing, more efficient

devices and'new materials,
the industry expects to cut
that cost to less than 6 cents
within the next two decades.
The current cost of elec-
tricity in Nassau is about 27
cents per kilowatt-hour, but
solar equipment remains
expensive to import and
install. The government is
working on an energy policy
that may introduce incen-
tives to make such installa-
tions more cost-effective.
Concentrating solar pow-
er, which usés special mir-
rors to focus. the sun's ener-
gy on piped water to pro-

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1000 megawatt plant that
could cost more than $2 bil-
lion.

The magazine also report-
ed that the cost to produce
wind energy has dropped
from 40 toas little as 4 cents
per kilowatt-hour at the best
sites. The challenge here,
experts say, is transmission
since most people don't live
in the windiest places. So
researchers are developing
lower-speed turbines and
looking at ways to place
wind farms offshore.

"Much remains to be
accomplished before renew-
able electricity (can form) a
significant part of our energy
supply," the magazine con-
cluded. "More than ever,
policy makers, industry
interests and renewable
energy advocates must work
together to create the equi-
table policies and robust
markets that will make them
available to serve every
house and building."

Perhaps the best recent
example of such collabora-
tion is California Governor
Arnold Schwarzenegger's
10-year, $3.2 billion, solar
incentive programme, which

‘has the goal of installing

3,000 megawatts of photo-
voltaic power on the equiva-
lent of a million roofs
around the state. This
requires the industry to
increase the current installed
capacity six-fold.

The programme includes
financial incentives and mar-
keting campaigns as well as
writing solar technology into
the state's energy code. The
tax and cash incentives can
cover up. to half of the cost
of a solar system.

. We should be sg lucky in
the Bahamas.

OFCs - Good for the
Global Economy?

The Economist featured
a 14-page special report on
offshore finance — in which
the single reference to the
Bahamas was as one of a
group of tax havens that
were blacklisted by the
OECD in 2000.

Meanwhile, competitors



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.

Share your news

like the Cayman Islands,
Bermuda, Jersey, Singapore
and Dubai were cited for
diversifying into more
sophisticated businesses —
focusing on hedge funds,
captive insurance, deriva-
tives and other forms of
structured finance.

The magazine identified
three big problems for
today's globalised economy:

"Money moving instantly
and anonymously across bor-
ders can benefit terrorists,
drug traffickers and rogue
nations in need of cash.

"Footloose capital trans-
mits not just tainted money
but financial crises too,
(because) it is increasingly
difficult to understand where
financial risk lies. .

"Highly mobile financial
flows may take tax revenues
with them, (which) is partic-
ularly serious for rich coun-
tries with aging populations
that they will have to sup-
port in retirement."

So - since the 1990s - the
countries that control the
world's banking system have
been pushing for a stronger
regulatory regime to guard
against the undesirable
effects of financial globali-
sation: "The idea is to prod
financial centres worldwide
to adopt best practice on
bank supervision, the collec-
tion of financial information
and the enforcement of
money-laundering rules."

That's why we had to pass
all those financial laws in a
big rush seven years ago.
The alternative was to be
shut out of the international
banking system.

And recently, Barack
Obama, the African-Ameri-
can Democratic presidential
candidate, introduced a Bill
to prevent tax havens like
the Bahamas from draining
the US Treasury of $100 mil-
lion a year — a third of the
US budget deficit.

But The Economist thinks
tax competition is healthy
because, like all monopolies,
governments tend to become
bloated and competition
encourages high-spending
governments to change. And
after the regulatory vres-
sures of the past cesade,
supervision in most otfshore
centres is as good as iu :s
onshore, the magazine says.

While some offshore cen-
tres continue to be mainly
repositories of the cash of
large companies, rich indi-
viduals and rogues, others
(like Jersey, Bermuda and
Cayman) have become
sophisticated, well-run finan-
cial centres in their own
right, with expertise in nich-
es like structured finance
and insurance, according to
The Economist.

"Although international
initiatives aimed at reducing
financial crime are welcome,
the broader concern over
OFCs is overblown. Well-
run jurisdictions of all sorts,
whether nominally on — or
offshore — are good for the
global financial system."

Well, that's good news for
the Bahamas Financial Ser-
vices Board. Now if our
lawyers, accountants and
bankers could only provide
the kind of sophisticated ser-
vices offered by smaller:
competitors like Bermuda
and Cayman things would be |:
really looking up.

What do you think? Send
comments to

larry @tribunemedia.net

Or visit
www.bahamapundit.com













WZ

-

SF
THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 7



BPSU
president
FROM page one

ing, he said.

Mr Pinder suggested that

workers expect industrial
matters to be resolved before
the end of the government’s
mandate.
' Additionally, he argued
that the upcoming elections
allow workers the opportu-
nity to be more easily heard,
as governments prefer quiet
and industrial peace, rather
than discord, during these
times.

Mr Pinder stated: “This is
political season and we
expect for these matters to
be resolved before the
House is dissolved — from the
government standpoint.

“From a non-governmen-
tal standpoint, where persons
feel as if the government
could get involved and cause
resolution to come to out-
standing issues, they are now

making sufficient noise so’ :

the government could realise
it’s important to have mat-
ters addressed before they
go into a general election.”

Mr Pinder lamented the
current state of discord
before the election.

He said: “I hate to know
that it is the political season
and the voting’ population
has to look at the amount of
industrial unrest that is tak-
ing place in the country to
make their decision. It
should be that — whichever
governing party is in place —
they have performed to the
expectations of the people to
get re-elected.

“But, when they are not
performing up to the peo-
ple’s expectations, the unrest
Starts to happen — and they
lessen their (the governmen-
t’s) chances of being re-elect-
ed.”

Though resolution has
been reached with the prison
officers, and the Nurses
Union, disputes are still
pending with the road traffic
workers, the managers at
Baha Mar and the Teacher’s
Union, which is threatening a
strike that could cripple the
educational system, if their

dispute is not resolved quick-

ly. '



FROM page one

seriously.

Speaking with The Tribune, legal rep-
resentative of Save the Bahamas Fred
Smith said it is time that Bahamians realise
that the environment is the one resource
that will provide all the economic oppor-
tunities for future generations.

“We cannot understand how they (the
political. parties) can permit the environ-
mental destruction that is continuing. Over
the last five years more and more non-gov-
ernmental organisations, home owners
associations and other international envi-

LOCAL NEWS

Environment

ronmental organisations have been speak-
ing out about the rape of the Bahamian
environment.

“We cannot understand why neither the
FNM, nor the PLP have not passed an
environmental protection Act,” he said.

Mr Smith said that in his opinion the
newly-formed Ministry of Energy and
Environment has done little to promote
such an Act. He said he considers the min-
istry “a joke.”

Without laws in place to preserve. the



country’s natural resources, he said, it is
unclear in which manner the ministry is
regulating and enforcing the protection of
the environment.

“The ministry has no teeth. We are pass-
ing every other piece of legislation except
an environmental protection Act,” he said.

Mr Smith also expressed disappointment
in the Ministry of Energy.and Environ-
ment for granting new licences this week to
allow for the exploration for oil on the
Bahamian ocean floor.

“Oil exploration, the destruction of our
mangroves and the total destruction of all

of the creeks throughout the east end of

Grand Bahama, all the environmental sav-
agery that has been allowed. to happen
must stop,” he said. :

Mr Smith added that it cannot be that

Bahamians are “just going to sell our
nation in the short term for quick bucks to
be earned by foreign real estate agents and
developers.
, “It is time we took the environment seri-
ously and Save the Bahamas challenges
the voters of the Bahamas, all 150,000 of
them, to challenge each prospective rep-
resentative, both on the PLP and FNM
tickets, to commit to the environment,” he
said.









Contractor concerns FROM page one

FROM page one

that this sham stops.” It was claimed that the Ministry and Min-
ister Neville Wisdom were “going to end up with a bad name.”
The ‘source predicated that “serious controversy is going to

erupt soon due to this matter.”

The Tribune over the past several months has been reporting
allegations of poor workmanship by contractors in subdivisions
such as Excellence and Dignity Gardens, and Pride Estates.

Residents of those subdivisions said that in some instances their
houses deteriorated severely within weeks of being occupied.

Complaints included uneven floors, cracked tiles, damaged cab-
inets, dented doors, unconnected faucets, leaking pipelines, and

severe water damage.

Earlier this month Minister Wisdom urged all new home-
owners to bring their complaints directly to him.

Industrial unrest avoided

FROM page one

er in Eleuthera Properties Ltd.,
the company developing the first
Bahamian owned and operated
resort on the scale of the Cotton
Bay Estates and Villas.

In an unprecedented move
last year, the Royal Bank of
Canada invested $2 million in
the Cotton Bay development, a
first in the bank’s nearly centu-
ry-long presence in The
Bahamas and the Caribbean.

Investment Minister Vincent
Peet said the investment should

_ prove to be a catalyst, noting

that it realized an equity part-
nership between a commercial
bank and the largest domestic
investor in the country’s prima-
ry industry.

And at the beginning of this
year, the developers announced

that Phase I of the development

will open a few months later
than originally announced.

The opening of Cotton Bay’s
73-room resort was scheduled
for May or June 2007, but
Eleuthera Properties Chairman
Franklyn. Wilson disclosed that it
is‘ now-slated ‘to take place in
November.

Mr Wilson made the

announcement during a contract
signing event for the installation
of water and sewerage in the
first phase of the project.

Yesterday, The Tribune spoke
to the managing director of the
project who explained the cur-
rent position on the industrial
unrest.

According to Mr Steen-
bakkers: “Last Friday there was
a little bit of a glitch with the
bank’s processing of the payroll,
but all of these issues were
resolved yesterday.”

Mr. Steenbakkers said that
at the moment all 120 construc-
tion employees were at work.

Asked if he foresaw any
future problems with the work-
ers on the project, he said that
on projects as large as Cotton
Bay challenges are expected.
“But this was just an isolated
incident where everything has
been resolved,” he said.

Cotton Bay’s Phase I will
comprise two and three bed-
room villas, 114 estate lots and a
26,000-square foot clubhouse.

Future phases will include an
18-hole championship golf
course, wellness centre/
spa, additional real estate devel-
opment and an expanded mari-
na.







ACK
_

Minister Roberts also said
he will donate part of his par-
liamentary pension for the
benefit of the Bain and
Grant’s Town Constituency
and other charitable causes.

Mr Roberts will not be
seeking re-election to the

FROM page one

Contacting the union on Monday, labour officials
pushed for a meeting this week, said Mrs Poitier
Turnquest, however due to her current ill health it
has been postponed to next week.

Depending on the outcome of this meeting, BUT
officials will decide whether to go ahead with the
strike vote, which has been in the pipeline for about
two weeks, said the union president.

If a strike vote is taken, up to 800 teachers coun-
try-wide could leave the classroom.

Teachers have been protesting for several weeks
about numerous long-standing issues relating to

their salaries and status.

These include undelivered backpay, lack of
reassessment for those with additional qualifica-
tions, and monthly rental allowances which have

FROM page one

expressed its opinion that the
time had come to end the litiga-
tion over Defendant’s extradition:
‘The fact of the matter is. that
Samuel Knowles has reached the
end of the road. He and his coun-
sel (and the respondents’ coun-
sel) have fought a long hard fight,
and with considerable credibili-
ty. But it is over. No extra time is
allowed.’”

Furthermore, the response
seeks to nullify Knowles’ claim
that his extradition was unlawful,
due to his having a writ of habeas
corpus outstanding. The United
States contends that the language
of the Supreme Court which stat-
ed that the habeas corpus was
“doomed to fail” and had “less
chance of success that (sic) the
proverbial snowball in Hell,”
unambiguously affirmed the
legality of the extradition.

“Were I to accede to this appli-








Pensioners to see increase

House of Assembly in the
general elections.

Mr Roberts said he came to
the House of Assembly as a
seasoned and successful busi-
nessman who made provisions
in advance for his eventual
retirement.

He said whatever his enti-
tlement is under the contrib-
utory Parliamentary Pensions
Act “will be a bonus which I
shall use in part for the bene-
fit of the constituency of Bain
and Grant’s Town and other
charitable causes.”

BUT officials are set

to meet with director
and minister of labour

gone unpaid for up to six months.
Teachers in both Grand Bahama and New Prov-
idence, claiming to be “at the end of their tether"

with the ministry, have been involved in disruptive

demonstrations and sick-outs.

They allege that negligence on behalf of the min-

ship. >

istry has left many suffering severe financial hard-

In the meantime, Education Minister Alfred Sears

Ninety

cation, it would allow Knowles to
carry on with this impossible task.
After, perhaps another two or
three year’s delay, he would have
ended up. in the same place. I
could order his return to the juris-
diction but in three years, time
after the appeals have been done
he would be back in Miami,” said
the document, quoting a decision
of the Supreme Court.

According to the response, the
Minister of Foreign Affairs’ sign-
ing of the Warrant of Surrender
further bolsters the United States’
claim to jurisdiction with regard
to the extradition treaty, as well as
the Government’s lack of protest
to it.

Judge John Cohn, who heard
Knowles’ appeal for dismissal
Thursday, did not make a ruling
on the issue, but deferred and

said he wouid return later with.,

The management and staff of

_C.A. Christie Real Estate
would like to take this
occasion to congratulate

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email: sales@cachristie.com

\

has stated that "extraordinary measures" are being
taken to ensure teachers receive outstanding pay
and reassessments expeditiously. ,



lm SAMUEL ‘Ninety’ Knowles

his decision.

Knowles’ case is being expe-
dited as swiftly as possible by the
federal government because “it
is an aged case” and “the court
finds that the ends of justice
served by the granting of a con-
tinuance (of trial) outweigh the
best interest of the public and the
defendant in a speedy trial.”



















PAGE 8, WEDNESDAY, FEBRUARY:28, 2007

THE TRIBUNE '



Poverty, gender equality among topics

addressed during Population Fund visit

REDUCING poverty,
improving the quality, and
establishing gender equality in
the Bahamas were among the
topics addressed during the vis-
it of the United Nation’s Popu-
lation Fund (UNFPA) repre-
sentative to the Bahamas this
week.

The UNFPA representative
for the English and Dutch-
speaking Caribbean Harold
Robinson has wrapped up a
three-day familiarisation visit
to the Bahamas by meeting with
representatives of key govern-
ment and non-governmental
agencies. ©

Mr Robinson’s visit is expect-
ed to boost UNFPA’s assistance
in the area of gender and devel-
opment in the Bahamas.

Mr Robinson said the over-
all objective of the current
UNFPA Country Programme
in the Caribbean is “to con-
tribute to the reduction of
poverty and to improve the
quality of life of the people of
the region by promoting sexual
and reproductive health and
rights; gender equality and equi-
ty and by integrating popula-
tion ‘related factors into
development strategies and
plans.”

Phedra Rahming of the Min-
istry of Social Services and offi-
cer-in-charge of the Bureau of
Women’s Affairs, described Mr
Robinson’s visit as “quite sig-
nificant.”

She explained that as a result
of the visit the Bahamas should
soon be seeing some assistance
from UNFPA in the area of
gender and development.

“We are very hopeful that in
the ensuing months, we are
going to formalise an agreement
and begin some work beginning
with a needs assessment
throughout our islands and the
preparation of a report and cer-

tainly moving towards the
establishment of a gender poli-
cy for the country,” Mrs Rah-
ming said.

One of the drawbacks facing
local officials in getting UN
assistance in the past, she said,
was that the UN had no estab-
lished programmes in the
Bahamas prior to 2007.

She said that the Bahamas
never qualified for the pro-
grammes “because we are
viewed to be so far up the scale
that no one was considering us.”

“What has happened for the
most part and particularly in
the government agencies is that





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we are so accustomed to hear-
ing that we can’t qualify
because it is done on a per capi-
ta basis and because we are
viewed to be so far up the scale,
no one considered us,” Mrs
Rahming said.

Prior to Mr Robinson’s vis-
it, the Ministry of Social Ser-
vices set up strategic meetings
with various entities through-
out the community.

As a result of these meetings,
it is expected that Bahamians
will see more of the non-gov-
ernmental organisations. as well
as government entities putting
forth proposals to UNFPA

“The Bureau of Women’s
Affairs will definitely be seeking
their assistance and I believe
there are some other NGOs
who have said they will do so as
well,” Mrs Rahming added.

UNFPA has provided sup-
port to the Caribbean since
1969 and remains the largest
international source of popula-
tion assistance.

The fund has provided more
than $40 million to govern-
ments, non-governmental
organisations and civil societies,
in support of programmes and
projects at both the national and
regional levels.



@ THE activities continued on Saturday with a step show at St John’s College - featuring BEC’s
group (pictured).

Junior Achievement works in partnership with businesses and educators to help young people
understand the economics of life.

t

! SE



Esso campaign raises $32,000

for hospital foundation

ll SURROUNDED by the Esso team, PMH Foundation members and PMH officials, foundation



chairman Myles Munroe accepts a cheque from Keith Glinton, Esso’s country manager
(Photo: BIS/Kristaan Ingraham)

ESSO’s ‘Help Us Help’ cam-
aign last year raised more than
32,000 for the Princess Mar-

garet Hospital Foundation.

“This creative partnership
made it possible for individuals
in the community to contribute
to the mission of the Princess
Margaret Hospital Foundation
by purchasing fuel from the par-
ticipating Esso stations,” Foun-
dation chairman Myles Munroe
said.

“Funds from the programme
will be used to purchase much-
needed medical equipment to
assist in pediatric care at
Princess Margaret Hospital,
mainly the children’s ward, the
neonatal intensive care units
and the special care baby units,”
he added.

Mr Munroe said the PMH
Foundation wil continue to

promote creative partnerships
with companies and pro-
grammes, such as Esso’s ‘Help
Us Help’, to strengthen the lev-
el of service provided by the
hospital.

The PMH _ Foundation
“thanks all who contributed
unselfishly to the success of the
programme,” said Mr Munroe,
mainly the Esso dealers and
employees, the media and all
who made Esso their choice
during the programme.

A percentage of fuel pur-
chased at participating Esso sta-
tions raised $32,248 in contri-
butions to the programme.

“The ‘Help Us Help’ pro-
gramme allows the driving pub-
lic the opportunity to contribute
to something significant with-
out going through tremendous
effort,” said Esso’s country

manager Mr Keith Glinton.

“We provide the mechanism
and they actually make the deci-
sion to contribute. Anything we
can do to increase the likeli-
hood of those solutions grow-
ing to fruition is very, very nec-
essary.”

Mr Glinton commended the
PMH Foundation for affording
his company an opportunity to
partner with them and assured
them that, as long as they have
the continued support of their
station operators, Esso will do
its best to continue to con-
tribute.

“The united partnership
between Esso and the Princess
Margaret Hospital Foundation
has proven that miracles can
happen through partnership and
community efforts,” Mr
Munroe added.

pgs

me SS

SA SF.
THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 9









90 to work at
children’s home

AS A way of helping the less fortunate, the
Royal Bahamas Defence Force has been involved
in performing myriad tasks with several charita-
ble organisations.

The harbour unit section of the squadron
department visited Bilney Lane Children’s Home,
where they were busy painting and cleaning the
building.

Although it was for just a few days, the marines
planned on making more frequent visits to resi-
dents there, with the hope of doing minor main- a

tenance work. :

The operations section of the Defence Force
visited Unity House, East Street South, where
they also performed charitable work. The marines
removed debris from the property.

_ LEFT: Leading Seaman Leon Pearson paints
the walls of Bilney Lane Children’s Home during
a recent visit.

(RBDF photo by Leading Seaman
Jonathan Rolle)














@ MAR)

im the operations section prepare to discard old wheelchairs at Unity House, East



B® DEFENCE Force marines take a break while performing charity work at Bilney Lane Children’s
Home.

Street South. 'y were at the residence engaged in charitable work.

(RBDF photo by Leading Seaman Mark Armbristér)

Late environmentalist’s
dream to be kept alive
through scholarship

(RBDF photo by Leading Seaman Jonathan Rolle)



FAMILY and friends of the
late noted environmentalist
Ethan Bain have established
a memorial scholarship foun-
dation as a way of keeping his
spirit and love for The
Bahamas’ environment alive.

Through the foundation,
students and professionals can

begin or continue their work in’

the environmental health sci-
ences while helping The
Bahamas to keep its islands
clean as a desirable resort for
national and international vis-
itors.

“The Bahamas is extremely






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increasing field of destination
selection,” said Mrs Janice
McCants Miller, foundation
vice-chairman.

Students and career profes-
sionals will be awarded schol-
arships either to begin pursu-
ing environmental studies or
to upgrade their credentials in
this field. The foundation aims
to serve as an effective tool in
attracting individuals to envi-

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Officers and members of the
foundation’s executive and
selection councils have’ been
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award recipients, expand the
donor database, establish a
website and identify projects.

“We are extremely satisfied






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INDEPENDENT AUDITORS’ REPORT
To the Shareholder of The Bank of Nova Scotia International Limited
Report on the consolidated balance sheet

We have audited the accompanying consolidated balance sheet of The Bank of Nova Scotia International
Limited (“the Bank”), as of October 31, 2006, which includes a summary of significant. accounting policies
and other explanatory notes.

Management's responsibility for the consolidated balance sheet —

Management is responsible for the preparation and fair presentation of this 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 this consolidated 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
consolidated balance sheet is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated balance sheet. The procedures selected depend on the auditor's judgment, including the
assessment of risks of material misstatement of the consolidated balance sheet, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation
and fair presentation of the consolidated balance sheet 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 consolidated balance sheet. ‘
é
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 position of
The Bank of Nova Scotia International Limited as of October 31, 2006, in accordance with International
_ Financial Reporting Standards. :

The corresponding figures as of October 31, 2005 were audited by another firm of Chartered Accountants
and their report thereon, dated February 20, 2006, expressed an unqualified ‘opinion.

KPMG

Chartered Accountants

Nassau, Bahamas
February 23, 2007

THE BANK OF NOVA SCOTIA INTERNATIONAL LIMITED

Consolidated Balance Sheet

October 31, 2006, with corresponding figures for 2005
(Expressed in United States dollars)



Note 2006 2005
($'000s) ($'000s)
Assets
Deposits with Central Banks : $ 157.881 170,798
Deposits with banks
Affiliate 1,814,681 1,941,864
Other 1,956,698 1,717,016
3, 19(a)(c)(e) 3,929,260 3,829,678
Loans and advances to customers 4 10,342,239 6,078,750
Accrued income
Affiliates : 29,160 ; 16,139
_ Other 167,563 99,521
Derivative financial instruments 18 126,073 111,652
Investments 5, 19(a)(c)(e) 8,027,704 7,360,591
Assets under repurchase agreements 19(a)(c)(e) 2,250,818 1,890,962
Insurance balances receivable. 13 25,790 17,057
Investment in associates . 645 809
Other assets 6 298,047 66,449
Deferred tax asset - 283
Fixed assets : 50,953 28,338
Investment property 8 , 4,188 3,685
Goodwill 7 6,138 8,138
$ 25,258,578 19,512,052
Liabilities and Equity
Liabilities
Deposits
Affiliates $ 5,971,247 3,882,266
Other 7,256,886 5,395,680
9, 19(a)(c)(e) 13,228,133 9,277,946
Accrued interest payable
Affiliates . 29,272 21,633
Other i 86,703 37,139
Due to : : .
Affiliates ; 295,622 2,124
Other 35,436 -
Derivative financial instruments : 18 + 245,944 255,334
Obligations related to repurchase agreements 19(a)(c)(e) 2,240,004 1,868,479
Obligations related to trading securities sold short i 1,043,601 1,069,451
Insurance liabilities 13 99,360 78,098
Other liabilities 10, 16 563,615 146,482
Tax liabilities 11,960 5,431
Debt securities in.issue 25,314 -
Equity linked note : ll. 747,957 720,508
Redeemable preference shares held by Parent Bank 15 : 59,260 59,260
Total liabilities 18,712,181 13,541,885
Equity
Share capital 14 2,792 © 2,792
Share premium 1,466,559 1,466,559
Contributed surplus 299,748 299,748
. Statutory reserves 14 7,058 . 5,728
Retained earnings 4,667,240 4,092,340
Equity attributable to equity holders of the parent 6,443,397 5,867,167
Minority interest 12 103,000 103,000
Total equity 6,546,397 5,970,167
» $25,258,578 19,512,052

See accompanying notes to consolidated balance sheet.
This balance sheet was approved on behalf of the Board of Directors on February '23, 2007 by the following:

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Director





Notes to Consolidated Balance Sheet

October 31, 2006
(Expressed in United States:dollars)



1. Reporting entity

The Bank of Nova Scotia International Limited (the ‘Bank’) is incorporated under the Companies Act,
1992 of the Commonwealth of The Bahamas and is licensed under the Banks and Trust Companies
Regulation Act, 2000. The Bank is a wholly owned subsidiary of The Bank of Nova Scotia (the ‘Parent
Bank’), a company incorporated in Canada. The registered office of the Bank is located at Scotia House,
404 East Bay Street, Nassau, The Bahamas. The primary activities of the Bank and its wholly owned
subsidiarics (cogether the ‘Group’) are offshore wholesale banking, retail and commercial banking, the
provision of trust, corporate and administrative services, and insurance.

The Bank nas operations in over 11 countries... As at October 31, 2006, the Group employed
approximat


IHE |RIBUNE

2. Basis of preparation and significant accounting policies ,

(a) Statement of compliance

The Bank's consolidated balance sheet has been prepared in accordance with International Financial
Reporting Standards. The accounting policies have been applied consistently to all periods presented
in the consolidated balance sheet and have been applied consistently by Group entities.

(b) Basis of measurement

The consolidated balance sheet has been prepared under the historical cost convention as modified

by the revaluation of certain financial assets and financial liabilities and derivative contracts to fair
value.

(c) Functional and presentation currency

The consolidated balance sheet is presented in United States dollars (USD), which is the Group’s

functional currency. Except as indicated, financial information presented in USD has been rounded
to the nearest thousand.

(d) Use of estimates and judgements

The preparation of the consolidated balance sheet requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts
of assets and Jiabilities and disclosure of contingent assets and liabilities at the balance sheet date.

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 judgements in
applying accounting policies that have the most significant effect on the amount recognized in the
consolidated balance sheet is described in notes 4,7, 13, 16, 18 and 21.

(e) Adoption of changes in IAS and IFRS

~

In December 2003 and March 2004, the IASB approved amendments to a number of existing
standards as a result of the Improvements project and issued several new standards. The objective:
of the Improvements project were to reduce or eliminate alternatives, redundancies and conflict:
within the standards, to deal with some convergence issues and to make other improvements.

On November 1, 2005, the Group adopted the revised versions of IFRS and IAS that were effective a
January 1, 2005 as described below: ;

o IAS 24 — Related Party Disclosures — has affected the identification of related parties and som«
other related party disclosures.

e JAS 39— Financial Instruments: Recognition and Measurement

As part of the Improvements project IAS 32 and IAS 39 were significantly amended. The
amendments became effective for periods beginning on or after 1 January 2005. Corresponding
information was adjusted in accordance with LAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors to ensure the appropriate accounting policies are applied within each
period. ; ‘

The amended IAS 39 introduced a new category of financial instruments (i.e. financial assets and
financial liabilities at fair value through profit or loss). Under the amended IAS 39, designation
of any financial assets or financial liability at fair value through profit or loss is made upon initial
recognition at the Group’s discretion.. The Group shall not reclassify a financial instrument into
or out of the fair value through profit or loss category while it is held or issued. However,
transitional provisions to IAS 39 allowed the Group a one time opportunity to designate a
previously recognized financial asset or financial liability as a financial asset or financial liability
at fair value through profit or loss despite the requirement to make such designation upon initial
recognition. The Company. designated certain investments previously classified as available-for-
sale to fair value through profit or loss due to accounting mismatch.

At November: 1, 2005 certain investments in debt, other fixed income and other securities with
carrying amounts and fair values of $3,285 million were designated at fair value through profit or
loss. In the consolidated balance sheet as of October 31, 2005 these investments were classified
as available-for-sale. ;

Designation of all equity investments at fair value through profit or loss at November 1, 2005 did
not result in any adjustment to their carrying amounts.

(f) Principles of consolidation

The consolidated balance sheet includes the accounts of the Bank and its subsidiaries afte:
elimination of all significant intercompany accounts, transactions and profits. Subsidiaries are those
companies in which the Group has more than one half the voting rights or otherwise has the power to
exercise control over the financial and operating policies. ,

Subsidiaries are consolidated from the date on which control is transferred to the Group and are no
longer consolidated from the date that control ceases. Where necessary, accounting policies of the
subsidiaries have been changed to ensure consistency with the policies adopted by the Bank.





The financial statements of the subsidiaries used in the preparation of the consolidated rat
have been drawn up to October 31, except for Scotia Insurance (Barbados) Limited, wh¥>
are drawn up to.September 30. Adjustments are made for the effects of any significam. S.as or
intra-group transactions that occur between September 30 and the date of the Bank's consolidated

balance sheet.

The Bank owns 100% of the voting shares of the subsidiaries in all cases, with the exception of
Corporacion Interfin S.A. which the Bank owns 99.99% of the voting shares.

The Bank's subsidiaries at October 31, 2006 are as follows:

NAME COUNTRY OF INCORPORATION
BNS Bermuda Limited Bermuda
BNS International (Barbados) Limited Barbados . ‘
BNS International (Panama) S.A. The Republic of Panama
BNS Pacific Limited —- Mauritius
“Corporacion Interfin S.A. Costa Rica
Scotiabank (Bahamas) Limited The Bahamas
Scotiabank Caribbean Treasury Limited The Bahamas

Scotiabank (Belize) Ltd. Belize

Scotiabank (British Virgin Islands) Limited British Virgin Islands
Scotiabank (Hong Kong) Limited Hong Kong
Scotiabank (Ireland) Limited The Republic of Ireland

Scotiabank (Turks and Caicos) Ltd. The,Turks & Caicos Islands
Scotia Corredores de Seguros S. A. Dominican Republic |
Scotia Insurance (Barbados) Limited Barbados

Scotia Insurance de Puerto Rico The United States of America

Scotia Realty Cayman Limited The Cayman Islands
Scotia South America Limited The Bahamas

The Bank of Nova Scotia Asia Limited The Republic of Singapore
The Bank of Nova Scotia Trust Company

(Bahamas) Limited : The Bahamas,

(g) Investments in associates

Investments in -associates are accounted for by the equity method of accounting. Associates are
entities over which the Group generally has between 20% and 50% of the voting rights, or over
which the Group has significant influence, but which it does not control. Unrealized appreciation on
transactions between the Group and its associates are eliminated to the extent of the Group’s interest
in the associates; unrealized depreciation is also eliminated unless the transaction provides evidence
of an impairment of the assets transferred.

(h) Translation of foreign currencies

Items included in the financial statements of each entity of the Group are measured using the
currency that best reflects the economic substance of the underlying events and circumstances
relevant to that entity (the “functional currency”). The consolidated balance sheet is presented in
U.S. dollars which is the functional and presentation currency of the Bank.

Statements of operations and cash flows of foreign entities are translated into the Group's
presentation currency at average exchange rates for the year and their balance sheets are translated at
the exchange rates ruling on October 31,

(i) Originated loans and the provision for loan impairment

Loans originated by the Group by providing money directly to the borrower or to a sub-participation
agent at draw down are categorized as loans originated by the Group and are stated at their principal
amount net of unearned interest and allowance for credit losses. Third party expenses, such as legal
fees, incurred in securing a loan are treated as part of the cost of the transaction.

All loans and advances are recognized when cash is advanced to the borrowers. Loan origination and
associated fees that are material to the Group are recognized over the appropriate lending or
commitment period.

A specific credit risk provision for loan impairment is established to provide for-management's
estimate of credit losses as soon as the recovery of an exposure is identified as doubtful. The amount
of the provision is the difference between the carrying amount and the recoverable amount, being the
estimated present value of expected cash flows, including amounts recoverable from guarantees and
collateral, discounted at the original effective interest rate of loans. In the case of loans to borrowers
in countries where there is an increased risk of difficulties in servicing external debt, an assessment
of the political and economic situation is made, and additional country risk provisions are established
as necessary.

A provision for loan impairment is also established to cover losses that based on experience are
judged to be present in the lending portfolio at the consolidated balance sheet date, but which nave
not been specifically identified as such. This provision is based on an analysis of internal credit
gradings allocated to borrowers, refined to reflect the economic climate in the markets in which the
Group operates.

When a loan is deemed uncollectable, it is written off against the related provision for iinpairments,
subsequent recoveries are credited to the provision for loan losses.

If the amount of the impairment subsequently decreases due to an event occurring atter the write
down, the release of the provision is credited as a reduction of the provision for loan losses.

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(j) Investments

The Group has classified its investments into the following categories: available-for-sale, fair value
through profit and loss, and held-to-maturity. Investments are. classified as available-for-sale if
management intends to hold the investments for an indefinite period of time, but may sell the
investments in response to needs for liquidity or changes in interest rates, exchange rates, or equity

prices. Investments are classified as fair value through profit and loss if they are acquired principally
for the purposes of generating a profit from short-term fluctuations in price or dealers’ margin or if
they are so designated at the time of acquisition. Investments with fixed maturity where management
has both the intent and the ability to hold to maturity are classified as held-to-maturity. Management
determines the appropriate classification of its investments at the time of purchase. Effective
October 1, 2005, the Bank availed itself of the transitional provisions under LAS 39 (revised 2004)

and designated all of its investments previously recognized as available-for-sale to fair value through
profit and loss.

All regular way purchases and sales of investments are recognized on the trade date, which is the
‘date that the Group commits to purchase or sell the asset. Investment securities are initially
recognized at fair value (which includes transaction costs). Fair value through profit and loss
investments are subsequently remeasured at fair value based on quoted bid prices or amounts derived
from valuation techniques, e.g. discounted cash flow models.

Held-to-maturity investments are carried at amortized cost, less any provision for impairment. A
financial asset is impaired if its carrying amount is greater than its estimated recoverable amount.
The amount of the impairment loss for assets carried at amortized cost is calculated as the difference
between the asset’s carrying amount and the present value of expected future cash flows discounted
at the financial instrument's original effective interest rate. By comparison, the recoverable amount
of an instrument measured at fair value is the present value of expected future cash flows discounted
at the current market rate of interest for a similar financial asset.

(k) Fixed assets

Fixed assets are stated at historical cost less accumulated depreciation. With the exception of land,
all fixed assets are depreciated on a straight-line basis over their estimated useful lives, for material
subsidiaries, as follows:

Leasehold improvements Over the term of the lease, plus | renewal term

Office equipment Between 3-5 years

Office furniture and fixtures Between 3-10 years

Motor vehicles Between 3-5 years

Fixed assets are periodically reviewed for impairment. Where the carrying value amount of an asset
is greater than its estimated recoverable amount, it is written down immediately to its recoverable
amount. Gains and losses on disposal of fixed assets are determined by reference to their carrying
amount. All repairs and maintenance costs are expensed as incurred and all major renovation costs
are capitalized. : ,

(qd) Investment property

All property held to generate cash flows independent of the other assets held by the Bank, have been
classified as investment property.

Investment property is reflected at cost less accumulated depreciation and accumulated impairment
losses, if any. Depreciation is provided on the following basis:

Buildings and equipment
Building improvements
Tenant improvements

Depreciated between 20 - 40 years on a straight-line basis.
Amortized over the estimated useful life of the building.
Amortized over the remaining term of the lease.

All repairs and maintenance costs are expensed as incurred and all major renovation costs are
capitalized.

(m) Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired
at the date of acquisition and subsequent to the date of acquisition, is recorded at cost less any
accumulated impairment losses. Goodwill is not amortized but is subject to impairment testing on at
least an annual basis. If there is any indication of impairment, an analysis is performed to assess
whether the carrying amount of goodwill exceeds its fair value either through use or recoverability. Fair
value through use is measured as the present value of future net cash flows.

(n) Pensions

Group companies have various pension schemes in accordance with local conditions and practices in
the countries in which they operate.

Costs relating to defined benefit schemes are assessed in accordance with the advice of qualified
actuaries. Variations from the regular cost are spread over the average remaining service lives of
existing employees.

The Group's contributions to defined contribution plans are charged to the period to which they
relate.



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ashe ¢ momen LL: 9 ' look wl iegory AQ ol Gye eBid ciao é
* 'Securities sold’ With’ an agreement to repurchase, continue to be recognised in the consolidated
balance sheet and are reported as assets under repurchase agreements which are measured in
accordance with the accounting policy for investment securities. The proceeds and securities
received from sale of the investments under repurchase agreements are reported in the consolidated
balance sheet as obligations related to repurchase agreements. Securities purchased with an
agreement to resell (reverse repurchase agreements) are reported in the consolidated balance sheet as
loans and advances to customers. The difference between the sale price and repurchase
consideration is recognised on an accrual basis over the period of the transaction.

(p) Derivative financial instruments

Derivative financial instruments are used predominantly by the subsidiaries in Ireland, Asia, and
Hong Kong. Derivative financial instruments, including foreign exchange contracts, interest rate
futures, forward rate agreements, currency and interest rate swaps, currency and interest rate options
(both written and purchased) and other derivative financial instruments, are initially recognized in
. the consolidated balance sheet at fair value and subsequently are remeasured at their fair value. Fair
values are obtained from quoted market prices, discounted cash flow models and options pricing

models ‘as appropriate. All derivatives are carried as assets when fair value is positive and as
liabilities when fair value is negative.

Certain derivatives embedded in other financial instruments, such as the conversion option in a
convertible bond, are treated as separate derivatives when their risks and characteristics are not
closely related to those of the host contract and the host contract is not carried at fair value.

Certain derivative transactions, where providing effective economic hedges under the Group’s risk
management policies do not qualify for hedge accounting under the specific rules in IAS 39. Changes

in the fair yalue of any derivative instrument that does not qualify for hedge accounting under LAS 39
are recognized immediately.

(q) Reinsurance contracts and actuarial liabilities
Reinsurance contracts
(i) Classification

Contracts entered into by the Group whereby one party (the “reinsurer”) accepts significant insurance
risk from another party (the “reinsured”) by agreeing to compensate the reinsured if a specified
uncertain future event (the “insured event’) adversely affects the reinsured are classified as reinsurance
contracts. The significance of insurance risk is dependent on both the probability of an insurance event
and the magnitude of its potential effect. ;

(ii) Recognition and measurement
(a) Reinsurance contracts assumed

Gross premiums written are recognized as income when due. Unearned premiums are the portion
of premiums written which relate to coverage provided subsequent to the balance sheet date.

Claims are recorded as incurred. Loss reserves represent estimates of future payments of reported
and unreported claims and related expenses with respect to insured events that have occurred up
to the balance sheet date,

Ceding and expense allowances payable are recognised on the same basis as gross premiums
written.

(b) Reinsurance contracts ceded
The Company assumes and cedes insurance risk in the normal course of business.

The obligations of a reinsurer under reinsurance contracts ceded are recognised as reinsurance
balances receivable or payable. Reinsurance balances are measured consistently with the
insurance liabilities to which they relate. :

Reinsurance premiums ceded and related ceding fee income are recognized when due.
Reinsurance claim recoveries are established at the time of the recording of the claim liability.

Actuarial liabilities

Actuarial liabilities are calculated using methods and assumptions considered to be appropriate to the
circumstances of Scotia Insurance (Barbados) Limited (‘SIBL?) and to the policies in force. They
include a provision for losses incurred but not reported and represent the amount, which, in the opinion
of SIBL's actuaries, is required to provide for future benefits on policy contracts reinsured by SIBL.

(r) Cash and cash equivalents

Cash and cash equivalents comprise deposits with original maturities of less than 3 months from the
acquisition date.

(s) Fiduciary activities

Assets held of liabilities incurred together with related undertakings to return such assets to customers
or any collateral or other security arrangement entered into by the Group are excluded from the

consolidated balance sheet where the Group acts in a fiduciary capacity such as a nominee, trustee or
agent.

3.

WEDNESDAY, FEBRUARY 28, 2007, PAGE 11

RASTA RETO Pe. PAE: HER te OY ee ae

|
(t) Taxation and deferred income taxes
The Bank is not subject to taxation in The Bahamas. However, the Bank’s subsidiaries operate in
multiple jurisdictions and are subject to taxation at varying rates.

Deferred taxation is provided using the balance sheet liability method, providing for temporary
differences between the carrying amount of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes. Temporary differences arising from the initial recognition of assets
or habilities that affect neither accounting nor taxable profit are not accounted for. The amount of
deferred tax provided is based on the expected manner or realization or settlement of the carrying
amount of assets and liabilities, using tax rates enacted or substantially enacted at the consolidated
balance sheet date.

A deferred tax asset is recognised only to the extent that itis probable that future taxable profits will be
available against which the unused tax losses and credits can be utilized. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realized.

(u) Offsetting financial instruments

Financial assets and liabilities are offset and the net amount reported in the consolidated balance sheet
when there is a legally enforceable right to set off the recognized amounts and there is an intention to
settle on a net basis, or realize the asset and settle the liability simultaneously.

(vy) Impairment
(i) Financial assets

A financial asset is considered to be impaired if objective evidence indicates that one or more events
have had a negative effect on the estimated future cash flows of that asset.

An impairment loss in respect of a financial asset measured at amortized cost is calculated as. the
difference between its carrying amount, and the present value of the estimated future cash flows
discounted at the original effective interest rate. An impairment loss in respect of an available-for-sale
financial asset is calculated by reference to its current fair value.

Individually significant financial assets are tested for impairment on a individual basis. The remaining
financial assets are assessed collectively in groups that share similar credit risk characteristics.

An impairment loss is reversed if the reversal can be related objectively to an event occurring after the
impairment loss was recognized.

(ii) Non financial assets

The carrying amounts of the Group’s non-financial assets, are reviewed at each reporting date to
determine whether there is any indication of impairment. Jf any such indication exists then the asset’s
recoverable amount is estimated. For goodwill and intangible assets that have indefinite lives or that are
not yet available for use, recoverable amount is estimated at each reporting date.

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 largely are independent from other assets and groups. Impairment losses are recognized
in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill
allocated to the units and then to reduce the carrying amount of the other assets in the unit (groups of
units) on apro rata basis.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, 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
assets 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.

Cash and cash equivalents

EE SET RS EE REE ETS AYP ERE PS TE ROP TSE SEES EE EE





Vn ys cee ee Nd = 7 i 7 2006 2005
($’000s) ($’000s

Deposits with banks and Central Banks $ 3,929,260 3,829,678

Less:

Deposits with original maturity dates greater than

3 months from the acquisition date : (399,586) (377,060)

Mandatory deposits with Central Banks (29,023) «(25,468)
$ 3,500,651 3,427,150

Originated loans

Originated loans can be analyzed as follows:

TE TR TSE TE SRE TAGS TP SS ER PY SS TS ES



Pp z= ude Note 2006 2005
($’000s) ($’000s)
Consumer g' "593,178 401,545
Mortgage 1,076,211 760,157
Commercial 8,050,126 4,850,396
Other 87S 9T4 101,038
20(a)(c)(e) 10,385,489 6,113,136
Provision for loan impairment (see below) (43,250) (34,386)



$ 10,342,239 6,078,750

Proyision for loan impairment
ec Ct ee
2006 2005
($'000s) « — ($'000s)

Balance at beginning of year $ 34,386 37,427
Write back of specific provisions : (24,093) (11,976)
Amounts charged for loans written off (2,951)
Provision for loan impairment during the year 32,878 11,854
Exchange adjustment s : EF bo patitc, i LOPES, crept eis



$43,250 34386



HART ECE PR CREED BT SURAT EEE

Provisions for loan impairment are estimates that may change in the short-term. Management believes
that the amounts provided will be adequate to cover any losses due to impairment of the related. assets,
but the actual amount of loan losses will be affected by various future events and may vary materially,
from the amounts provided. ‘The aggregate amount of loans and advances included in the consolidated
balance sheet, which are classified as non-performing is $74,608 million (2005: $93.927 million).
Investments: ;





2006 2005

($'000s)—~—«$"000s)



Available-for-sale — at fair value







Debt, other fixed income and other securities” $ ~ 3,273,488
Jnvestment in mutual funds = 11,427
~ 3,284,915
Fair value through profit and loss — at fair value
Debt, other fixed income and other securities 7,918,572 3,790,644
Investment in mutual funds 5,818 =
7,924,390 3,790,644
Held-to-Maturity — at amortized cost
Debt and other fixed income securities 103,314 285,135
Less provision for impairment pet Pee? seen a)
103,314 285,032
Total investments 8 8,027,704 7,360,591
The movement in investinents may be summarized as follows:
Vair value 2006 2005
Available- through Held-to- Total Total

for-sale profit and loss___ maturity _($’000s)__($"000s)

At beginning of yeat $ 3,284,915 3,790,644 285,032 7,360,591 7,593,619
Reclassifications (Note 2e) (3,284,915) 3,473,043 (188,128) -
Exchange differences 16 - 76 40,429
Additions . - 2,389,963 35,485 2,425,448 3,685,350

Disposals (sale and redemption) (1,702,189) (29,075) (1,731,264) (3,990,267)

Gains/(losses) from changes

in fair value (27,387) (27,387) 31,131
Provision for impaiiment 240 240 329
Atend of year $ 7,924,390 103,314 8,027,704 7,360,591
aeancanncmasd cn iat Zs on annem nae



Investment securities include securities with a carrying value of $829:246 million (2005: $1,218,529
million) that have been pledged as collateral for securities borrowed





Other assets
ot oe 20062005
($'000s) ($'000s)
. Cheques in transit $ 43,587 45,018
Other 254,460 21,431
fe ee ee ee - $ 298,047 66,449



AANA ne SES ES RHC ow

4
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ae re ey a eee ee nee eae eee
PAGE 12, WEDNESDAY, FEBRUARY 28, 2007

7. Goodwill :

Goodwill is analyzed as follows:





2006 —__2005,

($'000s) ($'000s

Balance beginning of period a $ 8,138 8,138
Impairment value (2,000) -
$ 6,138 8,138



Upon completion of the impairment test, the Company determined that the unamortized goodwill of $8.138
million, relating to the purchase of a private book of business, was impaired under the new fair-value-based
impairment testing methodology. In testing impairment, management calculated the present value of future
net cash inflows of the private book of business, using the current year’s results discounted at a rate of 10
percent. Revenues were projected to decrease due to the departure of a number of clients, while expenses
were projected to increase annually by 3 percent due mainly to the increase in salaries.

8. Investment property

The estimated fair value of the building and improvements is $12.230 million (2005: $11.647 million)
based on independent valuation appraisals, performed in 2002, adjusted for inflationary factors.

Investment property is leased to subsidiaries within the Group and to third parties. aie income from
subsidiaries within the Group has been eliminated on consolidation.

9. Deposits

Deposits comprise:





2006 -_ 2005

($°000s) ($’000s)
Deposits by banks $ 7,939,448 5,976,445
Customer accounts 5,288,685 3,301,501



$ 13,228,133 9,277,946

10. Other liabilities





2006 2005 _

($’000s) ($’ 000s)

Cheques in transit : $ 54,446 32,529
Unsettled trades 1,229 21,182
Accrued expenses and other 507,940 92,771
: $ 563,615 146,482

11. Equity linked note

On 30 November 2001, the Bank issued a non-interest bearing equity linked note (ELN) with an initial
value of $498.099 million to St. Lawrence Trading Inc., maturing on 30 November 2016. The Bank is
authorized to issue an aggregate additional amount of up to $102 million. The value of the ELN is equal to
the aggregate equivalent value of the equity interests in a basket of funds managed by Global Asset
Management Limited. At October 31, 2006, the cost of the ELN was $578.021 million (2005: $578.320
million) with a fair value of $747.957 million (2005: $720.508 million). The Bank entered into total return
swaps with Scotiabank (Ireland) Limited to hedge its exposure against unfavorable market movements of
the basket of funds. The Bank’s obligations under the ELN are fully guaranteed by the Parent Bank. The
Bank pays a guarantee fee of 10 basis points on the net asset value (NAV) of the basket of investment
securities to the Parent Bank. The fee is accrued monthly and is paid quarterly.

Under the ELN agreement, the Bank earns a service fee of 0.5% of the amount by which the reference assets
NAV exceeds the Purchaser Put Share Value, as defined in the ELN wzreement. The fee is accrued monthly
and maid at each annivocca-y of the issue date and on the maturity date.

edglaady PUPS EI. Se

Oh 25 January 2002, Scotiabank (Ireland) Limited (‘SIL') acquired 83% of the equity of Drake Investments
Limited for total cash consideration of $500 million. SIL's investment in Drake represents 70% of the
outstanding voting shares at the consolidated balance sheet date.

13. Insurance activities : i

Balances and transactions related to insurance activities are summarized below:



- Note 2006 2005
($’000s) ($’000s)

Insurance balances receivable $ 25,790 17,057
; ,

Actuarial liabilities (a) $ 92,711 74,704

Insurance balances payable 6,649 3,394

Insurance liabilities : $ 99,360 78,098
; ;

(a) Actuarial liabilities
hs ennennenee















Unearned Loss and Total
Premium other actuarial
vt Reserve reserves liabilities
($’000s) ($’000s) ($’000s)
Balance at October 31, 2004 $ 17,743. ' 59,128 76,871
Normal decrease for new and existing policies (355) (6,765) (7,120)
Foreign currency translation . 1,121 3,832 4,953
Balance, at October 31, 2005 ; 18,509 56,195 74,704
Normal decrease for new and existing policies 7,960 6,570 14,530
Net actuarial liabilities assumed 779 1,887 "2,666
Net actuarial liabilities recaptured (66) : (994) (1,060)
Foreign currency translation ; 602 1,269 1,871
Balance at October 31, 2006 a ae, DT geA 64,927 92,711
ence SE sess anh
14. Share capital and statutory reserves
2006 2005
($’000s) (S 000s)
Authorized:
Ordinary shares of US$1 each ‘ $ 3,500 3,500 |

Issued and fully paid

Ordinary shares of US$1 each 2,792 2,792

In accordance with local regulations Scotiabank (Belize) Ltd. and Scotiabank (Turks and Caicos) Ltd. are
required to establish a statutory reserve fund equivalent to 25% out of net profits for the year until the
amount of the reserve is at least equal to the fully paid up and outstanding share capital.

15. Redeemable preferred shares

1 6 SS TS ST SF SSS SESS SY it TE TEST ARERR





2006 2005
($'000s) ($° 000s)
Authorized:
7Â¥2% non-cumulative participating redeemable
Series A preferred shares of US$1 each $ 10,000 10,000
10% non-cumulative participating redeemable
Series B preferred shares of US$1 each 500 500
642% non-cumulative participating redeemable
Series C preferred shares of US$1 each : 51 5]
$ 10,551 10,551

SSA SSDS ss ese ney

Issued and fully paid:
7'2% non-cumulative participating redeemable

Series A preferred shares of US$1 each $ 10,000 10,000
10% non-cumulative participating redeemable
Series B preferred shares of US$1 each 493 493

62% non-cumulative participating redeemable
Series C preferred shares of US$1 each =



10,493 10,493





Share premium account:
Premium on .ssue of redeemable sicienied shares 48,767 48,767
$59,260 ___ 59,260

Sa eTRRRREERATOSNEEDN SF = We:



16.

1

—

18.

THE TRIBUNE *

The redeemable preferred shares rank in priority to the ordinary shares of the Bank in the event of a
dividend distribution, Each series of preferred shares ranks equally in all respects except for the dividend
rate accrued thereon ‘ ;

The preferred shares are redeemable in whole or in part by the shareholder by notice in writing sixty (60)
days prior to the redemption date.

In the event of liquidation, dissolution or winding up of the Bank, the holders of the redeemable preferred
Shares shall be entitled to receive the amount paid up thereon together with all dividends declared and
unpaid to the date of distribution before any amounts shall be paid or any assets or property of the Bank

distributed to the holders of the ordinary shares. The holders of the redeemable preferred shares shall not be
entitled to share in any further distribution of the property or assets of the Bank.

Pensions

The Bank and its subsidiaries operate a number of defined benefit and defined contribution plans on behalf
of its employees. ‘

The primary pension plan is offered by the Parent Bank. ‘his plan is a defined benefit plan and
participation by employees is non-contributory. The contributions to the plan are made by the Parent Bank
on an ongoing basis to keep the plan fully funded. The assets of the plan are held in separate trustee
administered funds and the pension plan is funded by payments from corporate headquarters taking account
of recommendations of independently qualified-actuaries. The most recent actuarial valuation of the plan
was at 1 November 2003 and based on that independent valuation, the plan was fully funded, All actuarial
‘information relating to this scheme can be found in the consolidated financial statements of the Parent Bank.
Subsidiaries participating in the primary pension plan include BNS International (Barbados) Limited,
Scotiabank (Bahamas) Limited, Scotiabank (Belize) Ltd., Scotiabank (British Virgin Islands) Limited.,
Scotiabank (Turks and Caicos) Ltd., Scotia Insurance (Barbados) Limited,‘and The Bank of Nova Scotia
Trust Company (Bahamas) Limited.

Defined Benefit Pension Schemes

Certain-subsidiaries of the Bank not participating in the primary pension plan operate independent defined
benefit pension schemes.

SIL operates a defined benefit pension scheme. The scheme is fully funded and the assets of the scheme are
held in a separate trustee administered fund. The most recent independent actuarial valuation of the scheme
was at 1 November 2005. The principal SO in these valuations were that investment returns would

“match annual salary increases.

Major assumpuons

SS SS SSRs SSS SS SSS



bith ; = 2006 2005
Rate of general increase in salaries 4.00% p.a. 4.00% p.a.
Rate of inedical benefit inflation (8% p.a. for next 2 years) 4.50% p.a. 4.50% p.a.
Rate of increase in monetary cap applying to increases
lo pensions in payment 0.00% p.a. 0.00% p.a.
Discount rate for scheme liabilities 4.60% p.a. 4.50% p.a.
Inflation rate 2.25% p.a. 2.25% p.a.

The expected long term rate of returns and market value of the assets of the scheme at October 31, 2006
were as follows:

2006 2006 2005 2005
Market value Expected long Market value’ Expected long
Term rate of - term rate of





Return a return
($’000s) ($’000s)
Equities $ 9,046 7,00% 6,858 6.80%
Bonds 1,463 3.5% 1,415 3.3%
Property, 1,192 5.00% 934 4.8%
Total market value of scheme’ assets 11,701 6.36% 9,207 6.06%
Actuarial value of pensions and benefits (14,233) (12,180)
Actuarial value of medical liabilities (802) : (617)



Net retirement benefits liability ad $ (3,334) ~ (3,590)

Net retirement benefits liability is included in the consolidated balance sheet in other liabilities.

Movement in deficit during the year
oe





2006 2005
($'000s) ($°000s)
Deficit at beginning of year + ‘8 80k $ (3,590) (2,996)
Movement in year: au : hood
Foreign currency movements (164). 140
Current Service cost (723) (585)
‘Past service cost (9) (8)
Contributions 734 504
Other finance cost (20) (22)
Actuarial gain/(loss) 438 (623)
Deficit at end of year ‘ ; $ (3,334) (3,590)

Detined Contribution Pension Schemes ; ;
Subsidiaries operating defined contribution plans include Scotiabank (Bahamas) Limited, Scotiabank
(British Virgin Islands) Limited, Scotiabank (Hong Kong) Limited, Scotia Realty Cayman Limited, The
Bank of Nova Scotia Asia Limited, and The Bank of Nova Scotia Trust Company (Bahamas) Limited. The
plans are operated subject to the provisions of the respective subsidiary’s local regulations.

Defined Contribution Pension Schemes (continued)

Scotiabank (Bahamas) Limited, Scotiabank (British Virgin Islands) Ltd. and Scotiabank (Turks and Caicos)
Lid. also participate in a defined contribution plan established by the Parent Bank covering some of their
employees. As of October 31, 2006, this plan is fully funded. :

. Global employee share ownership. plan

Certain subsidiaries of the Bank participate in the Global Employees Share Ownership Plan (GESOP) of the
Parent Bank, which allows employees to contribute a percentage of their annual salary to the. GESOP. The
contributions are used to purchase shares in the Parent Bank, on the Toronto Stock Exchange at prevailing
market prices. The employer matches a stated percentage of the employees’ contributions and these vests
with the employees after a stated period of participation in the GESOP.

Derivative financial instruments

In the normal course of business, and in order to meet the financing needs of its customers and its Parent
Bank, the Group is party to financial instruments, which involve, to varying degrees, elements of credit and
interest rate risk in excess of the amount reflected in the consolidated balance sheet. The Group mitigates
the risks associated with such financial instruments by transacting only with well-established, high credit
quality ‘financial institutions, including its Parent Bank. The notional amounts represent the amount to
which a-rate or price is applied to determine the amount of cash flows to be exchanged. Notional amounts.
do not necessarily indicate the amounts of future cash flows involved or the current fair value of the
instruments, and therefore do not indicate the Group’s exposure to credit or price risks. The tables below
give the nolional amounts of derivative financial instruments.

‘The Group uses the following derivative financial instruments:

Currency and interest rate swaps are commitments to exchange one set of cash flows for another. Swaps
result in an economic exchange of currencies or interest rates or a combination. No exchange of principal
takes place. The Group's credit risk represents the potential cost to replace the swap contracts if
counterparties fail to perform their obligation. This risk is monitored on an ongoing basis with reference to
the current fair value, a portion of the notional amount of the contracts and the liquidity of the market. To
control the level of credit risk taken, the Group assesses counterparties using the same techniques as for its
lending activities.

Credit default swaps are bilateral financial contracts in which one counterparty (the ‘Protection Buyer’)
pays a periodic fee, typically expressed in basis points on the notional amount, in return for a contingent
payment by the other party, the ‘Protection Seller’, upon the occurrence of one or more specified credit
events with respect to a third party, the ‘Reference Entity’. A credit event is commonly defined as
bankruptcy, insolvency, receivership, material adverse restructuring of debt, or failure to meet payment
obligations when due.

Equity and equity index swaps ate agreements between two parties-in which at least one party pays
periodic amounts of the same currency or a different currency based on the performance of a share of an
issuer, a basket of shares of several issuers, or an equity index. The other party makes a payment that can be
computed in any other agreed way.

‘Total return swaps are agreements between two partics in which one party pays cither a single amount or
periodic amounts based on the total return on one or more loans, debt securities or other financial
instuuments (each a "Reference Obligation") issued, guaranteed or otherwise entered into by a third party
(the "Reference Entity") calculated by reference to interest, dividend and fee payments and any appreciation
in the market value of each Reference Obligation, ‘The other party pays cither a single amount of periodic
amounts determined by reference to a specified notional amount and any depreciation in the market value of
each Reference Obligation. A total return swap may (but need not) provide for acceleration of tts
termination date upon the occurrence of one or more specified events with respect to a Reference Entiiy or a
Reference Obligation with a termination payment made by one party to the other calculated by reference to
the value of the Reference Obligation.

Currency forwards represent. commitments to purchase foreign and domestic currency, including
undelivered spot transactions. Currency forwards call for a cash settlement ata future dite for the
difference between a contracted rate of foreign currency and the current foreign currency rate, based ona
nouonal principal amount.

Forward rate apreements are individually negotiated interest rate futures that call for a cash sett ment at
a future date for the difference between a contracted rate of interest and the current market rate, based on a

notional principal amount
ot owt er gray

pene”

7 ww

ewe et

THE TRIBUNE

Foreign currency and interest rate options are contractual. agreements under which the seller grants the
purchaser the right, but not the obligation, either to buy or sell at or by a set date or during a set period, a
specific amount of a foreign currency ‘or a financial instrument at a predetermined price. In consideration
for the assumption of foreign exchange or interest rate risk, the seller receives a premium from the
purchaser. Options may either be exchange traded or negotiated between the Group and a customer.

ae Fair Values
Notional
Amount Assets Liabilities
($'000s) ($'000s) ($'000s)
As at October 31, 2006
Derivatives held-for-trading
Interest rate swaps $1,632,079 $ 40,343 1,128 ©
Currency, total return and equity swaps 1,604,707 66,897 224,506
Foreign exchange contracts 115,207 1,609 20,108
Options 1,114,592 11,592 -
Futures 300,051 51 -
Credit default swaps — protection bought . - - 200
Credit default swaps — protection sold 749,314 5,581 2
$126,073 245,944
Fair Values
Notional
Amount Assets Liabilities
. ($'000s) ($'000s) ($'000s)
As at October 31, 2005
Derivatives held-for-trading
Interest rate swaps 48,683 3,568 3,299
Currency, total return and equity swaps 3,581,675 31,137 196,145
Foreign exchange contracts 44,045 1,277 932
Options 1,103,000 9,475 328
Credit default swaps — protection bought, 250,000 2 3
Credit default swaps — protection sold - cos 16
. Futures contracts 423,563 66,193 54,611
: 111,652 255,334

Included in interest rate swaps balance is a commitment in the amount of $19,000 million (2005: $18.982
million) in respect of interest rate swap contracts entered into by BNS Asia with the Parent Bank.

19, Financial risk management

The Group engages in transactions that expose it to various types of risk in the normal course of business.
These risks include credit, market, currency, interest rate, liquidity and fiduciary risk. The Group’s financial
performance is dependent on its ability to understand and effectively manage these risks.

(a) Credit risk

The Group takes on exposure to credit nsx which is the risk that a counterparty will be unable to pay
amounts in full when due. Concentration of credit risk may arise from a variety of circumstances
including counterparties with similar economic characteristics or geographical locations. The ability of
such counterparties to meet contractual obligations would be similarly affected by changing economic,
political or other conditions. '

The Group’s credit disciplines are based on a division of authority, a centralized credit review system, a
committee system for dealing with all major exposures and periodic independent review by the audit
department. /
The Group uses a risk rating system to quantify and evaluate the risk of proposed credits and to ensure
appropriate returns for assuming risks. A policy of lending to top quality corporations is pursued.

The table below. summarises the Group's exposure based upon the geographical distribution of
significant financial assets and liabilities at the consolidated balance sheet date:

Lann North

Asia Europe America America Caribbean Other Total
(Expressed in thousands of
dollars)

October 31,2006
Deposits with banks and 430,933 1,683,291 - 282,864 733,536 762,098 36,538 3,929,260

central banks
Loans and advances to

customers (gross) 1,585,704 1,135,458 1,404,939 2,480,626 3,399,038 379,724 10,385,489
Investments 1,242,416 1,839,290 52,105 2,729,781 1,862,415 301,697 8,027,704
Assets under repurchase - 1,129,383 - 1,030,799 - 90,636 2,250,818

agreements
Deposits 2,981,223 3,076,985 1,195,327 1,304,853 4,413,208 256,537 13,228,133
Obligations related to - 2,237,568 - ® - 2,436 - 2,240,004

repurchase agreements : ; :
October 31, 2005
Deposits with banks and .

central banks 328,828 1,840,310 82,189 714,738 "861,592 2,021 3,829,678
Loans and advances to :

customers (gross) 930,490 180,055 393,345 2,052,931 1,046,595 1,509,720 6,113,136
Investments 1,128,570 1,260,086 16,355 3,405,516 1,226,997 323,067 7,360,591
Assets under repurchase

agreements : - 1,890,962 > > - - 1,890,962
Deposits 2,337,874 2,279,217 172,655 977,039 3,270,240 240,921 9,277,946
Obligations related to

repurchase agreements - 1,868,479 - - - - 1,868,479

: (b) Market risk

Market risks arise from open positions in interest rate, currency and equity products, all of Which are
exposed to general and specific market movements. Management constantly monitors market risk by
utilising real-time market information systems.

(c) Currency risk
The Group takes on exposure to effects of fluctuations in the prevailing foreign currency exchange rates on

its financial position and cash flows. The Group enters into cross currency interest rate swaps in respect of
substantially most of its assets contracted in foreign currencies to hedge its foreign currency exposures.

The table below summarises the Group’s exposure to foreign currency exchange rate risk at the consolidated
balance sheet date. Included in the table are the Group’s significant financial assets and liabilities at
carrying amounts, categorised by currency: ;

United Hong

States Canadian British Kong Japanese

dollar Euro dollar _ Pound __ dollar Yen Other Total
(Expressed in thousands of dollars)

October 31, 2006

Deposits with banks and 3,366,230 110,836 134,897 19,685 3,495 157,566 136,551 3,929,260

central banks

Loans and advances to 7,114,015 882,965 4,786 735,400 85,773 141,579 1,420,971 10,385,489
customers (gross)

Investments 5,486,425 1,415,975 839,471 - 83,627 42,769 159,437 8,027,704

Assets under repurchase 1,266,523 984,295 - - - - - 2,250,818
agreements

Deposits 7,397,793 3,320,693 119,288 216,143 650,348 230,329 1,293,539 13,228,133

Obligations related to 2,238,180 - - - - - 1,824 2,240,004

repurchase agreements

October 31, 2005

Deposits with banks and 2,620,163 220,764 603,764 21,470 12,626 218,046 132,845 3,829,678
central banks

Loans and advances to 4,205,721 295,754 378 85,041 336,865 51,651 1,137,726 6,113,136
customers (gross)

Investments 5,669,714 742,408 550,162 26,734 88,052 94,333 189,188 — 7,360,591

Assets under repurchase 787,992 1,081,344 21,626 a - : - 1,890,962
agreements

Deposits ‘ 5,225,788 2,077,179 154,701 137,275 436,166 295,098 951,739 9,277,946

Obligations related to
repurchase agreements 1,868,479 - - - - - - 1,868,479

The table above does not necessarily reflect the currency exposure in the categories listed as currency risks
are usually hedged by derivative contracts which do not meet the requirements for hedge accounting under
Intemational Financial Reporting Standards.

(d) Interest rate risk ~

Differences in maturities or re-pricing dates of financial instruments create an interest rate gap and
expose the group to interest rate risk.

Deposits placed by and with the commercial banking operations of the Group generally attract fixed
interest rates, which are repriced at market rate on maturity of the underlying asset or liability. Loans,
mortgages, overdrafts and credit card receivables generally attract interest based on market rates. The
Group mitigates its interest rate risk by matching the maturity periods of its assets and liabilities
wherever possible. Exposure is generally managed locally by currency and regularly reviewed on a
consolidated basis by executive management.

SIL represents 50% (2005: 55%) of the total assets of the group. Sensitivity analysis in this company
indicates that an iminediaté 1% rise in interest rates would give rise to a change in the mark-to-market
valuation of investments of $88 million (2005: $75 million). This analysis is based on the sensitivity of
the investment portfolio to parallel shifts in interest rates across all currencies.



WEDNESDAY, FEBRUARY 28, 2007, PAGE 13

(e) Liquidity risk

Liquidity risk arises from fluctuations in cash flows. The liquidity risk management process ensures
that the Group is able to honour all of its financial commitments as they fall due. The Group manages
liquidity using policies that include:

® measuring and forecasting cash commitments

° building a large stable base of core deposits from retail and commercial customers

° ensuring immediate availability of large pools of liquid assets to meet unforeseen
events

° diversifying funding sources

° receiving significant group and affiliate deposits that give the Bank access to

considerable funding

The relevant maturity groupings based on the remaining period at the consolidated balance sheet date to
the contractual maturity date are shown below. The maturity profiles of the asset categories do not
necessarily reflect the interest rate sensitivity of the assets.

Upto 3 months to 1 Year to Over
3 months One Year 5 Years 5 Years Total
(Expressed in thousands of
dollars)
October 31, 2006
Deposits with banks and 2,925,888 728,721 269,283 5,368 3,929,260
central banks ;
Loans and advances to 1,418,844 1,606,987 5,320,694 2,038,964 10,385,489
customers (gross) .
Investments 637,949 1,442,715 2,819,184 3,127,856 8,027,704
Assets under repurchase 25,257 340,194 734,986 1,150,381 2,250,818
agreements :
Deposits i 11,321,235 1,861,019 45,879 - 13,228,133
Obligations related to
repurchase agreements 2,240,004 . . - 2,240,004
October 31, 2005
Deposits with banks and 3,147,519 342,127 336,592 3,440 3,829,678
central banks ,
Loans and advances to 1,029,466 880,104 2,709,513 1,494,053 6,113,136
customers (gross)
Investments 690,163 750,116 2,695,216 3,225,096 7,360,591
Assets under repurchase
agreements 27,698 185,133 873,045 805,086 1,890,962
Deposits 7,905,262 , 1,158,369 214,315 - 9,277,946
Obligations related to

repurchase agreements 1,868,479 - 7 - 1,868,479

(f) Fiduciary risk

The Group provides custody, trustee, corporate administration, investment management and advisory
services to third parties which involve the Group making allocation and purchase and sale decisions in
relation to a wide range of financial instruments. Those assets that are held in a fiduciary capacity are
not included in the consolidated balance sheet. These activities give rise to fiduciary risk, which is the
risk that the Group may fail in carrying out certain mandates in accordance with the wishes of its’
clients. To manage this exposure, the Group generally takes a conservative approach in its
undertakings. At the consolidated balance sheet date, the Group had financial assets under
administration of approximately $19 billion (2005: $19 billion).

(g) Fair value of financial instruments

Fair value represents the amounts at which a financial instrument could be exchanged in an arms length
transaction between willing parties and is best evidenced by quoted market prices if one exists.

The fair value of the financial assets and liabilities of the Bank approximates their carrying value.

20. Commitments

In the normal course of business, various indirect credit commitments are outstanding which are not
reflected in the consolidated balance sheet. These may include:

(a) Guarantees and standby letters of credit which represent an irrevocable obligation to pay a third party

when a customer does not meet its contractual financial or performance obligations.

(b) Letters of credit which require the Bank to honour drafts presented by a third party when specific

activities are completed.

(c) Commitments to extend credit which represent undertakings.to-make.credit available in the form of

loans or other financings for specific amounts and maturities, subject to-specific conditions.

(d) Securities lending transactions under which the Group, acting as principal or agent, agrees to lend

21.

22.

securities to a borrower. The borrower must fully collateralize the security loan at all times.

These financial instruments are subject to normal credit standards, financial controls, and monitoring
procedures. The table below provides a detailed breakdown of the Group's off-balance sheet credit
commitments expressed in terms of the contractual amounts of the related commitment or contract:



2006 2005 __
($'000s) ($’000s)
Guarantees and irrevocable letters of credit 385,919 492,790
Undrawn standby facilities, credit lines and other + .
commitments to lend. 1,106,379 752,343
Lease and other commitments 389,177 99,108

1,881,475 1,344,241

Measurement uncertainty

SIBL is exposed to measurement risk in the determination of liabilities for future policy benefits, whicl
require assumptions to be made about the timing and amount of future events. Assumptions include best
estimates and a margin for adverse deviations to account for the risks and uncertainties involved in the
valuation process, With the passage of time, actual experience determines the adequacy of these margins

and any excess margins are released into income.

The valuation of SIBI.’s actuarial liabilities may involve the use of the following actuarial assumptions:

mortality

morbidity (i.e. incidence of disability) and recovery
incidence of unemployment and recovery

lapse or withdrawal rates

investment yields

expense levels

It is reasonably possible based on existing knowledge, that changes in future conditions in the near term
could require a change in the recognised actuarial liability amounts. Given the nature of the underlying
policies that are reinsured by SIBL and the reserving methodologies adopted generally (“group creditor-

type” policies of fairly short term duration), the impact of such a change would be immaterial ‘> *

aggregate consolidated balance sheet information in the near term.

Acquisition

‘

On the 1" September, 2006, the Bank acquired Corporacion Interfin S.A., the parent company of Banco
Interfin in Costa Rica for US$ 293.5 million. Total assets at acquisition were approximately US$1.4 billion.
The Bank has not yet completed its assessment and valuation of the assets acquired and liabilities assumed
for this transaction. As a result, the amount of purchase price in excess of carrying value of the assets and
liabilities has not been fully allocated to the acquired assets and liabilities in the Consolidated Balance

Sheet. Below are key figures for Corporacion Interfin S.A. at October 31, 2006 that have been included

_ the consolidated balance sheet:

23,

2A,

3 RES NS TANTO EEK UY RENTON REA VTS TEREST GPA OTE

Assets ($'000s)
Deposits with banks 322,041
Loan and advances to customers 959,611
Investments in securities 184,005
Other assets 42,043
Fixed assets . 20,069
Liabilities

Deposits 963,742
Other liabilities , 369.774

Related party transactions

in

The Group is a member of a group of affiliated banks and other companies and has extensive transactions
and relationships with members of the group. Related parties (affiliates) comprise the Parent Bank and
other entities in which the Parent Bank is considered to have control or exercise significant influence over
the entities’ financial or operational decisions. Balances with related parties including the Parent Bank are

disclosed as ‘affiliates’ in the consolidated balance sheet and related notes.

Reclassifications
Certain corresponding figures in the consolidated balance sheet and notes have been reclassified
conform with the consolidated balance sheet presentation adopted for the current year.

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PAGE 14, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



New water park ‘Aquaventure
is finally unveiled at Atlantis —





B ONE of the first to try out the ‘Aquaventure’ water park

ATLANTIS has unveiled its

new 63-acre waterscape, ‘Aqua-
venture’ — the centerpiece of
the resort’s billion-dollar expan-
sion.
This addition is expected to
position Atlantis as the largest
water-themed attraction in the
world, containing over 20 mil-
lion gallons of water altogether.

This non-stop water experi-
ence consists of new water
slides, a mile-long river ride
with high-intensity rapids and
wave surges, and “never-before-
seen” special effects that are
designed to add an extreme lev-
el of excitement to the overall
experience.

Aquaventure will be limited
to resort guests only until some-
time after Easter.

At that time Kerzner Inter-
national will launch a resident
access and school. programme.
Details of the resident access
and school programme will be
unveiled in the coming weeks
by George Markantonis, presi-
‘dent and managing director of
Kerzner International Bahamas.

Aquaventure takes known
water-based attractions such as
water slides, river rapids, water-

all together in a lush environ-
ment that is both immersive and
interconnected,” Kerzner Inter-
national said.

Once guests are situated in
their inner tubes and enter the
attraction, they are propelled
along by water escalators,
waves, water surges and water
coaster technology.

Unlike traditional water
slides that require the partici-
pant to leave the water and
climb back to the start, at Aqua-
venture guests never have to
leave the water as they are pro-
pelled back up the slide tower
via water conveyors.

The Power Tower is the
grand icon of Aquaventure. At
120 feet tall, the tower will offer
guests the choice of four water
slides including the ‘Abyss’, 70-
foot high, 200-foot long body
slide that starts at the top of the
Power Tower.

Other attractions featured at
the Aquaventure park will be
‘The Drop, The Falls and The
Surge’— three inner tube slides
using the “master-blaster” tech-
nology, which effectively cre-
ates roller coasters from jets of
water that propel riders up and

falls and water holes and adds
“first-of-its-kind special effects.
and technology, bringing them:

NASSAU
Robinson and Soldier Roads, Nassau, N.P., Bahamas
P.O. Box CB-12072
Telephone: (242) 394-8043 / (242) 394-8047
Pagers: 340-8043 / 340-4424 / 340-8034 » Fax: (242) 340-8034

downhill at a fast pace.



FREEPORT
11-A East Coral Road, P.0. Box F-42312
Freeport, Grand Bahama, Bahamas
Tel: (242) 373-1471 Fax: (242) 373-3005
Page 340-8043.

FULL MILITARY FUNERAL SERVICE FOR:

Police Sergeant 691

CLOIDE
GREENE, 45

of Cascarilla Street, Pinewood
Gardens, and formerly of
Mangrove Cay, Andros, will
be held on Thursday, March
Ist, 2007 at 11:00 a. m. at
Bahamas Christian Fellowship
Centre, Carmichael Road.
Officiating will be Apostle
Paul Butler, assisted by other:
Ministers. Interment will
follow in Lakeview Memorial
Gardens, John F. Kennedy Drive.



He is survived by his Wife: Ann Greene, Four Children: Lamar,
Preston, Michael and David Greene, Three Brothers: Kelly,
Sherrold, and Julius Greene, Two Sisters: ‘Laurene Saunders
and Daisy Simmons Greene, Mother-in-law: Earlene Williams,
Five Aunts: Ethel Allen, Charlotte McKenzie, Shirley Naomi
Franzel, Goergie Pennerman, and Lillian, Three Uncles: Philip,
Duke, and Adolphus Greene, Four Sisters-in-law: Rhodamae
Greene, Maxine Butler, Sandra Williams, and Birdlyn Greene,
Eight Brothers-in-law: Pastor Paul Butler, James Saunders,
George Simmons, Livingston, Oral, Wendell, Thaddeus, and
Christopher Williams, Nieces: Erica Meus-Saunders, Mary and
Monique Saunders, Stacey Saunders Kemp, and Sophie Saunders,
Desirene Pinder Edmond of Hampton, Virginia, Phyllis Moxey,
Edith Greene Bastiane, Pauline Greene of Hampton, Virginia,
Tanya Simmons, Ophelia Brown, Grethel Greene, Brenda
Lightbourne, Zettamae, Betty, and Sharon, Latoya Williams,
Kimberley McIntosh, Kayshala and Tirrez Gutierrez, Nephews:
Philip Saunders, Kendrick Pinder, Robert, Craig, Lancelot,
Andrew, Robert, and Sherrold Jr., Ronald Simmons, Drexel
McIntosh, Julius, Vincent Greene, Tedaro Edmond of Hampton,
Virginia, Eric Darling, and the Hon. Cynthia Pratt, Deputy Prime
Minister, and a host of other Relatives and Friends including:
Commissioner of Police, Paul Farquharson, A. S. P. Lennox
Major of the R. B. P. F., the S. I. B. Branch of the R. B. P. F.,
The Families of Pastor Curleane Saunders, Wilfred King, Rev.
Doreka Greene, Dorothy Greene, Cyril Greene, Minister of
Health, Bernard J. Nottage, Donnamae Greene, Moody Moxey,
Sister Davi Mary, Rose Belasco, Melva Bastiane, Calvin Sweeting,
Ronnie Outten, Sylvia Greene, Rosemary Kelly, Rosie Ingraham,
Clara Goulds, Joyus Moxey, Bishop Samuel Greene, Marilyn
Meeres, Bahamas Christian Fellowship Church Family, and the
entire Mangrove Cay, Andros Community. Special thanks to:
’ The Staff of Private Surgical Ward, P. M. H., R. Devaughn
Curling and Staff at the Oncology Consultant Western Medical,
Dr. Theodore Ferguson at Doctor’s Hospital, and Eugene Dupuch
Law School.

Viewing will be held in the “Celestial” Suite at Restview
Memorial Mortuary & Crematorium Ltd., Robinson and Soldier
Roads on Wednesday from 1:00 p. m. until 6:00 p. m. and then
again at the church on Thursday from 9:30 a. m. until service
time.

In addition to the numerous
tidal pools and entry points





oe

»
ea
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a





A PANORAMIC view of the new water park at Atlantis

along Aquaventure, guests will
have access to two fresh-water
pools — the Grotto Pool and the
largest pool at the resort, “The
Baths’, containing nearly
750,000 gallons of water and
decorated with hieroglyphic
columns and rock work struc-
tures. |

“In designing Aquaventure,
we challenged the best design-
ers, creative minds and water
ride technologists to work with
us to take the water experience
to a different level. We believe
there is something innate with-



in human beings that cause
them to react to fire and water.
We believe that enhancing
visuals and landscaping within
the experience gives guests
another energy, another layer
of excitement, a feeling that
they are in a place they've nev-
er been before,” Mr Markan-
tonis said,

Executive Chairman, Kerzn-
er International, Sol Kerzner
added, “It is simply not enough
for us to deliver new water
rides. Our goal is to redefine
the concept of a water park.”

love’ for this~~
alentine’s Day

THIS Valentine’s Day KFC
showed the love at Stapledon
School with 30 hot meals and
gifts for each student

KFC Mascot Chicky made
Valentine’s Day a memorable
event for the students with gifts
of t-shirts, backpacks, pencil
cases, and toys in addition to 30

_KFC two-piece meals.

‘98 HYUNDAI ELANTRA Best offer

KFC has been quietly sup-
porting local charities such
as the Stapledon School for
40 years, and is pleased to
continue to have had the
opportunity to celebrate
community spirit with the
incredible and amazing stu-
dents attending Stapledon

School.



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@ COMING to the end of the new attraction eee

sihiptleed truer itarsovasnscegaliveapaeantpatearaeD eeeORTOEST Gniatinens SieaggceesnesT SOS ERNER A cicsvessvecvesssseeesensssenesseserenss Fins hacen he Ggieesmeaedecay Soneaeeananet es ats, theosteaets : my

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THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 15



Internet portal launched for Nassau hotels

A NEW website has been
launched to open up new oppor-
tunities for Nassau hotels by
connecting them to various local
businesses via the internet.

NEW Providence has

become the first island in the
Bahamas to have a local city
portal to the internet for

Bahamian businesses, it was
announced yesterday.

Hotels that set
http://www.nassauportal.com as
their home page will give their
guests the opportunity to find
local businesses when they log
onto the internet.

When visitors and residents

use the Nassau portal to search
for a local businesses or other
services, premium advertise-
ments for those establishments
and companies will show up
above free listings.

The web site will also offer
select sponsorship opportunities.

‘Creators of the Nassau portal

hope to make it the premier
internet site that visitors and
residents will use when seeking
local and international news,
local real estate, medical atten-
tion, or a particular service from
a person or organisation in New
Providence.

Much like a ‘Bahamas Hand-

book’, a telephone directory or
an online newspaper, the portal
is designed to provide guidance
to users for finding local infor-
mation using electronic services.

One of the hidden bonuses
of the Nassau portal is its auto-
mated free link submission, and
free classified advertisements,

excluding real estate and auto-
mobile ads.

Using the portal, internet
users in New Providence and
Paradise Island, as well as the
entire Bahamas, will have
-access to a network of city por-
tals in North America and
across the globe. ©



Vessel Atlantis II is being

IF gee EE



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&
*.
‘e

estored to former

olory

Being brought back to life in Grand Bahama

RS

WHEN the research vessel
Atlantis II was retired by
Woods Hole Oceanographic
Institution i in 1996 the headlines
read: “The end of'an era”.

Since arriving on|the shores of
itsmiew home, Grand Bahama in
lat 2006, Atlantis II has under-
gohe a major restoration and
refit, bringing her back to life.

‘At one time the support ves-
seffor the oceanographic sub-
mersible “Alvin”, Atlantis IT is

perhaps most famous for her

role in assisting in the discov-'

ery and exploration of the
Titanic in 1986.

Now, after 70 days.in dry
dock she boasts a gleaming new
paint job and is finally back in
the water. Extensive refurbish-
ments and renovations through-
out the entire ship are almost
complete. The only thing not
being changed is the ship’s intri-
cate operating equipment, as it

is all still fully functional.

And for the first time in the
history of this epic ship she now
proudly displays her name.

When Atlantis II was being
built, another ship was being
constructed at the same time in
the same shipyard, and the
names were mixed up by ship-
yard builders who welded
“Atlantic Vision” in raised let-
ters on the hull. Although
“Atlantic Vision” was painted

over with Atlantis II, her prop-
er name, the erroneous old
raised letters were never com,
pletely removed from the vessel
until now.

With a rich 33-year history —
no other research vessel has
covered as much of the ocean —
the once ‘retired’ vessel is being
renewed from stem to stern,
and is looking world class once
again. Atlantis II is very near
ready for its next adventure.







Bes

a0 gre
ad

k
“THE International Book Sell-
er§ Association Convention
(CBA) this past week was the
venue for the official release of
the new book by Bahamian
international best selling author
My es Munroe.
fhe book, titled “The Most
Important Person on Earth”
was described by Bob Whitaker
Jr, vice-president of the pub-
lishing company Whitaker
House, as “amazing.”
‘This new book, ‘The most
yortant Person on Earth’, has
breken a number of records
alrgady, selling out its first two
print runs in the first week of its
reléase. This is amazing as most
books do not achieve this mile-
stdne until six to nine:weeks
out, This book is destined to
begome another of Dr
Mifnroe’s bestsellers and we are
proud to be his publisher,” Mr
Whitaker said. |
Whitaker House has also
negotiated an agreement with
the Bahamas Ministry of
Tourism, the Nassau Sandals
Resort and the Chez Willie
Restaurant for a special
Bahamas vacation package in.
connection with the release Mr
Mthroe’s latest book.
his package will include a
on¢:week-all-expense-paid vaca-
tion at the Sandals Resort in
Nassau and a private lunch with
the:author at the Chez Willie
five- -star restaurant.
“Zhis arrangement is the first
of its kind for the company and
the, excitement is overwhelm-
inge, said Mr Whitaker. |
Readers are asked to visit
the"web site “themostimpor-
tantpersononearth. com” to sign
up to win the vacation package.
Speaking of this newest pro-
ject Mr Munroe said:

t

om FAAP oe Le

Me Sree

- “I am very pleased and sur-
prised at the early success of
this latest work as I thought it
would not be a book that the
market would embrace so easi-

-ly, even though I was confident

that the subject matter was rel-
evant and speaks to all areas of
human need. It is my hope that

it will change lives as it did mine
when I wrote.”

Mr Munroe has authored
over 40 books, many of which
have become best sellers and
still maintain record sellers
positions in the top-ten best

selling list throughout the.

world.

-selling pastor releases
new book at convention

His books are available in all
books stores both Christian and
secular as well as Wal-Mart, K-
Mart, Target stores, Books-A-
Million, Walton Bookstores and
Amazon.com.

Mr Munroe is under contract

. with the publishing company

for another two books this year.





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.

and share your story.

Share your news

If so; call son 322-1986-















Southeastern
University.

From:

James, Jamie & Eryn

Farrington

William, Claudia and

Jonathan Knowles

Billy, Marry, Lea and :
: Alyanoa s Knowl

Mey Sere G ontinue To a6 Ss vay

OUMICT

et. Rt



heb OR Ci ttrt

. oareid
State Ard tba Chg


PAGE 16, WEDNESDAY, FEBRUARY 28, 2007 _





abana AAAI AR AAAS AR ARE AR ARRAN ARRAN SEARLS RAL ACA AN AALS

Write a letter answering the

hah: oon could

FAMILY ESSAY CONTEST







_ following i rer uae

do to be heart
_ smart? 7”

4 hy

6,

_ THE TRIBUNE:

February is National Heart Month
“Remember Good Health Starts With You.’ ?

if
H

jy
4

|

- Cardioman

- Send your letter to Doctors Hospital tha. you can be the winner of $200.

The school with the most entries will win a prize.





rennet

nnn

i
i
t
'

4
8
§









1. Children ages 8-13 may enter.

Write a letter answering the following guest “What are five things you could do to be heart smart.”

form, but not in writing the letter.

3. The body of the letter may not exceed 150 words. Adults may assist the child in filling out the entry — |

4, Limit one letter per child. All entries must be received by ek sues Hospital Marketing Department

before March 31st, 2007.

5. Only letters accompanied by original entry :forris slnded from the newspaper will be accepted. |
Photocopy, fax, carbon or other copies will not be accepted.

6. One winner will be chosen. The decision of the judges is fi nal,

CARDIO

FAMILY ESSAY CONTEST

gids Maier ke gin ee a ea ia

ied ee ode see Date of bitty. eae

School:



ARSC ic Ga ett et ttn ocelot ae Ma P.O. Box:
Poarerit Stegner

PRUE SUI ic cinancacossntnplbicilasniinemhty PRUNE cca taa te tina A LS ai a on

Telephone contact: (H) _ (W)

4
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oe Winner must free toa a phota presentation v which will be published i in the newspaper, i ae

t
1
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All entries become property of Doctors Hospital and can be used and reproduced for any purpose without compensation.

Oe

OFFICIAL ENTRY FORM __,

28 IE IO A OR TN TF






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WEDNESDAY, FEBRUARY 28, 2007, PAGE 17











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‘ NELSON JOHNSON

= TAXI DRIVER My wtce: Y Vlewspap'!

een
PAGE 18, WEDNESDAY, FEBRUARY 28, 2007 | |







3
2



On behalf of the Santa Claus Christmas Committee, and most importantly the children, we would like to thank all those who contributed in *
making our fundraising efforts of 2006 the success that it was. We raised over $35,000 and were able to provide toys, through your generosity,°.
to over 3,500 children from Acklins, Mayaguana, Crooked Island, North Andros, Berry Islands, St Cecilia and Fox.Hill. Although our list of :

volunteers and sponsors is too long to mention we owe a great deal of gratitude to eve

ryone who helped out this year. It would be remiss of *







dca CC OCC eet

~ The Tribun

Nassau and Bahama Islands’ Leading Newspaper





Andr
of Island G

Pw



ATLANTIS Albany House One@Only
cain Ocean Club 8: J- Audio Visual

Ys Vanessa Kerzner ‘itaniae
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2 THE TRIBUNE WEDNESDAY, FEBRUARY 28, 2007, PAGE 19



us-if we did not metion a couple of people who went far and beyond our call for help: Adam Darville, Allan Leibman of Atlantis Dubai,
Andrew Farkas of Island Global Yachting (IGY), Burton Rogers, Jason Callender of Albany House, Harry and Joann McPike, John Bull, Joey
Jam Productions, Juan Bacardi, Leon Dupuch, Sean Moore, Steve Haughey and Vanessa Kerzner. To these individuals and all those who
helped out we could not have done it without you. We look forward to receiving your help again this year. Thanks again from the children!








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Killy Cone Mr. & Mrs Harry McPike DJ Joey Jam


PAGE 20, WEDNESDAY, FEBRUARY 28, 2007





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WEDNESDAY, FEBRUARY 28, 2007

B BUSINESS

Jaa |

HELPING YOU CREATE AND MANAGE WEALTH

NASSAU OFFICE
Tel: (242) 356-7764



FREEPORT OFFICE
Tel: (242) 351-3010



%

wv

business@tribunemedia.net

Miami Herald Business, Stocks, Analysis, Wall Street.







Inspector of Banks and
Trust Companies resigns

m@ By NEIL HARTNELL
Tribune Business Editor

he Inspector of
Banks and Trust
Companies,
Michael Foot,
has handed in his
resignation and will demit

office at the end of May 2007, .

The Tribune can reveal, a
development that has caused
some concern in the Bahamian
financial services industry.
The Central Bank’s bank
and trust company licencees
were informed yesterday that
Mr Foot was due to step down
from the key regulatory post
that he took up towards the

Foot demitting office at end of May regarded as
‘loss’ by Bahamian financial services industry

end of 2004, and will have held
for some two-and-a-half years
before his term ends.

The note from the Central
Bank, which has been obtained
by The Tribune, said: “Michael
Foot, Inspector of Banks and
Trust Companies, will demit
his post at the end of May
2007. ,

“During the two-and-a-half

Investment
project awaits
Ministry bonds

} m By CARA BRENNEN-

BETHEL.
Tribune Business
Reporter

A BOUTIQUE Eleuthera-
based investment project yes-
terday told The Tribune it was
now only waiting for bonds to
eb issued by the Ministry of
Works and Public Utilities
before it began construction
on its 40-property oceanfront
gated community.

SkyBeach Club will feature
40 homes and villas, covering
610 feet of oceanfront proper-
ty. It will include a clubhouse
boasting a 360 degree view of
both the Atlantic Ocean and
the Caribbean sea, a building
that features a dining room,
fitness centre and cocktail
lounge. The property will also
include an infinity edge pool
with a waterfall.

Micheal Reardon, SkyBeach
Club’s vice-president, yester-
day said they expected to
receive the bonds shortly.
Once that is done, construc-
tion work can begin.

SkyBeach Club is currently
engaged in a pre-sale market-
ing blitz, which has seen
already seen results.

“We have already presold
about nine properties, so when
you consider that we only have
40 properties, we’re almost
there. So we are very happy
about that,” Mr Reardon told
The Tribune in an interview
yesterday.

He added that to date, every
person involved in the pre-
development of the project,
including the placement of
infrastructure, has been a
Bahamian resident of
Eleuthera.

“So far, in all the phases we
have had about 25 persons on
the payroll,” Mr Reardon said.
“Eleuthera people are very
proud people ,and so all of
their work has been very well
done. We are very pleased, and
we had no problems working
with them.”

Mr Reardon added that con-
struction on the pre-sold hous-
es is expected to begin somet
ime in April, with work on the
club house starting in June and
on the oceanfront amenities by
year’s end.

Eleuthera
development
set to begin
construction in
April, having
employed 25.
Bahamians and
pre-sold nine
properties

. He said that in the near
future, SkyBeach Club hope
to have Prime Minister Perry
Christie visit the site for a
ground-breaking and ribbon
cutting.

Mr Reardon describes Sky-
Beach Club as “a once in a life-
time opportunity for real estate
investors and vacationers
alike”.

The resort-style homes
include one-storey, two storey
and split-level designs, with
each home having ocean and
beachfront views. The beach
club will be available to home
owners and guests by reserva-
tion.

SkyBeach Club homeown-
ers will receive 25 hours of pri-
vate jet time from Flight
Options LLC.

“We want to offer investors

convenient, first-class travel to
and from their properties. Our
partnership with flight options
allow us to offer just that ser-
vice,” Mr Reardon said.

He indicated that in order
to drive the highest possible
return on their investment, the
SkyBeach will manage and
market SkyBeach Club to the
most “distinguished travellers
around the world.”

SkyBeach is one of a very
few remaining places worthy
of being called ‘supremely pri-
vate’, Mr Reardon said.

Villas start at a price of
$500,000. Homes start at $2
million.

years spent with the Central |
Bank of the Bahamas, Mr Foot
has made an important contri-
bution to banking supervision
in the Bahamas and tothe on- °
going regulatory reform initia-
tive. ‘ :
“As communicated by Mr
Foot, his initial interest in com-
ing to the Bahamas was to

tory reform of the financial sys-
tem, to which he remains com-
mitted and has expressed a
willingness to assist, notwith-
standing his new appoint-
ment.”

The Central Bank notice
said Mr Foot was returning to
London to take up a post
unconnected to any interna-
tional financial centres.

In the meantime, the Cen-
tral Bank said it has begun the
search for Mr Foot's replace-
ment.

Neither Mr Foot nor Wendy
Craigg, the Central Bank gov-
ernor, could be contacted for
comment yesterday as all the
bank’s phones gave an
‘engaged’ tone when rung.

of state for finance, confirmed:

“J think he gave some notice of

resignation. He’s been offered
a post back in the UK.”
Mr Foot arrived in the
Bahamas with impeccable reg-
ulatory credentials, having
been.a- DEINE mover inthe

SEE page SB

become involved with regula-

But James Smith, minister

Catastrophic insurance fund ‘to
help stabilise Bahamian Budget’

@ By NEIL HARTNELL
Tribune Business Editor

A CATASTROPHIC insurance fund to
protect the Bahamas and other Caribbean
nations.against Jhurricanes and natural dis-
asters: “is likely:to be up and running in a
month or so”, the minister of state for
finance said yesterday, a development that
will bring “stability” to this nation’s Budget
planning.

‘James Smith, speaking to The Tribune

upon his return from Washington, where he -

attended a World Bank meeting to discuss
the fund’s creation, said that it had received
commitments for $47 million in initial seed
capital, well in excess of the expected $30
million.

He added that some 18 countries, includ-
ing the Bahamas, had signed up to partici-
pate in the catastrophic insurance fund pro-
ject, paying $1 million in annual premiums
each to the fund, which would also acquire

the necessary rein-
surance.

A minimum “of
nine countries were
required to sign'up §
to the.programme:to...J
make it viable, Mr
Smith said, accord-.:
ing to actuarial pro-,
jections for the fund.

“We want to get it
up and running for
the 2007 hurricane
season,” Mr Smith said. “We were looking
for $30 million as seed for the fund, and got
$47 million. It’s likely to be up and running
in a month or so.”

The minister explained that the fund
would operate differently from a traditional
property and casualty insurance policy,

‘MJAMES SMITH

which called for loss adjusters to assess the

damage before any payment was made.
When it came to the: catastrophic insur-



ance fund, Mr Smith explained, payments
from the fund to impacted nations would
be triggered by events.

He said that, for example, if a Category
Three hurricane or one of even greater
severity hit the Bahamas, the fund would
“immediately give the Bahamas support”,
Brie it with an instant payment of $20-

25 million to aid with disaster recovery and
other priority items for the Government.

Mr Smith said that in previous years, when
hurricanes impacted the Bahamas, the Gov-
ernment had to “shift things around in the
Budget”, impacting spending in other needy
areas and throwing fiscal projections and
calculations out of line.

“This will help us to stabilise the Bud-
get,” Mr Smith said. “Successive govern-
ments of the Bahamas would benefit from
the stabilisation of fiscal affairs, as they
would get direct Budgetary support when a
Category Three hurricane or above hap-
pens.”

Total Performance through January 31, 2007*

16.40%

Last 12 months

9.11%

Average Annual Return

Since Inception. February 1999

*Stock prices can go down as wellas up. Past performance is no guarantee of future results. Read the Offring Memorandum carefully before you invest

ol tetett VET E Ny
Choose Fidelity

Maes Eure Cl

STOCK. : CORPORATE SU Le MS. h 9
BROKERAGE FINANCE MANAGEMENT ESTATE

=") FIDELITY fy

More than a Bank.

Nassau: T 356.7764 e ar tas T 352.6676/7

(ol Te) a
LENDING
PLANNING

Reyne

MUTUA. aa RETAIL &
FUNDS PLANNING PRIVATE

YL


System failures often
root disaster causes

his series is intended
| to highlight why the
study of risk, crises
and disasters is critical in help-
ing professionals reduce loss
and adequately manage vari-
ous risk associated with crime,
security and safety loss events.
Of interest here is the loss or
damage to reputation ,which
must also be considered an
asset, along with people, prop-
erty and information. Thus
efforts must be made to pro-
tect it, as in many instances it is
a much more difficult item to
protect.

Our discussion will begin
with terms that are used inter-
changeably, but are very dif-
ferent in their meaning. The
terms ‘emergency’, ‘crisis’ and
‘disaster’ are attempts to









SENIOR AUDIT MANAGER

(Based in Barbadas)

RESPONSIBILITIES:

equate the level and intensity
of the loss event or potential
loss event.

Emergencies

These can be defined as sit-
uations requiring a rapid and
highly-structured response,
where risk for critical decision
makers can, to a relative
degree, be defined.

An example is the brakes on
your car not responding when
pressure is applied, and you
are losing control of the vehi-
cle.

Crises

These are defined as situa-
tions requiring a rapid
response (for this reason they
are all too easily misconceived
as emergencies). In contrast,

FirstCaribbean is a major Caribbean Bank offering a full rang
_ Corporate Banking, Retail Banking, Credit Cards, Wealth Management, Capital Markets and Treasury.
We are the largest regionally-listed bank in the English-speaking Caribbean with over 3,500 staff, 100
branches and banking centres, and offices in 17 regional markets, serving 800,000 active accounts.

- INFORMATION TECHNOLOGY & CHANGE MA'

* Effectively and efficiently lead and supervise a team.of Audit
Managers. & Auditors, both on a career management and

assignment basis

® Collegiate responsibility with peers for leadership and
management of the Audit function

e Ownership for a wider portfolio of audit assignments end to
end across. key business areas with an emphasis on Information
Technology & Change Management including responsibility
for ensuring the quality of audit work undertaken

e Relationship management, subject matter expertise and
continuous business monitoring with senior level management
developing audit opinions based on sound technical judgment
in key areas of the business and gaining buy-in te audit results

* Support and deputise for the Audit Director and Executive
Director, Audit at key business meetings including Risk

Committees

* Production of reporting/management information for the

function and to the business

° Delivery of internal projects and key departmental initiatives
supporting Audit’s Continuous Improvement Plan
® Inform and produce macro audit planning for key significant

areas:of the business

¢ Effective delivery of audit verification activity in key business

areas of responsibility








Safe
& Secure

by Gamal Newry

the risk for critical decision-
makers is difficult to define,
owing to ill structure. It is typ-
ical that the effect of a
response either is, or appears
to be, unclear

The crises based on the ‘car
brakes’ scenario described
above would be that there are
school children to your left and
a large pine tree or cliff to your
right. Which direction do you
go in?,

Disaster
In contrast, this would be

e of market-leading financial services in

PREREQUISITES:

defined as a cultural construc-
tion of reality. A disaster is dis-
tinct from both emergencies
and crises only in that, physi-
cally, it represents the product
of the former. Disasters, then,
are the irreversible and typi-
cally overwhelming result of
the ill handling of emergencies
and crises.

The Straw Market Fire in
September 2001, and the colli-
sion of two boats in August
2003, are in my opinion clear
examples of system failure dis-
asters. It was determined that
systems, whatever they were,
failed and the resulting impact
was a disaster where either
property or life have been lost.

System Failure
Regardless of the circum-

4

UNITIES








® Industry experience at middle management level

e Minimum of 5 to 6 years’ post-qualification experience in core
professional qualifications (e.g. ACCA, ACIB, IIA etc)

¢ Should possess a high level Graduate qualification and specialist
training and/or experience in the area of specialty, e.g. CISA,

‘CCSP, CISSP, PMP, GSNA etc

° Good understanding of specialty industry issues ~ including
regulatory requirements and professional standards

¢ Significant experience of leading and coordinating professional
teams/complex technical audit assignments at a Group or
regional level, demonstrating high standards of leadership and

coaching skills

* High standard of influence, negotiation, facilitation, presentation
and communication skills, both oral and written. Sharp analytical

skills and judgment

® Ability to think laterally and be truly flexible and imaginative in
developing and maintaining relationships

¢ Strong skills/recognition of risk and control considerations in
specialist technical areas including Finance, Change
Management and Information Technology

® Position will require a fair amount of regional travel

Applications with detailed résumés with the names of three business references should be submitted no later than

Tuesday 6th March 2007, to:



Rosalind Clarke

Audit Team Support Officer

FirstCaribbean International Bank

Head Office, Warrens
St. Michael, Barbados

Email: Rosalind.Clarke@firstcaribbeanbank.com



Only applicants who are short-listed will be contacted

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iGo i AR A A La

stances, these events all have to
do with the failure of systems.
The persons responsible for
these systems will usually say
they are operating at optimal
level, holding true to the old
adage: ‘A fisherman never calls
his fish stink’. These systems,
over time, have been modified
to deal with the changing envi-
ronmental, social and techno-
logical climate we live in.

What, then, is a ‘system’?
We encounter a term that has
not yet achieved a universally
agreed-upon definition. How-
ever, we have been provided
with 13 essential characteris-
tics:

* A recognisable whole

* Interconnected compo-
nents or elements

* Organised interconnec-
tions

* Components interaction
signifies processes

* Processes imply inputs and
outputs

* Components form hierar-

_ chical structures

'* Adding or removing a
component changes the system
and its characteristics

* Component is affected by
its inclusion in a system

* Means for control and
communication promote sys-
tem survival

* Emergent properties, often
unpredictable

* System boundary

* A system environment out-
side the boundary, which
affects the system

* System ‘ownership’

It is not clear how many of
these elements have to be
missing in order to arrive ata
system failure, but what is clear
is that these factors are depen-
dent on human insight and
understanding.

Management Failure

In order for systems to work
together cohesively, and hope-
fully produce a positive prod-
uct, the system must be man-
aged properly. Thus the
improper management of sys-
tems results in failure, whether
human or technical. Good
management systems should

THE TRIBUNE

possess the following charac-
teristics:

1. A good management sys-
tem has a network that allows
all persons to communicate
effectively, regardless of where
they are located in the organi-
sation.

2. The leadership must
establish and ensure that all
policies and guidelines are ade-
quately communicated at all
levels of the organisation.

3. Information pertaining to ©
the organisation should con-
stantly be reviewed and test-
ed for compliance.

4. The leadership should
ensure that a good cadre of
persons are employed, who
possess the technical skill to
conform to - and intelligently
apply - the standards laid out
by the company, the industry
or government regulatory
board.

It is the failure of systems,
and more detrimentally, the
management failures, that
bring about effects resulting in
disaster.

What appears as several
events having numerous sep-
arate causes and effects, can
often be viewed as one event.
Dombrowsky states: “There is
no separate process that swells
the cheeks to blow. Wind is air
in a specific motion, not a sep-
arate being that makes the air
blow.” This statement does not
suggest that there is no causa-
tion, but rather the inputs and
outputs, action and reactions,
all equate to the ‘effects’.

NB: Gamal Newry is the
president of Preventative Mea-
sures, a loss prevention and
asset protection training and
consulting company, specialis-
ing in policy and procedure
development, business securi-
ty reviews and audits, and
emergency and crisis manage-
ment. Comments can be sent
to PO Box N-3154 Nassau,
Bahamas, visit us at www.pre-
ventativemeasures.net or email
gnewry@preventativemea-
sures.net

‘Redouble’
marketing efforts
in the face of US
passport punch

THE. speculation is over.
The US passport regulations
are in force. Land-based resort

destinations closest to the US -

are feeling the most pain. The
Bahamas and Jamaica are
clearly on the front line. Cruise
shipping has been given a carte
blanche.

As the January numbers
start to be collated by the var-
ious destinations, the picture
is clearly emerging that the
new passport regulations are
hurting.

My information so far this
year tells me that air arrivals
from the US to the Bahamas
and northern Caribbean des-
tinations have been down or
flat, while at the same time
arrivals from other markets
such as Canada, the UK and
continental Europe have been
showing excellent growth.

For Jamaica. from which I
have the most up to date infor-
mation, air arrivals from the
US were down almost 10 per
cent while cruise passengers
arrivals were up over 5 per
cent.

Thank God arrivals from
Canada were up over 28 per
cent, and from Europe over 11
per cent. This made overall
arrivals roughly equal to last
year.

All things being equal,
arrivals from the US should
have been up at least 5 per
cent instead of being down 10



per cent. It would not have
been overly optimistic, taking
into account all the new hotel
projects in Jamaica, to have
had an increase of even 10 per
cent from the US, a 20 per cent
difference.

My information from the
industry in the Bahamas points
to similar patterns. Freeport
will probably be hardest hit.
Additionally, I have not seen
the same spike in close book-
ings and arrivals that usually
follow cold snaps in the weath-
er up north.

I am aware of the efforts that
have been made to have the
new passport regime delayed
or eased. It is now clear,
though, that the US will not
budge.

The only option left for us
is to redouble our efforts pro-
moting the various passport
promotions in place, and for
the various Ministries of
Tourism to redouble their
advertising and promotional
spending and efforts making
the obtaining of a passport a .
cost free component for our
US guests. The cost of the sta-
tus quo will be much greater. |

)

’


*

in U.S. history.





ease easeean



The Miami Herald |



THE MARKETS

STOCKS, MUTUAL FUNDS, 5-6B

DOW 30 12,632.26 -15.22 W
SaP 500 1,449.37 -182 W
NASDAQ 2,504.52 -10.58
10-YR NOTE 463 -.04 W -
CRUDE OIL 61.39 +25 Ah

Market
decline
persists

BY JOE BEL BRUNO
Associated Press

NEW YORK — Wall Street
extended its decline Monday as
concerns about a market cor-
rection offset investor optimism
that acquisition activity is on
pace to set a record this year.

The $45 billion buyout of
electric utility TXU injected
confidence into the market that
merger and acquisition activity
could surpass last year’s record

$4 trillion level. The deal, led by
a consortium led by Kohlberg
Kravis Roberts & Co. and Texas

- Pacific Group, would go down
as the largest leveraged buyout

Other deals included Station
Casinos, which agreed to be
bought by a private equity firm
started by the company’s found-
ing family. Temple-Inland, a
conglomerate that offers every-
thing from packaging material
to financial services, plans to
separate itself into three standa-
lone public companies.

However, stocks were
unable to sustain gains amid
speculation that the market may
be in for a correction. Hanging
over the market is a lack of cata-
lysts that could propel stocks
forward, especially ahead of an

_ expected downward revision, of

_ fourth-quarter gross domestic

" product to be released Wednes-
day...

The Dow Jones industrial
average fell 15.22, or 0.12 per-

~ cent, to 12,632.26..The index has
had 31 record closes since the
beginning of October, and is up
about 8 percent in that time.

Broader stock indicators also —
fell. The Standard & Poor’s 500
index was down 1.82, or 0.13
percent, at 1,449.37, and the
Nasdaq composite index fell
10.58, or 0.42 percent, to
2,504.52. The Nasdaq was the
only index that finished last -
week in positive territory, while
the Dow and S&P dipped.

Bonds continued to rise from
last week’s sell-off, with the
yield on the benchmark 10-year
Treasury note falling to 4.63
percent from 4.68 percent late
Friday. Bonds had been weaker
amid concerns that subprime
lenders would be forced to take
write-downs if consumers
defaulted on mortgage pay-
ments,

The dollar was mixed against
other major currencies, while
gold prices rose.

_ Oil prices rose after a winter
storm plowed across the United .
States, spurring expectations of
strong demand for heating oil.

A barrel of light sweet crude
rose 25 cents to $61.39 on the
New York. Mercantile
Exchange.

Meanwhile, Dow Chemical
spiked $1.54, or 3.5 percent, to
$44.99 on speculation it could
be the target of a leveraged buy-
out.

Station Casinos rose $3.20, or
3.8 percent, to $86.50 after it
agreed to go private in a $5.4 bil-
lion deal, which represents an 8
percent premium over its clos-
ing price on Friday. The deal
still allows Station to solicit:
acquisition proposals from third
parties for 30 days.

Advancing issues barely out-
paced decliners on the New
York Stock Exchange, where
consolidated volume came to
2.82 billion shares, up from 2.59
billion Friday.

' ‘The Russell 2000 index of
smaller companies fell 2.95, or
0.36 percent, to 823.69.

Overseas, Japan’s Nikkei
stock average closed up 0.15
percent. ‘

At the close, Britain’s FTSE
100 was up 0.52 percent, Germa-
ny’s DAX index added 0.50 per-
cent, and France’s CAC-40 rose
0.81 percent.

U.S. POSTAL SERVICE







‘Forever’ postage gets stamp of approval



= The Postal Regulatory
Commission recommended a
new stamp whose purchase value
would remain constant forever.
The panel also suggested a
2-cent hike for first-class stamps
from 39 to 41 cents.

BY RANDOLPH E. SCHMID
Associated Press

WASHINGTON — Say goodbye
to those pesky l- and 2-cent stamps
that used to clutter up desks and
purses every time the price of mail-

ing a letter went up.

Anew “forever” stamp — good for
mailing a letter no matter how much
rates rise — was recommended Mon-
day by the independent Postal Regu-
latory Commission. The panel also
called for a 2-cent increase in first-
class rates to 41 cents, a penny less
than the post office had sought.

In addition, the changes would
sharply scale back the price of heav-
ier letters. ,

“Adoption of this proposal is good
for the Postal Service, postal custom-



ers and our postal system,” commis-
sion chairman Dan G. Blair said at a
briefing. :

A forever stamp would not carry a
denomination, but would sell for
whatever the first-class rate was at
the time.

For example, if the 41-cent rate
takes effect, forever stamps would
sell for 41 cents. If rates later climbed
‘to 45 cents or more, the price of the
forever stamp would also go up at the
counter or machine, but those pur-
chased before the change would still









LM OTERO/AP

A BIG MOVE IN TEXAS: TXU has agreed to a buyout froma private-equity firm for about $32 billion.

_ ELECTRIFYING DEAL

ELECTRICITY PRODUCER TXU PLANS TO GO PRIVATE IN A $32 BILLION DEAL
THAT WOULD RANK AS THE BIGGEST PRIVATE BUYOUT EVER IN THES:

BY DAVID KOENIG
Associated Press

DALLAS — TXU Corp., Texas’
largest electricity producer, said
Monday it has agreed to be sold
to a group of private-equity firms
for about $32 billion in what
would be the largest private
buyout in U.S. corporate history if
shareholders and regulators go
| along.

Kohlberg Kravis Roberts & ‘Co.
| and Texas Pacific led a group that
| included Goldman Sachs & Co. and
three other Wall Street firms that
will pay $69.25 per share for TXU.
They will also assume about $13 bil-
| lion in debt. nV «

_ The firms won support for the
buyout from some environmental-
ists who have criticized TXU by
agreeing to sharply scale back
TXU’s controversial $10 billion plan
| to build ll new coal-fired power
| plants that would produce tons of
| new greenhouse gas emissions.
They also agreed to cut electric-
| ity prices 10 percent, which they said
| would save TXU residential custom-
| ers more than $300 million per year,
| and limit prices until September
|
|

'
i
|
|
'
|



2008.

TXU directors voted Sunday
night to recommend that sharehold-
ers approve the sale. The price rep-

INSURER

@ Following the announcement
that WellPoint CEO Larry
Glasscock will step down and
Angela Braly will take over in
June, the company will become
the largest Fortune 500 witha
woman at the helm.

BY TOM MURPHY
Associated Press
INDIANAPOLIS — WellPoint
surprised some Wall Street analysts
Monday when it announced that a
relatively unknown executive will
replace Chief Executive Larry Glas-
scock after he steps down in June.
Angela Braly, executive vice presi-
dent and general counsel for the Indi-

AONE UED RAT NSLS TET EE EE



An
RR a



DR. SCOTT M. LIEBERMAN/AP

SCALING BACK: Coal moves up a conveyor belt at TXU’s Big-Brown
power plant. The private firm will scale back a controversial
$10 billion plan to build 11 new coal-fired power plants.

resents a 15 percent premium to
TXU’s closing stock price on Friday.
TXU shares closed up $7.91, or
13.2 percent, at $67.93 on the New
York Stock Exchange after briefly
reaching a new 52-week high of
$68.45.

The deal would top the previous
biggest private buyout ever of
$25.1 billion set in 1988 when RJR
Nabisco was acquired by Kohlberg
Kravis.

TXU officials said the company
would get a $1 billion break-up fee if
the buyers can’t close the sale. TXU

WellPoint CEO retires, woman

anapolis-based insurer, will become
president and CEO after Glasscock
steps down June 1. She will make
WellPoint the biggest Fortune 500
company with a woman at the helm.

Glasscock announced his retire-
ment Monday.

WellPoint’s choice for successor
comes as a “major shock,” according
to a report from CIBC World Mar-
kets analyst Carl McDonald.

“We want to emphasize that our
issue is not with Braly herself, as she
very well could be the perfect person
for the role,” McDonald wrote. “We
just don’t know her, and neither does

* TURN TO BRALY, 4B

also has until mid-April to shop for
better offers, although the buyout
firms would get a chance to trump
any new bids.

Private-equity firms have often
steered clear of utilities, viewing
them as highly regulated businesses
with relatively low return on invest-
ment. But Texas deregulated its
electricity market in 2002, and TXU
is generating tremendous amounts
of cash and profit — Wall Street

_expects the company to report today

° TURN TO TXU, 4B



be valid to mail a letter.

So there would be no need to buy
small-denomination stamps to add to
envelopes. ;

Currently, first-class mail costs
39 cents for the first ounce and
24 cents for each additional ounce.

While the first ounce would rise to
4] cents under the proposal, it would
cost just 17 cents for each additional

ounce.

That means the price of sending a
° TURN TO STAMPS, 4B

M may
exchange
equity
stake for
Chrysler

® Rumors continue to mount
surrounding DaimlerChrysler’s
plans for its struggling Chrysler
division, as GM and a Canadian
company may be looking at ways
to purchase the unit.

BY MATT MOORE
Associated Press

FRANKFURT, Germany — Gen-
eral Motors reportedly may be inter-
ested in giving-an equity stake to
DaimlerChrysler in exchange for its
struggling Chrysler unit. Separately,
an analyst said he understands a large
Canadian auto parts supplier may be

‘'studying a Chrysler purchase.

Russia’s second-biggest automo-
tive company denied that it was
interested in the Chrysler business.

The speculation about possible
deals for Chrysler is the latest that
has surfaced since DaimlerChrysler
Chairman Dieter Zetsche said Feb. 14
that all options are on the table for
the money-losing Chrysler business
and he would not rule out a possible
sale.

The Financial Times reported
Monday that DaimlerChrysler was
considering a 20 percent stake in GM
in the form of a payment if a deal to
sell Chrysler were to go forward. .

The Financial Times, citing people
familiar with the situation, said
DaimlerChrysler was weighing the
possibility of trading Chrysler for the
GM stake, but added it was also con-
sidering a cash sale to private equity
firms, including Apollo Management
LP, Blackstone, Cerberus Capital
Management and Carlyle Group,
among others. All four have refused
comment.

DaimlerChrysler did not comment
on the report, reiterating its previous
stance that all options for Chrysler
are being considered. GM also said it
would not comment on what spokes-
man Tony Cervone called specula-
tion.

Also on Monday, KeyBanc analyst
Brett Hoselton said in a note to inves-
tors that his sources tell him Magna
International is seriously considering
a purchase of Chrysler Group. Hosel-
ton said senior Magna executives
have obtained Chrysler financial
information, visited Chrysler

* TURN TO CHRYSLER, 4B

takes over



WELLPOINT

SET TO RETIRE: WellPoint CEO Larry Glasscock, left, announced his
retirement Monday. Angela Braly was an unexpected replacement.


4B | TUESDAY, FEBRUARY 27,2007 INTERNATIONAL EDITION _

INSURER

WellPoint becomes largest
Fortune 500 with female CEO

*BRALY, FROM 1B

the market.”

WellPoint shares fell 37
cents to close at $81.13 in trad-
ing Monday on the New York
Stock Exchange. They are still
near the higher end of their
52-week range of $65.49 to
$84.15.

Glasscock, 58, said he was
retiring as president and CEO
for family reasons but did not
elaborate. He will remain
non-executive chairman of
the board.

His supplemental retire-
ment plan calls for a lump
sum payment of $31 million,
according to Alexandra Hig-
gins, a senior compensation
analyst with The Corporate
Library, a corporate gover-
nance research firm.

But WellPoint spokesman
Jim Kappel said the total
value of that pay won’t be cal-
culated until he retires.

Glasscock also has more
than $55 million in unexer-
cised stock options, but Kap-
pel said not all of those vest
upon retirement.

Braly, 45, joined the com-
pany in 2005. Before that, she
was president and CEO of

TEXAS



Blue Cross Blue Shield of Mis-
souri. Glasscock cited the
membership and profitability
growth her company saw then
as an attribute.

He also noted the impor-
tance of handling public pol-
icy, legislative and regulatory
issues in the future.

“These are all areas that
Angela is incredibly skilled at,
in addition to knowing how to
run a company, so that was a
very important aspect of her
selection as my successor,” he
said.

Braly joined Blue Cross
Blue Shield in 1999 after being
a partner with a St. Louis law
firm. She earned her law
degree from Southern Meth-
odist University and her
undergraduate degree from
Texas Tech University.

She said the company will
focus on expanding member-
ship but also will continue to
look for more merger and
acquisition opportunities to
drive future growth.

WellPoint ranks 38th in the
2006 Fortune 500 list of the
biggest companies. The next
largest company with a
female leader is No. 56,
Archer Daniels Midland,



Gras

DR. SCOTT M. LIEBERMAN/AP



NUCLEAR POWER: TXU’s Comanche Peak Steam Electric
Station near Glen Rose, Texas, is the sole nuclear-fueled

power plant owned by TXU.

TXU planning
to go private

°TXU, FROM 1B

that it earned about $2.5 bil-
_ lion in 2006.

TXU, with more than
2.3 million customers, has
prospered because electric
rates in Texas are tied to the
price of natural gas while
TXU generates much of its
power more cheaply at coal
and nuclear plants.

Still, TXU had flaws that
might make buyers think
twice. Many Texas consum-

ers have switched to other

companies that sell electricity
for less, although most of
TXU’s longtime customers
have stood by it.

Goldman Sachs, Lehman
Brothers, Citigroup and Mor-
gan Stanley intend to be part
of the TXU purchasing group,
TXU said.

TXU also said former Sec-
retary of State James A. Baker
III will serve as advisory
chairman to the new owners,
and former EPA Administra-
tor William Reilly and former
Commerce Secretary Donald
L. Evans will join the TXU
board.

In recent months, environ-
mentalists have blasted TXU
in publications and advertise-
ments, and controversy over
the proposed coal plants was
seen as one reason that TXU’s
stock price had fallen recently
after a mighty four-year rise.

Texas Pacific tapped.
Reilly, one of its partners, to
strike a compromise that won
support for the sale from two
environmental groups in
exchange for cutting back
TXU’s coal program.

Henry Kravis, founding
partner of KKR, pledged to
make TXU into “a more inno-
vative, customer-centric,
environmentally friendly
company.” He said the pri-
vate-equity buyers — who are

often viewed as short-term
investors looking to resell —
see TXU as a long-term asset.

David Bonderman, found-
ing partner of Texas Pacific,
said the new owners’
approach would “better man-
age the delicate balance
between the energy needs of a
growing Texas population,
responsibility to the environ-
ment and the cost concerns of

' Texas businesses and resi-

dents.”

Those remarks could be
read as a rebuke to current
management and Chief Exec-
utive C. John Wilder, who
said he has not signed a con-
tract to stay with the com-
pany.

The investors have
reached out to Texas officials,
including Gov. Rick Perry, in
an effort to smooth regulatory
approvals and hostility. to
TXU in the state Legislature.

Regulatory hurdles have
tripped up previous efforts by
buyout firms to enter the
power business. In late 2004,
investors led by KKR dropped
a bid to buy UniSource
Energy after an Arizona com-
mission rejected the deal.
Federal officials had approved
it.

Oregon regulators rejected
Texas Pacific’s attempt to buy
Portland General Electric in
2005, but a Warren Buffett-
controlled company suc-
ceeded in buying another
Oregon utility, PacifiCorp,
last March for $5.1 billion
after pledging to upgrade the
company’s facilities.

State regulators in Texas

- have no authority to stop the

deal, but they could consider
the effects of the sale on pro-
posed rate hikes, Wilder said.
Officials said the deal would
require approval from federal
antitrust and energy regula-
tors.

Larry Glasscock said
he was retiring as
president and CEO
for family reasons but
did not elaborate.

where Patricia A. Woertz
serves as chairman, CEO and
president.

Braly said she might bring
“great perspective’ to the
new role because of her gen-
der.

“What we know at Well-
Point is that 70 percent of the
healthcare decisions are made
by women, so I think it’s a
very natural place for me to
be, both as a businesswoman
and as a consumer of health-
care for my family,” said
Braly, who is married and has
three school-age children.

McDonald called company
Chief Financial Officer David
Colby the most logical candi-
date to replace Glasscock and

. questioned whether he would

stay with the company now.

Colby said in a conference
call that he was “very happy
to work alongside” Braly.

U.S. POSTAL SERVICE

JPMorgan analyst William
D. Georges stated in a sepa-
rate report that Braly was the
logical choice due to her
acquisitions and public policy
experience. Glasscock joined
Anthem Insurance in 1998 and
helped engineer the largest
deal in company history. In
2004, WellPoint was formed
when Indianapolis-based
Anthem acquired Thousand
Oaks, Calif.-based WellPoint
Health Networks in a
$16.5 billion deal. The com-
bined company changed its
name to WellPoint.

Under Glasscock’s leader-
ship, WellPoint and its prede-
cessor companies grew from
6 million medical members
and $6 billion in revenue to
more than 34 million medical
members and more than
$60 billion in revenue.

Braly will receive an
annual base salary of $1.1 mil-
lion, which doesn’t count
other compensation like
bonuses and stock options.

In 2005, Glasscock earned

$5.2 million in “salary and
bonus and received $3.1 mil-
lion in restricted stock award,
according to. the company’s
latest proxy statement.

New stamp’s
usage would be
valid forever

°* STAMPS, FROM 1B

two-ounce letter would actu-
ally decrease from 63 cents to
58 cents. ;

The proposal also recom-
mended a 2-cent boost, to 26
cents, in the cost of mailing a
post card, also a penny less
than the Postal Service had
sought.

Blair said the rate propos-
als were scaled back because
the higher rates the post
office proposed would have
raised more income than nec-
essary for the service to break
even in 2008.

The proposal also sug-
gested changes in a variety of
other rates including a 17-cent
surcharge on “odd-shaped”
mail that cannot be processed
using letter-sorting machines.

William Burrus, president
of the American Postal Work-
ers Union, called the decision
“a major victory for the
American people.” He said
the union had argued for the
smaller rate increase.

' In addition, Burrus said,
the commission agreed with
his union on limiting dis-
counts large mailers get for
presorting mail.

The trade group The
Greeting Card Association
also said it was pleased the
commission recommended

AUTOMOTIVE

stamp and
the rate

the forever

trimmed back

increase to 2 cents. ;
The matter now goes back

‘:uto the board of governors. of
‘the post office. which can
accept the recommendations

or ask for reconsideration. If
accepted, the new rates could
take effect as soon as May.

The Postal Service applied
for higher rates last May.
Since then the commission
has received 139 pieces of tes-
timony from 99 witnesses and
held 34 days of hearing on the
request in developing its rec-
ommendations.

Under legislation approved
by Congress last year, the
commission will develop a
new, less cumbersome system
of raising rates for use in the
future, and also has more
authority to regulate postal
activity.

Postage rates last went up
in January 2006.

Postmaster General John E.
Potter has pointed out that
“the Postal Service is not
immune to the cost pressures
affecting every household and
business in America.”

For example, each penny

increase in the price of a gal-

lon of gasoline costs the post
office $8 million, and the post
office cannot simply add a
fuel surcharge to its rates.

GM considers

* CHRYSLER, FROM 1B

facilities and met with United
Auto Workers leadership.

A Magna spokeswoman
would not comment on the
report, but confirmed that
Chairman Frank Stronach has
met with DaimlerChrysler
Chairman Dieter Zetsche.
However, spokeswoman
Tracy Fuerst would not say
when the meeting took place.

She said Stronach and
other Magna executives meet
with auto company execu-
tives regularly as part of their
normal course of business.

Hoselton also said in his
report that he thinks a Magna
purchase of Chrysler is possi-
ble but unlikely.

“Since GM is short of cash,
an equity deal would make
sense if it is interested in
Chrysler, and an equity valua-
tion of Chrysler at, say, 3 bil-
lion euros ($3.94 billion),
would wind up giving Daim-

equity exchange

lerChrysler a 20 percent stake
in GM,” said Stephen Chee-
tham, a senior analyst with
Sanford C. Bernstein Ltd. said.

DaimlerChrysler’s U.S.
shares fell 35 cents to close at
$70.57 on Monday on the New
York Stock Exchange. GM
stock fell 29 cents to finish at
$33.97 on NYSE.

Chrysler earlier this month
announced it lost $1.475 bil-
lion in 2006 and said it
expects losses to continue
through 2007.

Parent DaimlerChrysler,
however, earned $4.26 billion
in 2006.

The news was accompa-
nied by plans to shed 13,000
jobs, including 11,000 produc-
tion workers and 2,000 sala-
ried employees as it trims
expenses and factory capacity
to match declining sales.

The automaker also
announced the closure of one
plant and layoffs at several
others.



WORKPLACE

The dark

BY LISA BONOS
Washington Post Service

WASHINGTON — Achiev-
ing work-life balance is
already a juggling act. Throw a
second job into the mix, and it
can become a lot harder to
perform:

More than 5 percent of U.S.
workers hold more than one
job, according to the Bureau of
Labor Statistics. Willie Floyd
Brunson has been part of this
group for decades. A transpor-
tation manager by day and a
security guard by night, Brun-
son says the cost of living in
the Washington area has
driven him to an 80- to 90-
hour workweek.

“To maintain good living
conditions, I have to work two
jobs,” he said.

“You can’t do it on one
job,” he added.

. ..-Brunson, ‘who.is: preparing

for.a second marriage and per-
haps a new family, said he
wouldn’t consider quitting the
night job. He describes himself
as “old school,” saying that as
aman it’s his responsibility to
pay the bills.

It’s not easy — while the
decision to moonlight was
“financially rewarding,” he
said, “emotionally it wasn’t.”

Those who hold two jobs
must occasionally reweigh the
money against the minuses.
For about four years, Tiffany
Guarascio, now a staffer for
Rep. Frank Pallone, D-N,J.,
took on extra work. She had
started waiting tables while a
college senior and kept some
shifts when she got her first
“real job.” But when Guarascio
started working on the Hill in
2004, she cut back to waitress-
ing.on Sundays only, at an
establishment owned by a
friend.

The job was flexible — “It
was very easy to say ‘I need a
month or two off,’ ” she said —
and it became a social outlet.

But last summer, when Guar-

ascio recognized that the ser-
vice she was providing was
starting to reflect her resent-
ment over. working so much,
she quit.

PRODUCTIVITY

Taking an additional job
primarily to make extra
money can be stressful and
unproductive, according to
Renee Lee Rosenberg, an
author and career coach with
the Five O’Clock Club in New
York.

Her clients with second

__MiamiHerald.com | THE MIAMI HERALD



ILLUSTRATION BY KURT STRAZDINS/MCT



Those who hold two
jobs must
occasionally
reweigh the extra
money against the
minuses.

jobs often “get very angry:and::
depressed and.start.resenting:
their primary work. also;
Rosenberg said, and some-
times, with better budgeting, a
second job isn’t really neces-
sary.
She stressed the impor-
tance of researching what a
job requires before saying yes,
so you can know whether “you
can function the next day.”

Some second jobs can lead
to more enjoyable primary
jobs.

“Tt builds an opportunity to
build a new network and ulti-
mately it may develop into a
new career,” said Kathy Blan-

.ton, a career management con-

sultant for Spherion in Nash-
ville, Tenn.

BALANCE AND HARMONY

By day, Mike Graglia man-
ages a team working on educa-
tion in Africa at the World :
Bank in Washington. A few
evenings a week he teaches
yoga.

He wanted to do more yoga
and figured teaching would be
the next logical step in his
practice.

He often schedules his
flights to Africa around his
yoga commitments and swaps
classes with other teachers
when he’s out of town. It’s
common to find Graglia at the
yoga studio with a suitcase —
either coming back from a trip
or on his way out.

“I love both my jobs, and
they balance each other out,”
Graglia said. “Yoga is a genius
one because it keeps you
healthy and keeps you mov-
ing.”

MOONLIGHTING: IS IT WORTH IT?

e@ Reexamine your budget. Is the extra income really neces-
sary or can you change your spending? :
e Are there possibilities for overtime or additional responsi- .

bilities at your primary job?

@ Sketch out a hypothetical schedule with the second job.
Are there enough hours in the week? ~
@ Look for flexible hours. Can you work from home or easily

swap shifts with others?





4pm. 6:35 p.m. Late 4pm. 6:35 p.m. Late
Stock Tkr. ‘dose close Chg. volume Stock Tk. ‘dose close volume
Weyerh WY 82.25 82.25 * 31152 | Amazon AMZN 40.78 40.86 «= +.08 +7913
SPFnel XLF_— 37.30 37.30 * 20013 | SPOR SPY 145.30 145.43 +13 7435
Nasd100Tr QQQQ 45.26 45.27 +01 19814 Supvalu SVU 37.66 37.662 * 7430
CSXs CSX 40.42 40.27, =.15 17250 | Chubbs CB 5302 5302 ° 7000
Clearchan CCU 3647 3647. * 12800 | EMccp EMC 1449 1449 * 6623
Realogyn 29.68 29.68 +00 12640 | Layal3 \WLT = «6.55 654-01 5878
CompsBc CBSS 69.95 69.95 * 12162 | cunMicro SUNW 627 638 «hdl «8494
Kimbclk KMB 70,00 = 70.00 * 11352 | Pelianten RI 8 ;
BrMySq = BMY «27.05 27.06 += +.01 10000 | Relianten 1628 17.00 +72 5024
VivoPart = VIV 3983.98 * 10000 | LongvFbs LFB = 24.59 24,59 5000
Intel INTC 20.76 += 20.81 +.05 = -9953.'| Cisco CSCO 27.51 27.58 = +07 4732
Cocacl KO 47.26 = 47.20 -.06 8911 SiriusS SIRI 3.74 3.73 01 4450
InPhonic INPC 13.25 13,00 = +25 8850 Unisys UIs 9.30 9,30 e 4004

For up-to-date stock quotes, go to www.MiamiHerald.com and click on Business

Neen rrearrrrrrrr rere reer a
THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 5B





Credit union officially
unveils its new name

@ By CARA BRENNEN-
BETHEL
Tribune Business
Reporter

he Bahama Island
CL ieesorts and Casinos
Cooperative Credit
Union (BIRCCCU) has offi-
cially unveiled its new name,
a move designed to provide
more magnetism to attract
employees from those sectors,
than its previous name, the
Paradise Island Resort and
Casino Co-operative Credit
Union.

A sign bearing the new
name was Officially unveiled in
a short ceremony held at the
credit union’s Village Road



FROM page 1B

supervisory consolidation
process in the UK that led to
the Financial Services Author-
ity’s (FSA) creation as a ‘super
regulator’. |

His appointment was viewed
at the time as a precursor to
regulatory consolidation in the
Bahamas, with Mr Foot over-
seeing their integration, given
that this nation was generally
perceived as having too many
supervisory agencies with over-
lapping-responsibilities, creat-
ingadditional bureaucracy and
réd-tape*for Bahamian finan-
cial services providers to wade
through.

Mr Foot’s appointment was
thus warmly welcomed by the
Bahamian financial services
sector, especially given his
international standing and
links to global regulatory bod-
ies, something that helped
smooth relations with these
organisations at a time when
the Bahamas was still being
monitored by the Financial
Action Task Force (FATF).

Unconfirmed reports reach-
ing The Tribune last night sug-
gested that Mr Foot had
become frustrated with the
slow pace of developments in
the Bahamas, particularly over
the reform and potential con-
solidation of the regulatory
structure - the job he was

office, which was attended by
staff, the minister with respon-
sibility for credit unions, V
Alfred Gray, and senior offi-
cials from his ministry.

Paulette Dean, chairperson
of BIRCCCU, said the occa-
sion marked the threshold of a
new era in the credit union’s
history.

“We are more than commit-
ted to providing you the very
best financial services, as we
strive to be the leading credit
union of choice in the coun-

try,” she added.

“As such, we will in the very
near future be venturing into
the Family Islands, in places
such as Exuma and Grand
Bahama, in an effort to pro-

brought into oversee.

‘His departure has also
caused dismay among Bahami-
an bank and trust companies,
plus leading financial services
executives, who have enjoyed
the increased transparency and
communications Mr Foot has
provided via a quarterly
newsletter they have received.

Mr Foot led the production
of a guidebook for interna-
tional regulators on co-opera-
tion with their Bahamian coun-
terparts, explaining the
processes and removing mis-

understandings that had blight- .
ed these relationships in.the .

past. :
Production

As Inspector of Banks and
Trust Companies, he also
headed the production of
guidelines on bank and trust
company physical presence,
business continuity planning,
external auditors, independent
and non-executive bank direc-
tors, and minority investors in

‘Bahamas-based banks and

trust companies.

Several financial services
industry sources yesterday
voiced concerns to The Tri-
bune about Mr Foot’s impend-
ing departure, especially giv-

en the message it might send to |

outside investors, clients and
regulators - especially the fact
that such a recognised name

vide the same quality of ser-
vices which we presently offer
to our current members.

“We realise that our broth-
ers and sisters on the various
Family Islands also have
dreams to improve their finan-
cial future.”

According to the union, the
name was necessary to dispel
any notion that the credit

“union was only available to

persons who worked at Par-
adise Island-based resorts.
Mr Gray noted the credit
union’s achievements and
growth, saying the name
change will help to ensure the
financial stability of Bahami-
ans involved in the hotel sector
throughout the country.

aes of Banks and
Trust Companies resigns

in financial services regulation
was leaving when the Bahamas
still faced scrutiny from the
FATF and other agencies.

Describing it as “a bad mes-
sage” that could be sent, one
source said: “It’s an unfortu-
nate loss. He was very promi-
nent and you can’t question his
experience. It’s not good
news.”

Mr Foot’s standing gave him
the ability to deal with inter-
national regulators, and the
source said: “It gives you the
ability to deal with the IMF
and.CFATF,.when.they came
down here to do their reports.
Whether it’s an ‘irreplaceable
loss, I don’t know.” 10

Another industry source
said: “That’s very bad news.
Being a consumer of the Cen-
tral Bank, it’s been delightful
to have him here, particularly
the quarterly newsletter he’s
given us, as he’s told us every-
thing he’s been thinking.

“I know I’m not going to get
that kind of service in the
future. I’m not at all surprised
[at his departure], and the
banking community will view it
as a tragedy.

“T think they did a very good
thing in bringing him here.
He’!l be a hard act to follow.”

Meanwhile, Mr Smith said
yesterday that while the Reg-
ulatory Review Commission’s
legal affairs sub-committee had
recommended the changes

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He added that this was par-
ticularly significant when the
anchor properties come on
stream in the various Family
Islands.

He also encouraged the
credit union to take their assets
even higher for the further
development of the country.

Mr Gray also present
plaques to three of the credit
union’s longest serving mem-
bers - Lincoln Hercules, Beau-
thie Darville and David Mick-
lewhite - who all joined in
1986, for their commitment to
the credit union.

BIRRCU now boasts more
than 3,000 members with assets
totalling more than $20 mil-
lion.

recently passed by both House
of Parliament that allowed reg-
ulators to more easily and effi-
ciently share information
among each other, the sub-
committee on structure had
not reported yet.

“That’s a lot more involved,
and that determines whether
you go the route of the FSA
in the UK; go with multiple
agencies as in Europe, or in
between, as in Canada, with its
‘twin pillars’,” Mr Smith said.

Any regulatory structural
reform had to address condi-
tions on the ground, he added,
such as a country’s costs,
resources and expertise.



from.



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Healthy, Happy Children

Make sure your child is
mentally and physically fit,
with a well balanced multi-
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stimulant that will help
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Royal Island (Bahamas) Limited

INVITATION FOR EMPLOYMENT

Royal Island (Bahamas) Limited, the developers of the
Royal Island resort and residential project, an ultra-luxury
resort and private club residential community with private
residences and club, 200 slip marina and boutique hotel and
spa, and a golf course just off North Eleuthera invites suit-
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¢ Laundry workers

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¢ Beach activity coordinators
° Cooks

¢ Deck Hands

* Groundskeepers

Over 15 positions are to be filled. All persons require suc-
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Interested persons should submit their resumes with cover
letter to:

The H.R. Director
GCM
P.O.Box N 1991
Nassau Bahamas
Fax to: (242) 356-4125
Or Email to: info@gomezcorp.com

Royal Island (Bahamas) Limited thanks all
applicants for their interest, however only those under
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your child during the critical development stage.

Chief Financial Officer
Commonwealth Drigs & Medical Supplies Co. Ltd
P.O.Box N-1145
Nassau, Bahamas

Fax: (242) 323-2871



Make sure your child is mentally

Email: ksherman@commonwealthdmgs.com and physically fit!



Only applicants who meet the requirements will be contacted.



ae

> PHARMACIES, SUPERMARKETS AND DRUG STC
PAGE 6B, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



Greenspan said what? The
former Fed chair’s recession
comments rocks markets

mi By RACHEL BECK
AP Business Writer

NEW YORK (AP) —A
bullish complacency among
investors worldwide came to a
‘sudden halt this week after
Alan Greenspan spoiled the
fun by warning of a possible
U.S. economic recession later
this year.

In a matter Sf hours, his
forecast wreaked havoc on
global share prices. Chinese

stocks plunged 9 percent from
record levels in their worst ses-
sion in a decade and U.S. mar-
kets suffered their biggest
declines in years.

Some of what spooked
investors was the former Fed-
eral Reserve chairman’s
change in tone. Until recent-
ly, he had been adding some
froth to the big gains in stocks
by giving an upbeat economic
outlook and downplaying the
risks from declining growth.

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That positive view seems to
be history — unless he flip-
flops again.

It has been more than a year
since Greenspan left the helm
of the Fed after an 18-year
tenure, and he now runs a con-
sulting firm that bears his
name. But that doesn’t mean
he has shied away from the
spotlight. He still publicly voic-
es his views. on economic
trends, and what he says cer-
tainly carries weight in finan-
cial markets.

That was clear this week
when Greenspan warned that
the current six-year economic
expansion is in danger of expir-
ing by year’s end.

“When you get this far away
from a recession, invariably
forces build up for the next
recession, and indeed we are
beginning to see that sign,”
Greenspan said via satellite
link to a business conference in
Hong Kong. “For example in

the U.S., profit margins ... have
begun to stabilize, which is an
early sign we are in the later
stages of a cycle.”

Investors weren’t expecting
such a bearish view from
Greenspan, who has stressed
in recent months that strong
profit margins and capital
spending are signs of good
times to come. He also has
repeatedly noted that the
“worst is behind us” in the eco-
nomic impact of the housing
market slump.

Greenspan also has down-
played the recessionary link to
the inverted yield curve, which
happens when interest rates on
longer-term U.S. Treasury
notes fall below those of the
overnight federal funds rate
and short-term Treasury bills.
Even though major financial
troubles have historically fol-
lowed such inversions, many
economists now have brushed
off ties between the two

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around even though the curve
has been inverted for months.

But this week, Greenspan
sang a new tune — “recession”
— and that was enough to send
some investors running for the
first time in a long while.

There hasn’t been anything
in recent months that could
rattle stocks significantly.
Investors have chosen to focus
on the mergers and acquisition
boom, the pullback in oil prices
that have somewhat tempered
inflationary risks and some
healthy economic data — and
discounted most everything
else. And as the rally in U.S.
markets that began last July
has shown no sign of slowing,
more investors wanted to take
part. ,

Before Tuesday’s sell-off,
the Dow. Jones industrial aver-
age had soared 19 percent in
the last eight months to a
record high, while the broader-
market Standard & Poor’s 500
index had jumped 18 percent
to six-year highs since July.

Now many market-players
are taking a step back, at least
for a moment. Stocks on Tues-
day had their worst day of
trading since markets
reopened after the Sept. 11,
2001, terrorist attacks.

Greenspan’s remarks also
panicked global investors, who
worry about a cooling of both
the U.S. and Chinese
economies. A day after send-
ing Shanghai’s Composite
Index to a record, the bench-
mark index tumbled 8.8 per-
cent for its largest decline since
Feb. 18, 1997.

But there may be something
positive in Greenspan’s warn-
ing. Investors needed a bit of
an attitude adjustment, and he

jump-started the process.

It’s not that the outlook
ahead is all gloom, but since
many market participants have
gotten caught up in their buy-
ing spree, they’ve overlooked
some potential concerns.

While the U.S. economy
grew at a surprisingly strong
3.5 percent annual rate in the
fourth quarter of 2006, a sur-
vey released Monday by the
National Association for Busi-
ness Economics showed that
experts predict economic
growth of 2.7 percent this year,
the slowest rate since a 1.6 per-
cent rise in 2002.

The Commerce Department
on Tuesday reported demand
for big-ticket manufactured
goods fell by a sharper-than-
expected 7.8 percent in Janu-
ary, the biggest drop in three
months. And the housing mar-
ket remains in a tough spot,
especially given the recent
implosion in subprime mort-
gages, with a realty group
reporting that average selling
prices for existing homes fell
last month.

Investors might not see it
this way now, but Greenspan’s
warning might actually help
themintheend. |

That could happen if it gives
his successor, current Fed
Chairman Ben Bernanke, the
opportunity to save the day by
cutting interest rates to offset
potential weakness. While that
wasn’t the direction the Fed
has seemed to be leaning, it
surely is what investors want.

¢ Rachel Beck is the nation-
al business columnist for The
Associated Press, Write to her
at rbeck(at)ap.org

Royal Island (Bahamas) Limited
INVITATION FOR EMPLOYMENT

Royal Island (Bahamas) Limited, the developers
of the Royal Island resort and residential projeci,
an ultra-luxury resort and private club residential
community with private residences and club, 200
slip marina and boutique hotel and spa, and a golf
course just off North Eleuthera invites suitably
qualified individuals to apply for the following
position with the company:

HEAD CHEF

Duties and Responsibilities

e Coordinate and manage multiple food venues.
¢ Coordinate and manage all food preparation’

areas.

e Budgeting and purchasing of food supplies.

e Planning of meals for all food venues.

= )FIDELITY.

° Qualifications: Must have 5 star experience ci-
ther in a resturant private residence or yacht. Must
have an “attention to detail” work ethic. Willing
to take directions from management and maintain
a hands on approach. Experience in a “Chefs
table”, “Disgustation” or “tasting menu” style of
dining. The ideal candidate will have to reside on
Eleuthera or its surrounding area.

Today's Close Change
Abaco Markets

Bahamas Property Fund

Bank of Bahamas

‘Benchmark

Bahamas Waste

Fidelity Bank

Cable Bahamas

Colina Holdings

Commonwealth Bank

Consolidated Water BDRs

Doctor's Hospital :

Famguard

Finco

FirstCaribbean

Focol

Freeport Concrete ‘ ‘
ICD Utilities Interested persons should submit their resumes
J.-S. Johnson

with cover letter to:

Bahamas Supermarkets i
Caribbean Crossings (Pref) The H.R. Director
20 RND Holi .
po ifitér Securities GCM

41.00
14.00
0.45
BK Listed Mutat Funds

YTD% Last 12 Months

28.00 ABDAB
14.00 Bahamas Supermarkets
0.35 RND Eola

P.O.Box N 1991
Nassau Bahamas

1.320

9.000
52wk-Low Fund ‘Name Yield %
1.2756
2.6662
2.3241
1.1547
10. 0000

1.329237"
3.0569***

Colina Money Market Fund
Fidelity Bahamas G & | Fund
Colina MSI Preferred Fund
Colina Bond Fund

Fidelity Prime Income Fund

Fax to: (242) 356-4125
Or Email to: info@gomezcorp.com

11. oo.
oa. 94% (2006 34. APR
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

EPS $ - A company'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

BISX AL L SHARE INDEX * 19 Dec 02 = 1,
52wk-Hi - Highest closing price in last 52 weak



Royal Island (Bahamas) Limited thanks all
applicants for their interest, however only those
under consideration will be contacted.

52wk-Low - Lowest closing price in last 52 weeks *- 16 February 2007

Previous Close - Previous day's weighted price for daily volume
Today's Close * -31 January 2007
Change - Change in closing price from day to day
Daily Vol. - Number of total shares traded today

DIV §$ - Dividends per share paid in the last 12 months

P/E - Closing price divided by the last 12 month earnings

- Current day's weighted price for daily volume
*- 31 January 2007

*-31 January 2007



31 January 2007
s
py



“TO TRADE CALLE COLIN PEOR MORE DATA & INFORMATION GALL
THE TRIBUNE



Chrysler workers

are offered up
to $100,000 to

leave company

@ By TOM KRISHER
AP Business Writer

DETROIT (AP) —
Chrysler Group will offer all
49,600. hourly workers in the
U.S: up to $100,000 to leave
the company as part of a recov-
ery plan announced earlier this
month.

The company, which lost
$1.475 billion in 2006 and said
it expects losses to continue
through 2007, said on Feb. 14 it
intends to shed 13,000 jobs,
including 11,000 hourly posi-
tions and 2,000 salaried, as it
tries to further shrink itself to
match reduced demand for its
products.

A company document
obtained by The Associated
Press outlines an early retire-
ment program for hourly
workers near retirement age
and a buyout program for
those with at least one year of
tenure with the company.

The offers were reported
earlier Tuesday by The Detroit
News.

Under the buyout offer,
workers would receive a pretax
lump-sum payment of $100,000
plus six months of medical and
vision coverage in exchange
for their departure.

The early retirement pack-
age includes a $70,000 pay-
ment, health care benefits and
whatever pension a worker
was eligible for based on age
and years of service.

According to the document,
the United Auto Workers
union and DaimlerChrysler
AG’s Chrysler Group agreed
on the offers, which are not as

lucrative as some made to
workers leaving Ford Motor
Co. and General Motors Corp.
under restructuring plans.
“UAW members are once
again stepping forward to
make hard choices,” union

President Ron Gettelfinger .

said in a statement. “Now it’s
up to DaimlerChrysler to
move the company forward,
by using the skill and dedica-
tion of our members to deliver
quality vehicles that customers
want to buy.”

The offers come as Chrysler
tries to reduce production by
400,000 vehicles per year.

Production

All U.S. production workers
will get the offers, including
those at a plant scheduled for
closure in Newark, Del.

Of the production job cuts,
9,000 are in the U.S. and 2,000
are in Canada. All the cuts will
take place during the next
three years. Chrysler’s 10,060
Canadian workers were given
separate offers earlier this
month.

The company document said
that each U.S. facility would
have different timing for work-
ers to take the packages, but
the timing for plants slated to
lose production this year will
be between April and Decem-
ber. Further cuts scheduled for
2008 and 2009. will be done'in
similar fashion. a

To be eligible for early
retirement, workers must have
30 years with the company or
be at least 60 years old and
have at least 10 years of ser-

vice, or be at least 55 years old
and their age and years of com-
pany service must total 85 or
more. A worker also could be
at least 65 and have at least
one year of pension credit to
be eligible, according to the
document.

Chrysler, part of Germany-

‘based DaimlerChrysler AG,

said Feb. 14 that that 11 U.S.
plants would be affected by the
downsizing.

The Delaware plant would
closed during the next two
years, and Chrysler also plans
to cut shifts at plants in War-
ren, Mich., and St. Louis.

Other plants that will see job
losses include a machining
plant in Toledo, Ohio; a
Detroit axle plant; the Mack
Avenue Engine Plant I in
Detroit; an engine factory in

Trenton; stamping plants in .

Sterling Heights, Warren and
Twinsburg, Ohio; and the Indi-
ana Transmission Plant I in
Kokomo.

The company also
announced that a parts distri-
bution center near Cleveland
will close this year.

The targeted factories gen-
erally make components for
slow-selling trucks and sport
utility vehicles, the company
said.

In addition to the cuts at
those facilities, Chrysler plans
to,eliminate,3,000 hourlyjobs
due 'to"expected productivity
gains at ‘yet-to-be identified
plants, said spokesman David
Elshoff. In all, 4,725 hourly
posts will be eliminated this
year, with the remaining 4,275
in 2008 and 2009, Elshoff said.

Ue Le
the #1 newspaper in circulation,



Se Ra ER LC

Requirements:

¢ Ability to multi-task



The Ansbacher Group, specialists in private banking, fiduciary services and wealth management,
has an opening in The Bahamas for a

SECURITIES ADMINISTRATOR/OFFICER

Primary Responsibilities:

* To safeguard and accurately maintain records of all securities held

* Proper execution and settlement of trades and/or any other securities transactions

* To ensure all Securities transactions are accurately processed in the proper accounting period
¢ Liaise between custodians and administrators to ensure client records are updated

* To carry out all duties as they relate to the proper administration of securities

* Assist with the preparation of all securities related documentation

* To accurately post all stock orders, non-cash transactions and dividends

* To update the trade log on a daily basis, to validate, post and settle trades

* To assist with daily call-over routine

Secondary Responsibilities:

* To carry out such duties as may be required from time to time
* To serve as a back-up verifier of swifts

* To assist with departmental cross training, pension payments and sales ledger when necessary

* Bachelors’ Degree in Banking/Accounting/Economics/Management with at least one year

experience in an offshore environment; or
* Relevant associate Degree with three years experience as a Junior Banking of Securities Officer
* Securities certification such as Series 7 or C.S.C.
¢ Highly proficient in Microsoft Office

Please send all resumes to the attention of.

Human Resource Manager

Ansbacher (Bahamas) Limited

P.O. Box N-7768
Nassau, Bahamas
Fax: 325-0524

- E-mail: hrmanager@ansbacher.bs

Deadline for all applications is March 2, 2007

VT onn 0 EN G8 00 G0 80 80 00 28 8 80 2 Be 8 eo oe eo

WEDNESDAY, FEBRUARY 28, 2007, PAGE

7B

VACANCY FOR HEAVY EQUIPMENT MECHANICS |

Qualifications & Experience

e Minimum five (5) years in Heavy Equipment Mechanics
¢ Knowledge of diesel and gasoline engines
_ ¢ Knowledge of hydraulic systems —
¢ Good understanding of 24 V Electrical Systems:
¢ Experience in wire rope rigging would be a plus
e Welding experience also would be a plus

Duties & Responsibilities
-© Perform repairs and preventive maintenance on various heavy
equipment.
alities
¢ Good physical condition
¢ Able to withstand constant exposure to the weather conditions

¢ Must be willing to work shift schedules
e Must be willing to work.at heights

Company offers good benefits and salary is commensurate with ex-
perience and qualifications. Interested persons are invited to submit a

_ resume’ by February 28, 2007 to the following person:

Ramon Taylor

Tropical Shipping Limited
John Alfred Dock

East Bay Street

Nassau, Bahamas

Phone: (242) 322-1012

TAR DD

Cititrust (Bahamas) Limited, a subsidiary of Citigroup, a leading financial institution
with a presence in over 100 countries and over 100 million customers worldwide,
is seeking candidates for the position of Trust Officer in our Trust Administration
department. ,

Role Responsibilities

Reporting to a Trust Administration Team Leader, the position is responsible for the .
ongoing administration of trust and fiduciary products and services to clients of the
Citigroup Private Bank, Smith Barney and Citigroup’s International Personal Banking
divisions including:

Liaising with respective Relationship Managers in the provision of
information/execution of transactions and problem resolution

Managing all associated risks and escalating as appropriate

Preparing and presenting periodic administrative reviews of trust and companies
as required both internally and externally

Liaising with internal partners (Client Reporting/Fee Billing/Document
Management) to ensure the accurate and timely management of associated
client billing and secured document storage

Liaising with internal Compliance/Business Risk Management departments
and external auditors/regulators as required to ensure adherence to all internal
policies / procedures and external regulatory requirements

Ongoing updating and maintenance of the internal trust administration system
as it relates to account management
Projects as assigned

Knowledge/Skills Required

Bachelors degree in Law, Business Administration, Accounting or related field
Minimum 3-5 years experience in Trust and Company administration or related
experience
Strong oral and written communications skills
STEP qualification would be beneficial
Sound knowledge of fundamental trust law, company law and related
administrative practice
Fundamental knowledge of banking products and their application in overall
management and administration of wealth
Basic understanding and working knowledge of accounting concepts and their
applications
Basic knowledge and understanding of investment instruments and credit
concepts
Strong oral and written communication skills
Ability to identify potential risk issues and solutions and to communicate these
effectively to team colleagues
Ability to analyze and evaluate basic investment summaries, accounting
statements, banking and banking products related documentation
Ability to interact, cooperate and work through issues with team members,
managers and clients

¢ Excellent time management, organization and administrative skills

¢ Strong analytical and problem-solving skills

e Strong PC skills; knowledge of 4Series an asset

¢ Spanish/Portuguese/Mandarin language skills an asset

Interested Bahamian candidates should forward a copy of their resume by March
9, 2007 to:

Human Resources,
Cititrust (Bahamas) Limited,
P.O. Box N-1576
Nassau, Bahamas or
Fax: (242) 302-8779
or Email: janice.gibson@citigroup.com




PAGE 8B, WEDNESDAY, FEBRUARY 28, 2007

THE TRIBUNE



| = [is Seer i

Crist says he’s not we

any property tax reform idea

@ By BILL KACZOR
Associated Press Writer

TALLAHASSEE, Florida (AP) —
Governor Charlie Crist said Tuesday
he’s not committed to any property tax
reform ideas, and even refused to
defend his own proposals.

The centerpiece of Crist’s reform
package, which he also made a cam-
paign promise last year, is a proposal to
double the exemption on homesteads
— an owner’s primary home — from
$25,000 to $50,000.

House Speaker Marco Rubio, R-

Miami, last week criticized that idea,
saying it would “wipe out entire coun-
ties.” Small rural counties, where prop-
erty values are low, would be hardest
hit.

“I’m not in the push-back mood,”
Crist said Tuesday when asked about
Rubio’s comments. “My objective is to
lower property taxes for the people of
Florida and it doesn’t necessarily have
to be my idea.”

The governor said he was confident
the Legislature would find a consen-
sus among a variety of suggestions.

“Pm not wedded to any of those pro-

posals, necessarily,” Crist said.

The governor’s package also includes
proposals that would allow homeown-
ers to take the three per cent cap on
their annual property taxes, provided
through the Save Our Homes Amend-
ment, with them when they move and
add a similar cap for non-homestead
properties.

Pushing
Rubio, though, is pushing a differ-

ent plan that would abolish property
tax on homesteads and cap it for non-

homestead real estate. It also would
raise the statewide sales tax from six
per cent to 8.5 per cent to partly offset
the property tax losses to local govern-
ments.

The proposals aim to lower property
taxes driven up largely by higher real
estate values and wide disparities in
tax bills caused mainly by the Save Our
Homes Amendment. It has shifted the
tax burden from longtime homeowners
to new buyers and owners of second
homes, rental and commercial proper-
ties.

Crist was unfazed by a lawsuit chal-

lenging the Save Our Homes Amend-
ment, which took effect in 1994. It was
filed Monday in state Circuit Court
here by a group of Alabama residents
who own second homes in the Florida
Panhandle.

The lawsuit alleges the amendment
unconstitutionally shifts an unfair

amount of the tax burden onto them ,

and other owners of non-homestead

property.
Crist agreed Save Our Homes should

be more broadly applied but said, “I »,

think the Legislature is going to come
to the rescue.”

Insurers sued in Florida over building permit costs :

NOTICE

IN THE ESTATE OF BEATRICE A.
RUSSELL, (a.k.a. BEATRICE ANN
RUSSELL) late of 114 Hesketh Street, Chevy
Chase, Montgomery, Maryland, U.S.A.,
deceased

NOTICE is hereby given that all persons having

any claim or demand against or interest in the above
Estate should send same duly certified in writing to
the undersigned on or before 28" March, 2007 after
which date the Executor will proceed to distribute
the assets of the Estate having regard only to the
claims, demands or interests of which she shall then

| have had notice AND all persons indebted to the

| above Estate are asked to settle such debts on or
before 28th March, 2007. |

FREDERIK F. GOTTLIEB & CO.
Attomeys for the Executrix

P.O. Box AB-20405*'

Bay Street, Marsh :Harbour-

Abaco, The Bahamas



ASSISTANT MANAGER
FITNESS CENTRE

We are looking to fill the position of Assistant
Fitness Centre Manager. Among other duties
the successful applicant will be expected to:

| Assist the manager of the fitness centre
in supervision of staff and staff activities;
ensure the comfort of fitness centre patrons;
maintain the cleanliness standards of the
fitness centre; ensure equipment is working
superbly at all times; maintain par level

stocks per the standard and that bathroom/ |

shower facilities are fully stocked and in
an acceptable condition at all times. It
would be an asset if the individual has
some personal training certification from
the Aerobics and Fitness Association of
America or a similar institution and a
minimum of two to three years experience.

The successful applicant must be: highly

| motivated, willing to work flexible hours,
in excellent physical condition and enjoy
working with members and sponsored guests
alike.

| Interested individuals should fax resumes to:

The Director of Human Resources
Lyford Cay Members Club
Lyford Cay Drive
Nassau, Bahamas
Fax: #362-6245



TALLAHASSEE, Florida
(AP) — Three large insurers
underpaid homeowners for
roof damage from storms, and
failed to factor in the cost of
building permits for major

repairs, three lawsuits filed in
Florida allege.

The lawsuits, filed in three
different Florida courts last
week and on Monday, named
Allstate Floridian Insurance
Co., Citizens Property Insur-
ance Corp. and State Farm
Florida Insurance Co. as defen-
dants.

The lawsuits were filed on
behalf of three Florida home-
owners whose houses were
insured by one of the compa-
nies during the last five years

with claims for roof damage
from a hurricane, tornado, or
other natural disaster. They
allege the companies failed to
compensate them for the cost
of a building permit to do the
roof repairs.

The Hurricane Law Group,
which is representing the
homeowners, is seeking class-
action status for all three law-
suits.

“The three suits combined
will impact an estimated
200,000 policyholders who
were not paid for building per-
mits for damages suffered dur-
ing the various hurricanes
which ravaged Florida over
recent years,” the law group
said in a statement released

Tuesday.

The lawsuits seek to have
the homeowners reimbursed,
with interest, for permits and
have their attorneys fees cov-
ered.

The lawsuit against Citizens
was filed Friday by homeown-
er Steven Schlegel in Miami-
Dade County; the lawsuit
against, State Farm was filed
by homeowner Tracy Healy in
Broward County on Friday
and the lawsuit against Allstate
was filed Monday by home-
owner William Clinard in
Hendry County.

While not commenting on

the specifics of the lawsuit, All-

state spokesman Adam Shores

said the company “takes seri- .
ous our obligation to pay cov- ,

ered losses.”

“We’re confident that we’ve
settled our claims appropri-
ately,” Shores said.

State Farm Florida

spokesman Justin Glover said :

complaint records would show
that “the vast majority of our
customers are satisfied with
their settlements,” and also

noted that the company has *.
paid out billions for home-

owners to fix their houses over
the last couple years.

A spokesman for Citizens
said company officials had not
seen the lawsuit and declined
to comment.

NOTICE

NOTICE is hereby given that EDNA MARKS OF
19 FRAZIER ALLOTMENTS, SOLDIER RD., P.O. BOX
N-8313, 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

28th day of February, 2007 to the Minister responsible

for Nationality and Citizenship, P.O.Box N- 7147, Nassau,
a



Royal Island (Bahamas) Limited

INVITATION FOR EMPLOYMENT








































Royal Island (Bahamas) Limited, the developers of the
Royal Island resort and residential project, an ultra-luxury
resort and private club residential community with private
residences and.club, 200 slip marina and boutique hotel and
spa, and a golf course just off North Eleuthera invites suit-
ably qualified individuals to apply for the following position
with the company:

MAINTENANCE MANAGER




¢ Must have sound mechanical qualifications, experience
and skills with all types of vehicles, boats & water toys.

¢ Responsible for the maintenance, upkeep and repair of the
- following inventory:

Boat/ Water fleet
¢ 44’ Morgan
¢ 38’ Jupiter
¢ 26’ Dusky
¢ 15’ Boston Whaler
e 18’ Flats Boat

e Yamaha Jet Skis



Land Fleet
° 6 Polaris Ranger 2x4’s

¢ Golf Carts

¢ Some Construction machinery




¢ Knowledge and experience with electrical, plumbing and
building repairs and maintenance also essential, either in 4
or 5 star resort, or on private property.

¢ Responsible for upkeep of tool/maintenance shed with
particular strength in inventory and stock control and

general order.

‘e Must ensure that all maintenance tools are operated safely
and only by staff qualified to use them.

e Must have excellent organizational and skills, an eye for

detail.



Interested persons should submit their resumes with cover
letter to: ‘

The H.R. Director

GCM
P.O.Box N 1991
Nassau Bahamas
Fax to: (242) 356-4125

Or Email to: info@ gomezcorp.com




Royal Island (Bahamas) Limited thanks all applicants for
their interest, however only those under consideration will
be contacted.

NOTICE

NOTICE is hereby given that KENOLD CIVILMA OF
BAHAMA AVENUE, P.O.BOX N-7499, 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 21ST:day of FEBRUARY, 2007
to the Minister responsible for Nationality and Citizenship,
P.O.Box N- 7147, Nassau, Bahamas.

LLL
JEWELLERY STORE MANAGERS

Discover a rewarding and
_challenging career catering to the
country’s visitors in the exciting
retail jewelry business!!!

Do You Have What it Takes:



ARE YOU...
Confident? ¢ A Leader? ¢ Self Motivated?
¢ Professional? * Mature (25 yrs or older)? ¢ Dedicated?
If the answer isYES then take the next step

FAX RESUME TO 326-2824

SALARY OPPORTUNITY COMMENSURATE WITH EXPERIENCE & QUALIFICATION

APPLY TODAY!



Bimini Sands Condominiums & Resort

JOB FAIR

held on

March Ist and March 2nd 2007,
Place: Culinary & Hospitality Management
Institute;Of The College Of The Bahamas;

in the Demonstration Room.

Time: 9:00am until 2:00pm daily

EMPLOYMENT OPPORTUNITIES:

Accountant
Reservation Clerk
Special Events Coordinator
Chef
Line Cook
Waiters / Waitress
Bus Boys
Bartenders
Maintenance
Security

Appliciants Should bring resume along with them.



f

dded to.

&

ua ee ot

san AM A A Es A me are aoe a

SL A OM AE NE I a A

WF ecceans: ee

ME MPM TE a a er ED PER BOA OAAESEO BUTE ee

* 7 DE EE ED IPS BE

4
THE TRIBUNE

WEDNESDAY, FEBRUARY 28, 2007, PAGE 9B



LUT Seok



Midwest CEO fears merger

with AirTran would take
away his airline’s charm.

@ By EMILY FREDRIX
AP Business Writer

MILWAUKEE (AP) — The
head of Midwest Airlines, target
of a hostile takeover by Orlan-
do, Florida-based AirTran Air-
ways, Said he fears a merger
with the low-cost carrier would
result in his airline losing its
charm.

AirTran envisions a merger
that will create a large, low-cost
national airline, said'Tim Hoek-
sema, CEO of Midwest Air
Group, told The Associated
Press. But that would require
more seats, less leg room and
giving up perks such as Mid-
west’s trademark chocolate chip
cookies, he said.

“T think their vision, based on
what you read, is to convert it to

_a commodity carrier that does
not have the focus on service
that we do and to make it into a
high density, low-cost product,
eliminate some of the things that
we offer ... and turn it into Air-
Tran,” Hoeksema said.

The $345 million offer from
AirTran Holdings Inc., parent

of AirTran Airways, to Midwest
shareholders expires on March

Midwest Air-Group’s board
of directors has turned down
three offers from AirTran. In
January, it called the latest offer
“inadequate” and recommend-
ed shareholders not sell their
stock to AirTran.

The board knew what it was
doing in the summer of 2005,
Hoeksema said, when it quietly
declined AirTran’s first buyout
offer of about $78 million, or
$4.50 a share.

“So one can say, ‘Oh boy, that
was about twice what the share
price was,’ but our board of
directors knew what we were
doing, what was coming, what
our strategic plan was and obvi-
ously in retrospect made the
right decision,” he said.

Shares of Midwest closed
Tuesday down 50 cents, or 3.76
per cent, to $12.80 on the Amer-
ican Stock Exchange. Shares of
AirTran fell 27 cents, or 2.51
per cent, to close at $10.48 on

the New York Stock Exchange. ©

The board prefers to expand

Midwest on its own, Hoeksema
said. The Milwaukee-based air-
line plans to add six new desti-
nations this year and 12 new
routes, including a direct flight
from Milwaukee to
Seattle/Tacoma announced
Tuesday. Midwest Air Group,
with 3,500 employees and more
than 340 flights a day, plans to
serve 49 cities in the next few
months.

AirTran currently operates
more than 700 flights a day to 56
cities and has 8,000 employees.
A combined company could
reach 1,000 departures a day in
74 cities, AirTran CEO Joe
Leonard has said.

Hoeksema said that’s just not
feasible.

AirTran said Monday in a fil-
ing with the Securities and
Exchange Commission that it
wants to add 29 destinations
from Milwaukee to cities such as
San Juan, Puerto Rico and
Rochester, N.Y.

But there won’t be enough
passengers out of Milwaukee to
justify that, Hoeksema said.

He also disputed AirTran’s
claim that it would add more
than 1,100 jobs to the Milwau-
kee area with a merger. That
won’t happen after overlapping

jobs are eliminated, Hoeksema
said.

Midwest may be small — it
carries less than one per cent of
all US passengers — but it has
done well by carving its own
niche, he said.

“We want to maintain that
uniqueness and that specialness
so people do pick us and that’s
what it’s all about,” he said.

AirTran could have gone into
Milwaukee and competed
directly, but it wants to work
out a deal, said Tad Hutcheson,
AirTran’s vice president of mar-
keting. The company has
promised to keep serving cook-
ies, he said, and passengers who
want more service can always
fly business class.

“We don’t want to destroy
Midwest,” Hutcheson said.

Hoeksema would not specu-
late on whether Midwest would
consider offers from companies
other than AirTran or engage
in its own takeover efforts.

“We're probably in the
strongest position we’ve ever
been in from a competitive point
of view in terms of low cost and
good service,” he said.

“And that, I think, is the
secret for success going for-

_ward.”

VACANCY

SEV SO RET AY

An established Law firm is seeking suitable applicants |
for the position of Legal Secretary. The following
qualifications and attributes are necessary requirements.

Associate Degree in Secretarial Science or
equivalent ,

A minimum of 3 years working experience in the
specified position
Excellent use of the English language

Strong secretarial and administrative background
Good communication and people skills
Proficient in Microsoft Word and Excel

Experience working in a law firm’s Corporate or

Commercial department would be an asset. The
successful candidate must be able to multi task and work
in a demanding environment.

Qualified persons may apply to the Human Resources
Manager before March 16, 2007. ,

P.O. Box

c/o The Tribune
Nassau, The Bahamas

NOTICE

IN THE ESTATE OF JULES D. GRIFFING, late of
the City of Rutland, Vermont U.S.A., deceased



| NOTICE is hereby given that all persons having

any claim or demand against or interest in the above
Estate should send same duly certified in writing
to the undersigned on or before 28" March, 2007
after which date the Administratrix will proceed to |
distribute the assets of the Estate having regard only

to the claims, demands or interests of which she shall

then have had notice AND all persons indebted to
the above Estate are asked to settle such debts on or |
before 28th March, 2007.

NOTICE

IN THE ESTATE OF EVERETTE ARCHER a.k.a
RICHARD EVERETTE ARCHER a.k.a EDWARD -:
EVERETTE ARCHER a.k.a EVERETTE RICHARD
ARCHER late of Dundas Town, Abaco, The Bahamas
deceased

NOTICE

NOTICE is hereby given that ARMONY JEAN-BAPTISTE OF
* 3RD STREET, GROVE, 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 21ST day of FEBRUARY, 2007 to the Minister
responsible for Nationality.and Citizenship, P.O.Box N- 7147,
Nassau, Bahamas. =ipe

FREDERIK F. GOTTLIEB & CO.
Attomeys for the Executrix
P.O. Box AB-20405
Bay Street, Marsh Harbour
‘ Abaco, The Bahamas



' NOTICE‘is'héreby given that all persons having any claim

NOTICE

NOTICE is hereby given that MICHAEL MARKS OF
19 FRAZIER ALLOTMENTS, SOLDIER RD., P.O. BOX
N-8313, 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
28th day of February, 2007 to the Minister responsible

Nationality and Citizenship, PO.Box N- 7147, Nassau,.

or demand against or interest in the above Estate should



send same daily certified in writing to the undersigned on



or before 26th March, 2007 after which date the Executrix
will proceed to distribute the assets of the Estate having
regard only to the claims, demands or interests of which
she shall then have notice AND all persons indebted to the
above Estate are asked to settle such debts on or before

26th March, 2007.

V.M. LIGHTBOURN & CO.
Attorneys for Executrix
‘P.O. Box AB-20365
, Bay Street, Marsh Harbour

Abaco, The Bahamas

NOTICE

NOTICE is hereby given that DAMIAN MARKS OF
19 FRAZIER ALLOTMENTS, SOLDIER RD., P.O. BOX
N-8313, 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

MANAGER
28th day of February, 2007 to the Minister responsible

ationality and Citizenship, P.O.Box N- 7147, Nassau, | Private club is seeking a restaurant manager
nas : with a minimum of five (5) years managerial

experience in a gourmet style restaurant.
NOTICE

NOTICE is hereby given that WAYDE JOSEPH OF
LUDLOW ST. WEST, P.O. BOX N-8313, 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 28th day of

| February, 2007 to the Minister responsible for Nationality
and Citizenship, P.O.Box N- 7147, Nassau, Bahamas.

OFFICE ASSISTANT NEEDED

To assist in General Office Work. Duties include,
but not limited to, Receptionist, Filing, Typing,
Banking and Postal Duties. Will also be required
to perform some Accounting and Payroll
Functions. Excellent Computer Skills Necessary.

VACANCY
For

RESTAURANT



UBS

UBS (Bahamas) Ltd. is one of the leading Wealth Managers in
the Caribbean. We look after wealthy private clients by
providing them with comprehensive, value-enhancing services.
In order to strengthen our team we look for an additional

The individual’s primary responsibilities
include but are not limited to a willingness
to: work split shifts; attend to employee
discipline; coach and counsel; roster; |
conduct performance appraisals; establish
and maintain necessary controls to erisure
a smooth operation; motivate and train
employees; exercise exceptionally-strong
supervisory skills in any matters involving
subordinate staff and manage by example
in an environment of professionalism
| beginning with being a role model in
professional attire and deportment. |

| Client Advisor Brazil

In this challenging position you will be responsible for the
following tasks (traveling required):



« Advisory of existing clients

« Acquisition of high net worth individuals

= Presentation and implementation of investment solutions
in the client's mother tongue

We are searching for a personality with solid experience in
wealth management, specialized in the fields of customer
relations, investment advice and portfolio management.
‘Excellent sales and advisory skills as well as solid knowledge of
investment products are key requirements. A proven track
record with a leading global financial institution as well as
fluency in English and Portuguese is essential.

Salary is commensurate with qualifications
and experience.

Interested managers should express an
interest by faxing resumes to the attention of:
Ideal candidate will be honest, responsible, :
punctual and self-motivated.



Written applications should be addressed to:

UBS (Bahamas) Ltd.
Human Resources
P.O. Box N-7757
Nassau, Bahamas

The Director, Human Resources:
Lyford Cay Members Club
Lyford Cay
Nassau, Bahamas
Fax: 4362-6245

Salary commensurate with experience.
FAX 326-2824.

HUMAN RESOURCES MANAGER




PAGE 10B, WEDNESDAY, FEBRUARY 28, 2007

FIRSTCARIBBEAN INTERNATIONAL BANK (BAHAMAS) LIMITED

CONSOLIDATED BALANCE SHEET AS OF OCTOBER 31, 2006
(Expressed in thousands of Bahamian dollars)

2006 2005
Notes $ $
‘ (Restated)

ASSETS
Cash and balances with The Central Bank 3 69,143 108,802
Loans and advances to banks 4 298,257 682,859
Derivative financial instruments 5 13983 6,832
Financial assets at fair value through profit or loss 6 809,509 300,211
Other assets 7 121,772 37,338
Investment securities 8 715,370 168,600
Loans and advances to customers 9 2,444,830 1,972,392
Property, plant and equipment 10 29,209 31,764
Retirement benefit assets ll 13,654 13,597
Intangible assets 12 187,747 187,747
Total assets 4,691,474 3,510,142

LIABILITIES

Derivative financial instruments : 5 12,424 267
Customer deposits 13 3,503,903 2,856,737
Other borrowed funds 14 281,344 -
Other liabilities — 15 276,789 81,299
Retirement benefit obligations 1l- 11,608 10,600
Total liabilities 4,086,068 2,948,903

EQUITY
Share capital and reserves 17 435,556 417,281
Retained earnings 169,850 143,958
Total equity 605,406 561,239

Total liabilities and equity

4,691,474 3,510,142

Approved by the Board of Directors on December 15, 2006 and signed on its behalf by:

‘

Michael Mansoor
Chairman ~

_—

Hann reves

Sharon Brown
Managing Director

NOTES TO THE CONSOLIDATED BALANCE SHEET

i,

remeron cm a TT EE a a TT ATES,

General information

The

Bank, which was formerly named CIBC Bahamas Limited (“CIBC Bahamas”) and controlled by

Canadian Imperial Bank of Commerce (CIBC), changed its name to FirstCaribbean International
Bank (Bahamas) Limited on October 11, 2002, following the combination of the retail, corporate and
offshore banking operations of Barclays Bank PLC in The Bahamas and the Turks & Caicos Islands
(“Barclays Bahamas”) and CIBC Bahamas.

The

Bank is a subsidiary of FirstCaribbean International Bank Limited formerly CIBC West Indies

Holdings Limited (the “Parent” or “FCIB”), a company incorporated in Barbados with the ultimate
parent companies being jointly CIBC, a company incorporated in Canada, and Barclays Bank PLC, a

com

pany incorporated in England: In March 2006, CIBC and Barclays Bank PLC signed a non-

binding Letter of Intent for the acquisition by CIBC of Barclays’ 43.7% ownership stake in FCIB.

Upo

The

n completion of the transaction, CIBC would own 87.4% of FCIB.

registered office of the Bank is located at the FirstCaribbean Financial Centre, 2â„¢ Floor, Shirley

Street, Nassau, The Bahamas. At October 31, 2006 the Bank had 812 employees (2005: 811).

Summary of significant accounting policies

2.1

Basis of presentation

This consolidated balance sheet is prepared in accordance with Intemational Financial
Reporting Standards (IFRS) under the historical cost convention, as modified by the revaluation
of available-for-sale investment securities, financial assets and financial liabilities at fair value
through the profit and loss and all derivative contracts.

The preparation of the balance sheet in conformity with IFRS requires management to make
certain critical estimates and assumptions that affect amounts reported in the balance sheet and
accompanying notes. Actual amounts could differ from these estimates. The areas requiring a
higher degree of judgement or complexity, or areas where assumptions and estimates are
significant to the consolidated balance sheet, are disclased in Note 24.

The following new standards and amendments to standards are mandatory for the Bank’s

accounting periods beginning on or after November 1, 2005. Management assessed the

relevance of these new standards and amendments and concluded that the adoption did not

result in substantial changes to the Bank’s accounting policies. In summary:

e IAS 8, 10, 16, 17, 21, 27, 28, 32 and 33 had no material effect on the Bank’s policies.

e IAS 24 has affected the identification of related parties and some other related party
disclosures. ‘ /

e IAS 39 (revised 2004) has affected the investment and trading securities categories for
disclosure.

e . IFRS 2 has affected the disclosures for share-based payments to employees.

All changes in accounting policies have been made in accordance with the transition provisions

in the respective standards. All standards adopted by the Bank require retrospective application

other than: ‘

e IAS 21 — prospective accounting for goodwill and fair value adjustments as part of foreign
operations; and

e IAS 39 — the de-recognition of financial assets is applied prospectively.

Certain new standards, interpretations and amendments to existing standards have been
published that are mandatory for the Bank’s accounting periods beginning on or after
November 1, 2006 or later periods but which the Bank has not early adopied, as follows:

* IAS 19 (Amendment), Employee Benefits (effective from January 1, 2006). This
amendment introduces the option of an alternative recognition approach for actuarial gains
and losses. It may impose additional recognition requirements for multi-employer plans
where insufficient information is available to apply defined benefit accounting. It also adds
new disclosure requirements. The Bank has not yet determined whether it will change its
accounting policy adopted for recognition of actuarial gains and losses.

e IAS 39 (Amendment), The Fair Value Uption (effective from January 1, 2006). This
amendment changes the definition of the financial instruments classified at fair value
through the profit and loss and restricts the ability to designate financial instruments as part
of this category. The Bank believes that this amendment should not have a significant
impact on the classification of financial instruments, as the Bank should be able to comply
with the amended criteria for the designation of financial instruments classified at fair value
through the profit and loss

e IFRS 7, Financial Instruments: Disclosures, and a complementary amendment to IAS 1,
Presentation of Financial Statements — Capital Disclosures (effective from January 1,
2007). IFRS 7 introduces new disclosures to improve the information about financial
instruments. It requires the disclosure of qualitative and quantitative information about
exposure to risk arising from financial instruments, including specified minimum
disclosures about credit risk, liquidity risk and market risk, including sensitivity analysis to
market risk. It replaces IAS 30, Disclosures in the Financial Statements of Banks and
Similar Financial Institutions, and disclosure requirements in IAS 32, Financial
Instruments: Disclosure and Presentation. It is applicable to all entities that report under
IFRS. The amendment to IAS 1 introduces disclosures about the level of an entity’s capital
and how it manages capital. The Bank assessed the impact of IFRS 7 and the amendment
to LAS 1 and concluded that the main additional disclosures will be sensitivity analysis to
market risk and the capital disclosures required by the amendment to IAS 1,

IFRIC 8, Scope of IFRS 2 (effective from May 1, 2006). IFRIC 8 clarifies that the
accounting standard IFRS 2, Share-Based Payment applies to arrangements where an entity
makes share-based payments for apparently nil or inadequate consideration. The
Interpretation explains that, if the identifiable consideration given appears to be less than
the fair value of the equity instruments granted or liability incurred, this situation typically .
indicates that other consideration has been or will be received. IFRS 2 therefore applies.
Management does not believe that IFRIC 8 will impact the Bank’s operations.

IFRIC 9, Reassessment of Embedded Derivatives (effective from June 1, 2006). IFRIC 9
clarifies certain aspects of the treatment of embedded derivatives under IAS 39, Financial
Instruments: Recognition and Measurement. Management does not believe that IFRIC 9
will impact the Bank’s operations.



2.2

2.3

2.4.

2.5

2.6

THE TRIBUNE BUSINESS

Consolidation

Subsidiary undertakings, which are those companies in which the Bank directly or indirectly has
an interest of more than one half of the voting rights or otherwise has power to exercise control
over the operations, have been fully consolidated. The principal subsidiary undertakings are
disclosed in Note 27. Subsidiaries are consolidated from the date on which the effective control
is transferred to the Bank. They are de-consolidated from the date that control ceases.

All inter-company balances and unrealized surpluses and deficits on balances have been
eliminated. Where necessary, the accounting policies used by subsidiaries have been changed
to ensure consistency with the policies adopted by the Bank.

The purchase method of accounting is used to account for the acquisition of subsidiaries by the
Bank. The cost of an acquisition is measured as the fair value of the assets given, equity
instruments issued and liabilities incurred or assumed at the date of the exchange, plus costs
directly attributable to the acquisition. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at.their fair values at the
date of acquisition, irrespective of the extent of any minority interest. The excess of the cost of
acquisition over the fair value of the Bank’s share of the identifiable net assets acquired is
recorded as goodwill. If the cost of the acquisition is less than the fair value of the net assets of
the subsidiary acquired, the difference is recognized directly in the income statement.

Segment reporting

A business segment is a group of assets and operations engaged in providing products and
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 that are different from
those of segments operating in other economic environments. Segments with a majority of
revenue earned from external customers, and whose revenue, results or assets are 10% or more
of all the segments, are reported separately.

Foreign currency translation

Items included in the consolidated balance sheet are measured using the currency of the
primary economic environment in which the entity operates (“the functional currency”). The
functional currency of the Bank is Bahamian dollars, and, this consolidated balance sheet is
presented in Bahamian dollars.

Monetary assets and liabilities denominated in foreign currencies are translated into the
functional currency at rates prevailing at the date of the balance sheet and non-monetary assets
and liabilities are translated at historic rates. Realized and unrealized gains and losses on
foreign currency positions are reported in income of the current year. Translation differences
on non-monetary items, such as equities classified as available-for-sale financial assets, are
included in the available-for-sale reserve in equity.

Derivative financial instruments and hedge accounting

Derivatives are initially recognized in the balance sheet at their fair value based on trade date.
Fair values are obtained from discounted cash flow models, using quoted market interest rates.
All derivatives are carried as assets when fair value is positive and as liabilities when fair value
is negative. :

The method of recognizing the resulting fair value gain or loss depends on whether the
derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
The Bank designates certain derivatives as either: (1) hedges of the fair value of recognized
assets or liabilities (fair value hedge); or (2) hedges of highly probable cash flows attributable
to a recognized asset or liability (cash flow hedge). Hedge accounting is used for derivatives
designated in this way provided certain criteria are met:

The Bank’s criteria for a derivative instrument to be accounted for as a hedge include:

4) formal documentation of the hedging instrument, hedged item, hedging objective, strategy
and relationship, at the inception of the transaction;

ii) the hedge is documented showing that it is expected to be highly effective in offsetting the
risk in the hedged item throughout the reporting period; and

Â¥, iii) the hedge is highly effective on an ongoing basis.

(1) Fair value hedge

Changes in the fair value of the effective portions of derivatives that are designated and
qualify as fair value hedges and that prove to be highly effective in relation to hedged
risk, are recorded in the income statement, along with the corresponding change in fair
value of the hedged asset or liability that is attributable to that specific hedged risk.

If the hedge no longer meets the criteria for hedge accounting, an adjustment to the
carrying amount of a hedged interest-bearing financial instrument is amortized to net
profit or loss over the period to maturity.

(2) Cash flow hedge

The effective portion of changes in the fair value of derivatives that are designated and
qualify as cash flow hedges are recognized in equity. The gain or loss relating to the
ineffective portion is recognized immediately in the income statement.

Amounts accumulated in equity are recycled to the income statement in the periods in
which the hedged item will affect profit or loss (for example, when the forecast sale that
is hedged takes place). :

When a hedging instrument expires or is sold, or when a hedge no longer meets the
criteria for hedge accounting, any cumulative gain or loss existing in equity at that time
remains in equity and is recognized when the forecast transaction is ultimately recognized
in the income statement. When a forecast transaction is no longer expected to occur, the
cumulative gain or loss that was reported in equity is immediately transferred to the

income statement.
Financial assets

The Bank classifies its financial assets into the following categories:
i) Financial assets at fair value through profit or loss

ii) Loans and receivables

iii) Held-to-maturity investments

iv) Available-for-sale financial assets

Management determines the classification of its investments at initial recognition.

. 1) Financial assets at fair value through profit or loss

This category has two sub-categories: financial assets held for trading, and those designated
at fair value through profit or loss at inception. A financial asset is classified in this
category if acquired principally for the purpose of selling in the short term or if so
designated by management. Derivatives are also categorised as held for trading unless they
are designated as hedges.

ii) Loans and receivables

Loans and receivables are non-derivative financial assets with fixed or determinable
payments that are not quoted in an active market. They arise when the Bank provides
money, goods or services directly or indirectly to a debtor with no intention of trading the
receivable.

ili) Held-to-maturity

Held-to-maturity investments are non-derivative financial assets with fixed or determinable
payments and fixed maturities that the Bank’s management has the positive intention and
ability to hold to maturity. Were the Bank to sell other than an insignificant amount of
held-to-maturity assets, the entire category would be tainted and reclassified as available-
for-sale,

a
~S

Available-for-sale

Available-for-sale investments are those intended to be held for an indefinite period of
time, which may be sold in response to needs for liquidity or changes in interest rates,
exchange rates or equity prices.

All purchases and sales of financial assets at fair value through profit or loss, held-to-maturity
and available-for-sale that require delivery within the time frame established by regulation or
market convention (“regular way” purchases and sales) are recognized at trade date, which is
the date that the Bank commits to purchase or sell the asset. Otherwise such transactions are
treated as derivatives until settlement occurs. Loans and receivables are recognized when cash

‘ is advanced to borrowers.

Financial assets are initially recognised at fair value plus transaction costs for all financial
assets not carried at fair value through profit or loss. Financial assets are derecognised when
the rights to receive the cash flows from the financial assets have expired or where the Bank
has transferred substantially all risks and rewards of ownership.

Available-for-sale financial assets and financial assets at fair value through profit or loss are
subsequently re-measured at fair value based on quoted bid prices or amounts derived from
cash flow models. Loans and receivables and held-to-maturity investments are carried at
amortized cost using the effective interest yield method, less any provision for impairment.
Third party expenses associated with loans and receivables, such as legal fees, incuned in
securing a loan are expensed as incurred. Unrealized gains and losses arising from changes in
the fair value of securities classified as available-for-sale are recognized in equity, except where
a hedging relationship exists. When the securities are disposed of or impaired, the related
accumulated fair value adjustments are included in the income statement as gains and losses
from investment securities. All realized and unrealized gains and losses arising from changes
in the fair value of securities classified as financial assets at fair value through profit or loss are
included in operating income.

Unquoted equity instruments for which fair values cannot be measured reliably are recognised
at cost less impairment.

aes
THE TRIBUNE BUSINESS

2.7

ET ELTE TE M5, *

2.8

om

oT

RT ST de AE I AE ADE BP PO OBO Ts Pic i LG EE 1B OL OOO ME Eb EE EEL



2.10

a Si A 5 SE I sc OI AE EE a ot




Offsetting financial instruments

Financial assets and liabilities are offset and the net amount teported in the balance sheet when
there is a legally enforceable right to offset the recognized amounts and there is an intention to
settle on a net basis, or realize the asset and settle the hability simultaneously.

Sale and repurchase agreements

Securities sold subject to linked repurchase agreements (“repos”) are retained in the financial
Statements as investment securities or financial assets at fair value through profit or loss and the
liability to the counter party is included in other borrowed funds under liabilities. Securities
purchased under agreements to resell are recorded as loans and advances to other banks or
customers as appropriate. The difference between sale and repurchase price is treated as
interest and accrued over the life of repurchase agreements using the effective interest yield
method.

Impairment of financial assets

The Bank assesses at each balance sheet date whether there is objective evidence that a
financial asset or group of financial assets is impaired. A financial asset or a group of financial
assets is impaired and impairment losses are incurred if, and only if, there is objective evidence
of impairment as a result of one or more events that occurred after the initial recognition of the
asset (a ‘loss event’) and that loss event (or events) has an impact on the future cash flows of
the financial asset or group of financial assets that can be reliably estimated. Objective
evidence that a financial asset or group of financial assets is impaired includes observable data
that cofmes to the attention of the Bank about the following loss events:

i) significant financial difficulty of the issuer or obligor;

11) a breach of contract, such as a default or delinquency in interest or principal payments;

ii) the Bank granting to a borrower, for economic or legal reasons relating to the borrower’s
financial difficulty, a concession that the lender would not otherwise consider;

iv) it becoming probable that the borrower will enter bankruptcy or other financial
reorganisation;

v) the disappearance of an active market for that financial asset because of financial
difficulties; or

vi) observable data indicating that there is a measurable decrease in the estimated future cash
flows from a group of financial assets since the initial recognition of those assets, although
the decrease cannot yet be identified with the individual financial assets in the group,
including:
- adverse changes in the payment status of borrowers in the group; or
- national or local economic conditions that correlate with default on the assets in the
group.

If there is objective evidence that an impairment loss on loans and receivables or held-to-
maturity investments carried at amortised cost has been incurred, the amount of the loss is
measured as the difference between the carrying amount and the recoverable amount, being the
estimated present value of expected cash flows, including amounts recoverable from guarantees
and collateral, discounted based on the current effective interest rate.

| il
When a loan is uncollectible, it is written off against the related provision for impairment;
subsequent recoveries are credited to the provision for impairment losses. If the amount of the
impairment subsequently decreases due to an’ event occurring after the write-down, the release
of the provision is credited to the provision for loan loss impairment in the income statement.

In circumstances where Central Bank guidelines and regulatory rules require provisions in
excess of those calculated under IFRS, the difference is accountéd for as an appropriation of
retained earnings and is included in a non-distributable general banking reserve.

Intangible assets
Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the net
identifiable assets of the acquired subsidiary undertaking at the date of acquisition and is
reported in the balance sheet as an intangible asset. Goodwill is tested annually for impairment
and carried at cost less accumulated impairment losses. Goodwill 1s allocated to lowest levels
for which there are separately identifiable cash flows (cash-generating units) for the purpose of
impairment testing. An impairment loss is recognized for the amount by which the asset’s
carrying value exceeds its recoverable amount. The recoverable amount is the higher of an
asset’s fair value less costs to sell and value in use.

Property, plant and equipment
Land and buildings comprise mainly branches and offices. 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.

_ Subsequent costs are included in the asset’s, carrying amount orate recognised as a separate

set, as appropriate, only when it is probable that future gconomic benefits associated with the
item will flow to the Bank and the cost of the item can, be measured reliably... All, other repairs

and maintenancé are charged to the income statement during the financial period in which they
are incurred. ;

Land is not depreciated. Depreciation on other assets is computed using the straight-line
method at rates considered adequate to write-off the cost of depreciable assets, less salvage,
over their useful lives.

The annual rates used are:

- Buildings 22%

- Leasehold improvements 10% or shorter life of the lease
- Equipment, furniture and vehicles 20 - 50%

Assets that are subject to depreciation are reviewed for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be recoverable. Where the carrying
amount of an asset is greater than its estimated recoverable amount, it is written down
immediately to its recoverable amount. The asset’s recoverable amount is the higher of the
asset’s fair value less costs to sell and the value in use.

Provisions

' Provisions are recognized when the Bank has a present legal or constructive obligation as a

Ta or ga

‘da 2.13

result of past events, it is more than likely that an outflow of resources embodying economic
benefits will be required to settle the obligation, and a reliable estimate of the amount of the
obligation can be made.

Retirement benefit obligations
1) Pension obligations

The Bank operates a pension plan, the assets of which are held in a separate trustee-
administered fund. The pension plan is funded by payments from employees and the
Bank, taking account of the recommendations of independent qualified actuaries. The
plan has defined benefit sections and a defined contribution section.

A defined benefit plan is a pension plan that defines an amount of pension benefit to be
provided, usually as a function of one or more factors such as age, years of service or
compensation. A defined contribution plan is a pension plan under which the Bank pays
fixed contributions into a separate entity (a fund) and will have no legal or constructive
obligations to pay further contributions if the fund does not hold sufficient assets to pay
all employee benefits relating to employee service in the current and prior periods.

‘Vhe liability recognised in the balance sheet in respect of defined benefit sections of the
plan is the present value of the defined benefit obligation at the balance sheet date minus
the fair value of plan assets, together with adjustments for unrecognized actuarial
gains/losses and past service costs. The defined benefit obligation is calculated
periodically by independent actuaries using the projected unit credit method. The present
value of the defined benefit obligation is determined by the estimated future cash
outflows using interest rates of government securities which have terms to maturity
approximating the terms of the related liability. The pension plan is a final salary plan
and the charge for such pension plan, representing the net periodic pension cost less
employee contributions is included in staff costs.

Actuarial gains and losses arising from experience adjustments and changes in actuarial
assumptions are charged or credited to income over the expected average service lives of
the related employees. Past service costs are recognised immediately in income, unless
the changes to the pension plan are conditional on the employees remaining in service for
a specified period of time (the vesting period). In this case, past service costs are
amortised on a straight-line basis over the vesting period.

For the defined contribution section of the plan, the Bank makes contributions to a
private trustee-administered fund. Once the contributions have been paid, the Bank has
no further payment obligations. The regular contributions constitute net periodic costs
for the year in which they are due and as such are included in staff costs. The Bank’s
contributions in respect of the defined contribution section of the plan’ are charged to the
income statement in the year to which they relate.

(11) Other post retirement obligations

The Bank provides post-retirement healthcare benefits to its retirees. The entitlement to
these benefits is usually based on the employee remaining in service up to retirement age
and the completion of a minimum service period. The expected costs of these benefits
are accrued over the period of employment, using a methodology similar to that for
defined benefit pension plans. Actuarial gains and losses arising from experience
adjustments and changes in actuarial assumptions are charged or credited to income over
the expected average service lives of the related employees. These obligations are valued
periodically by independent qualified actuaries.



TUESDAY, FEBRUARY 28, 2007, PAGE 11B

2.14 Borrowings
Borrowings are recognized initially at fair value and are subsequently stated at amortized cost,
and any difference between net proceeds. and the redemption value is recognized in the income
statement over the period of the borrowings, using the effective interest yield method.

4.45 Share capital and dividends
1) Share issue costs

Shares issued for cash are accounted for at the issue price less any transaction costs
associated with the issue. Shares issued as consideration for the purchase of assets, or a
business, are recorded at the market price on the date of the issue.

i) Dividends on ordinary shares

Dividends on ordinary shares are recognized in equity in the period in which they are
declared. Accordingly, dividends in respect of the current year’s net income that are
declared after the balance sheet date are not reflected in the consolidated balance sheet.

2.16 Fiduciary activities

The Bank commonly acts as trustees and in other fiduciary capacities that result in the holding
or placing of assets on behalf of individuals, trusts, retirement benefit plans and other
institutions. These assets and income arising thereon are excluded from this consolidated
balance shect, as they are not assets of the Bank.

2.17 Comparatives

Where necessary, comparative figures have been adjusted to comply with changes in
presentation in the current year as noted in accounting policy 2.1.
Cash and balances with The Central Bank

2006 2005

$ $

Cash ; : 24,543 28,290
Deposits with The Central Bank - non-interest bearing 44,600 80,512
Cash and balances with The Central Bank 69,143 108,802
Less: Mandatory reserve deposits with The Central Bank (43,209) (49,550°
Included in cash and cash equivalents as per below 25,934 59,252

Mandatory reserve deposits with ‘The Central Bank represent the Bank’s regulatory requirement to
maintain a percentage of deposit liabilities as cash or deposits with The Central Bank. These funds
are not available to finance the Bank’s day-to-day operations and as such, are excluded from cash
resources to arrive at cash and cash equivalents.

Cash and balances with The Central Bank are non-interest bearing.
Cash and cash equivalents

2006 2005
$ $
Cash and balances with The Central Bank as per above 25,934 59,252

Loans and advances to banks, including accrued '
interest (Note 4) 154,150 682,859
180,084 : 742,111

Loans and advances to banks

2006 2005
$ 3
Included in cash and cash equivalents (Note 3) 151,847 679,695

Greater than 90 days to maturity from date of acquisition 144,107 -

295,954 679,695
Add: Accrued interest receivable 2,303 3,164

298,257 682,859

Loans and advances to banks comprise deposit placements and include amounts placed with other
FirstCaribbean Bank entities of $86 (2005 - nil) and deposit placements with CIBC and Barclays
Bank PLC entities of $230,778 (2005 - $518,562). The'effective yield on deposit placements during
the year was 3.3% (2005 ~ 2.7%). : .

$5. Derivative financial instruments

The Bank uses interest rate swaps for both hedging and non-hedging purposes. Interest rate
swaps are commitments to exchange one set of cash flows for another. The Bank uses
interest rate swaps as fair value hedges to reduce the exposure of fair value changes due to
fluctuation in market interest rates resulting from fixed rates binding to customers and from
available-for-sale securitics. The swaps result in an economic exchange of interest rates
(fixed rate for floating rate). No exchange of principal takes place. The Bank’s credit risk
represents the potential cost to replace the swap contracts if counterparties fail to perform
their obligation. The counterparties to the swaps are Barclays and Lehman Brothers.

Currency forwards represent commitments to purchase foreign currency including
undelivered spot transactions. The counterparty is Royal Bank of Canada.

The notional and fair value amounts under these contracts at October 31 are shown below:

Contract
/Notional
Amount Fair Values
Assets Liabilities
$ $ $
October 31, 2006
1) Derivatives held for trading
-Interest rate swaps 383,320 1,933 -
i) Derivatives designated as fair value hedges
- Interest rate swaps . ; 270,834 50 (12,414)
- Currency forward 10227600 (10)
1,983 (12,424)
--October 31, 2005
1) Derivatives held for trading
- Interest rate swaps 204,700 6,015 -
1) Derivatives designated as cash flow hedges
- Interest rate swaps 95,433 817 (267)
6,832 (267)
Financial assets at fair value through profit or loss
2006 2005
$ $
trading securities
Government bonds 495 1,566
Corporate bonds 241,556 134,931
Asset-backed securities 561,360 159,429
Other debt securities - 906
803,411 296,832
Add: Interest receivable 6098 3,379



Total trading securities
The effective yield on the trading securities during the year was 5.7% (2005 - 6.1%).

Other assets

2006 2005

$ $

Due from brokers 9141) :

Amount due from related patty 3,000 12,630

Prepayments and deferred items 1153 1,398

Other accounts receivable 26208 2310
121,772 37,33

The amount due from related party is due on demand from Barclays Bank PLC and is interest-tiee.


OE 12B, WEDNESDAY, FEBRUARY 28, 2007

Investment securities











11

RUAKSON

. Retirement benefit assets and obligations

THE TRIBUNE BUSINESS

i

The Bank has an insured group health plan and a pension plan. The pension plan is’ mixture ol :

2006 2005 defined benefit and defined contribution schemes. The defined benefit sections of the scheme are

. $ $ non-contributory and allow for additional voluntary contributions. The insured health plan allows for — '

Loans and receivables relirées to continue to receive health benefits during retirement. The plan is valued by independent a

actuarics every three years using the projected unit credit method. ;

Issued or guaranteed by Governments ;

— Debt securities 156,898 158,823 ]

The amounts recognized on the balance sheet are aevermined as follows: (

Total loans and receivables ___ 156,898 158,823 Lae : : P

ain) Defined benefit Post retirement - ‘i

Available-for-sale securities peusion plans medical benefits :

2006 t 2006 2005 i

Government bonds 411,655 - $ ' Ss . $s $ 4

erporete ont ee Fair value of plan assets 83,149 71, A58 : dat

Total avallable-fiescale seoucities 545,018 7,500 Present value of funded obligations ; (56,398) . (50,440) (9,368) (8,910 4

* 7 . : ¥

701,916 166,323 Unneconnedare ee 26,751 - 27,018 (9,368) (8,910)

ade tnicrectreceivakle 13.454 2277 Jnrecognized actuarial gain (13,097) (13,421) (2,240) (1,690) ®
Total investment securities 715,370 _ 168,600 Berge nanny) a - seal a — US)

Debt securities issued or guaranteed by the Government of The Bahamas amounted to $136,700
(2005 - $131,546).

Government bonds include US Treasury Notes of $369,492, of which $279,337 have been pledged in
support of the repurchase agreements described in Note 14. ‘The effective yield during the year on
investment securities was 6.2% (2005 - 6.0%).

The movement in investment securities may be summarised as follows:



‘The pension plan assets include 100,000 ordinary shares in the Bank.

The actuarial return on plan assets for the defined benefit sections of the pension plan is
$6,494 (2005: $5,570). nr te .

The movements in the net asset/(liability) recognized on the balance sheet are as follows:

Post retirement

Defined benefit
pension plans medical benefits 5
Loans and Available 2006 2005 2006 2005

receivables -for-sale Total $ $ $ $

$ $ $
Balance, beginning of year 13,597 13,167 (10,600) (9,064) i
Balance, beginning of year 158,823 7,500 166,323 Charge forthe year 65 430 (1.113) (1,641) !
Additions 9,350 533,774 543,124 a ;

: . (11,275) 6.257 Contributions paid (8) : m - f
Disposals - sale and redemption , (4,982) (16,257) Employer premiums for existing retirees . "ee =n
Gains from changes in fair value (Note 17) _ . 8,726 | 8,726 Se eS i

alance, end of yee
Balance, end of year 156,898 545,018 701,916 Balance, ead of year 13,654 13,597 11,608 10,600

Included in gains from changes in fair value are unrealized net gains of $8,295 on available-for-sale
securities that are included in the statement of income, due to these securities being included in fair
value hedging relationships. The remaining $431 represents unrealized net gains on available-for-sale



The principal actuarial assumptions used at the balance sheet date are as follows:

securities that are not included in hedging relationships. pers iene
$ 2006 2005
Discount rate 6.5% 7.0%
Loans and advances to customers Expected return on plan assets 8.0% 8.5%
Future salary increases _ 45% 5.3%
ae ar Future pension increases 15% 1.8%
Mortgages 1,025,949 860,265 hohe bencti
Personal loans 333,866 288,667 2006 2005.
Business loans 1,064,035 857,180 :
Government securities purchased under Discount rate 6,5% 7.0%
Tesals agreemer is ' 52,185 - ' 4.5% 5.0%
2,476,035 2,006,112 64 “64
Add: Interest receivable 16,035 9,297
Less: Provisions for impairment (47,240) (43,017)

2,444,830 1,972,392

Movement in provisions for impairment is as fullows:







The latest actuarial valuation of the pension plan was conducted as at November 1, 2004 and revealed
a fund surplus of $20 million. a ; .



12. Intangible assets /
aan 2006 = 2005
aes So: $
; \ Specific credit Inherent risk stall hadsvidctve
risk provision provision Goodwill a
$ 3 Carrying amount, October 31 187,747 187,747
Balance, October 31, 2004 (36,269) (9,348)
‘ 13. Customer deposits
Doubtful debt expense (6,889) 2,971 ,
Recoveries of bad and doubtful debts (865) - / x pica
Bad debts wri , . . Payable Payable ayable - ow
ad debts written off 7,383 = on ae re 2006 . 2005
; demand notice fixed date .. Total .. Total
Balance, October 31, 2005 (36,640) (6,377) $ $ $s. $ $
Doubtful debt expense * (4,141) (1,183) Individuals 131,803 181,215 747,980 1,060,998 — 1,013,248
Recoveries of bad and doubtful debts (1,344) - Business and Governments 699,729 31,991 1,156,011 1,887,731 1,747,846
Bad debts written off 2,445 ; - Banks 1,154 - 534,317 535,471 81,476
832,686 213,206 2,438,308 3,484,200 2,842,570
Balance, October 31, 2006 (39,680) (7,560) Add: Interest payable _230 273 19,200 - 19,703 14,167
832,916 213,479 2,457,508 3 503,903 - 2,856,737
The average interest yield during the year on loans and advances was 8.4% (2005 -- 8.2%). Impaired
2 2 Ci i i ; 7 . * eae ‘
ene : en erent ae ihe I aa Ps ae ea eis oy Included in deposits’ trom vanks are deposits from other FirstCaribbean Bank entities of $484,877
Toons eared Hoe nnaica totalling $88,754, which are pledged in favour of that bank in support 0 (2005 - $13,199) and deposits from CIBC and Barclays Bank PLC entities of $12,757 (2005 - _
loans granted to certain of its customers. $17,550) :
,990). °
The effective rate of interest on deposits during the year was 3.8% ( 2005 — 2.1 %).
. Property, plant and equipment
14, Other borrowed funds
2006 2005
Equipment, $ $
: 4 and furniture Leasehold Total ;
ulldings and vehicles improvements 2006 .
. $ . $ $ Repurchase agreements 280,692
Cast “A. | 652 -
Balance, November 1, 2005 20,436 30,524 11,445 62,405 Add: Interest payable
* Purchases 450 1,438 84 1,972 281,344 -
Disposals (1,214) (191) 5 (1,405)
Transfers (1,137) 615 _ 522 -
Balance, October 31, 2006 18,535 32386 1051 62,972 ' The Bank’sold under repurchase agreements, investment securities having a fair value of $279,337.
The effective rate of interest on these borrowings during the year was 5.17%.
Accumulated depreciation
Balance, November 1, 2005 5,282 19,898 5,460 30,640 aes
Depreciation 322 2,614 600 3,536 15, Other liabilities
Disposals (224) (189) - (413) 2006 2005
Transfers 7a (54) . 39 LS - $ $
Balance, October 31, 2006 oe eee erm Leer TLE Accounts payable and accruals 35,204 26,963
; ; Due to brokers 239,389 | 53,119
Net book value, October 31, 2006 13,209 Oe etl cat ites Amount due to related parties 2196 1,217
unt a
——276,789___81,299
Equipment, , ‘ :
ane furniture Leasehold Total :
- and vehicles improvements puis ‘The amount due to related parties refers to balances due to other FirstCaribbean Bank entities as well
; $ $ as CIBC and Barclays Bank PLC or their subsidiaries. ; :
Cost '
Balance. November 1, 2004 25,970 27,042 10,314 63,326
Purchases 1,374 2,146 209 3,729
Disposals (3,651) (102) (897) (4,650) 16, Share capital
Transfers (3,257) 1,438 1,819 = Ce
‘The Bank’s authorised capital is $20 million, comprising 150 million ordinary. shares with a par
Balance, October 31, 2005 20,436 30,524 W445 62,405 value of $0.10 each and 50 million preference shares also having a par value of $0.10 each. All
issued shares are fully paid. At October 31, 2006 and 2005, the issued share capital was as follows:
Accumulated depreciation :
Balance, November J} 7°04 5,628 17,632 4,732 27,992
Depreciation 533 2,338 964 3,835 Number of Share Share
Disposals (878) (72) (236) (1,186) shares par value premium Total
$ $ $
Balance, October 31, 2005 5,283 19,898 5,460 30,641.
Net book value, October 31, 2005 15,153 10,626 5,985 31,764 Ordinary shares, voting 120,216,204 12,022 465,208»! 477,230






THE TRIBUNE BUSINESS | WEDNESDAY, FEBRUARY 28, 2007, PAGE 13B

17. Share capital and reserves 22. Business segments



1 2006 2005 The Bank operates four main lines of business organised along customer segments, but also includes
' $ $ treasury operations as a reportable segment.
; Share capital (Note 16) . 477,230 477,230. I Retail Banking is organized along four product lines: Premier Banking (dedicated |
relationship management), Home Finance (mortgages), Consumer Finance & Credit Cards E
k Reserves and Asset Management & Insurance. :
Statutory reserve fund — Turks & Caicos Islands 6,800 2,800 Z Corporate Banking comprises three customer sub-segments: Corporate Business, Commercial
Statutory loan loss reserve — Bahamas ; 14,661 - Business and Business Banking. Corporate Banking offers deposit and investment products,
Revaluation reserve — available-for-sale investment securities ; 431 - borrowing and cash management products, merchant card services and trade finance. i
817 ;

Revaluation reserve — cash flow hedges

Reverse acquisition reserve (63,566) (63,566)

3. International Wealth Management is organized into four segments: International Personal,
International Premier, International Mortgages and International Corporate. The Personal







N Total reserves (41,674) (59,949) Banking segment specializes in currency accounts, deposit accounts, U.S. dollar credit cards
f and international mutual funds. The Premier Banking segment offers each client a personal
» Total share capital and reserves 435,556 417,281 relationship manager in addition to all of the products and services offered by the Personal
n Banking segment. The International Mortgage group provides funding in U.S. dollars, to non- Al
‘ residents seeking to purchase second homes for personal use or as an investment. The i
In accordance with the Banking (Amendment) Ordinance 2002 of the Turks and Caicos Islands (TCD, anaes ae ae eau ee Aas services to
the Bank was required in 2004 to assign capital to the TCI operations in the amount of $24 million. :
4. The Capital Markets segmii.. pov rssee soourss anid investors with access to larger pools of
capital and greater investment opportunities. It acts for and on behalf of large business and
q The movements in reserves were as follows: ‘ sovereign clients who seek both equity and debt capital instruments and facilitates the
iq 2006 2005 expansion of the existing secondary market capabilities in the region. ;
$ $
Statutory reserve fund — Turks & Caicos Islands The Treasury Group manages the interest rate, foreign exchange and liquidity risks of the
; : a ae Bank. In addition, the Treasury Group conducts foreign exchange transactions on behalf of
Balance, beginning of year , 2,800 700 clients, where possible, and hedges fixed rate loans and’investments with interest rate swaps.
Transfers from retained earnings A ae Transactions between the business segments are generally on normal commercial terms and
Balance, end of year 6,800 2,800 eons :
1 Funds are ordinarily allocated between segments, resulting in funding costs transfers fa
. disclosed in operating income. Interest charged for these funds is based on the Bank’s funds 5
k in accordance with the Banking (Amendment) Ordinance 2002 of the TCI, the Bank is required to transfer pricing, There are no other material items of income or expense between the F
maintain a statutory reserve fund of not less than the amount of its assigned capital. Where it is less segments. ; B
than the assigned capital, the Bank is required to annually transfer 25% of its net profit earned from . : 4
| its TCI operations to this fund. During the year the Bank transferred $4,000 (2005: $2,100) from Segment assets and liabilities comprise operating assets and liabilities, being the majority of b
retained earnings to the statutory reserve fund. the balance sheet, but exclude items such as borrowings. E
Internal charges and transfer pricing adjustments have been reflected in the performance of :
‘ ‘ : : each business. ~ i
i : Ne ~ Q
4 2 4 ‘ “ Retail Corporate International Capital Is
Revaluation reserve — available-for-sale investment securities Banking Banine Wealth Mgt Markets Treasury Other Eliminations Total li
$ $ $ $ a) $ $ $
Balance, beginning of year i : October 31, 2006
Net gains from changes in fair value of available-for-sale : : Segment assets 1,241,828 1,054,552 1,314,637 11,257 __770,771__ 313,970 (15,541) 4,691,474
investment securities (Note 8) a 8,726 - ‘
Transfer to profit and loss for hedging purposes ot B95) on Segment liabilities 790,623 864,807___1,364,016__—-_1,062,197_18,966 _(14,541) 4,086,068
Other segment items 3
Balance, end of year Jo eee Capital Spedine 1,972 19722. |
2006 2005 xxetail. Corporate iniernational Capital
$ $ Banking Banking ‘VealthMgt Markets Treasury Other Total
Revaluation reserve — cash flow hedges $ $ $ $ $ $ $ :
October 31, 2005 Es
Balance, beginning of year 817 - ;
Net gains (loss) from changes in fair value (817) 817 Segment assets 1,028,603 836,412 1,325,098 996 261,084 57,949 3,510,142 F
Segment liabilities 564,476 759,472 __1,304,993 - 303,025 16,937 __2,948,903
_ Balance, end of year - 817 oa
Other segment items
2006 2005 Capital expenditure : 3,729 3,729
$ $
Statutory loan loss reserve - Bahamas Capital expenditure comprises additions io property, plant and equipment (Note 10).
_ Balance, beginning of year : ie Geographical segments are set out in Note 75 (c). :
Transfers from retained earnings 14,661 - F
: : 23. Financial risk management le
Balance, end of year : OL a A. Strategy in using financial instruments
Banking Regulations of The Central Bank of The Bahamas require a general provision in respect of By its nature the Bank’s activities are principally related to the use of financial instruments. The
eqthe performing loans of at least one percent of these loans. To the extent the inherent risk provision Bank accepts deposits from customers at both fixed and floating rates and for various periods and
= for loans and advances to customers is less than this amount, a statutory loan loss reserve has been seeks to earn-above average interest margins by investing these funds in high quality assets. The
established and the required additional amount has been appropriated from retained earnings, in Bank seeks to increase these margins by consolidating short-term funds and lending for longer
accordance with IFRS. periods at higher rates whilst maintaining sufficient liquidity to meet all claims that might fall
due.
Reverse acquisition reserve Sb make ; oot . 2
2006 2005 The Bank also seeks to raise its interest margins by obtaining above average margins, net of
provisions, through lending to commercial and retail borrowers with a range of credit standing.
$ $ Such exposures involve not just on-balance sheet loans and advances but the Bank also enters
Reverse acquisition reserve, beginning and end of year (63,566) (63,566) into guarantees and other commitments such as letters of credit and performance and other bonds.
At October 11, 2002, the equity of the Bank comprised the equity of Barclays Bahamas together with B. Credit risk
the fair value of the consideration given to acquire CIBC Bahamas. However, legally the share .
capital of the Bank comprised the issued share capital of CIBC Bahamas plus the shares issued to The Bank takes on exposure to credit risk which is the risk that a counter party will be unable to 3
effect the combination, recorded at fair value. The reverse acquisition reserve is therefore the pay amounts in full when due. The Bank structures the levels of credit risk it undertakes by k
difference between the legally required share capital together with the retained earnings of Barclays placing limits on the amount of risk accepted in relation to one borrower, or groups of borrowers, i
Bahamas, and the equity of the Bank presented in accordance with IFRS. and to geographical and industry segments. Such risks are monitored on a revolving basis and
subject to an annual or more frequent review.
18. Dividends ;
ne The exposure to any.one borrower including banks and brokers is further restrict ; sub-limi
At the Board of Directors meeting held on December 15, 2006, a final dividend of $0.25 per share covering on and off-balance sheet chee and daily delivery risk limits in ee ae
amounting to $30,054 in respect of the 2006 net income (December 2005: $0.30 per share, items such as forward foreign exchange contracts. Actual exposures against limits ar itored R
amounting to $36,065) was proposed and declared. The consolidated balance sheet as of October daily. e roa y .
31, 2006 dos not reflect this resolution, which will be accounted for in equity as a distribution of : fi
retained earnings in the year ending October 31, 2007. 3 “to . e
Exposure to credit risk is managed through regular analysis of the ability of borrowers and
19. Related party balances , potential borrowers to meet interest and capital repayment obligations and by changing these
i lending limits where appropriate. Exposure to credit risk is also managed in part by obtaining
The Bank’s major shareholder is FirstCaribbean International Bank Limited which owns 95.2% of collateral and corporate and personal guarantees, but a significant portion is personal lending
the Bank’s ordinary shares and is itself jointly owned by CIBC and Barclays Bank PLC which where no such facilities can be obtained.
collectively own 87.4% of the voting share capital, The remaining shares are widely held.
A number of banking transactions are entered into with related parties in the normal course of prin
business. Outstanding balances at year-end are as follows: The Bank maintains strict control limits on net open derivative positions, that is, the difference
: between purchase and sale contracts, by both amount and term. At any one time the amount
Directors and key Major shareholder and Ultimate “subject to credit risk is limited to the current fair value of instruments that are favorable to the
PES aae personnel associated banks shareholders Bank (i.e. assets), which in relation to derivatives is only a small fraction of the contract or
ae a we ae ne ea notional values used to express the volume of instruments outstanding. This credit risk exposure —
‘Key related party ‘ is managed as part of the overall lending limits with customers, together with potential exposures
balances and transactions from market movements. Collateral or other security is not usually obtained for credit risk
exposures on these instruments, except where the Bank requires margin deposits from
Balances: counterparties. :
Deposit placements - : 86 - 230,778 518,562
Loans ‘ 2,011 2,827 88,754 46,500 - - .
Deposit liabilities 5,869 4,033 484,877 «13,199 ~—=—«12,757_-—Ss«17,550 Master netine syaneeeny
20. Contingent liabilities and commitments The Bank further restricts its exposure to credit losses by entering into master netting
arrangements with counterparties with which it undertakes a significant volume of transactions.
The Bank conducts business involving guarantees, performance bonds and indemnities, which are not - Master netting arrangements do not generally result in an offset of balance sheet assets and
reflected in the balance sheet. At the balance sheet date the following contingent liabilities and liabilities as transactions are usually settled on a gross basis. However, the credit risk associated
Aa aERS RIED : with favorable contracts is reduced by a master netting arrangement to the extent that if an event
of default occurs, all amounts with the counterparty are terminated and settled on a net basis. The
2006 2005 Bank’s overall exposure to credit risk on derivative instruments subject to master netting
$ 5 arrangements can change substantially within a short period since it is affected by each
; transaction subject to the arrangement.
Letters of credit 60,881 42,966 ;
Loan commitments . 358,191 351,109 ‘
Guarantees and indemnities . 16,067 14,586 ° Credit related commitments
The primary purpose of these instruments is to ensure that funds are available to a customer as
____ 435,139 408,661. required. Guarantees and standby letters of credit, which represent irrevocable assurances that the
Bank will make payments in the event that a customer cannot meet its obligations to third parties,
The Bank is the subject of legal actions arising in the normal course of business. Management carry the same credit risk as loans. Documentary and commercial letters of credit, which are
considers that the liability, if any, of these actions would not be material. written undertakings by the Bank on behalf of a customer authorizing a third party to draw drafts
“4 on the Bank up to a stipulated amount under specific terms and conditions, are collateralized by
21. Future rental commitments under operating leases the underlying shipments of goods to which they relate and therefore carry less risk than a direct
borrowing.
As at October 31, 2006 the Bank held leases on buildings for extended periods. The future rental
commitments under these leases are as follows:
2006 2005 Commitments to extend credit represent unused portions of authorizations to extend credit in tne
$ $ form of loans, guarantees or letters of credit. With respect to credit risk on commitments to
extend credit, the Bank is potentially exposed to loss in an amount equal to the total unused
; Not later than'l year 2,695 3,122 commitments. However, the likely amount of loss is less than the total unused cor imitments
/ Later than 1 year and not more than 5 years 6,104 7,556 since most commitments to extend credit are contingent upon customers maintaining specific
Later than 5 years 2,428 2,436 credit standards. The Bank monitors the term of maturity of credit commitments because longer-
term commitments generally have a greater degree of credit risk than shorter-term commitments.
11,227 13,114
THEY GORE NIE AUCTRILERTRIRGAN AA A SO BUTT NENA UIT RE 3
» ft




tales

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PH LOI

LOTR GAAS.





PAGE 14B, WEDNESDAY, FEBRUARY 28, 2007

@

C. Geographical concentration of assets, liabilities and off-balajice sheet items

The following note incorporates IAS 32 credit risk disclosures, IAS 30 geographical
concentrations of assets, liabilities and off-balance sheet sites disclosures and a_ public
enterprise’s IAS 14 secondary segment disclosures. Al gy






by Sef

Total otal’ Credit Capital
assets liabilitles commitments —_ expenditure
$ - ‘se. $ $

October 31, 2006 :
Bahamas 4,131,165 3,575,731 332,371 1,265
Turks & Caicos Islands 560,309 510,337 102,768 . 707

____ 4,691,474 4,086, (bE

October 31, 2005 y }

Bahamas 3,062,151 2,54 14917 371,124 2,984
Turks & Caicos Islands eS 447,991 406,986 37,537,745
339 10,142 2,948,903 408,661 3,729

The Bank is managed based on the five business segments, and it operates in two main
geographical areas. The Bank’s exposure to credit risk is concentrated in these areas.

Capital expenditure is shown by geographical area in which the property, plant and equipment are
located. ;

Geographic sector risk concentrations within the customer loan portfolio were as follows:

& 2006 2006

2005 2005
$ % $ %

Babanias 2,252,842 92 1,819,464 92
Turks & Caicos Islands 191,988 8 152,928 8
2,444,830 100 __ 1,972,392 100

D. Currency risk

The Bank takes on exposure to effects of fluctuations in the prevailing foreign currency
exchange rates on its financial position and cash flows. The Board of Directors sets limits on the
level of exposure by currency and in total for both overnight and intra-day positions, which are
monitored daily. The table below summarizes the Bank’s eiposure to foreign currency
exchange rate risk at October 31., The of!-balance sheet net notional position represents the
difference between the notional amounts of foreign currency derivative financial instruments,

which are principally used to reduce the Ban’:’s exposure to currency movements, and their fair
values, ’

$ Concentrations of assets, liabilities and credit commitments:

BAH US Other Total
October 31, 2006 $ $ $s $
Assets
Cash and balances with The Central Bank 62,192 6,727 224 69,143
Loans and advances to banks 1,415 196,474 100,368 298,257
Derivative financial instruments . - 1,983 - 1,983
Financial assets at fair value through profit
or loss oo 809,509 - 809,509
Other assets 684 104,832 256 121,772
Investment securities 12 °,025 562,795 13,550 715,370
Loans gnd advances to customers 1,434 409 1,008,419 2 2,444,830
Property, plant and equipment 20,391 6,738 80 29,209
Retirement benefit assets y 869 1,785 - 13,654
Intangible assets 1°. 582 1,165 : 187,747
Total assets 1, 7 2,700,427 114,480 4,691,474
Liabilities
Derivative financial instruments 12,424 12,424
Customer deposits 1,954,116 215,096 3,503,903
Other borrowed funds ‘ 281,344 - 281,344
Other liabilities 265,788 507 276,789
Retirement benefit obligations ' Su 389 - 11,608
Total liabilities ‘ 2,514,061 215,603 * 4,086,068
Net.on balance sheet position 520 163 186,366 (101,123) 605,406
" Credit commitments Bast: V74.94t 258,395 1,903 . 435,139
October 31, 2005 ‘ :
Total essets 1,740,054 1,529,111 240,977 | 3,510,142
Total liabilities 1,301,024 1,412,704 235,175 2,948,903
Net ox balance sheet position 439,030 116,407 5,802 561,239
Credit commitments __ 218,758 189,104 799 408,661

E. Cash flow and fair value interest rate risk

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-interest rate risk is the risk that
the valué of a financial instrument will fluctuate because of changes-in market interest rates. The
Bank takes on exposure to the effects of fluctuations in the prevailing levels of market interest
rates on both its fair value and cash flow risks, Interest margins may increase as a result of such
changes but may reduce or create losses in the event that unexpected movements arise. Limits

are set on the level of mismatch of interest rate repricing that may be undertaken, which are
monitored on an ongoing basis. :

Expected repricing and maturity dates do not differ significantly from the’ contract dates, except
‘for the maturity of deposits up to 1 month, which represent balances on current accounts
considered by the Bank as a relatively stable core source of funding of its operations.
Â¥F. Liquidity risk

The Bank is exposed to daily calls on its available cash resources from overnight deposits, current
accounts, maturing deposits, loan draw downs, guarantees and from margin and other calls on
cash settled derivatives. The Bank does not maintain cash resources to meet all of these needs as
experience shows that a minimum level of reinvestment of maturing funds can be predicted with
a high level of certainty. The Board sets limits on the minimum proportion of maturing funds
available to meet such calls and on the minimum level of interbank and other borrowing facilities
that should be in place to cover withdrawals at unexpected levels of demand.

The table below analyses assets, liabilities and credit-commitments of the Bank into relevant
maturity groupings based on the remaining period at balance sheet date to the contractual
maturity date.