N ASSA U AND BAHAMA ISLANDS LEADING NEWSPAPER Bishop jailed in sex trial Volume: 108 No.9WEDNESDAY, NOVEMBER 30, 2011 PRICE 75 (Abaco and Grand Bahama $1.25 WEATHER CLOUDS, SUNNY HIGH 81F LOW 66F By LAMECH JOHNSON l email@example.com SHAMED Bishop Earl Randy Fraser spent the first night of his three-year sen tence at Her Majestys Fox H ill prison last night after being found guilty of having sexual intercourse with a m inor yesterday morning. As Fraser was led out of court in handcuffs flanked by police and prison offi c ers, the waiting crowd on Bank Lane cheered and clapped on hearing news of the conviction and sentence handed down to the Pilgrim Baptist Temple Church leader. The convicted sex offend ers wife, Jacqueline Fraser, who was seen sobbing after the ruling, was ushered by church supporters down the steps of Court 8, through the crowd and out of the area using the Safferey Square Court arcade as an exit to East Street North. Fraser, 53, was accused of having unlawful sexual relat ions with a 16-year-old girl between July 2005 and Feb ruary 2006. Prosecutors argued the m inister abused his position of trust by having sexual rela tions with a girl he had agreed t o counsel. The agreement to give guidance to the girl reportedly came as a result of her having relationship diffi-c ulties with her mother. Fraser was originally charged with the offence int he summer of 2006 and freed a year later. In that first trial, he was dis charged by Magistrate Marilyn Meeres when she ruled there was no physical evi dence to link him to the alleged offence. The Court of Appeal, however, overruled the decision and ordered a retrial, which returned to Magistrates Court 8 in Bank Lane, on November 4, 2008. Yesterday morning, after Rand y Fraser led from court in handcuf fs TRY OUR PINA COLADA McFLURRY The Tribune THEPEOPLESPAPER BIGGESTANDBEST LATESTNEWSONWWW.TRIBUNE242.COM NEW OWNERS FOR ATLANTIS By CELESTE NIXON Tribune Staff Reporter firstname.lastname@example.org S OL Kerzner confirmed yesterday that the Kerzner group intends to transfer ownership of the Atlantis Resort to Canadian a sset management comp any Brookfield. The deal, which includes all KerznersP aradise Island properties the Atlantis and One and Only Ocean Club will see Kerzners tay on to manage the properties. Addressing the H ouse of Assembly fol lowing the announcement, Prime Minister Hubert Ingraham reas s ured the thousands of Bahamians employed at Atlantis that their jobsa re secure, with employment and expenditure levels to remain the same under the new owners. He said: I have been assured that Brookfield shares K erzners commitment to continue future capital expenditure and maintenance of the resort at levels sustained over the years, and further investing the same levels of resources into local and international marketing to sup p ort tourism in the Bahamas and to ensure the brands vis ibility. The Prime Minister said Brookfield Asset Manage ment, a publicly-traded company with $159 billion in assets, has many years of operating experience and more than $69 billion of property assets giving them excep-t ional expertise in real estate. Kerzner will continue to control all aspects of the operations at the resort and other properties, which are expected to continue running as they always have. The deal is a debt-for-equity swap worth $175 million. While at an advanced stage, the negotiations are still said to be subject to government approval, which is expected to be granted by the end of the year. Kerzner International has struggled with debt since 2008, when the global financial crisis forced the company to cut hotel values and room rates. According to insiders, earlier this year, Kerzner nego tiated to extend maturities on mortgages due. Kerzner had been working with Brookfield to extend the maturities of remaining debts, which stood at $2.6 billion at the beginning of the negotiations last year. Employing nearly 8,000 Bahamians, Mr Ingraham said Kerzner International is the single largest private sector employer in the country. He said: It accounts for some five per cent of our employed labour force the 8,000 direct jobs at Kerzner attract an annual payroll of approximately $189 million." Mr Ingraham said each job at the Atlantis Resort creates an additional 1.2 to 1.5 indirect jobs, accounting for some 15 per cent of all jobs in our economy. Canadian firm tak es over, but Kerzner to stay See pages 6&7 Prime Minister addresses Parliament see page 2 Christie responds to takeover news see Business section Sol Ker zner announces the handover see page 3 New owners talk to The Tribune see Business section BISHOP RANDYFRASER is led from the court in handcuffs after being jailed for three years for having sex with a minor. Photo: Felip Major /Tribune Staff SOLKERZNER reveals the details of the transfer of ownership of Atlantis to Canadian asset man agement company Brookfield in a press conference yesterday. i m lovin it
EXPRESSING the thanks of the Government a nd the people of the B ahamas for Sir Sol Kerzners contribution to this country, Prime Minister Hubert Ingraham yesterday a nnounced Kerzner Intern ationals reorganisation of its business operations, which will also affect the Bahamas. Ownership of the Atlantis Resort and Paradise Islandp roperties has been transf erred by Kerzner Internat ional to a Canadian asset management firm, while K erzner International, heade d by Sir Sol, will continue t o manage and operate the P aradise Island resorts Atlantis and the One andO nly Ocean Club. F ollowing is the text of Mr I ngrahams statement to the House yesterday afternoon: E ARLY this afternoon, K erzner International announced the reorganisa-t ion of its business opera tions internationally, including The Bahamas. As I informed the press a f ew hours ago, Kerzner I nternational proposes to t ransfer its ownership of the Atlantis Resort and Paradise I sland properties, including t he One and Only Ocean Club, to Brookfield Asset Management, a Canadian publicly-traded company with some $159 billion in a ssets. Brookfield is a wellknown Canadian company with many years of operat i ng experience and more than $69 billion of property assets, giving them special e xpertise in real estate. I advise Honourable Members that I have met with representatives of B rookfield on two occasions and held a number of addi tional meetings with Mr Sol Kerzner in connection with the proposed change in own ership of the Paradise Island properties. I confirm that the Atlantis Resort and the One and O nly Ocean Club will continue to be managed and operated by Kerzner Inter n ational. A s Honourable Members will recall, Kerzner International, which first entered T he Bahamas as Sun International in 1994 at a low point in our tourism perfor m ance, has been overwhelmingly responsible for the revitalisation and expan sion of the Bahamian t ourism sector. Its development on Paradise Island cre ated the premier warm w eather destination in our region. As the employer of nearly 8,000 Bahamians, Kerzner International is the singlel argest private sector employer in The Bahamas. It accounts for some five per cent of our employed labour force. The 8,000 direct jobs at Kerzner attract an annual payroll of approximately $189 million. E ach direct job at Kerzner creates an additional 1.25 to 1.5 indirect jobs in the economy 10,000 to 12,000. In all therefore, some 18,000 20,000 jobs; 15 per cent of all jobs in our economy, are related directly to the operations of Kerzner Interna tional in The Bahamas. Additional contributions to the Bahamian economy from Kerzners operations include: Local purchases of goods and services $190 million annually; Electricity consumption of the order of $47 million paid annually to BEC; Business Licence Fees nearly $27 million annually (inclusive of Resort Hotel License Fees and Licenses for Joint Venture Time Share and Condo minium Operations); Room Occupancy Tax $20 million annually. Kerzner has also been a generous contributor to community and charitable causes, most recently making a generous contribution to hurricane relief following the passage of Hurricane Irene. The resort has been a reliable partner with the Government in the development and maintenance of public spaces. Indeed, Kerzner has expended some $26 million on contributions to public parks and recreational space development, annual Inde pendence Celebrations and Hurricane Relief. Kerzner International has also committed to make contributions of several mil lion dollars toward the development of community programmes such as the Clifton Heritage National Park and the redevelopment of downtown Nassau. And it is also underwriting most of the costs associated with the reclamation of Montagu Beach and the enhancement of the beach facilities at that popular Bahamian recreational space. And, Honourable Members will recall Kerzners contribution to training pro grammes with The Bahamas Technical and Vocational Institute. Mr. Speaker, the acquisition of the Kerzner Interna tionals Bahamian proper ties fits into the vision of Brookfield which has a strong cash flow and balance sheet permitting it to pro vide essential financial capital at a time of global economic and financial uncertainty. This is especially impor tant given our interest in ensuring that the new own ership of Atlantis will pro vide continued security of employment for the 8,000 Bahamians employed there. I have been assured that Brookfield shares Kerzners commitment to continue future capital expenditure and maintenance of the resort at levels sustained over the years, and further investing the same levels of resources into local and international marketing to support tourism in The Bahamas and to ensure the brands visibility. Honourable Members are aware that the Government has always maintained excellent relations with Kerzner International as owner and operator of its Paradise Island properties and looks forward to the continuation of that relationship with Kerzner as operator and manager. We likewise look forward to a strong working rela tionship with Brookfield. I note that Kerzners transfer of its Bahamian assets to Brookfield will result in the conversion of that companys $175 million loan to Kerzner Interna tional into equity. Brook field will now stand in Kerzners shoes in relation to Atlantis debt. (As an aside, Mr Ingraham said that it was regrettable that the Government of the Bahamas had permit ted the property to be mortgaged to that extent). I wish to express the thanks and gratitude of the Government and the people of The Bahamas to Sol Kerzner for his many and varied contributions to The Bahamas most especially so in the creation of jobs, grow ing and expanding our tourism plant and making his attraction at Paradise Island a must see for hundreds of thousands of people. LOCAL NEWS PAGE 2, WEDNESDAY, NOVEMBER 30, 2011 THE TRIBUNE PMs full statement on changes at resort KERZNERS CONTRIBUTION TO THE ECONOMY 8,000 Bahamians employed, with a payroll of $189m 10,000-12,000 indirect jobs, taking number of jobs up to 15% of all jobs in the economy $190m of local services pur-c hased each year $47m paid eac h y ear to BEC Business licence f ees of $27m a year Room occupancy tax of $20m a year Numerous contributions to charities and the community PRIMEMINISTER Hubert Ingraham addresses Parliament yesterday on the change of ownership of A tlantis. Photo:Peter Ramsay
At a press conference yesterday, Sol Kerzner explained t hat while Kerzner will only manage the property from now on, it will retain ownership of the Atlantis and One & Only brand names and the right to develop additional resort properties under these names. He said: We essentially operate as a managementc ompany. Its true to say that Atlantis was the only proper-ty we had 100 per cent ownership of. Whats most important is that Kerzner retain the Atlantis and One&Only b rands. It also enables the company to continue through G eorge (Markantonis m arket this property, which has been very important. Mr Kerzner said his company and Brookfield are aligned with regard to the best interests of the business. My belief is that, moving forward, nothing really changes, he said. It was very important to us in concluding this arrangem ent that the capital expen diture which weve carried on year after year, keeping thep roperty fresh and always creating new facilities that this will be ongoing and that our marketing will continue to create a platform for future growth of Atlantis and the Ocean Club. Kerzner managing director George Markantonis said: For us, it is very exciting that this has finally come to an end. The agreement has assurances by our owners that we will have no change, in fact we will maintain our present employment levels, we will maintain the average capital expenditures that we spend every year to keep the facility in a first class condition, so that we can go forth in the future as successfully as we have in the past. This is very critical and comforting for us going forward. Our employees, although they will be paid by the Brookfield owner, are still able to really have career growth in other Kerzner assets. Several Atlantis employees told The Tribune job security is the most important part of the deal for them. One said: I really dont care much about it being sold. I dont know anything about the new company, I just want to know that I will still have a job tomorrow. LOCAL NEWS THE TRIBUNE WEDNESDAY, NOVEMBER 30, 2011, PAGE 3 SOL KERZNER speaks to members of the media yesterday at a press contrence in Atlantis. Photo: Tim Clarke /Tribune Staff New owners for Atlantis f f r r o o m m p p a a g g e e o o n n e e MANAGINGDIRECTOR George Markantonis said the move was very exciting. e essentially operate as a management company. Its true to say that Atlantis was the only property w e had 100 per cent ownership of What s most important is that K erzner retain the Atlantis and One&Onl y brands. Sol K erzner THEATLANTISRESORT will continue to be managed by Sol Kerzner and his team following the deal with Brookfield.
EDITOR, The Tribune. REFERENCE is made to t he recent comments made by a former MP concerning the role of the DPM/Minister of Foreign Affairs/Minister of Immigration. (Tough Call/Mr Rick Lowe November 23, 2011). T he former MP should be reminded that it was the FNM government who proposed ac onstitutional amendment which would have made it easier for foreign spouses of Bahamian women to apply for citizenship. However, itw as defeated by the Referen dum in 2002. It should also be recalled that at another time, a foreign gentleman, a Belonger Mr DArcy Ryan who was married to a Bahamian lady a pplied under Article 3(3 the then PLP government for citizenship, but it wasr efused. In the final analysis, it would seem that citizenship in any foreign country is not an automatic entitlement, buti s a discretionary action grant ed upon merit after due con sideration. In some developed countries, eg USA, the process to obtain citizenship in some cases can take even longer than itd oes here. A BAHAMIAN N assau November 23, 2011. EDITOR, The Tribune. D ESPITEthe fact that we have had one of the worst downturns in the world econo my and Bahamas in recent memory, foreign nationals are still saying that it is better in the Bahamas; and for very good reasons. You see, Bahamians are very joyful givers. Let me explain. Illegal immigrants come to our shores regularly. And w hat do we do? We give them f ree land, free education and f ree health care. We give them a pat on the back. So n ow you know why they c ome to the Bahamas unabate d with no fear. Investors come to our shores regularly. And whatd o we do? We give them concessions that Bahamians cant even fathom. No customd uties on this, no custom duties on that. Land at $1.00 an acre. Who wouldnt come? The BTC sale was a classic e xample of Bahamians almost t ripping over themselves to g ive away a national asset. I a m almost certain that Bahamians could have raisedt he capital needed to purchase BTC. And they would h ave been millionaires in no time. The three year cellular monopoly surely guaranteest his. And now, it seems that B TC will also be enjoying the r etention of a lot of fixed line customers because URCA d id not approve Cable Bahamass request to have customers who want to switch from BTC to retain their cur rent telephone number. Cable B ahamas says that this will probably take another two three years. Dont get me wrong here. Cable Bahamas is another company where Bahamians should have been given theo pportunity to lead the way in its formation. The Bahamas Petroleum Company is another example of Bahamians showing their g enerosity to foreigners. We d id not allow our own to buy shares on the London stock exchange. I f and when the oil rig starts to dig for oil, the Bahamas will only be getting1 2.5 percent of revenues. The l and tax that will be paid does n ot exist because our government was able to ensure that all taxes will be included in the 12.5 per cent revenue figure. We are cheerful givers, h ey! And now the government has signed off amendments tot he Antiquities, Monuments and Museums Act. Once again, instead of a llowing foreign companies t o partner with Bahamians, t he government says that 75 per cent of the treasure found w ill stay with the foreign com pany and that a whopping 25 per cent of the treasure will s tay with us in the Bahamas barring other conditional cir cumstances. W hile watching the debate o f this Bill on television, our parliamentarians seemed very pleased with their efforts. We will create jobs for Bahamians is what they said. How about letting Bahamia ns employ foreigners for a change? Referring to an article in The Tribune Business Section o n November 25th, 2011, Nicholas Maillis suggested that this industry is valued at $ 8 10 billion. He also said that the financing for such ventures was.well within the means of Bahamians and said that the government should mandate that foreign salvagers form joint ventures with Bahamian companies/ teams on underwater explor ations. M r Maillis must not know t hat the Bahamas is a nation of free spirit givers. I am at a loss at our inabili ty to do what is best for B ahamians in their own country. Are our leaders blinded by s hort-sightedness? Dont they see the big picture? Well, the Christmas season is now fasta pproaching and foreigners must have their Christmas trees lit waiting for Santa to come down the chimney. I wonder now what gifts the B ahamas government has in s tore to make another foreign n ational a multi-millionaire. We are making blunder a fter blunder with no end in sight. I am hopeful that B ahamians wake up before it is too late. We must no longer stand i dly by whilst our resources are continually given away to o thers. It is time for Bahamia ns to get their fair share. This generosity to foreigners m ust cease at the expense of Bahamians. We need to be the ones now on the receiving end. D EHAVILLAND MOSS Nassau, November 29, 2011. EDITORIAL/LETTERS TO THE EDITOR P AGE 4, WEDNESDAY, NOVEMBER 30, 2011 THE TRIBUNE The Tribune Limited NULLIUS ADDICTUS JURARE IN VERBA MAGISTRI Being Bound to Swear to The Dogmas of No Master LEON E. H. DUPUCH, Publisher/Editor 1903-1914 SIR ETIENNE DUPUCH, Kt., O.B.E., K.M., K.C.S.G., (Hon. Publisher/Editor 1919-1972 Contributing Editor 1972-1991 EILEEN DUPUCH CARRON, C.M.G., M.S., B.A., LL.B. Publisher/Editor 1972Published Daily Monday to Saturday Shirley Street, P.O. Box N-3207, Nassau, Bahamas I nsurance Management Building., P.O. F-485, Freeport, Grand Bahama TELEPHONES S witchboard (News, Circulation and Advertising) 322-1986 A dvertising Manager (242 C irculation Department (242 N assau Fax: (242 F reeport, Grand Bahama: 1-(242 Freeport fax: (242 AT LAST the waiting is over, and the face of Kerzner remains. For weeks, Bahamians have been nervously speculating on the future of them ega-resort across the harbour the largest private sector employer in the Bahamas. Almost 8,000 Bahamiansd epend upon Atlantis and the Ocean Club to provide the means for them to support their families and send their children to s chool many to private schools. T here were whispers that a hedge fund, which held Kerzner Internationals $175 million debt, was about to take over ther esort because of its increasing difficulty in meeting its payments. To Bahamians, a hedge fund means the numbers crunchingb oys, only interested in the bottom line of t heir financial ledgers red ink at the end of the day not only would not be tolerated, but would cost someone his or her j ob. It was explained that Brookfield, a reputable Canadian company, with some $159 billion in assets, was an asset man a gement company, not a hedge fund. Such a n explanation to the average Bahamian was just so much nit-picking. No matter w hat label was put on Brookfield, it was not Sol Kerzner. And for many Bahami ans, that was the bottom line. However Brookfield is labelled, their d ecision-makers were smart enough to understand that Sol Kerzner and the mem ory of his late son, Butch, hold a special place in this country. The Kerzners, father and son, came at a time when the Bahamas was near bankruptcy, its name tarnishedi nternationally because of the notorious drug years and the fallout from the Commission of Inquiry that exposed so much about so many. T he Kerzners, came, they saw the run down state of the failing Paradise Island resort now Atlantis and decided to take on the challenge. The Kerzners were the catalyst that attracted other investors and the Bahamas started its upward path to economic recovery. A s the creator of Sun City in South Africa, Sol Kerzner was already a big name in the hotel business when he camet o the Bahamas in 1994 to make his first major acquisition outside of South Africa. The 1,150-room Paradise Island resort was in bankruptcy. He started a reconstruct ion programme many a day he could be seen on a tractor working side by side with his Bahamian workmen to transform Atlantis into a 2,300-room resort that included one of the worlds largest manmade marine habitats and the Caribbeans biggest casino. The building and expansion continued stretching beyond the Bahamas to as far asD ubai. At the time, money was easy, everyone was borrowing to invest. As Sir Sol says today no one had a crystal ball tof oresee the economic crash that, starting with Lehman Brothers, would bring them all down. If he had known, it is obvious he w ould not have taken on the $2.6 million d ebt to take Atlantis private. But in the context of that time, it was the smartest thing to do. Today, he will say that in all ofh is 50 years of business, he has never experienced a recession of this length. And it is this recession that brought him b efore the cameras yesterday to announce t hat Kerzner International, like all other hotel companies, would now become a global hotel management company. No l onger would it own the real estate of the properties it managed which is already the situation with its many other hotel inter e sts. Brookfield will take care of the bills, a nd the Kerzner team will get out into the market place and fight for the business. A s Sir Sol said yesterday, for the staff and the public nothing will have changed. However, the tourist market is hard. One of the greatest obstacles for the Bahamas is the l ack of sufficient airlift to get vacationers to this destination. Also increased air fares are making travel to these islands prohibitive. Sir Sol commented yesterday that it is almost cheaper to fly to Europe from New York than to fly to the Bahamas. With thisa dded challenge, the market looks bleak. If Atlantis staff are really interested in retaining their jobs, then it is up to them to support Kerzners management, and everym oment of the day put their best foot for ward because if the team fails, then as part of the team they will all go down together. We have never seen Sir Sol looking so committed to the task as he was yesterday. With a twinkle in his eyes, and Mr George Markantonis, president and managing direct or or Kerzner International Bahamas at his side, he announced that his marketing team had been summoned for a meeting today. This transaction, said Sir Sol, will permit Kerzner to move forward as a man agement company, allowing us to get back to doing what we do best designing and m anaging world-class destinations and lux ury resorts under the Atlantis and One&Only brands. If Sir Sol and his team cannot do it, then it is not doable. Bahamians are joyful givers LETTERS l email@example.com Sol Kerzner takes on management challenge The citizenship process EDITOR, The Tribune. Frank Gilbert writes a letter today (November 22 suggests that God will protect the Bahamas from financial disaster. However much I respect God, I am not sure I would rely totally on his interven tion to ensure that the financial state of the Bahamas remains intact. If God, or someone, does not help our big neighbour to resolve its financial problems there will be no tourists com ing to Nassau and therefore no money to spread around. We are lucky to be in a road building boom at the moment, but it is rather frightening to think about how this is all going to be paid for. I read about how various entities in the US, for example, are bankrupt because the financing for the grandiose schemes started by the politicians cannot be sustained any more and the interest costs have overwhelmed the revenue generated. We need cool heads and strong minds to keep the Bahamas finances intact. Think about it. PATRICK H THOMSON Nassau November 22,2011. B B a a h h a a m m a a s s i i s s a a b b e e a a c c o o n n
LOCAL NEWS THE TRIBUNE WEDNESDAY, NOVEMBER 30, 2011, PAGE 5 By KHRISNA VIRGIL TWO DNA candidates have been ousted from the party by Branville McCartney following a series of rows between them and the party leader. Philip Thomas and Sammie Star Poitier, the DNA's candidates for High Rock and South Beach respectively, now find themselves on the outside looking in as both their nominations were withdrawn by the leadership. Mr Thomas said after dis agreements on a number of issues, he could only brand Mr McCartney worse than Hubert Ingraham when it comes to being authoritarian. According to Mr Thomas, he was given the boot after complaining of having been disrespected by the party. He explained that a num ber of DNA meetings were held in Grand Bahama, but neither of the islands candidates were invited. He met with the Port Authority and none of the candidates were invited. Then he met with executives of the Grand Bahama Chamber of Commerce, we were not there, he said. DN A LEADER THR OWS OUT CANDIDATES AFTER R OW S By CELESTE NIXON Tribune Staff Reporter c firstname.lastname@example.org A WOMAN found dead in an open dirt quarry is the countrys 117 murder victim for the year. According to police, just a fter 8am yesterday, they were informed that someone had been found dead in an area just off East Street South. Officers arrived on the scene a short time later andd iscovered a female body with neck wounds on an unpaved road leading from JoansH eights West to Cox Way. The victim appears to have been in her late 30s or early 4 0s and was fully clothed, press liaison officer Sgt Chris lyn Skippings said. Although police have not r eleased the identity of the victim, her neighbours in Fox Hill claim she is Bridget Saunders, about 42 years old, sister o f Pastor Sherry Saunders of Faith Mission Church of God Ministries, Davis Street andF ox Hill Road. She was employed at the Credit Union. P olice are still not sure a bout the circumstances surrounding her death, as they are in the preliminary stagesof the investigation. A blue Kia Delta was towed from the scene, but p olice declined to say who t he owner is, or if the vehicle was connected to the inci dent. E ncouraging Bahamians to p olice their homes, Sgt Skip pings said everyone needs to d o their part and report susp icious activity, unlawful weapons or persons wanted by the police. She said: This is our count ry and each one of you have to play an integral role in restoring and preserving this c ountry. P olice are requesting the publics assistance in identi fying those responsible for this murder. A nyone with relevant information is asked to contact p olice by calling 911 or 919, t he Central Detective Unit on 502-9991, or Crime Stoppers anonymously on 328-TIPS. OFFICERS INVESTIGATE the area where the body of a female was found next to a car parked on a track r oad between Joans Heights West and Cox Way. Photos: T im Clarke / Tribune Staff S GT SKIPPINGS s peaks to the media at the scene. Murdered woman found in quarry BLOOD at the scene, where the womans body was found.
three years of a retrial, the evidence of 20 prosecution witnesses, the testimonies of1 3 defence witnesses, the rejection of a no case submission by defence attorney Wayne Munroe, delays due to absences, illness, missing transcripts and the withdrawal of Munroe as attorney, D eputy Chief Magistrate Carolita Bethell handed down the verdict of guilty to Fraser. She apologised to the court for the recent delays for ther uling, which was expected to be handed down last Friday, and then on Monday, stating that full trial transcripts had not been submitted to her on time and that she had been over confident in believings he could review 1,000 pages of evidence and have a ruling on the expected dates. Yesterdays 9.30am hearing had to be adjourned again but this time for five minutes giving defence attorney J iaram Mangra a chance to show up. Bishop Fraser indicated to the court he was not prepared to receive the verdict without his attorney present and with permission, excused himself with cell-p hone in hand to contact his attorney. Mr Mangra showed up at court at 9.40am, a minute after the short break, and 90 minutes later, Fraser was found guilty. S hortly after the longawaited ruling was given, he was sentenced to three years at her Majestys Prison, Fox Hill. Deputy Chief Magistrate Bethell told the now guilty Fraser that he faced a maxi-m um of four years for the offence. In the lead-up to her ruling and subsequent sentencing, Deputy Chief Magistrate Bethell gave a brief overview of the 1,000 pages of evidences ubmitted to court from the beginning to end of the retrial. For over an hour, Fraser sat quietly in a full court room of press reporters, attorneys appearing for other matters, supporters, police, and officerso f the court, only shaking his head at a few moments in disagreement at what was being said during the cases review. The presiding magistrate then told the court and the defendant that she was satis-f ied that the prosecution has proven beyond a reasonable doubt a sexual connection between Fraser and the complainant. She pointed out the courts concern of the contents of ac all from the defendant to the complainant, the voice being identified by witnesses as that of Fraser. The semen found in the office of Fraser was alsoa ccepted as proof of sexual r elations. A long with the evidence submitted by family and other witnesses, she accepted the virtual complainants testimony and described it as solid. She said that the young l ady, having withstood rigoro us cross-examination about the sexual relationship, answered and testified well. With regards to the testim ony of Fraser, she said the c ourt does not accept his evi dence that he did not have a ny sexual relations whether o ral, ejaculatory, fondling or p enetrative with the girl. S he further stated that the c ourt did not accept the evidence of Pilgrim Baptist Church first lady Jacqueline Fraser. I mmediately following his clients conviction, Mr Mang ra asked the judge for leniency in the sentencing of his client, who he stated is a married father of two children and the Bishop of the Pilg rim Baptist Church. H e said that his client, d espite what the ruling will h ave on his stellar reputation, is a respectable, promin ent member of society and has served his country in sev-e ral capacities. A fter the attorneys subm ission, Deputy Chief Mag istrate Bethell sentenced Fraser to three years at Her M ajestys Prison after considering the length of time the matter was before the courts, the nature of the offence and t he situation behind the matter where Fraser, as a reli gious leader, abused the trust of a dependent. A fter thanking both counsel for the handling of the case, Mr Mangra informed the magistrate he intended to appeal the ruling and sen tencing and have the execu t ion of the sentence at the prison stayed. Fraser was handcuffed and escorted out of court by policeo fficers to be taken to prison. He had been on $10,000 bail throughout the trial. LOCAL NEWS PAGE 6, WEDNESDAY, NOVEMBER 30, 2011 THE TRIBUNE Bringing SEXYBackThe All-New SONATANew Sonata GLS features: push button start 6-speed automatic transmission advanced airbag system anti-lock break system 18 inch alloy wheels USB & iPod connectivity power drivers seat remote audio steering wheel control and much more #1 AUTO DEALER IN THE BAHAMAS Part of the Automall groupEAST SHIRLEY STREET 322-3775 325-3079Visit our showroom at Quality Auto Sales (Freeport or Abaco Motor Mall, Don MacKay Blvd, 367-2916 www.automallbahamas.com W I N N E R o f t h e I n t e r n a t i o n a l C a r o f t h e Y e a r A w a r d Push Button StartLuxury interior T HE FAMILY o f Bishop Randy Fraser leaves the court after the verdict. Bishop jailed in sex trial from page one Share your news The T ribune wants to hear from people who are making news in their neighbourhoods. Perhaps you ar e raising funds for a good cause, campaigning for improvements in the area or have won an awar d. If so, call us on 322-1986 and shar e your story.
B y DANA SMITH d email@example.com Y ESTERDAYS guilty verdict and three-year sent ence in the unlawful sex trial of Bishop Randy Fraser s parked both elation and a nger from the crowd that surrounded the court house. The handcuffed Fraser was met with cheers and applause as he was led down the stepso f the courthouse, flanked by two guards. Allegations that the sen t ence was too light and will encourage rapists were shouted out, along withc laims that justice was served a nd Bishop Fraser got what he deserved. Aformer student of Bishop F raser and child rights activist, Cleaver Duncombe, was among the animated crowda nd claimed the verdict is no cause for a celebration. This is a sad day in our country. It isnt anything tog loat about, when you see your former teacher, who turned reverend, a sitting m ember of the Child Protec tion Council, being hauled before the court and being found guilty, Mr Duncombe s aid. Speaking of Bishop Frasers crime, he said: Theres nom ore room in our society to condone this type of behavior. We need to send a strong message to the criminal ele ment that this type of behav ior cannot be tolerated. Mr Duncombe does believe the conviction stands for something. He said: Even though some may say its a slap onthe wrist I think so but justice was served. I dont feel good about this, and I dont wish what happened to Randy Fraser t oday on my worst enemy. Im not here to gloat and to celebrate, like I see being portrayed out here today, I j ust want justice for all chil dren. W Ferguson, another b ystander, expressed views s imilar to those of Mr Dun combe. The law doesnt exempt anyone from the law black, white, or Christian, he said. I dont rejoice people going t o jail, but the law is the law. One woman was elated by the verdict. Way to go, justice, she said. Thank God they got him. A nother woman, who a pplauded as Bishop Fraser was led away, said: Justice has been served, were justh appy he got something and did not walk away free. A man said: They needed to make him accountable, especially because of who he is in the community. However, not everyone was c elebrating the sentence. Porsha Russell said: I feel like he deserved more. Theyg ave the other pastor life; he should have gotten the same thing. Two other bystanders a greed. He needs more time, thats what I think, said one man. They gonna make all the rapists start raping now, seeing that they are so lenient with him, said another. One woman said: Three years is too light, he ruined that girls life. They should have given him 25 to life. A woman and mother in the crowd said: Hes supposed to get more. Thats somebodys child. I have three girls and I dont want anyone messing with them. C arolyn Pinder, a b ystander, said: I dont like how (the magistrate gave him three years. A nearby man disagreed with Ms Pinder, saying: I think the decision based one vidence was the right one. If t he magistrate feels three years is just, then thats fine w ith me. The trial had included evidence from the prosecution of explicit phone calls, and v oice and text messages sent to the victim by Bishop Fraser. These included an instance where a phone call was placed to the victim while she was int he presence of her mother, a unt, and a family friend all of whom identified the voice. Bishop Frasers attorney h ad questioned the validity of the phone calls and messages, claiming none of those doc uments were verified for authenticity. The defence also stated the encounters described by the v ictim had inconsistent dates, which resulted in an usually high number ofa lleged sexual acts. The prosecution told the court that the dates and frequency of the encounters d ont matter as belief in only one is enough for a convic tion. You are entitled to believe any one of them, Director of Public Prosecutions Franklyn Williams said. If you accept that any of them occurred, you may find the accused guilty. The prosecution also told of the victim having intimate knowledge of Frasers house, including the bedroom and a balcony. Bishop Fraser initially denied having a balcony, only a dmitting to it after phot ographs were shown confirming its existence. Also presented in court was a sample of semen found on the rug in Bishop Frasers church office. B ishop Fraser and his wife h ad claimed the semen result ed from their having been i ntimate in the church. His wife had claimed that during power outages at their home, they sometimes s pent the night in the church office along with their children. LOCAL NEWS THE TRIBUNE WEDNESDAY, NOVEMBER 30, 2011, PAGE 7 Cries of justice, and tears of frustration as bishop is led away AMONG THOSE outside the court was Cleaver Duncombe, a child rights activist and former student of Bishop Frasers, who said he was not there to gloat or celebrate, but that justice was served. BISHOP RANDY FRASER is led away to jail inh andcuffs yesterday. Photo: Felip Major / Tribune Staff
By AVA TURNQUEST Tribune Staff Reporter firstname.lastname@example.org TWO members of the Constituencies Commission on separate sides of the political divide clashed in a heated row yesterday. Tempers flared over the interpretation of statements made by PLP deputy leader Philip Brave Davis during a Constituency Commission meeting earlier this month. Mr Davis, MP for Cat Island, Rum Cay and San Salvador, said the governments proposal did not attempt to keep like communities together, according to minutes tabled in the House of Assembly. Last night, Minister of National Security Tommy Turnquest said he was shocked by Mr Daviss statements, which, he said, objected to the grouping of rich areas with poor areas. During his contribution yes terday, Mr Davis maintained that he never made the dis tinction of rich or poor and that it was Mr Turnquest who interpreted and stated it as such. Parliamentarians debated late into the night with the governing party labelling opposition criticisms against boundary changes as hypocrisy. Minister Turnquest said the shift in population and voter registration patterns guided the commissions methodology for moving boundaries and reducing seats. In the proposal to the Constituencies Commission, it was estimated that 86 per cent of eligible voters had already registered. In New Providence, the average number of registered voters per constituency is 3,800. Constituencies that were more than 10 per cent above the average were: Blue Hills, Elizabeth, Garden Hills, Golden Isles, and Sea Breeze. Those 10 per cent below the average were listed as: Bain and Grants Town, Englerston, Farm Road and Centreville, St Cecilia, and St Thomas More. Supported by opposition members, Mr Davis argued that the drastic shifting of boundary lines denied voters the ability to hold past repre sentatives accountable. Mr Davis said that it seemed illogical and inac curate to calculate the number of potential voters solely from the voter register as the law stated an eligible voter as someone who was 18 years old. The Department of Sta tistics is able to confirm the age groupings of residents of each constituency in New Providence and Grand Bahama as well as in each other island, Mr Davis said. One is able to impute the number of resident non-citi zens in areas using empirical data, he said. Mr Turnquest criticised Opposition calls for the establishment of an independent commission, which he said had been the stated position of the FNM since 2001. A Bill for an Act to amend the Constitution and establish an independent Parliamentary Commissioner was passed in 2002. However, Mr Turnquest said the public supported by the PLP voted against the Bill in a referendum. According to the Prime Minister, as of November 14, there are 137,444 registered voters in the Bahamas. Almost 67 per cent, or 96,111 voters, live in New Providence, with 14.67 per cent in Grand Bahama and Bimini and 15.4 per cent in the remaining Family Islands. The new boundaries allow for 23 seats in New Providence, five in Grand Bahama and 10 in the Family Islands. Yesterday, technical diffi culties led to the disruption of sound on the Parliamen tary channel (40 statement by Mr Ingraham on the transfer of ownership of Kerzner International properties. LOCAL NEWS PAGE 8, WEDNESDAY, NOVEMBER 30, 2011 THE TRIBUNE P OLICE have no furt her leads as yet in their investigation into a myst erious arson attack on a local well-known businessman. A ndrew Blue Johnson, Operations Manager of Elite Security Agency,h ad his Porsche Cayenne SUV burnt to the ground in front of his home on Sunday night. His house,a nd a Honda Odyssey van were also damaged by th fire. V ideo surveillance of his home caught a male culprit lighting a Molotovc ocktail and throwing it o n the vehicle, before escaping the area. This footage has been turnedo ver to the police who are appealing to anyone who has any additional infor m ation to contact them at the Elizabeth Estates police station at 364-8996 or the fire station at 3242 600. NOFURTHERCLUESOVERARSONATTACK Clashes over boundary plans THEBURNT-OUT Porsche Cayenne SUV, destroyed in an arson attack on Sunday night. THE DAMAGED remains of the car on the driveway. ANDREW BLUE J OHNSON operations manager of Elite Security Agency, who was targeted in the arson attack.
By DANA SMITH email@example.com THE PLP has again hit out at the ongoing government road works, saying the FNM h as terribly failed the Bahamian people with the New Providence Road Works f iasco. Party chairman Bradley Roberts said in a statement that the PLP is obliged to remind the public that at the signing of the road works contract two years ago, Minister of Public Works and Trans port Neko Grant promised his ministry would monitor the project to ensure that it is completed on time so that there would be minimal dis comfort and inconvenience to the public. Mr Roberts said the con stant, angry, complaints from drivers about detours and road closures would not have arisen if the FNM adhered to that statement. As a result of this blatant lack of enforcement by theFNM government, there has been constant massive obstructions and inconvenience to the motoring and business public throughout New Providence, Mr Roberts said. The contractor has no regard for the length and amount of work he can properly manage at any given time and was allowed without logic and jus tification to carry out works on multiple corridors simultaneously. It is abundantly clear to all right thinking Bahamians that Minister of Works Neko Grant, with the support of Prime Minister Hubert Ingraham, failed the Bahamian people miserably in allowing (the contractor the road works in a nightmarish manner, he said. Mr Roberts said Bahami ans are increasingly depressed, frustrated and angry over what seems to be a never-ending situation. LOCAL NEWS THE TRIBUNE WEDNESDAY, NOVEMBER 30, 2011, PAGE 9 THE latest candidate to be ratified by the Progressive L iberal Party is veteran Abaco businessman Gary Sawyer. M r Sawyer will represent t he PLP in the contest for the South Abaco constituency. He was born to Martin and Lola Sawyer in Cherokee Sound, Abaco. At an early age, the family m oved to Man-O-War Cay, Abaco, where he was educated at the Man-O-War AllAge Public School. M r Sawyer entered private business in Abaco shortly after secondary school andp ursued several courses in b usiness administration. He has started numerous businesses that are still in operation throughout Abaco and other islands of the Bahamas. M r Sawyer said he believes in empowering Bahamians and has demonstrated this through his business practices. H e is presently the owner and president of Abaco Petroleum Limited. T he PLP said Mr Sawyer h as deep roots in the party, having been an active supporter for 30 years. He carried the partys banner in 1992 as the candidate for the Hope Town con-s tituency and again in 2007 for South Abaco. Since 1992, Mr Sawyer has served as the PLP National G eneral Council member for South Abaco. Prior to the introduction of l ocal government, he served h is communitys board of works for many years. He also served as a member of the Bahamas Maritime Authority (BMA to 2007. T he PLP said in a statement: Gary is a supporter of many charitable organisations and remains actively engaged i n many community activities and is considered a strong advocate in bringing aboutp ositive change for the e nhancement of the Bahamas and in particular, South Abaco. A Pentecostal, he attends the Church of God in ManO-War Cay. P arty leader Perry Christie described Mr Sawyer as a bright beacon on a hill who represents all that is good and p ositive about the Bahamas. The PLP is proud to have Mr Sawyer as a member ofo ur team. His many stellar accomplishments in his private life serve as a model for many young enterprising Bahamians to emulate. We are confident that G ary will return South Abaco to the PLPs family, he said. By DANA SMITH firstname.lastname@example.org T HERE is still no word on when voter cards will be issued ahead of the 2012 general elections. W hen contacted earlier this week, Election Commissioner E rrol Bethel said the Parliamentary Registration Department is not at a point where it can reveal when the cards a re to be picked up by voters. We just have to wait and see, Mr Bethel said. Voter registration is still o pen, and according to a report tabled in the Houseof Assembly on Monday, there are now 38 constituencies, down from the previous 41. Earlier this month, Prime Minister Hubert Ingraham t old Parliament: It is my hope that we conclude all matters relating to the work of the (Boundaries sion, including approval by Parliament, during the course of this year so as to permit the Parliamentary Registration Department to begin the distribution of voters cards the first week of January, 2 012. Mr Bethel could not conf irm if this deadline would be met, adding: We still have a lot of things to do. The commissions report s aid that the proposed changes will produce ona verage an additional 550 v oters per constituency, w ith six new constituencies b eing created and nine eliminated. IN A STORY published in The Tribune on Monday, November 28, it was incorrectly stated that Tip Burrows is the president of the Grand Bahama Humane Society. In fact, she is the executive director of that organisation. The Tribune would like to apologise for any inconvenience this error may have caused. C ORRECTION Sawyer named as Abaco candidate VOTER CARDS RELEASE DATE STILL NOT AVAILABLE E LECTION COMMISSIONER Errol Bethel said that the ParliamentaryR egistration D epartment is not at a point where it can reveal when voter cards can be picked up. Share your news The Tribune wants to hear fr om people who ar e making news in their neighbourhoods. Perhapsyou are raising funds for a good cause, campaigning for impr ovements in the area or have won an award. If so, call us on 322-1986 and shar e your story. PLP CRITICISES GOVERNMENT F OR R OAD W ORKS FIASC It is abundantly clear to all right thinking Bahamians that Minister ofW or ks Neko Grant, with the suppor t of Prime Minister Hubert Ingraham, failed the Bahamian people miserably. Bradley Roberts PLPPARTY chairman Bradley Roberts has hit out at the government over the ongoing road works.
B y STEPHEN HUNT s email@example.com SOMEof the most eye catching and expensive vehi cles around have arrived in the Bahamas, ready to take part in the Speed Week Revival. Glorious names from the past have arrived in Nassaufrom the USand UK the likes of Morgan and Maserati, Lister and Lotus, ACand Jaguar. The event starts today at Arawak Cay, with a Le Mans style start as racers run to their cars before setting off. First up on the racetrack c reated at Arawak Cay will be legendary racing driver Sir S tirling Moss, who will take h is Osca car on a ceremonial l ap along West Bay Street, with Governor General SirArthur Foulkes at his side. Other cars will follow one at a time, forming a proces sion along West Bay Street, w hich will have other traffic diverted from noon to make way for the visitors from another era. Among the vehicles on show will be a Maserati 450s, valued at a cool $7m. Tomorrow will see the cars t aking an island tour, setting off from Arawak Cay at 9.30am, before arriving at Lyford Cay club for judging. F riday is a rest day, before two days of racing, with a Fort Charlotte Hill Climb on Saturday, and a sprint day at Arawak Cay on Sunday. The event is a recreation of the racing events that took place in Nassau more than 50 years ago, and have drawn participants from far and wide. Tickets are available at a n umber of other outlets, s uch as Atlantis, the Cricket Club at Fort Charlotte, Dwights Place on Arawak Cay, and five Shell service stations. T hey are also a vailable by calling 676-4503, and online online atB ahamas Speed WeekRevival. com. LOCAL NEWS THE TRIBUNE WEDNESDAY, NOVEMBER 30, 2011, PAGE 11 A1955 LISTER Bristol, valued at $750,000 and owned by an international aviation chairman, will be taking part in Speed Week. SCHEDULEOFEVENTS TODAY N oon-2.30pm O pening cerem onies at Arawak Cay, with o fficial Le Man start and cerem onial lap by Sir Arthur Foulkes and Sir Stirling Moss 6 .30-8.30pm W elcome reception for competitors at G overnment House T OMORROW 9 .30am R ace and classic vintage cars depart Arawak Cay f or island tour 11.30am Drivers arrive at Lyford Cay club for ConcoursD Elegance and judging of v ehicles 7-9pm Reception at Graycliff Restaurant, West Hill St SATURDAY 9am-2pm Fort Charlotte Hill C limb SUNDAY 9 am-4pm A rawak Cay Sprint Day, followed by trophy pre sentation Here come the stars of Speed Week A BRISTOL 407 ZAGATO one of the cars on show t his weekend. A TRIUMPH TR3A freshly arrived from the USto take part in the Speed Week event. AN OSCA similar to the one to be driven by Sir Stirling Moss. A N AC ACE a rrives for Speed Week from the UK. AMORGAN Plus 4 all curves and old-school style.
By NATARIO McKENZIE Tribune Business Reporter firstname.lastname@example.org PRIME Minister Hubert Ingraham yesterday took a swipe at the former Christieled PLP administration, say ing it was regrettable that it allowed Kerzner Internationals Paradise Island properties to be mortgaged to the extent of $2.3 billion sums that held by external creditors. But Mr Christie, the Oppo sition leader, told Tribune Business that at the time in 2006-2007 he made the decision he thought best, and blamed Kerzner Internation als debt woes on the extraordinary impact of the reces sion. Prime Minister Ingrahams remarks in the House of Assembly came on the heels of yesterdays announcement by Kerzner International that it will transfer its ownership of Atlantis and the One & Only Ocean Club to Brookfield Asset Management, a Toronto asset manager with some $159 billion in assets. The deal effectively transforms Kerzner International into a resort management company, as opposed to its previous sta tus as an owner/operator, with Brookfield forgiving $175 mil lion owed to it in a debt-forequity swap. It is regrettable that the Government of the Bahamas permitted the property to be mortgaged to that extent, Prime Minister Ingraham said yesterday during his address in Parliament on the announcement But Mr Christie, in an inter view with Tribune Business, said: When we were approached by Kerzner andI was Prime Minister, Kerzner had a proposal that required the Governments involvement or understanding in taking his company off as a publicly trading company and turning it back into a private company. I worked assiduously with his son, who is now deceased, to speak with the sharehold ers around the world, and I was heartened and encour $4. 68 $4. 51 $4. 69The information contained is from a third party and The Tribune can not be held responsible for errors and/or omission from the daily report.$ $5.19 $5.19 $5.17 T HETRIBUNE SECTIONB email@example.comWEDNESDAY, NOVEMBER 30, 2011 By NEIL HARTNELL Tribune Business Editor KERZNER INTERNATIONAL yesterday said its debt-for-equity swap with a major creditor had gone a long way to removing its $2.6 billion debt burden, having embedded in the agreement with Atlantiss new owner assurances there would be no cuts to the resorts 7,500-strong workforce. Unveiling the restructuring agreement with Toronto-headquartered Brookfield Asset Management, which will see the global asset management firm forgive $175 million worth of debt owed by Kerzner International in return for taking ownership of its two Paradise Island properB y NEIL HARTNELL T ribune Business Editor The new owner of Atlantis a nd the One & Only Ocean Club yesterday said it would retain control for the fore s eeable future, describing the P aradise Island properties as iconic, irreplaceable assets that could not be matched a nywhere else in the world. S peaking to Tribune Business after its $175 million debt-for-equity swap with Kerzner International was u nveiled, Brookfield Asset M anagement spokesman, Andrew Willis, moved to dampen Bahamian fears itw ould shortly seek to flip t he two resorts to another buyer, saying the Torontoheadquartered finance house typically took a long term v iew of its investments. A cknowledging that Brookfield didnt expect to ATLANTIS DEAL: JOB SECURITY FOR 8,000 IS EMBEDDED NEW ATLANTIS OWNER SAYS RESORT ICONIC, IRREPLACEABLE Transfer of PI resorts ownership g oes long way to alleviating Kerzners $2.6bn debt burden Retains management of Atlantis a nd Ocean Club and brand rights via $175m debt forgiveness Sir Sol: We can now do what we d o best SIRSOLKERZNER SEE page 5B Brookfield moves to r efute flip concern, saying will retain control for foreseeable future Says nothing more oneo f a kind than PI p roperties Pledges not our style to change things Never expected to takec ontrol S EE page 6B B y NEIL HARTNELL Tribune Business Editor P RIME MINISTER Hubert Ingraham yesterday reiterated just how important Kerzner Internationals Paradise Islando perations were to the Bahamian economy and employment figures, disclosing that it generated 15 per cent of this nations jobs and purchased $190 mil l ion worth of good and services locally every year. Acknowledging that the Atlantis and One & Only Ocean Club operator direct ly employed almost 8,000 Bahamians, a figure the company yesterday put at7 ,200-7,500, the Prime Minister said K erzner International accounted for 5 per cent of the employed Bahamian workforce. W ith an annual payroll of $189 million, Mr Ingraham said Kerzner Inter nationals presence generated an extra 1 .25-1.5 jobs in the Bahamas for each of the 8,000 Bahamians directly employed. Indirect employment thus totalled1 0,000-12,000 persons. In all, therefore, some 18,000 20,000 jobs; 15 per cent of all jobs in our economy, are related directly to the opera t ions of Kerzner International in the Bahamas, the Prime Minister told the House of Assembly yesterday. H e added that apart from purchasing $190 million worth of goods and services in the Bahamas annually, Kerzner International also paid the Bahamas Elec t ricity Corporation (BEC annually for power; generated $27 mil lion in Business Licence fees (including r esort/hotel licence fees and licences for joint venture timeshare and condo operations); and $20 million in room occu p ancy taxes. KERZNERS $190M SPENDING BOOST PI operations generate 15% of all Bahamas employment, i ncluding 10,000-12,000 indirect jobs Resorts generate $189m payroll Sends $47m ann uall y to BEC, and similar sum in taxes SEE page 3B P RIME MINISTER H ubert Ingraham in the House of Assembly yesterday. By NEIL HARTNELL Tribune Business Editor Private sector leaders yesterday said the new Atlantis owners long-term intentions were critical for the well-being o f its 8,000 employees and the wider Bahamian economy, a former Chamber president telling Tribune Business he found it a little disconcerting that this nations largest resort wasn ow controlled by a finance company. E mphasising that he was speaking as a private Bahamian citizen, Dionisio DAguilar, president of the Superwash laundromat chain, said the debt-for-equity restructuring,w hich will transfer ownership of Kerzner Internationals two Paradise Island-based resorts to Brookfield Asset Man agement, would benefit the properties in the short-term. I nstead, it was the broader macroeconomic issues causing him concern. While the agreement with Brookfield eliminated the whole cloud of uncertainty that had hung over Kerzner ATLANTIS TAKEOVER A LITTLE DISCONCERTING Ex-Chamber head says Brookfield restructuring deal removes short-term cloud of uncertainty But long-ter m should w or r y Bahamas Go Cur rent Chamber chair says key issue is new owners commitment to Bahamas SEE page 7B PM HIT S A T PLP ON REGRETTABLE $2.3BN PI LOAN SEE page 3B
By NEIL HARTNELL T ribune Business Editor A LEADINGBahamian resort executive yesterday said he anticipated no impact froma major airline servicing this nation being placed into Chap ter 11 bankruptcy protection. American Airlines, which s erves the Bahamas through its American Eagle regional subsidiary, an entity that was sup posed to be spun off in 2012 a move now likely to be delayed made the filing yesterday. But Robert Sands, Baha Mars senior vice-president of external and government affairs, told Tribune Business: I dont think its going to impact the travelling public too much. I think that based on our infor mation, flying is going to be basically as normal, and day-to-day operations will be as normal. This will allow the airline to restructure itself from a financial point of view, so I dont see a downside to our business as a result of that. By NATARIO McKENZIE Tribune BusinessR eporster firstname.lastname@example.org LABOUR Minister Dion Foulkes said yesterday he was cautiously optimistic there would a resolution to t he dispute between Kent ucky Fried Chicken (Nass au) and the Bahamas Hotel, Catering and Allied Workers Union (BHCAWU which is the bargaining unit for the restaurants employees. Mr Foulkes told Tribune B usiness yesterday: I met w ith both management, h eaded by Mr George Myers, and a negotiation team headed by Nicole Martin from the union, on Monday for five hours. We adjourned at 8 pm and we met again today at 4 pm for two hours. There is going to be a further meeting tomorrow to continue the discussions. Both sides are talking with a view to have the issues resolved. There isn o fixed time for a general meeting, but there is going to be some exchange of documents tomorrow. That is all I can say at this point. I can say that I am cautiously optimistic that we will c ome up with a resolution to t he issues between the two p arties. Talks are still ongoing. I really dont know howm uch longer we will be h ere. Last week, KFC warned that its survival hinged on negotiating a reduced wages and benefits package for its line staff, saying it was cur rently more than doublet he industry average and m aking the company uncom petitive against ever-increas-i ng competition. It said that while KFC was subject to the same operating costs as its competitors, its wage and benefits package was more than two times higher, describing this as unsustainable and needing to be reduced in a new industrial agreement. It said it was operating at a disadvant age as a result. Darren Woods, vice-president of the BHCAWU, a rgued that negotiations on a n ew industrial agreement h ad nothing to do with the Christmas bonuses. H e told Tribune Business t hat the company had claimed last year it was experiencing difficulties, and made that known in early June, though ultimately they were still able to pay out Christmas bonuses. H e said that this time, K FC has only given a twoand-a-half-week notice that it c annot pay Christmas bonuses, a move he said employees found to be a slap in the face. In its statement last Friday, KFC disclosed it had to secure additional financing t o maintain its operations, a lthough it was not clear w hether this was equity or debt. We have been facing some tough times. With the downturn brought by the global recession, the Bahamian economy has been hard hit, i ts general manager, Gabriel Sastre, said. We have all had to face increases in costs, which is a challenge for us all, including KFC. Our customers are a lso finding it difficult and have let us know that our prices are too high by not o nly complaining to us d irectly on Facebook and via c ustomer focus group feedb ack, but also by their decis ion to start shopping elsew here. The wage and benefits package that KFC carries is as a result of a union-negotiated labour contract that dates back to the earliest days of the companys prese nce in the Bahamas. The e xisting labour contract imposes staffing arrangem ents that the competition d oes not have to deal with a w age and benefits package that accounts for a significant percentage of total expens-e s. BUSINESS PAGE 2B, WEDNESDAY, NOVEMBER 30, 2011 THE TRIBUNE DRIVERS WANTEDMust be able to work early morning hours, have reliable transportation. Only serious inquiries please. Apply in writing to: DA-98272 C/O The Tribune P.O. Box N-3207 Shirley Street Nassau, Bahamas Employment Opportunity Crane MechanicsREQUIREMENTS: Or NO CALLS PLEASE MINIMAL IMPACT FROM AIRLINES B ANKR UPTCY AUTIOUS OPTIMISM ON KFC RESOLUTION I I c c a a n n s s a a y y t t h h a a t t I I a a m m c c a a u u t t i i o o u u s s l l y y o o p p t t i i m m i i s s t t i i c c t t h h a a t t w w e e w w i i l l l l c c o o m m e e u u p p w w i i t t h h a a r r e e s s o o l l u u t t i i o o n n t t o o t t h h e e i i s s s s u u e e s s b b e e t t w w e e e e n n t t h h e e t t w w o o p p a a r r t t i i e e s s . T T a a l l k k s s a a r r e e s s t t i i l l l l o o n n g g o o i i n n g g . I I r r e e a a l l l l y y d d o o n n t t k k n n o o w w h h o o w w m m u u c c h h l l o o n n g g e e r r w w e e w w i i l l l l b b e e h h e e r r e e . Labour Minister Dion Foulkes
aged by the fact that we would now have not a publicly traded company but a c ompany where there was a substantial net worth of own e rs who were identifiable and could be seen, and so that made us feel safe. Mr Christie added: With r espect to the extent of the loan in Dubai, Sol Kerzner has been the defining tourist p ersonality in the Bahamas who caused the Bahamas to develop a second dimensiont o its reputation as a resort c ountry, because he made it clear that you could make money operating a resort. He made his companies into profitable companies, and at that time no one could have possibly anticipated a recession of the kind that took place. Lehman Brothers, the great financing company, w ent into bankruptcy as a result of unforeseen difficul ties, and so the same kind of d ecision-making that we made on behalf of Kerzner, really that was pursuant to what Kerzner wanted to happen. In speaking with my advi s ors at the time I asked the q uestion: What happened if we said No to him. Because then he would have shut thed oor on future investments, because you had an investorw ho obviously knew his busin ess, was a very smart man w ith a great reputation in the industry who said: I'm going to borrow the $2 billion to d evelop the Atlantis brand in other countries, particularly Dubai, and as a result of thatw e now see that he could not m eet debt servicing. But that's entirely due to the extraordi nary impact of this recession. K erzners transfer of its Bahamian assets to Brookfield will result in the conversion oft hat companys $175 million loan to Kerzner International into equity. Brookfield will now stand in Kerzners shoesi n relation to Atlantis debt, Prime Minister Ingraham said. This debt was taken on when Mr Kerzner and his late son, Butch, together with their private equity partners boughtt he company back and took it p rivate, in 2006, delisting from the New York Stock E xchange (NYSE T he Prime Minister said he had met with representatives of Brookfield on two occa-s ions, and held a number of additional meetings with SirS ol Kerzner in connection w ith the proposed change in o wnership of the Paradise Island properties. He added: The acquisition o f Kerzner Internationals Bahamian properties fits into the vision of Brookfield, whichh as a strong cash flow and bala nce sheet permitting it to provide essential financial cap ital at a time of global econ omic and financial uncertainty. This is especially impor t ant given our interest in ensuring that the new ownership of Atlantis will provide continued security of employ m ent for the 8,000 Bahamians employed there. Prime Minister Ingraham said he had been assured by Brookfield that it shared Kerzners commitment to con-t inue future capital expendi t ure and maintenance of the resort at levels sustained over t he years, and further investing the same levels of resources into local and inter-n ational marketing to support t ourism in the Bahamas and to ensure the brands visibility. By NEIL HARTNELL Tribune Business Editor DESCRIBINGthe tragic death of his late son, Butch, as a huge setback personally a nd for the company, Sir Sol Kerzner yesterday indicated he would never have taken on the $2.6 billion debt to finance Kerzner Internationals de-listing had he known the magnitude of the coming r ecession. Recalling how himself, Butch and their management/development teams had taken the companys Paradise Island room inventory from 1,000 keys in 1994 to 4,000 keys some 17 years later, Sir Sol said everything looked favourable economically when they decided to de-listthe company from the New Y ork Stock Exchange ( NYSE). H aving completed the $1 billion Phase III investment in 2007, with the Reef and Cove properties constructed,S ir Sol recalled: We went private the year before that. In doing that, we took on q uite considerable debt. A t the time, though, economies were brisk and occupancies levels on Paradise Island soaring. No one could foresee what happenedi n the last quarter of 2008, S ir Sol said, referring to the L ehman Brothers bankruptcy and full-blown recession start. Unfortunately, the world has changed, and I dont think it has fully recovered, Sir Sola dded. In these circums tances, that debt issue has to be resolved, and we have been working for the last year or even longer to try to get to a point where we would not be burdened by debt, and do what we do best. That is running and managing resorts. T he 2006 de-listing was intended to give Sir Sol, Butch and their families greater rewards for their e fforts by increasing their e quity interests in a private Kerzner International, making yesterdays announcement of the transfer of the Atlantis and One & Only OceanC lubs ownership to Brookf ield Asset Management s omewhat ironic. Such an outcome, five years after the event, could not have been predicted. Sir Sol said: I dont know of anyf olks in business that could f oresee not only the collapse of Lehman but, since the Great Depression, and Ive been in business for 50 years, Ive never experienced a recession of this length. Recalling the impact of Butchs death in a helicopterc rash in the Dominican Republic, Sir Sol added: Obviously, it was a huge setback when Butch died in the a ccident in 2006. He was C EO at the time, and I had stepped back as chairman to concentrate on new developments. Losing a child as a father is p retty tough, and he was an o utstanding leader. Everyb ody on Paradise Island felt just a huge, huge setback, a sense of loss. He was just a great leader. He just loved the Bahamas. That was clear fromw here he lived. D escribing his attachment to the Bahamas investments, Sir Sol said: Atlantis has been one of our great achievements. Its been probably the most exciting development Ive been involved in, and am very pleased to con-t inue to be involved in it. Its been just a super experience. BUSINESS T HE TRIBUNE WEDNESDAY, NOVEMBER 30, 2011, PAGE 3B VACANCY FOR LEGAL ADMINISTRATORA Law Firm based in New Providence is seeking an experienced Legal Administrator to provide legal assistance to two Associates. The successful candidate should have at least 5 to 7 years experience. This candidate will be called upon to perform administrative duties for the assigned Associates and should have knowledge of commonly used concepts, practices and procedures within the Commercial/Real Estate The successful candidate should demonstrate the following applications actions. should apply via email to email@example.com. applicants who meet the foregoing criteria will be considered for the position. SIR SOL: IVE NEVER SEEN A RECESSION THIS LONG Indicates would never have taken on considerable debt to finance going private if had crystal ball Sons death a huge, huge setbac Mr Ingraham added that Kerzner I nternational had also contributed $26 m illion to public park and recreational space development, annual Independence celebrations and hurricane relief. Kerzner International has also committed to make contributions of several m illion dollars toward the development o f community programmes, such as the C lifton Heritage National Park, and the redevelopment of downtown Nassau, the Prime Minister added. And it is also underwriting most of t he costs associated with the reclamat ion of Montagu Beach and the enhancem ent of the beach facilities at that popular Bahamian recreational space. FROM page one KERZNERS $190M SPENDING BOOST PM HITS AT PLP ON $2.3BN PI LOAN FROM page one
BUSINESS T HE TRIBUNE WEDNESDAY, NOVEMBER 30, 2011, PAGE 5B S UPREME COURTGN-1343 ties, Sir Sol Kerzner said he and the Government had insisted on a commitment there be no job cuts. The Kerzner International chairman said the deal, which will see his company follow the ranks of other leading global hotel and resort destination brands in becoming an operator/management company, shedding its property owning responsibilities, will enable it to do what we do best owning and operating hotels. Emphasising that Kerzner International would retain management control of Atlantis and the One & Only Ocean Club, running their daily operations on Brookfields behalf, Sir Sol said that most important was his retention of ownership rights to the Atlantis and One & Only brands. This is critical in enabling Kerzner International to develop such future resorts around the globe. It could be argued that Kerzner International was putting the best possible spin on yesterdays development, and that the ownership transfer to Brookfield represents the end of a remarkable 17-year era for Paradise Island and Bahamian tourism in general. Yet the changes are at the back of the house, and not the front door. Whether there will be a change of focus or ownership under Brookfields ownership remains to be seen, as will any long-term impact on the Bahamas leading private sector employer and tourism flagship. Sir Sols demeanour yesterday certainly indicated that a debt weight had been lifted from his shoulders. George Markantonis, Kerzner International (Bahamas aging director, told Tribune Business that the agreement with Brookfield would leave Atlantis and the One & Only Ocean Club virtually debt free, meaning that no borrowing liabilities were secured on the properties. A substantial sum, though, is still owed to the companys creditors. Bloomberg reported that Brookfield had held $175 million of junior secured debt. Forgiving this sum, and making a $100 million payment to its o ther creditors, had reduced Kerzner Internationals debt pile from $2.6 billion to around $2.3 billion, it reported. Kerzner International yesterday confirmed it had entered into an agreement in principle with its main lenders to restructure its operating c ompany debt, a deal that is subject to completing all the necessary paperwork and oth er closing conditions relating to the overall restructuring. Bloomberg said Kerzner Inter national was working with Brookfield to extend the matu rity deadline for all its remain ing $2.3 billion debt. Kerzner International took on its debt burden to help finance the successful $3.6 billion bid by Sir Sol and his late son, Butch, to take the company private and de-list it from the New York Stock Exchange (NYSE That transaction was concluded at the height of a global economic boom when cheap financing was plentiful, and no one could see the impending credit crunch and recession. When it hit, Kerzner International saw room rates and occupancies drop, reducing cash flow and revenues required to meet the debt repayments. This, and concern about breaching the covenants with its lenders, led to the 800 jobs cuts in late 2008. Mr Markantonis said the agreement with Brookfield, which is still awaiting Bahamian government approval but is expected to close by year-end, takes us a long way to achieving this goal of restructuring its $2.6 billion. Emphasising that the agreement would strengthen Kerzner Internationals balance sheet, boost cash flow and position it for sustainable longterm growth, Mr Markantonis added: In return, we will have a long-term management contract going forward. This effectively removes the debt burden from the Kerzner company, and positions us for the future to be a global hotel management company. Pointing out that this was not unusual in the hotel industry, as most leading brands were now managers/operators, rather than real estate owners, the Kerzner International (Bahamas how we operate in all other places in the world. With seven One & Only Ocean clubs spread around the world, plus the Atlantis (The Palm) in Dubai, Mr Markantonis said that in some of these properties Kerzner International had equity stakes rang ing from just 10 per cent to 50 per cent. In some properties, it had zero ownership interest. Sir Sol, who is Kerzner Internationals chairman, said the only property his company owned 100 per cent was Atlantis on Paradise Island, the One & Only Ocean Club being majority owned. For us it is very excit ing that this has finally come to an end, Mr Markantonis said of the agreement reached with Brookfield. The agreement has assur ances by our owners that we will have no change. In fact, we will maintain our present employment levels, we will maintain the average capital expenditures that we spend every year to keep the facility in a first class condition, adding new, exciting attraction, restaurants and whatever they may be, so that we can go forth in the future as suc cessfully as we have in the past. "We will continue to spend similar capital and utilise the same resources that we do today in our marketing cam paigns. This is very critical and comforting for us going forward. Our employees, although they will be paid by the Brookfield owner, are still able to really have career growth in other Kerzner assets. In the end we are the management company and that's who runs the property. Sir Sol indicated that both Kerzner International and the Ingraham administration had insisted that Brookfield push for no staff cuts at Atlantis and the One & Only Ocean Club. Any major redundancies at the Bahamas largest private sector employer would, of course, be a big political liability for the Government witha general election fast approaching. This was something we wanted a commitment on, and something, quite frankly, the Government wanted a commitment on, Sir Sol said, adding that this was embedded in the agreement with Brookfield. He said that nothing really changes on Paradise Island despite Brookfield taking ownership control. He indicated that Atlantis and the One & Only Ocean Club would continue to conduct business as usual, and both staff and guests would see no changes in daily operations. Its very important in concluding this agreement that capital expenditure carries on year after year, keeping the property fresh and creating new facilities, restaurants, Teens Clubs and the like, and that marketing continues to create a platform for future growth at Atlantis and the One & Only Ocean Club, Sir Sol said. We are investing capital every year to maintain Atlantis as one of the greatest resorts in the world. Thats the intention and where were going. We have been year-onyear having very substantial capital expansion programmes. The agreement to maintain marketing and capital investment spending at current lev els was critical to providing guests with the best experi ence; better than they find elsewhere. Its clear to me that the guest experience is what counts, Sir Sol said. If you deliver that, the guests will be back and your business will be very successful. The Bahamian folks that have worked for us have been outstanding, and the level of service achieved has been first class. Sir Sol said it was key to restain management control at Atlantis and the One & Only Ocean Club, and said of Brookfield: They recognise the importance of what were trying to develop, the importance of maintaining this prop erty as we have, and the importance of people in creating this property. Ones got to look ahead. We have a very strong company that has ownership, and we have Kerzner that everyone knows pretty well that continues to manage. FROM page one ATLANTIS DEAL: JOB SECURITY FOR 8,000 IS EMBEDDED
end up owning Atlantis and the One & Only Ocean Club when it first lent money toK erzner International as part o f the latters multi-billion debt financing, Mr Willis said it was thrilled to retain its services to manage the two properties day-to-day operations. We are excited to own t hese assets, he told Tribune Business. We think theyre one-of-a-kind, irreplaceable assets. We expect to own them for the foreseea ble future, and look forw ard to working with Kerzne r International to ensure the resorts are successful, and that tourism in the Bahamas is successful. Brookfield, Mr Willis e xplained, looks for iconic, i rreplaceable assets, and in the hospitality world nothing is more one of a kind than Atlantis and the One & Only Ocean Club. Confirming that Brookfield stands behind Sir Solomon Kerzners state-m ent that the ownership c hange will not impact Kerzner Internationals 7,200-7,500 strong Paradise I sland staffing levels, with c apital investment, marketi ng and maintenance budgets set to be unchanged, Mr Willis said it was not the companys style to make radical changes with investments it took over. We didnt intend to own t hese, but are excited and happy to own them [Atlantis and the One & Only Ocean Club] in these circumstances, he told Tribune Business. We didnt expect it; we e xpected to make a loan and be paid back, but were extremely comfortable in this partnership with Kerzner International. Were really e xcited about this opportunity. This is still very much Kerzner Internationals operation. Day-to-day, staff will not notice anything, and will continue in employment and with the marketing. Our vision is that Atlantis a nd the One & Only Ocean C lub continue to be successf ul, iconic properties. The focus will remain the same. K erzner International will r un the day-to-day operat ions and marketing as they have done in the past. Its not our style to change anything. In exchange for the $175 million owed to it, Brook-f ield has taken over Kerzner I nternationals equity interests in Atlantis and the One & Only Ocean Club, plus the One & Only Ocean Club in Palmilla, Mexico. Kerzner International, though, willr emain as the operator/mana ger for all three, and retains rights to both resort brand names. The ownership transfer of Atlantis and One & Only O cean Club into Brookfield- s care has caused some disq uiet ( s ee other article on Page 1B ) in the Bahamian business community and among resort workers, given that the properties are being passed from a specialist r esort/owner operator, which w as essentially a family-run c ompany with strong emot ional attachment to both its investments and the B ahamas, to a pure financial investor. S ir Sol Kerzner and G eorge Markantonis, Kerzne r Internationals chairman and head of its Bahamian operations respectively, yesterday described Brookfield as an asset manager, and not a hedge fund or privatee quity fund. But, regardless of the definition, operators such asB rookfield have a laserlike focus on the bottoml ine and returns they get f rom each of their investm ents, and do not hesitate to cut costs including jobs if they feel that is what isn eeded. Typically, once they have turned a companya round, they often seek an exit, either by an initial publ ic offering (IPO (flipping In this case, Brookfield a nd its fellow lenders/credi tors have as their overriding objective to be made whole that is, to recover 1 00 per cent of what is owed to them and extract any further upside they can. In Brookfields case, this will come from ownership and profits from the threer esorts. When asked by Tribune B usiness whether Brookfield intended to own Atlantis and the One & Only Ocean Club for the long-term, rather than a short-term flip, MrW illis first responded: Brookfield is focused on the l ong-term success of its investments. He then added: We expect to own it for the foreseeable future. Brookfield, Mr Willis said, h ad deep expertise in real estate management and investments, the sector accounting for some $60 billion or 40 per cent of its worldwide $150 billion in assets under management. H e acknowledged, though, that Brookfield had no prior history of owning/operating hotels, its track record being in financing such developments. Which is why were thrilled we have Kerzner as ap artner to manage the prope rties, Mr Willis explained. Where weve got real e xpertise is in financing h otels. We dont claim to be o perators. Weve financed a number of hotels, and in most cases those hotels arer un by top-rated international chains. I ncluded among Brook f ields hotel financings are a p ortfolio of Four Seasonsb randed properties, the Hard Rock Hotel in Las Vegas, and the Mandarin Oriental in Manhattan, New York. The company has been ine xistence for some 100 years, and apart from real estate, s pecialises in financing and investments in sectors such as renewable energy and infrastructure. The debt-for-equity swap, a nd subsequent restructuring, was always the likeliest solution to resolving the sit-u ation surrounding Kerzner Internationals debt burden, given that the recession had i mpaired the companys abil ity to meet the repayment schedule especially the principal maturity deadline. T ribune Business had pre dicted such an outcome sev eral months ago. BUSINESS PAGE 6B, WEDNESDAY, NOVEMBER 30, 2011 THE TRIBUNE 5 2wk-Hi52wk-LowSecurit y P revious CloseToday's CloseChangeDaily Vol.EPS $Div $P/EYield 1.190.97AML Foods Limited1.181.180.000.1480.0408.03.39% 10.639.05Bahamas Property Fund10.6310.630.00-0.6420.080-16.6 0.75% 7.504.40Bank of Bahamas6.936.930.000.2300.10030.11.44% 0 .530.17Benchmark0.180.180.00-0.0480.000N/M0.00% 2.842.55Bahamas Waste2.702.700.000.0300.09090.03.33% 1.961.77Fidelity Bank1.771.770.000.0970.04018.22.26% 10.468.29Cable Bahamas8.408.400.000.2450.32034.33.81% 2 .802.33Colina Holdings2.602.600.000.4380.0405.91.54% 8 .508.33Commonwealth Brewery8.508.500.000.7400.00011.50.00% 7.006.21Commonwealth Bank (S1 6.516.510.000.4960.32013.14.92% 2.001.63Consolidated Water BDRs1.521.560.040.1110.04514.12.88% 1 .551.24Doctor's Hospital1.241.240.000.0740.04016.83.23% 5.504.75Famguard5.435.430.000.4980.24010.94.42% 7.504.50Finco4.724.720.000.7570.0006.20.00% 9 .397.75CIBC FirstCaribbean Bank8.148.140.000.4940.35016.54.30% 6 .005.00Focol (S 5.335.330.000.4350.22012.34.13% 1.001.00Focol Class B Preference1.001.000.000.0000.000N/M0.00% 7.305.58ICD Utilities7.307.300.00-0.1220.240-59.8 3.29%1 0.809.80J. S. Johnson9.829.820.002000.8800.64011.26.52% 10.0010.00Premier Real Estate10.0010.000.001.2070.2008.32.00% 5 2wk-Hi52wk-LowSecuritySymbolLast SaleChangeDaily Vol. 99.4699.46Bahamas Note 6.95 (2029BAH2999.460.00 100.00100.00Fidelity Bank Note 17 (Series A) +FBB17100.000.00 100.00100.00Fidelity Bank Note 22 (Series B) +FBB22100.000.00 100.00100.00Fidelity Bank Note 13 (Series C) +FBB13100.000.00 100.00100.00Fidelity Bank Note 15 (Series D) +FBB15100.000.00FINDEX: YEAR END 2008 -12.31%30 May 2013 20 November 2029 7% RoyalFidelityMerchantBank&TrustLtd(Over-The-CounterSecurities) 2 9 May 2015BISX LISTED & TRADED SECURITIES AS OF:7 % Interest 19 October 2022 P rime + 1.75% Prime + 1.75% 6.95%TUESDAY, 29 NOVEMBER 2011B ISX ALL SHARE INDEX: CLOSE 1,356.33 | CHG 0.04 | %CHG 0.00 | YTD -143.18 | YTD % -9.55BISX LISTED DEBT SECURITIES (Bonds trade on a Percentage Pricing basis)Maturity 1 9 October 2017 W WW.BISXBAHAMAS.COM | TELEPHONE: 242-677-BISX (2479) | FACSIMILE: 242-323-2320 5 2wk-Hi52wk-LowSymbolBid $ A s k $Last PriceDaily Vol.EPS $Div $P/EYield 1 0.065.01Bahamas SupermarketsN/AN/A14.00-2.9450.000N/M0.00% 0.550.40RND Holdings0.350.400.550.0010.000256.60.00% 4 1.0029.00ABDAB30.1331.5929.004.5400.0009.030.00% 0.550.40RND Holdings0.650.750.400.0290.00024.130.00% 52wk-Hi52wk-LowFund NameNAVYTD%Last 12 Months %NAV 3MTH 1.57791.4674CFAL Bond Fund1.5779263.39%5.87%1.548717 3.02482.9020CFAL MSI Preferred Fund3.02482.63%3.94%2.981382 1.61281.5289CFAL Money Market Fund1.61512.61%4.53%1.591803 2.72022.5398Royal Fidelity Bahamas G & I Fund2.4974-8.19%-7.45% 13.849313.2825Royal Fidelity Prime Income Fund13.91804.19%5.21% 114.128999.4177CFAL Global Bond Fund114.09222.35%13.88%114.128861 118.4255101.6693CFAL Global Equity Fund118.42552.30%8.26%116.580785 1.17491.0000FG Financial Preferred Income Fund1.18773.59%4.94% 1.13431.0000FG Financial Growth Fund1.14152.06%4.07% 1.17641.0000FG Financial Diversified Fund1.18903.47%5.04% 9.9952 9.5078Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 19.94330.98%4.58% 11.49859.8690Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 210.3699-6.17%-2.17% 10.68139.6635Royal Fidelity Bah Int'l Investment Fund Principal Protected TIGRS, Series 310.20631.81%7.39% 8.85647.8830Royal Fidelity Int'l Fund Equities Sub Fund8.65073.01%18.38% BISX ALL SHARE INDEX 19 Dec 02 = 1,000.00 YIELD last 12 month dividends divided by closing price 52wk-Hi Highest closing price in last 52 weeks Bid $ Buying price of Colina and Fidelity 52wk-Low Lowest closing price in last 52 weeks Ask $ Selling price of Colina and fidelity Previous Close Previous day's weighted price for daily volume Last Price Last traded over-the-counter price Today's Close Current day's weighted price for daily volume Weekly Vol. Trading volume of the prior week Change Change in closing price from day to day EPS $ A company's reported earnings per share for the last 12 mths Daily Vol. Number of total shares traded today NAV Net Asset Value DIV $ Dividends per share paid in the last 12 months N/M Not Meaningful P/E Closing price divided by the last 12 month earnings FINDEX The Fidelity Bahamas Stock Index. January 1, 1994 = 100 (S) 4-for-1 Stock Split Effective Date 8/8/2007 (S1) 3-for-1 Stock Split Effective Date 7/11/200731-Oct-11 31-Jul-11 31-Oct-11TO TRADE CALL: CFAL 242-502-7010 | ROYALFIDELITY 242-356-7764 | FG CAPITAL MARKETS 242-396-4000 | COLONIAL 242-502-752531-Jul-11 30-Jun-11 31-Jul-11 5-Aug-11 30-Oct-11MARKET TERMS30-Sep-11 31-Oct-11 RoyalFidelity Merchant Bank & Trust Ltd (Over-The-Counter Securities) CFAL Securities Ltd. (Over-The-Counter Securities) BISX Listed Mutual Funds30-Jun-11 30-Sep-11 NAV 6MTH 1.535365 2.952663 1.580804 111.469744 115.762221 NAV Date 31-May-11 30-Sep-11 NOTICE DIVINE ROOTS CORP.In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4Business Companies Act. 2000, DIVINEROOTS CORP. is in dissolution as of November 11, 2011. International Liquidator Services Inc. situated at 3rd L I Q U I D AT O R______________________ NOTICE is hereby given that MOHAMMED ABDUS SALAM AHMED of Wells Lane off Kemp Road, NASSAU, N.P., BAHAMAS P.O.Box EE15096 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 18t hday of November, 2011 to the Minister responsible for nationality and Citizenship, P.O. Box N-7147, Nassau, Bahamas.NOTICE FROM page one NEW ATLANTIS OWNER SAYS RESORT ICONIC, IRREPLACEABLE
I nternationals operations as a r esult of the $2.6 billion debt b urden, Mr DAguilar expressed concern that Brookfield might go the route employed by many financial b uyers and flip Atlantis and the One & Only Ocean Club to another buyer. In the short-term, its very good news to hear that the whole cloud of uncertainty that was hanging over a potential bankruptcy has now b een dispelled, Mr D Aguilar told Tribune Busin ess. In the short-term, its good news as Kerzner can stopf ocusing on this debt crisis and run the business better.I t seems that theyve successf ully managed themselves t hrough that process and can now move forward properly running the business. T he medium to longer-term outlook, though, was more troubling for Mr DAguilar.W hile both Sir Sol Kerzner and George Markantonis, Kerzner Internationals chair man and head of the compan ys Bahamian operations respectively, both refuted the suggestion that Brookfieldw as a hedge fund or private equity fund, describing it as an asset manager, the Super wash president remains con c erned it has similar intentions. I must say I dont like the fact that the biggest resort in the Bahamas is controlled bya hedge fund, Mr DAguilar t old Tribune Business. That d oes not make me feel great, and Im sure the Bahamas government does not feelg reat. Hedge funds are totally motivated by buying some thing on the cheap and flip ping it at a greater price, and Im sure theyre not going to o wn the assets under the same principal that Mr K erzner did. I just dont like that the largest existing resort is owned by a hedge fund. That does not make me feel comfortable. Its the question of where will we be in three years that I would be worried about if I was the Bahamas government. Its this niggling issue at the back of your mind. Its what I find a little disconcerting. Hedge funds have no loy alty, no connection with Atlantis, and dont care how important this is to the Bahamian economy. Winston Rolle, the Bahamas Chamber of Com merce and Employers Confederations (BCCEC man, yesterday described the agreed solution to its debt woes, which will see Kerzner International remain the manager/operator for Atlantis and the One & Only Ocean Club, as interesting. Acknowledging that Kerzner International was having to make some adjustments to their financial posi tion, Mr Rolle said the key question was: What does this mean long-term for the coun try? Thats the question that comes to mind. With little known about Brookfields long-term inten tions, Mr Rolle told Tribune Business: The concern would be the level of commitment to the country in the long-term. Is this an invest ment that, if it goes wrong, they will start to try and dump it? Mr Rolle also questioned whether the agreement between Brookfield and Kerzner International includ-ed a buy back clause that would enable the latter, at some stage in the future, to repurchase the properties ithad been developing since 1 994. A nd he also asked how long the management agreem ent would last. Kerzner I nternational yesterday said it was a long-term arrangem ent, although no specific timeline was provided. Mr DAguilar, though, backed the Brookfield agreement for retaining Kerzner I nternational to manage the P aradise Island properties. I l ike the fact Kerzner has retained management con trol, and anyone looking to b uy this asset would be crazy not to leave the Kerznerm anagement team in place, h e added. The fund is smart enough t o realise that ripping out the Kerzner management team w ould be a mistake. No one knows how to run it better than them. I dont thinkt heyre silly enough to think that putting someone else in place will yield a better result. To enhance the value of t he properties is makes sense f or them to stick with Kerzn er. The properties are doing w ell, occupancies are still going up, and no one understands the properties better than Kerzner and his team,s o it makes sense to keep the status quo. Mr DAguilar, though, said that as a Bahamian he felt comfortable when Sir Sol was in ownership control, giv-e n that Atlantis was his d ream and a huge success sto ry, and that he ran the company in this manner with as trong emotional attachment. H e added that the tragic death of Sir Sols late son, Butch, who was Kerzner Internationals president and chief executive, had also left question marks over the suc c ession, describing the situa tion as a little tenuous. NEW YORK Associated Press FOR MOSTof the 240,000 passengers who fly American Airlines each day, the airline's bankruptcy filing should have little noticeable impact. American continues to operate flights, honor tickets and take reservations. It says its frequent-flier program will be unaffected. Some travelers may eventually see fewer American flights at their airport. The incoming CEO said American would probably reduce its flight schedule "modestly" while restructuring in bankruptcy court. But that would continue a strategy in place at American and other airlines in response to high jet fuel prices. The real risk to American's passengers is if the restructuring fails, the airline ultimately liquidates and ceases to fly. Even then, many travelers are protected if they bought tickets with a credit card. Delta, United, Continental and US Airways have all gone through Chapter 11. Travelers continued to book tickets. Planes still took off and landed and frequent flier miles were still earneda nd redeemed. In fact, the bankruptcy process is usually more taxing on the airline's shareholders, who tend to get wiped out. Or on workers, who can lose pay and benefits, and even their job. The Chapter 11 filing is likely to dampen the spirits of flights attendants and pilots as their fears about salary and pension cuts become more urgent. S ome American travelers were also nervous on Tuesday. "I would definitely be less likely to book with them. I would be afraid they'd be less likely to keep their flights," Corina Fallbacher said after landing home in Chicago on an American flight from Orlando. American is the nation's third-largest airline behind United Continental Holdings Inc. and Delta Air Lines Inc. It operates out of five major hubs in New York, Los Angeles, Dallas/Fort Worth, Chicago, and Miami. It has major inter-n ational partnerships with British Airways and Japan Airlines. Steve Varraso, 39, an event planner who had flown from Boston to Chicago's O'Hare, said he was slightly concerned about his frequent-flier miles on American. But Varraso and other frequent fliers shouldn't worry. Eastern Airlines, PanA m and Trans World Airlines all ceased flying but miles in their programs were transferred over to other airlines that bought some of their assets. TWA miles actually went into American Airlines' frequent flier program, AAdvantage. "Miles are safe," said Gary Leff, cofounder of frequent flier site MilePoint. He said the bankruptcies of past airlines "are instructive." He even suggested there might be some promotions to keep loyal travelers. American has prided itself on having avoided the bankruptcy process. Butt hat left American with higher labor costs than its rivals, a major reason it continues to lose money while they are again earning profits. American spends $3,008 on salary and benefits for every hour each of its 600 planes is in the air, according to Vaughn Cordle, chief analyst with AirlineForecasts. United spends $2,801, Delta $2,587 and US Air-w ays $1,991. Those labor costs, along with a 40 percent jump in fuel expense, contributed to AMR's $162 million loss in the third quarter despite higher airfares. Delta and United, meanwhile, had a combined profit of $1.2 billion. Bob Boyd was briefly a pilot for American after getting out of the military. At Dallas/Fort Worth International Airport on Tuesday morning, Boyd was surprised to hear that American hadn't already solved its financial problems. I thought the union issues were behind the company. I had heard fares would go up to compensate for lost revenue, so this is extremely surprising," he said. One way that American and other airlines have controlled costs is by cutting flights. Thomas W. Horton, who was named t he new CEO of American's parent company, AMR Corp., said fliers can expect some modest capacity cuts in the future. Passengers whose flight is canceled or moved because of a schedule change will be rebooked. BUSINESS T HE TRIBUNE WEDNESDAY, NOVEMBER 30, 2011, PAGE 7B Employment Opportunity Electrical Electronic Engineers/Mechanical Engineers to maintain Port Mobile Harbor Cranes needed REQUIREMENTS: EXPERIENCE PHYSICAL REQUIREMENTS E-mail: firstname.lastname@example.org Or Fax: (242 On or before December 9th 2011 NO CALLS PLEASE NOTICE LLYON CITY S.A.I n Voluntary LiquidationN otice is hereby given that in accordance with Section 138(4Business Companies Act. 2 000, LLYON CITYS.A. is in dissolution as of November 21, 2011. International Liquidator Services Inc. situated at 3rd L I Q U I D AT O R______________________ NOTICE JUNIS REAL ESTATE INC.In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4Business Companies Act. 2000, JUNIS REALESTATE INC. is in dissolution as of November 23, 2011. International Liquidator Services Inc. situated at 3rd L I Q U I D AT O R______________________ NOTICE Canaes Business Inc.In Voluntary Liquidation Notice is hereby given that in accordance with Section 138(4Business Companies Act. 2000, Canaes Business Inc. is in dissolution as of November 22, 2011. International Liquidator Services Inc. situated at 3rd L I Q U I D AT O R______________________ N O T I C EN OVELVENTURES HOLDINGS LIMITED N O T I C E IS HEREBY GIVEN as follows:(aNOVELVENTURES HOLDINGS LIMITED is in voluntary dissolution under the provisions of Section 138 (4 of the International Business Companies Act 2000. (bThe dissolution of the said company commenced on the 15th November, 2011 when the Articles of Dissolution were submitted to and registered by the Registrar General. (cThe Liquidator of the said company is Bukit Merah Limited of c/o The Bahamas Financial Centre, Shirley and Charlotte Streets, P.O. Box N-3023, Nassau, Bahamas Dated this 16th day of November A. D. 2011_________________________________ B ukit Merah Limited L iquidator N O T I C E U LTRA PEAK LIMITEDN O T I C E IS HEREBY GIVEN as follows: ( a)ULTRA PEAK LIMITED is in voluntary dissolution under the provisions of Section 138 (4 International Business Companies Act 2000. ( b)The dissolution of the said company c ommenced on the 15th November, 2011 when the A rticles of Dissolution were submitted to and registered b y the Registrar General. ( c)The Liquidator of the said company is Dominik Dated this 16th day of November A. D. 2011_________________________________ D ominik Birri L iquidator N O T I C E FORTUNE-MAKER HOLDINGS LIMITED N O T I C E IS HEREBY GIVEN as follows: (aFORTUNE-MAKER HOLDINGS LIMITED is in voluntary dissolution under the provisions o f Section 138 (4 Companies Act 2000. ( b)The dissolution of the said company c ommenced on the 29th November, 2011 when the Articles of Dissolution were submitted to and registered by the Registrar General. (cThe Liquidator of the said company is Birri 039393. D ated this 30th day of November A. D. 2011 _________________________________ Birri Dominik L iquidator MOST AMERICAN AIRLINES FLIERS TO SEE LITTLE IMPACT FROM page one ATLANTIS TAKEOVER
NEW YORK Associated Press A JUMPin U.S. consumer confidence sent stocks modestly higher Tuesday. Investors were also encouraged by new efforts from European leaders to find more aggressive cures for the region's debt crisis. The Dow Jones industrial average ended with a gain of 32 points, following a 291-point surge Monday. Retail stocks were among the biggest gainers. Home Depot Inc. rose 5.3 percent. Best Buy Co. rose 5.1 percent. Retailers had record sales over the Thanksgiving weekend. Stocks started higher and gained momentum after 10 a.m., when the Conference Board, a private research group, reported that its Consumer Confidence Index jumped in November to its highest level since July. That news and the surge in holiday shopping reassured investors that the U.S. economy might be sputtering back to life, said Quincy Krosby, market strategist for Prudential Financial. "For the market, the fact that Americans are spending is a positive force," said Krosby. European finance ministers gathered Tuesday to hash out the latest ideas for squelching the crisis. At their regular monthly meeting, the ministers also released the latest installment of emergency loans for Greece. Europe's proposals for wrig gling out of a potential financial catastrophe have become more radical as borrowing costs for the region's large economies, including Spain and Italy, spike. President Barack Obama said in a meet ing with top EU officials Monday that if Europe failed to solve its crisis, the U.S. economy would suffer. Acting with new urgency, Europe's finance ministers were considering wide-ranging plans for protecting its shared currency, the euro, from collapsing. Many of those ideas would have been off-limits until recently, including having countries cede some control over their finances to a central European authority. In the latest sign of trouble, Italy was forced to pay a high interest rate on an auction of three-year debt Tuesday. The 7.89 percent rate was nearly three percentage points higher than last month, an enormous increase. The Dow Jones industrial average rose 33.62 points, or 0.3 percent, to close at 11,555.63 Tuesday. Cr isis The Dow jumped 291 the day before on expectations that European leaders were moving more aggressively to prevent the region's debt crisis from causing a catastrophic breakup of their currency union. The Standard & Poor's 500 index rose 2.64, or 0.2 percent, to 1,195.19. Technology stocks were w eak. Corning Inc., which makes glass for flat-screen TVs, slumped 10.8 percent, the most in the S&P 500, after saying a major South Korean cus tomer would no longer do business with it. The Nasdaq composite, which consists mostly of techn ology stocks, fell 11.83, or 0.5 percent, to 2,515.51. Netflix lost 3.4 percent after Standard & Poor's lowered its rating on the company's debt, saying it expected losses. Bank stocks lagged the market after the latest jump in Italy's borrowing costs. Morgan Stanley fell 3.6 percent; Bank of America 3.2 percent. Banks are especially sensitive to Europe's financial problems because they hold billions in European debt. They could suffer huge losses in the event of a financial panic in Europe and a freeze-up in global lending markets. AMR Corp. plunged 84 percent after the parent company of American Airlines said it would file for Chapter 11 because it could no longer shoulder rising fuel costs and its heavy debt load. Competitor United Continental Holdings Inc. jumped 6.3 percent, and Delta Air Lines Inc. rose 5 percent. AMR Corp. has continued to lose money while other U.S. airlines returned to profitability in the last two years. Seagate Technology PLC jumped 3.7 percent after the hard drive maker forecast revenue for the current quarter that was higher than analysts were expecting. Citi analyst Joe Yoo said higher hard disk drive prices were driving the gain. Tiffany & Co. fell 8.7 percent after the luxury retailer forecast fourth-quarter earnings that were below Wall Street's expectations. The quarter includes the holiday shopping season. Dillard's Inc. slumped 6.8 percent after a Sterne Agee analysts cut his rating on the stock, saying the department store operator's profits could be pressured by an increased in markdowns and sluggish eco nomic conditions. BUSINESS PAGE 8B, WEDNESDAY, NOVEMBER 30, 2011 THE TRIBUNE Employment Opportunity Manitowoc Container Crane Operators Liebherr/Gottwald Mobile Harbor Crane OperatorsREQUIREMENTS: EXPERIENCE: PHYSICAL REQUIREMENTS: E-mail: email@example.com Or Fax: (242 On or before December 9th 2011 NO CALLS PLEASE CONFIDENCE INDEX, EUROPE SEND STOCKS MOSTLY HIGHER T RADER STEPHEN PERCIBALLI, l eft, works on the floor of the New York Stock Exchange. Asian stock mark ets climbed Tuesday amid hopes that radical steps are being considered to choke off a debt crisis threate ning to rip apart the euro currency union, but European shares opened lower as the euphoria began to fade. (AP NEW YORK A ssociated Press FOREIGN TOURISTSin t he U.S. and luxury shoppers globally continued to snap upj ewelry seller Tiffany & Co.'s b aubles in the third-quarter, s ending the jewelry seller's profit up 63 percent. The luxury retailer known f or its iconic turquoise box raised its full-year forecast as a result performance. But selling more high-priced jew e lry like engagement rings and high-end statement jew elry cost the company more t o make, and gross margin the percentage of each dollar in revenue the companya ctually keeps declined s lightly. In addition, Tiffany forecast fourth-quarter earningsb elow expectations. The fourth quarter includes the key holiday selling season. Its shares fell $6.40, or 8.7 percent, to close at $67.22 Tuesday. Still, Tiffany's results to d ate show the luxury shop per is spending freely. That s egment has rebounded more quickly from the recession than others. High-end jewel-r y sold better than other cat egories. "Increased sales in all r egions contributed to the c ontinuation of strong worldwide sales growth in the third quarter," said CEO Michael J Kowalski. Tiffany has raised prices twice this year to offset high-e r prices for precious metal and other commodities. The company said precious metal prices have stabilized ands lightly declined, but the company is unlikely to lower prices. T he New York company said that its net income rose to $89.7 million or 70 cents per share in the three months e nded Oct. 31, from $55.1 million, or 43 cents per share, a year ago. Analysts expected e arnings of 60 cents per share, according to FactSet. Revenue rose 21 percent t o $821.8 million from $681.7 million a year ago. Analysts expected $801.8 million. In the Americas, sales grew 1 7 percent to $387.7 million. Revenue in stores open at least one year rose 16 per-c ent. That measure is consid ered a key gauge of a retailer's financial health because ite xcludes stores that open or c lose during the year. In the U.S. there was growth in all price ranges a bove $250, particularly high er price points. Engagement rings, highe nd statement jewelry a category that includes expensive jewels such as an $110,000 platinum and dia m ond necklace and gold jewelry were big sellers. Less expensive silver jewelry a category that performed well during the recession had a more modest sales increase. F oreign tourists helped push revenue up 24 percent at Tiffany's New York flag-s hip store. In Asia-Pacific, revenue rose 44 percent to $183.2 mil l ion, helped by strength in the greater China region. Rev enue rose 12 percent in Japan and 19 percent in Europe. B ut the company said that in the fourth quarter, the company expects net income of $1.48 to $1.58 per share. Analysts expect $1.63 per share. For the year, Tiffany expects earnings of $3.70 to $3.80 per share, for prior guidance of $3.65 to $3.75 per share. Analysts expect $3.72 per share. Tiffany, which operates 243 stores globally, expects rev enue to rise in the high-teens percentage for the year. STRONG GLOBAL SALES BOOST TIFFANY'S 3Q RESULTS Share your news The Tribune wants to hear from people who are making news in their neighbourhoods. Perhaps you are raising funds for a good cause, campaigning for improvements in the area or have won an award. If so, call us on 322-1986 and share your story.