If the Landlord (National Insurance) had a proper a/c maintenance agreement in place then, as part of that agreement, the a/c maintenance contractor would be mandated to have all parts to repair the a/c on island. This would increase the cost of maintenance but what is the true cost of having this large building closed? What is the cost of getting out the mold which must be growing in the heat? What is the cost of the employees becoming sick? What is the cost in the disruption in our already dysfunctional educational system?
The Landlord Tenant agreement is also incestuous as the Landlord is the government and the tenant is the Government. So no one complains about anything.
Just the possibility of the Bahamas being downgraded will give investors pause in terms of investing in a Country. Would you want to invest large amounts of money in a place that may have financial problems?
Besides crime, poor infrastructure (electricity, roads, education), inefficient government functioning and negative GDP growth rates, its really expensive to buy and sell a high end property. It actually cost 22% of the purchase price (both buyer and seller costs) to complete a transaction. So if an investor buys a property and then sells it in 5 years, that property will need to increase in price by 50% just for for the transaction to break even.
See attached schedule.
We are relying on foreign investors who are driven by factors other than profits. However as the livability of the Bahamas declines this must have an impact on their investment decisions.
I'm confused, this story is misleading if not carefully worded to induce investors to buy more debt from this over leveraged telecom play. My understanding is that the government was still going to own 51% of the new cell phone co. I thought the government was just selling bonds to fund their equity purchase but the equity (golden share) will still going to be owned and controlled by the government. Sounds a lot like BoB, Bamsi, Port, Airport, Bahamasair etc. etc. Investors beware of partnering with the government.
In any case the government hasn't sold yet. It will sell in September? Is this after the investors have bought the bonds or shares? If not, why would an investor rely on a promise from the government that they are going to sell their ownership after they have bought the bonds? What will stop the government from changing its mind?
Its amazing that Price Waterhouse globally allows their partners to push crap onto the general public of a third world country. This type of nonsense would never occur in a developed country.
Meanwhile Cable Bahamas shares continue to decline and are completely illiquid. Pensioners relying on these shares are worried.
More and more Bahamians are using WhatsApp and bypassing cell phone calls. Reducing cell phone revenues for BTC. I still maintain that voice cell phone calls will be obsolete in 5 years as WhatsApp already has 1.1 billion users world wide (one seventh of the worlds population).
What is the new debt load of Cable Bahamas going to be after the new bond sales? $400 million? $500 million? How will it pay the bond holders?
Meanwhile, Cables operations in the US have to be written down as Xfinity and AT&T are eating their lunch and provide a far superior services and technology.
Meanwhile in the Bahamas more people are getting rid of Cable TV as it is a lousy low definition, high cost service and moving to Netflix for $12 per month.
My government doesn't listen to me but they may listen to you because you are foreign. So please tell my government that before the talk about growing the economy they must stop the leaks, frauds, crony capitalism, crime and a dumb down work force.
This is only one of numerous aggressive tax moves by the PLP. There are two others changes moving under the radar which will cripple the financial industry. (1) a 1.5% stamp tax on all incoming and out going wires buried in Section 4(38) of the Stamp (Amendment) Act, 2016. This does not only apply to FX transactions or Bahamians but every last wire in and out of the Bahamas by a Bahamian bank (or trust company) regardless of if it is for non residents or residents and (2) extension of VAT on inward informational services to financial entities. In cases where the management, administration, custodianship is outside the Bahamas it will push mutual funds only registered in the Bahamas to the BVI or Cayman.
Well done PLP! Keep it up! Looks like the web boys are the only ones making a decent profit. But at what a cost to our working class who are struggling to put food on the table. Forget the light and water and education, these are already off for most people over the hill.
People are now desperate and most votes are now for on sale at a very low price. Couple with the Opposition/FNM split in three (Doc, Big Sexy and Mean Brad) look like dey ga win again.
This is only one of numerous aggressive tax moves by the PLP. There are two others changes moving under the radar which will cripple the financial industry. (1) a 1.5% stamp tax on all incoming and out going wires buried in Section 4(38) of the Stamp (Amendment) Act, 2016. This does not only apply to FX transactions or Bahamians but every last wire in and out of the Bahamas by a Bahamian bank (or trust company) regardless of if it is for non residents or residents and (2) extension of VAT on inward informational services to financial entities. In cases where the management, administration, custodianship is outside the Bahamas it will push mutual funds only registered in the Bahamas to the BVI or Cayman.
Well done PLP! Keep it up! Looks like the web boys are the only ones making a decent profit. But at what a cost to our working class who are struggling to put food on the table. Forget the light and water and education, these are already off for most people over the hill.
People are now desperate and most votes are now for on sale at a very low price.
From the Governments perspective, borrow as much as possible and tax the rich makes perfect sense. The countries debts don't need to be paid of decades when they all will be retired. Taxing and abusing the rich includes increases in RPT out west, increase in club dues, increase in POA charges, aggressive VAT stance on intellectual services/property - including banking services, increases in stamp tax on wire transfers, slow VAT recoveries for businesses, need for tax compliance statements when doing business with the government just to get paid, expropriation of Baha Mar from a private individual via interference, BEC pollution raining down out west probably causing cancer, threat of price controls on retail businesses, demand for faster VAT statements, holding up shipments for large businesses in Florida for manifests, going against the people on gambling and still pushing for gender equality despite voter rejection etc. etc. I could go on and on but will stop there.
The government can do this with impunity because the rich are not their constituency as their voting numbers are few and the opposition is in complete disarray, filled with uncontrollable egos and splintered beyond repair. Also despite what everyone says there is a lot of money in the Bahamas, and the rich have the bulk of it. Look at the massive VAT haul of +$600m per annum. I think it has even surprised the government. The rich are only starting to feel the burn but they think it will not get worse. Don't worry it will as long as they sit back and complain and do nothing.
The PLP and Government are one big 2 billion dollar revenue business. It has its hands in every transaction via VAT and has it hand in every monopoly or duopoly such as telephone, cells, water, ports, airports, education, local government, contacts etc. etc. Favors are handed out and withheld depending what they believe is expedient to keep them in power.
When the election comes around they will get the majority of the votes from the poor and ignorant as their campaign is being (yes present tense) well financed. The poor are dependent on them for jobs, health care, school etc. etc. Of course without campaign finance reform which would make it an offence to exchange votes for a favor or worse etc. they are invincible as there is no transparency of where the financing is coming from. Besides its completely legal.
Christe has already put us on notice that he will not resign like Cameron in the UK. He told us to wait and see what the voters say next year.
The voters have spoken before and will speak again. The votes of the poor, uneducated and unemployed are for sale.
So stop complaining as no one but the intellectual class actually reads these blogs.
also, as a local business man with a number of businesses, look carefully at those businesses to see which ones are profitable and which one are a cash drain. close down those businesses which are not making money, once they are closed you cancel the business licenses, vat registration, employees, national insurance, accountants to do vat etc etc. if you look carefully at what you are doing 20% of your business makes 80% of the profit, the rest you are just giving money to the government
Excellent point ohdrap4, where possible i am getting rid of any and every cost i possibly can. i got rid of my fax line, i got rid of my cell phone, i got rid of my cable tv which is only crap service, i order as much as possible online, i stopped my house insurance, i put 3rd party on my car, i cut out my comprehensive health care and put on critical care for 1/4 the cost (why pay vat on health insurance and then when you get sick you pay vat again on the doctor bill), i cancelled my club subscription, so i'm saving thousands of dollars and feeling much better. i am using the saved money to travel and enjoy life rather than giving it to this incompetent government in taxes
The problem is by the time you buy locally the fellas dem already charge you vat 4 times (1.on import, 2.on the duty of the import, 3.the wholesaler and 4.then the retailer). Buy direct from Amazon.
observer2 says...
This is incompetence at its worst.
If the Landlord (National Insurance) had a proper a/c maintenance agreement in place then, as part of that agreement, the a/c maintenance contractor would be mandated to have all parts to repair the a/c on island. This would increase the cost of maintenance but what is the true cost of having this large building closed? What is the cost of getting out the mold which must be growing in the heat? What is the cost of the employees becoming sick? What is the cost in the disruption in our already dysfunctional educational system?
The Landlord Tenant agreement is also incestuous as the Landlord is the government and the tenant is the Government. So no one complains about anything.
On Ministry of Education headquarters closed for a week for air conditioning repairs
Posted 13 July 2016, 11:03 a.m. Suggest removal
observer2 says...
Just the possibility of the Bahamas being downgraded will give investors pause in terms of investing in a Country. Would you want to invest large amounts of money in a place that may have financial problems?
Besides crime, poor infrastructure (electricity, roads, education), inefficient government functioning and negative GDP growth rates, its really expensive to buy and sell a high end property. It actually cost 22% of the purchase price (both buyer and seller costs) to complete a transaction. So if an investor buys a property and then sells it in 5 years, that property will need to increase in price by 50% just for for the transaction to break even.
See attached schedule.
We are relying on foreign investors who are driven by factors other than profits. However as the livability of the Bahamas declines this must have an impact on their investment decisions.
http://tribune242.com/users/photos/2016…
On Buyers 'pull back' on Moody's threat
Posted 13 July 2016, 9:34 a.m. Suggest removal
observer2 says...
I'm confused, this story is misleading if not carefully worded to induce investors to buy more debt from this over leveraged telecom play. My understanding is that the government was still going to own 51% of the new cell phone co. I thought the government was just selling bonds to fund their equity purchase but the equity (golden share) will still going to be owned and controlled by the government. Sounds a lot like BoB, Bamsi, Port, Airport, Bahamasair etc. etc. Investors beware of partnering with the government.
In any case the government hasn't sold yet. It will sell in September? Is this after the investors have bought the bonds or shares? If not, why would an investor rely on a promise from the government that they are going to sell their ownership after they have bought the bonds? What will stop the government from changing its mind?
Its amazing that Price Waterhouse globally allows their partners to push crap onto the general public of a third world country. This type of nonsense would never occur in a developed country.
Meanwhile Cable Bahamas shares continue to decline and are completely illiquid. Pensioners relying on these shares are worried.
More and more Bahamians are using WhatsApp and bypassing cell phone calls. Reducing cell phone revenues for BTC. I still maintain that voice cell phone calls will be obsolete in 5 years as WhatsApp already has 1.1 billion users world wide (one seventh of the worlds population).
What is the new debt load of Cable Bahamas going to be after the new bond sales? $400 million? $500 million? How will it pay the bond holders?
Meanwhile, Cables operations in the US have to be written down as Xfinity and AT&T are eating their lunch and provide a far superior services and technology.
Meanwhile in the Bahamas more people are getting rid of Cable TV as it is a lousy low definition, high cost service and moving to Netflix for $12 per month.
On Govt 'out of' new mobile operator by early September
Posted 12 July 2016, 1:42 p.m. Suggest removal
observer2 says...
You can't have growth with high levels of corruption.
On Governor: ‘Credible’ growth plan key to satisfying Moody’s
Posted 7 July 2016, 3:45 p.m. Suggest removal
observer2 says...
Dear Mr. Moody's
My government doesn't listen to me but they may listen to you because you are foreign. So please tell my government that before the talk about growing the economy they must stop the leaks, frauds, crony capitalism, crime and a dumb down work force.
On Bid to hold talks over downgrade: Govt confident over prospects
Posted 5 July 2016, 2:52 p.m. Suggest removal
observer2 says...
This is only one of numerous aggressive tax moves by the PLP. There are two others changes moving under the radar which will cripple the financial industry. (1) a 1.5% stamp tax on all incoming and out going wires buried in Section 4(38) of the Stamp (Amendment) Act, 2016. This does not only apply to FX transactions or Bahamians but every last wire in and out of the Bahamas by a Bahamian bank (or trust company) regardless of if it is for non residents or residents and (2) extension of VAT on inward informational services to financial entities. In cases where the management, administration, custodianship is outside the Bahamas it will push mutual funds only registered in the Bahamas to the BVI or Cayman.
Well done PLP! Keep it up! Looks like the web boys are the only ones making a decent profit. But at what a cost to our working class who are struggling to put food on the table. Forget the light and water and education, these are already off for most people over the hill.
People are now desperate and most votes are now for on sale at a very low price. Couple with the Opposition/FNM split in three (Doc, Big Sexy and Mean Brad) look like dey ga win again.
On Air cargo costs to rise ‘tremendously’
Posted 1 July 2016, 5:54 p.m. Suggest removal
observer2 says...
This is only one of numerous aggressive tax moves by the PLP. There are two others changes moving under the radar which will cripple the financial industry. (1) a 1.5% stamp tax on all incoming and out going wires buried in Section 4(38) of the Stamp (Amendment) Act, 2016. This does not only apply to FX transactions or Bahamians but every last wire in and out of the Bahamas by a Bahamian bank (or trust company) regardless of if it is for non residents or residents and (2) extension of VAT on inward informational services to financial entities. In cases where the management, administration, custodianship is outside the Bahamas it will push mutual funds only registered in the Bahamas to the BVI or Cayman.
Well done PLP! Keep it up! Looks like the web boys are the only ones making a decent profit. But at what a cost to our working class who are struggling to put food on the table. Forget the light and water and education, these are already off for most people over the hill.
People are now desperate and most votes are now for on sale at a very low price.
On Air freight operators in Bahamas boycott threat
Posted 1 July 2016, 3:02 p.m. Suggest removal
observer2 says...
From the Governments perspective, borrow as much as possible and tax the rich makes perfect sense. The countries debts don't need to be paid of decades when they all will be retired. Taxing and abusing the rich includes increases in RPT out west, increase in club dues, increase in POA charges, aggressive VAT stance on intellectual services/property - including banking services, increases in stamp tax on wire transfers, slow VAT recoveries for businesses, need for tax compliance statements when doing business with the government just to get paid, expropriation of Baha Mar from a private individual via interference, BEC pollution raining down out west probably causing cancer, threat of price controls on retail businesses, demand for faster VAT statements, holding up shipments for large businesses in Florida for manifests, going against the people on gambling and still pushing for gender equality despite voter rejection etc. etc. I could go on and on but will stop there.
The government can do this with impunity because the rich are not their constituency as their voting numbers are few and the opposition is in complete disarray, filled with uncontrollable egos and splintered beyond repair. Also despite what everyone says there is a lot of money in the Bahamas, and the rich have the bulk of it. Look at the massive VAT haul of +$600m per annum. I think it has even surprised the government. The rich are only starting to feel the burn but they think it will not get worse. Don't worry it will as long as they sit back and complain and do nothing.
The PLP and Government are one big 2 billion dollar revenue business. It has its hands in every transaction via VAT and has it hand in every monopoly or duopoly such as telephone, cells, water, ports, airports, education, local government, contacts etc. etc. Favors are handed out and withheld depending what they believe is expedient to keep them in power.
When the election comes around they will get the majority of the votes from the poor and ignorant as their campaign is being (yes present tense) well financed. The poor are dependent on them for jobs, health care, school etc. etc. Of course without campaign finance reform which would make it an offence to exchange votes for a favor or worse etc. they are invincible as there is no transparency of where the financing is coming from. Besides its completely legal.
Christe has already put us on notice that he will not resign like Cameron in the UK. He told us to wait and see what the voters say next year.
The voters have spoken before and will speak again. The votes of the poor, uneducated and unemployed are for sale.
So stop complaining as no one but the intellectual class actually reads these blogs.
On $6.6bn debt ‘well beyond’ the need for stabilisation
Posted 29 June 2016, 2:20 p.m. Suggest removal
observer2 says...
also, as a local business man with a number of businesses, look carefully at those businesses to see which ones are profitable and which one are a cash drain. close down those businesses which are not making money, once they are closed you cancel the business licenses, vat registration, employees, national insurance, accountants to do vat etc etc. if you look carefully at what you are doing 20% of your business makes 80% of the profit, the rest you are just giving money to the government
On Govt is warned: ‘Keep hands out’ of private firms
Posted 23 June 2016, 8:05 a.m. Suggest removal
observer2 says...
Excellent point ohdrap4, where possible i am getting rid of any and every cost i possibly can. i got rid of my fax line, i got rid of my cell phone, i got rid of my cable tv which is only crap service, i order as much as possible online, i stopped my house insurance, i put 3rd party on my car, i cut out my comprehensive health care and put on critical care for 1/4 the cost (why pay vat on health insurance and then when you get sick you pay vat again on the doctor bill), i cancelled my club subscription, so i'm saving thousands of dollars and feeling much better. i am using the saved money to travel and enjoy life rather than giving it to this incompetent government in taxes
The problem is by the time you buy locally the fellas dem already charge you vat 4 times (1.on import, 2.on the duty of the import, 3.the wholesaler and 4.then the retailer). Buy direct from Amazon.
On Govt is warned: ‘Keep hands out’ of private firms
Posted 23 June 2016, 7:58 a.m. Suggest removal