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Anti-fronting legislation and its importance in the Turks and Caicos Islands

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#TurksandCaicos, April 4, 2022 – The question all concerned citizens should be asking our government is, are they willing to work feverishly to push through anti-fronting legislation as hard as they did to push through the Beach and Coastal Vending Ordinance?

This article in part, is a reverberation of a previous one I wrote, addressing this said issue. To my knowledge, as of this date, nothing has been done to tighten the loopholes.

Whilst I’m not totally against the Beach and Coastal Vending Ordinance and its entirety, there are a few line items in the bill that needs to be repealed and amended.

The expediency in which the bill was passed without proper consultation from the general public and relevant stakeholders, it appeared to be for the appeasement of a select few.

Similarly, “fronting” is not in the best interest of our people, which prompted me to bring to light the issue again.

Currently, in TCI fronting is technically not a crime, but in some cases it is certainly a corrupt practice. Over the years, I have discovered that the easiest way for foreign investors to open a business of any kind, is by “fronting”.

For those who are not familiar with the use of this word, fronting usually refers to a term used to describe the practice of interposing a third party in a transaction or a misrepresentation of facts so as to circumvent the illusory of compliance with the laws of a country.

It’s usually a twofold benefit, it gives the locals an opportunity to become a business partner without having to come up with any sizable out of pocket funds or minimal amounts at best, depending on the scale of the business.

On the other hand, it enables the foreign investors to acquire lucrative business opportunities without having to go through the normal red tape, and eventually making it easier for them to acquire legal immigration status in the long term.

In addition, a foreign partnership company would be in a better position to expand rapidly due to greater access to capital, which could put them at an advantage because of the accessibility to unmatched resources they may have.

At the end of the day, it only superficially benefits historically disadvantaged individuals.

Fronting practices are an all-too-common occurrence in TCI, and usually rely on the misrepresentation of facts regarding the extent of a company’s compliance with its economic empowerment obligations.

In some cases, the local is only involved with the Holding company, but has nothing to do with the day to day operational or financial side of the business. This allows a shady investor to manipulate the books to their advantage.

Fronting can take many forms. For example:

  • A company may appoint a local to a prestigious position but prevent them from participating in the management or core activities of the company.
  • In some cases, they are paid considerably less than their counterparts.
  • They may also sign up as fictitious shareholders in essentially Expats owned and managed companies.

Such practices create the impression that the company has complied with the government’s obligations, but in essence it’s not.

This also allows the company to take advantage of incentives such as tax breaks or other fringe benefits that come along with being compliant.

We welcome foreign investors’ partnerships, however, if the business practices do not result in real transformation of the company or the flow of benefits to the locals, the appearance of compliance is illusory.

Fronting therefore undermines the purpose of the investment opportunity policies and prevents benefits from reaching those locals it is meant to reach.

It also perpetuates the systemic exclusion of local owned businesses from economic empowerment.

Imperfect though it may be, it would be beneficial for the FSC to draft legislation to introduce a comprehensive definition of “fronting” into our laws. In addition, they should create a new oversight body to investigate allegations of unscrupulous business deals.

The reality is, we know due to the privacy laws and the fear of reprisals, it’s a slippery slope when it comes to the public’s right to know about what is perceived to be shady deals and our duty to report it.

Nevertheless, if it was required by the FSC for these foreign companies with local joint venture partnerships to divulge financial records showing the bank transactions of the 51/49 split or who have the controlling shares, it would be a game changer.

As a people, we must also be brave enough to speak up when we see corruption or things that undermine

the basic principles of our core values.

Until legislation is enacted to address the social and economic imbalances in this country, this sort of shady practices will continue to prevail, leaving underrepresented local business partners with the short end of the stick.

 

Ed Forbes,

Concerned citizen of Grand Turk

Bahamas News

CIBC Caribbean Donates Computers Across the Country

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CIBC Caribbean’s Branch Support Services Manager, Sammy Gardiner (R), presents computers to National Library and Information Services representative and librarian, Winifred Murphy (L)

Nassau, Bahamas, September 12, 2024 Digital resources have become an integral part of day-to-day business activities and the education experience. As another school year begins and library traffic heightens, students and patrons across the country will have more devices at their fingertips.

CIBC Caribbean recently donated a substantial number of computers to public libraries and Yellow Elder Primary School. The computers donated to the National Library and Information Services will be distributed to libraries in New Providence, Abaco, and Grand Bahama.

Jacqui Bend, CIBC Caribbean’s Managing Director said, “At CIBC Caribbean, we are deeply committed to advancing technology both within our organization and in the communities we serve. By donating these computers to libraries and schools across The Bahamas, we’re helping to ensure that everyone has the digital tools they need to thrive in today’s world, just as we continually innovate to better serve our clients.”

Dorcas Bowler, Director of Libraries, emphasized the importance of CIBC Caribbean’s donation.

She said, “In today’s technological world, a library does not only house books but is also an information hub and a treasure trove to access information at the click of a mouse on computer terminals, tablets, and other electronic devices via the Internet and WIFI. Patrons, including adults and children, need up-to-date information for success in school and everyday living.

“This donation from CIBC Caribbean aligns perfectly with our mission to provide ready access to quality resources and services for all persons throughout the Commonwealth of The Bahamas. It supports our vision of an accessible library system equipped to meet the demands of the 21st century.”

Bowler further highlighted the critical role libraries play in fostering lifelong learning and providing equitable access to information. “Libraries build strong communities and change lives,” she said.

“This generous donation from CIBC will significantly enhance our ability to offer modern technological resources to all, particularly in remote and underserved communities.”

Yellow Elder Primary School will utilize the computers to enhance its educational offerings. The school’s acting principal, Tamica Adderley, expressed profound gratitude, stating, “Computers play a pivotal role in modern education, revolutionizing the learning experience for both educators and students.”

Adderley said, “At Yellow Elder Primary School, these computers will enable our students to engage with adaptive learning platforms such as Renaissance Star 360, which tailors educational content to individual learning needs. This not only fosters a dynamic and participatory learning environment but also ensures that our students are equipped with the vital digital literacy skills necessary for future success.”

She added, “On behalf of Yellow Elder Primary School Family, we extend our heartfelt gratitude to CIBC Caribbean for its generous donation. CIBC Caribbean’s commitment to education and technology will have a lasting impact on the learning experiences of our students. With CIBC’s support, we can create a technologically enriched environment that empowers our students to thrive in an ever-evolving world. Thank you for being a valuable partner in shaping the future of our community.”

 

Photo Caption:

Libraries across the country and Yellow Elder Primary School received computers from CIBC Caribbean to support the evolving needs of day-to-day business activities and the education experience

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Bahamas News

MOTIA Grand Bahama promotes International Coastal Cleanup Day, September 21, to #SeaTheChange

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From: Bahamas Information Services

September 5, 2024

 

 GRAND BAHAMA, The Bahamas — The Ministry of Tourism, Investments and Aviation, in an effort to ensure a clean and pristine Bahamas for the enjoyment of all, continues its advocacy for the clean up of the country’s coastal areas. Each year, in conjunction with the Ocean Conservancy, tourism officials on Grand Bahama Island via the Ministry’s Sustainable Tourism Development Department, join with representatives from over 100 countries world-wide for a cleanup day at beaches and other shorelines.

International Coastal Cleanup Day is set for Saturday, September 21st, and tourism officials are calling on the Grand Bahama community to join the effort to #SeaTheChange by tackling ocean trash.  Jermaine Johnson, MOTIA Coordinator and Manager of the GB Sustainable Tourism Development Department, urged residents to volunteer during a press conference on Wednesday, September 4th, 2024, at the Ministry’s office in the Fidelity Financial Centre on East Mall and Poinciana Drives.

“The Bahamas is always happy to participate considering we are an archipelago and coastlines are extremely important to our tourism product,” he said. “We’re looking to clean up 10-12 beaches this year. We’re also looking for support from the community, so those who want to participate can feel free to come out. We’re especially looking for support from our civic organisations — so that’s our Lions Club, our Pilot Clubs, Kiwanis, the Rotaries, etc., also lodges and greek letter fraternities; so all the sigmas and all the phis, and all the alphas and betas, we’re looking for your support as well in this year’s coastal cleanup. We want this year to be a greater success than it was last year. We want to get as much garbage out of our oceans and off our coastlines as possible,” he added.

The event is set to begin at 8am and wrap up at 10am.

Last year over 30,000 pounds of debris was collected from local beaches. It is important to note that these beach cleanups are not only keeping the island’s beaches beautiful and sanitary, but they also provide valuable data about the quantity and types of refuse that clutter coastal areas. This data is collected and sent off to the Ocean Conservancy to be used in a global report issued each year and it is all in an effort to help policymakers better understand the sources of pollution so they can develop strategies for long-term solutions and effect policy change.

EarthCare, Litter Free Bahamas, Keep Grand Bahama Clean Committee, the Royal Bahamas Police Force Urban Renewal division and local schools are also partnering with MOTIA for Grand Bahama’s observance of International Coastal Cleanup Day.

 

PHOTO CAPTION

#seathechange — The Ministry of Tourism’s Sustainable Tourism Development Department of Grand Bahama, joined by partners, is urging the wider community to come out to a beach near you and help keep Grand Bahama’s beaches clean and pristine, Saturday, September 21st from 8am to 10am.  This effort is in support of the annual International Coastal Cleanup Day and will help in creating long-term solutions for protecting the earth’s oceans.     (BIS Photos/Jamika Culmer)

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Caribbean News

SANDALS RESORTS’ CXO JESSICA SHANNON, NAMED AMONG WORLD’S TOP CUSTOMER EXPERIENCE LEADERS IN 2024

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September 12, 2024, Montego Bay, Jamaica – Jessica Shannon, chief experience officer at Sandals Resorts International, has been recognized as one of the 2024 winners of the Inaugural Global CX 100 Awards.

This prestigious accolade places Shannon among the top 100 customer experience leaders globally, spanning diverse industries such as hospitality, finance, commerce and healthcare, among several others.

“I am grateful to be honoured as one of the Global CX 100 award winners,” Shannon stated. “Success in customer experience requires a passion for impact, the agility to support and lead across many functional areas and the ability to build trusted relationships. At Sandals Resorts International, we are in relentless pursuit of excellence in customer and employee experience, and I am blessed with a fantastically talented team to help make it happen every day.”

According to the Global CX 100 team, the award places a spotlight on the critical role of customer experience leaders in enhancing their organisations’ competitive edge through transformational strategies focused on customers and clients. These leaders excel in implementing innovative product, experience, and strategic business models, as well as operational practices. Whether holding a C-suite position or operating within an established function, the Global CX 100 celebrates their strategic insight, visionary leadership, and ability to adapt to market demands with a profound understanding of the most vital stakeholder- the customer.

Caption:

Jessica Shannon, chief experience officer at Sandals Resorts International.

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