VZCZCXYZ0002
RR RUEHWEB

DE RUEHBH #0684/01 3081442
ZNR UUUUU ZZH(CCY ADD1C0BF TOQ5828 641)
R 032202Z NOV 09 ZDS
FM AMEMBASSY NASSAU
TO RUEHC/SECSTATE WASHDC 0004
INFO EC CARICOM COLLECTIVE

UNCLAS NASSAU 000684 
 
SIPDIS 
 
C O R R E C T E D   C O P Y - FORMAT CORRECTIONS 
 
E.O. 12958: N/A 
TAGS: PGOV PREL PHUM BF
SUBJECT: Nassau--October Monthly 
 
¶1. This is a monthly report on a variety of topics of interest 
which do not merit full reporting cables. 
 
 
 
-- Ambassador Avant Arrives to Warm Welcome 
 
-- Surprise Announcement At Opposition Political Convention 
Triggers Travolta Mistrial 
 
-- Massive Roundup of Illegal Immigrants Announced 
 
-- IMF: Inflation Declines in The Bahamas, So Why Isn't Milk 
Cheaper? 
 
-- Entrepreneurs Suffer as Bahamas Development Bank Faces Liquidity 
"Issues" 
 
-- Threat of U.S. Competition Contributes to Slump in Telecom 
Company Profits 
 
 
 
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Ambassador Avant Arrives to Warm Welcome 
 
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-- 
 
 
 
¶2. (U) Ambassador Nicole Avant arrived at post on October 14.  Her 
arrival was televised on the government news station that evening. 
Amb. Avant presented her credentials to Governor General Arthur 
Hanna on October 22.  In her speech she pledged to continue the 
excellent bilateral relationship, a theme that carried over to a 
short but warm courtesy call on Prime Minister Ingraham.  In her 
first press conference on October 23, the Ambassador received 
widespread and highly favorable coverage. 
 
 
 
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Surprise Announcement at Opposition Political Convention Triggers 
Travolta Mistrial 
 
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¶3. (U) The opening night of the opposition Progressive Liberal 
Party (PLP) convention was interrupted by the surprise announcement 
that former PLP Senator Pleasant Bridgewater was a "free woman." 
The convention floor turned to pandemonium on October 21 when 
Member of Parliament Picewell Forbes made the remarks, only to 
return a few minutes later to apologize for the "premature" 
announcement.  Testimony had concluded earlier that day in the 
Travolta extortion case against Bridgewater and ambulance driver 
Tarino Lightbourne; however, the jurors were still deliberating. 
The Justice hearing the cases immediately ordered a retrial, 
fearing there had been a leak from the jury room.  Forbes, who 
escaped contempt of court charges, made a public apology, 
acknowledging that his remarks were "reckless" and "interfered with 
the course of justice."  The justice decline to impose contempt 
charges, ruling that world-wide ridicule and condemnation of 
Forbes' actions was punishment enough. 
 
 
 
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Massive Roundup of Illegal Immigrants Announced 
 
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¶4. (U) The Minister of State for Immigration, Branville McCartney, 
announced this week that over thirty illegal Haitian migrant shanty 
towns had been identified by air on New Providence.  Speaking in 
Parliament, McCartney said the towns were environmental and fire 
hazards and would be removed.  Director of Immigration Jack 
Thompson told the media that the roundup and removal would be done 
humanely and not "bulldozed."  He also announced that they will be 
establishing a hotline for the purpose of "intelligence gathering" 
so the public could provide tips on illegal migrant communities in 
order to "protect the country's borders." 
 
 
 
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IMF: Inflation Declines in The Bahamas, So Why Isn't Milk Cheaper? 
 
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-------------------------------- 
 
 
 
¶5. (U) The International Monetary Fund (IMF) said that inflation 
rates in The Bahamas will fall as low as 1 percent by December 
2009, the lowest period of inflation recorded in over five years. 
The IMF predicted that this should result in a significant decline 
in the overall cost of living, especially in local food prices. 
Nevertheless, overall food prices increased by 7.7 percent in 
August; private analysts believe that real consumer price index 
inflation is considerably higher. 
 
 
 
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Entrepreneurs Suffer as Bahamas Development Bank Faces Liquidity 
"Issues 
 
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¶6. (U) Minister of State for Finance, Zhivargo Laing, told the 
media that the Bahamas Development Bank (BDB) is no longer able to 
"originate meaningful loans" because current borrowers are unable 
to repay existing loans.  The bank is a key resource for Bahamian 
entrepreneurs and small businesses.  The lack of liquidity forced 
the Bank to stop lending to business owners who would not otherwise 
be qualified for  loans from commercial banks.  The BDB's loan 
arrears reached USD 27 million, or 50 percent of its USD 54 million 
portfolio this year. 
 
 
 
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Threat of U.S. Competition Contributes to Slump in Telecom Company 
Profits 
 
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¶7. (U) In its annual report to the House of Assembly, the 
state-owned Bahamas Telecommunications Company (BTC) noted profits 
dropped more than 50 percent in 2008 (compared to 2007).  BTC 
claimed the decrease was a result of the economic downturn, 
layoffs, skyrocketing operating expenses and their multi-million 
dollar infrastructure enhancements to make themselves ready for 
mandated liberalization.  Four private telecommunications 
companies, three of which are affiliated with U.S. financing firms, 
have been allowed to bid this year for a 51 percent stake in the 
telecom monopoly.  A committee consisting of BTC and GCOB officials 
is in the process of reviewing the bids.  Although BTC reported a 
USD 3.5 million decrease in revenue, it is "cautiously optimistic" 
that it will perform better in 2009. 
ZUNIGA-BROWN