New security fencing has been installed in the rear yard of the George Town Police Station. Shown here are several confiscated dirt bikes.

On Wednesday 16 March, the Royal Cayman Islands Police Service (RCIPS) confirmed the theft of five dirt bikes from the rear yard of the George Town Police (GTPS). This brings the total of illegal dirt bikes stolen from GTPS to eight, following a similar break-in which occurred on 29 February, when three additional bikes were stolen.

This latest break-in also follows the highly publicised and criticised theft of 24 kilos of cocaine and 33 kilos of ganja stolen from a container in the same rear yard in 2015.

Chief Superintendent Kurt Walton, who recently invited the local press corps on a tour of the police yard following Wednesday’s break-in said, “This latest incident only underscores the deteriorating conditions in which officers work on a daily basis at the GTPS”, which he said” is not fit for purpose in terms of either security or design as a police compound.”

The bikes stolen were recently confiscated as part of police crackdown on off-road bikes around the island and were chained, with padlocks, in a fenced area in the rear yard that was originally built as kennels for the K-9 Unit. Thieves are said to have first gained access to the yard undetected, and then proceeded to cut through the chain and the fence locks, before departing from the scene with the stolen bikes.

“The rear yard of GTPS was originally intended as a car park, not a police evidence compound”, said Mr Walton. “And the security for this area has been a problem for us since the 1990’s.”

A padlock on one of the gates in the rear storage yard at the George Town Police Station.

He added that the police “continue to struggle with the limitations of providing 21st century policing with a building that has long exceeded its building life span”.

The GTPS was built in 1974 and has been the primary headquarters for police operations for over 40 years and has been condemned in certain areas due to what is called “concrete cancer” according to a 2010 structural engineering survey, which recommended that a new police station be built. According to police, the rear yard is crowded with confiscated property and police cars, and simply does not provide enough space for the variety of needs required by a contemporary police station.

When asked specifically about the CCTV systems that may have been in place, Mr Walton acknowledged that it was in place, but said the “system is inconsistent and sometimes works, while other times it doesn’t”. There was also the suggestion that the CCTV coverage area leaves the compound vulnerable, according to Deputy Police Commissioner, Anthony Ennis. He indicated that a replacement system has been identified, but will cost between $17-25 thousand dollars.

Chief Superintendent Walton spoke at some length about his concerns over security, but also indicated that several security measures had been undertaken over the past year. These include the addition of four feet of fencing atop a concrete wall that borders Elizabethan Square to the rear of GTPS. The latest security measures will include the installation of razor wire atop the fencing which will surround the overall 650-foot perimeter.

Walton said, “While we recognise some mistakes have been made in the past concerning the police lock-up, we must equally acknowledge that the current police station is simply no longer fit for purpose”.

As it relates to the scourge of illegal dirt bikes that continue to raise concerns not only of safety, but also noise complaints from the public, Deputy Commissioner Ennis called on the Government “to create legislation that would ban the importation of these types of bikes”.

There have been no arrests in this latest incident nor any arrests or suspensions of police officers from their jobs, concerning the 2015 drug theft, even though Commissioner of Police David Baines, at the time, admitted that serving officers may have been directly involved.

The post Another burglary at GTPS appeared first on The Cayman Reporter.

On 9 March US Attorney Preet Bharara for the Southern District of New York, Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department’s Tax Division, and Chief Richard Weber for the Internal Revenue Service – Criminal Investigation, (IRS-CI), announced that two Cayman Islands financial institutions pled guilty in a Manhattan Federal Court that they “conspired to hide more than $130 million dollars in Cayman Islands bank accounts”.
According to a US Department of Justice press release, “Cayman National Securities Ltd. (CNS) and Cayman National Trust Co. Ltd. (CNT), two Cayman Island affiliates of Cayman National Corporation, which provided investment brokerage and trust management services to individuals and entities within and outside the Cayman Islands, including citizens and residents of the United States (U.S. taxpayers), conspired with many of their US taxpayer-clients to hide more than $130 million in offshore accounts from the U.S. Internal Revenue Service (IRS) and to evade US taxes on the income earned in those accounts.”
“The guilty pleas of these two Cayman Island companies today represent the first convictions of financial institutions outside Switzerland for conspiring with US taxpayers to evade their lawful and legitimate taxes,” said US Attorney Bharara. “The plea agreements require these Cayman entities to provide this office with the client files, because we are committed to finding and prosecuting not only banks that help US taxpayers evade taxes, but also individual taxpayers who find criminal ways not to pay their fair share. We will follow them no matter how far they go to hide their accounts, whether it is Switzerland, the Cayman Islands, or some other tax haven.”
This is the second time in the past year that the Cayman Islands have drawn the attention of US authorities. The US Securities and Exchange Commission (SEC) sued Caledonian and three other firms on 6 February 2015 claiming they sold worthless penny stocks in several pump-and-dump schemes, profiting from the illicit proceeds.
In a hearing that was kept secret from the defendants, the SEC argued that an asset freeze was necessary to prevent Caledonian and Verdmont Capital SA from transferring funds offshore. However, a US judge would later criticise the SEC for freezing assets of Caledonian Bank Ltd., a 45-year old Cayman Islands institution, causing its collapse.
The Cayman Reporter inquired with the Cayman Islands Monetary Authority (CIMA), who regulates the Cayman Islands financial services industry if any further action was planned or presently under investigation in Cayman in response to the recent guilty pleas. Their response was as follows:
“The Cayman Islands Monetary Authority (CIMA) is aware of the US$6 million settlement reached with the United States Department of Justice by Cayman National Trust Co. Ltd. and Cayman National Securities Ltd. The two companies are among the regulated subsidiaries of Cayman National Corporation in the Cayman Islands.”
“While the Authority is not at liberty to discuss publicly any specifics regarding the affairs of the licensees we supervise, we will of course consider the implications of the matters raised in the investigation by the US authorities as revealed in the Court proceedings within the scope of our regulatory mandate.”
“CIMA has been assured that the settlement by Cayman National Trust Co. Ltd. and Cayman National Securities Ltd. should have no adverse impact on the solvency of Cayman National Bank Ltd.”
Some observers, including the Head of the Cayman Islands Anti-Money Laundering (AML) Unit in the Attorney General’s Chambers, believe there is a weakness in supervision of the Islands’ financial services industry.
Speaking at a compliance and financial crime conference held in the Cayman Islands in September 2015 Francis Arna said, “The current laws and regulations, weakness in supervision and a lack of suitable sanctions, need to be addressed”.
Mr Arna, who is coordinating the Cayman Islands’ National Risk Assessment (NRA), which the Cayman Islands are obliged to complete as part of the new more stringent Financial Action Task Force (FATF) requirements introduced in 2012, has revealed that, “Cayman’s AML and other related laws and regulations are out of date, and there is insufficient legislation to cover charities and other business risk areas outside of the offshore sector, including the real estate industry and diamond merchants.”
He pointed out that the Government faced some serious challenges in addressing these gaps before the next FATF inspection happens in March 2017.
He went on to point out what he described as “insufficient supervision by the regulator and inadequate sanctions” as he explained that some threats apparent in the current environment are “not even mentioned in the current laws” as they were not considered threats at the time Cayman first drew up the AML legislative regime.
The Government is said to have already begun to address the shortcomings and is drafting relevant new legislation, as well as amendments to update existing AML laws.
However there is no date yet set for these amendments to come to the House. The last time the Legislative Assembly met was in November 2015, with no date yet set for its next meeting.

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Butterfield Bank may be the latest casualty in the US Department of Justice’s war on tax evasion. The bank has made provision for the payment of US$4.8 million against the possibility that it could be required to make a settlement payment as the result of an ongoing US federal investigation.

The investigation and prosecution of tax evasion has, in the last decade, grown from a specialised subcategory of law enforcement into a first-tier policy concern for the global community.Starting with the US government’s crackdown on Swiss bank UBS in 2008, there has been a steady drumbeat of news about prosecutions of financial institutions, bankers and taxpayers.

The Cayman Islands have proven no exception to this rule, particularly within the last 12-18 months.

The US government’s pursuit of financial institutions continues, with no signs of abating; Cayman National, Caledonian and Butterfield are only the most recent examples.

The current era of tax enforcement against banks began when the US government’s investigation of UBS became public in 2008. In February 2009, UBS entered into a deferred prosecution agreement with the US Department of Justice and agreed to cease its US cross-border business and pay a fine of $780 million.

While this ended UBS’s troubles with the US authorities over assisting US taxpayers in evading taxes (leaving aside the widely reported 2015 tax evasion investigation of UBS over bearer securities), it signaled the beginning of the US government’s attack on financial institutions that may have assisted their clients in violating US tax laws.

After UBS, the US government turned its attention to Wegelin & Co., Pictet & Cie, Neue Zuercher Bank, Credit Suisse Group AG, Basler Kantonalbank, Bank Julius Baer, Bank Frey, Bank Hapoalim, Bank Leumi, Bank Mizrahi-Tefahot, Liechtensteinische Landesbank AG, Swisspartners, CIBC FirstCaribbean, Cayman National Securities & Cayman National Trust Co., HSBC India and Bank of Butterfield.

Of these entities, local companies Cayman National Securities and Cayman National Trust Co have been prosecuted for allegedly assisting some US customers in tax evasion.

As reported locally, the Bank of N.T. Butterfield & Son Ltd. has made provision for the payment of US$4.8 million, recorded during its financial year which ended Dec. 31, 2015, against the possibility that it could be required to make a settlement payment as the result of an ongoing US federal investigation into tax evasion.

In November 2013, the US Attorney’s Office for the Southern District of New York announced the issuing of what were called the “John Doe summonses” to US financial institutions with which Butterfield Bank had correspondent bank relationships.

The John Doe summonses sought “to obtain information about possible tax fraud by individuals whose identities are unknown,” according to a US Department of Justice press release from Nov. 12, 2013.

The summonses required five banks operating in the US to produce that information in connection with undisclosed accounts at Butterfield Bank and its affiliates in the Bahamas, Barbados, the Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland and the UK.

These “John Doe summonses” are similar to ordinary subpoenas that most people recognise, and can be served when the IRS does not know the identities or names of those persons that are potential violators of federal law, like individuals that may be moving money around to avoid taxes or to launder cash. Traditional summonses or subpoenas are of limited use in identifying unknown taxpayers with offshore bank accounts. This is because a traditional subpoena must identify the taxpayer whose conduct is at issue.

The John Doe summons is perfectly tailored to the IRS’s effort to identify account holders. They force the banks to produce bank records to the IRS that reveal the identities of owners of bank accounts held at their financial institutions. The John Doe summons makes the bank turn over the contact information in its files that corresponds to the bank accounts that the IRS is investigating. If the IRS finds bad things in that account, the result can be federal charges being brought not only against the account holder but also against the banker.

The court action marks federal investigators’ latest use of the special summonses to compel account disclosures by offshore banks suspected of helping wealthy American clients evade US taxes. In the last decade, the IRS has greatly increased its use of the so-called John Doe summons.

These special summonses have also proven successful at yielding fruit for prosecution. Since 2008, the US Department of Justice (DOJ) has publicly charged a few dozen bankers, lawyers and financial advisers. As of the end of 2015, more than half of them remain fugitives.  Being a fugitive means being unable to travel to or through any countries that extradite to the US for tax crimes.  For the majority of the fugitives, this means essentially being confined to Switzerland indefinitely.  The banks, lawyers and financial advisers that have answered their charges in the US have either pleaded guilty and cooperated with the US authorities or been convicted at trial.

Recognising the public’s growing discomfort with corporate prosecutions resulting in no one spending time in prison, Deputy Attorney General Sally Yates issued a memorandum to DOJ prosecutors on Sept. 9, 2015. In the so-called Yates memo, she emphasised the DOJ’s strong interest in holding individuals accountable for corporate crime, calling on the DOJ to “fully leverage its resources to identify culpable individuals at all levels in corporate cases.”

“International issues remain a major focus for the IRS, and we are continuing our efforts to fight tax evaders who use offshore accounts to skirt the law,” IRS Acting Commissioner Danny Werfel said in a statement. “These John Doe summonses for correspondent account records show our determination to pursue evaders using offshore accounts even if the person hiding money overseas chooses a bank that has no offices on US soil.”

US citizens are required to report all of their foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during year. If someone withholds information on their foreign accounts, he can be fined up to 50 per cent of the amount in the account at the time of the violation, according to the IRS.

We have seen the effects of the US DOJ’s persistence locally in the collapse Caledonian Bank and in the recent guilty pleas recorded in US Federal Courts against Cayman National Securities & Cayman National Trust Co.

The post Global tax enforcement puts Cayman in the crosshairs appeared first on The Cayman Reporter.

Premier Hon Alden McLaughlin

Speaking on Radio Cayman’s morning talk show On the Record on Monday 21 March, Premier Hon Alden McLaughlin stated that then Minister of Health Gilbert McLean and then Leader of Government Business, Hon McKeeva Bush “knew full well what they were doing and intentionally sought to protect the HSA from malpractice” with regard to the contentious Section 12 of the HSA Law.

Section 12 has been interpreted by the local courts to give blanket immunity to HSA doctors in cases where malpractice is alleged.

Mr McLaughlin has announced his government’s intention of repealing that section of the law.

The premier further alluded to correspondence between members of the then government which stipulates that they knew exactly what they are doing and any claims otherwise being made today are simply “untrue”.

Mr McLaughlin said he intends to reveal this correspondence when his Government brings a motion to the Legislative Assembly to amend Section 12.

However when contacted by The Cayman Reporter, Mr McLean stated categorically that there was no intention by government in 2004 to exempt doctors from malpractice liability in the passage of the Health Services Authority Law.

“I as minister held no such thought, then or now,” Mr McLean asserted.

These sentiments were also shared by then Leader of Government Business, Hon McKeeva Bush who concurred with the sentiments of Mr McLean, in that, the question of exclusion from malpractice was never intended to apply to doctors.

Mr McLean further contends that the question of immunity was sought specifically to apply to members of the Board of Directors and was not intended to apply to doctors or nurses.

The Cayman Reporter obtained copies of the 13 December 2004 Legislative Assembly Hansards, which quote Mr McLean, as saying, “Like any private entity, the HSA has a Board of Directors that is responsible for the policy and general administration of the affairs and business of the organisation.”

Former Minister of Health Gilbert McLean

Mr McLean continued, “Board Members who hold office at the pleasure of the Governor in Cabinet carry a heavy responsibility, both to the Authority and to the public which they serve. The time and energy required by Board Members is substantial and the remuneration is small. It is therefore vital that we do everything possible to minimise the risk of potential liability of persons willing to volunteer their time and skills to serve on board”, suggesting the amendment in question applied specifically to appointed Board Members and not to medical staff.

This point was debated at length and included submissions from both the then Leader of the Opposition, Hon D. Kurt Tibbetts and Second Elected Member for George Town, Alden McLaughlin.

The pair debated at length the definition of “bad faith” as outlined in the amendment and how the then government distinguished between what is considered “bad faith” versus “neglect”. According to the hansards, Mr Tibbetts said, “While I respect the fact that the Members of the Board need to be protected and perhaps indemnified, this is going to be part and parcel of the main legislation. So I believe we need to have a very clear understanding.”

In his submission, the then Second Elected Member for George Town and Opposition Member, Alden McLaughlin expressed his staunch opposition to the changes being recommended at the time.

He said, “There is a fiduciary duty that is imposed to the company as result of someone becoming a director. That duty requires the individual who is the director to act in the utmost good faith, to act with diligence, to act with caution, to act responsibly generally.”

He went on to point out that “it is the directors who make the decisions, whether they are in relation to the hiring or firing of people or what direction the Authority takes in relation to any matter. I believe it is fundamentally wrong to permit any director or employee to have such blanket immunity or indemnity, that essential allows them an out, no matter what they do.”

Mr McLaughlin said, “In my view, Mr Speaker, that it is wrong, wrong, wrong. If directors of the HSA have acted improperly, then they ought to pay for it.”

In his response, then Minister of Health, Mr McLean stated that while there was some disagreement with the wording in the amendment, “the present wording here is what I have been given as legal advice from the Government’s Chief Legal Advisor” referring to the Attorney General.

Mr McLean added that “I can say to the Member that there is certain disagreement still with the legal wording but the wordings that I have to use or to bring to this Honourable House is that which satisfies the Legal Department of Government and the Attorney General.”

Mr McLean continued to assert that the intention of immunity was intended solely for board members and general employees of the HSA. It was not intended to apply to doctors.

As reported in The Cayman Reporter on 15 March, Mr McLean stated that the debates that occurred in relation to the Health Practice (Amendment) Bill 2004 further prove that the question of malpractice always applied to medical staff. However at the time, it was a question of whether or not an individual could sue a doctor individually versus suing the Authority or government.

The Cayman Reporter also obtained copies of the Official Hansard of 27 October 2004 whereby amendments to the Health Practice Law 2002 were made. In the debate, Mr McLean stated that “the Health Practice Commission was recently established to carry out regulatory functions as outlined in the Law. The Commission was advised that health practitioners who are members of the Medical Protection Society (as was the case for most doctors in the Cayman Islands at the time, be they in Private or Public Practice) could be in breach of the Law because the society is not an insurance company and does not offer malpractice coverage.”

He went on to state that “after receiving legal advice, I accepted the Health Practice Commission’s recommendation to amend Section 15 of the Health Practice Law 2002 permitting it to be legally acceptable and sufficient for health practitioners in the Cayman Islands to have medical indemnity.” This indemnity meant that “an operator of a health care facility (namely the HSA or Government) could obtain as an alternative to malpractice insurance, indemnity cover approved by the Health Practice Commission for registered practitioners employed by the health care facility.”

In short, in the event of a lawsuit, aggrieved persons would have to sue the government and not the individual doctor, who had been indemnified from fault. As such, Mr McLean is quoted in the hansard as stating that, “The Bill achieves the objective of insuring that the public is protected, while allowing practitioners to access cost effective malpractice insurance coverage.”

The hansard further indicates that the Minister received push back from the Cayman Islands Medical and Dental Services (CIMDS) who “attempted to persuade me not to put this requirement in the law.” However the hansard also shows that Mr McLean “was not persuaded in that regard” because he thought that it is better to have that requirement in the Law, as incidents do happen, and it is better that doctors are covered, and the person who may have to sue for damages knows that he is not suing a medical practitioner who can declare bankruptcy or does not have any coverage of money to pay them.

While a further debate that remained unanswered concerned whether or not doctors themselves should be asked to contribute to the costs associated with this indemnity, the hansard indicated simply that this would be a question of policy, however it clearly suggests that the amendments to the law were never intended for doctors, but more so, for Board Members and general employees. The word “doctor” was never referred to during any of the debates outlined in the official hansard.

And so, in the words of Gilbert McLean, the mover of the amendments, the public interest would be served by allowing aggrieved persons to sue for damages that could be defined as being in “bad faith”, but such lawsuit would be against the government and not the individual practitioner.

The post Premier: Framers of HSA Law intended blanket immunity appeared first on The Cayman Reporter.

Work is ongoing on the expansions of the Esterley Tibbetts Highway from two lanes to four.

On Monday (21 March) Premier Hon Alden McLaughlin announced that the Government will be “essentially building the last mile of the Esterley Tibbetts Highway expansion from Lakeside to the Butterfield Roundabout.”

Speaking on Radio Cayman’s talk show On the Record with Orrett Connor, Mr McLaughlin noted that the final amendments to the NRA Agreement, which is a part of the DART For Cayman Investment Alliance, have not yet been finalised.

He said he hopes an agreement may be reached in time for an announcement to be made at the next sitting of the Legislative Assembly, for which no date has yet been set.

Mr McLaughlin also acknowledged that the Office of the Auditor General (OAG) has now become involved in those discussions following a damning report issued in 2015 calling the NRA Agreement unlawful.

In the “National Land Development and Government Real Property” report former Auditor General Alastair Swarbrick pointed to closed-door deals, where ministers gave away concessions and duties, fees and taxes without any public discussion or the scrutiny of the Legislative Assembly, as required by law. He insisted that the deals struck were not all for Cayman and the government acted unlawfully without the proper authority when it signed the deals.  A point which the present Leader of the Opposition, Hon McKeeva Bush strenuously denies, stating that the Government took legal advice from the Attorney General in the drafting of all agreements and concessions.

As was reported in the local media, the Auditor General also took the Department of Planning and the Central Planning Authority (CPA) to task for what amounts to arbitrary closed-door decisions on development and the conflicts of interest the membership represents. Mr Swarbrick pointed to decisions made by the CPA on development that fly in the face of the advice given by government’s technocrats, including the Department of Environment, the Water Authority and the National Roads Authority (NRA), and no reasons given for why they ignore the advice.

“I am concerned about the lack of transparency we found in how the CPA operate,” said Mr Swarbrick. “I believe that some development decisions might have been different had the information been discussed in a public forum rather than behind closed doors.”

Premier McLaughlin seemed to agree with the OAG’s assessment of the NRA Agreement, as he made it clear during the radio interview that his administration found a signed legally binding document with Dart Realty and that his government “did not have free reign to renegotiate”.

The Premier did however comment on the success his government had in removing the 50 per cent hotel tax rebate that had been intended to enable Dart to recover some of the infrastructure investments made in the NRA Agreement.

As was announced during the 2015 Cayman Business Outlook and later confirmed in a press release from the Dart Group in February 2015, in place of the hotel tax rebate, Dart will receive an increase in the development duty waiver cap already in place through the NRA Agreement, as well as other duty abatements and waivers related to Dart’s development over the next 30 years.

The present involvement of the OAG, the Premier stated, came as a result of the arrangement that the government has come to with Dart concerning the expansion of the Esterley Tibbets Highway from two lanes to four lanes.

The government’s agreement was to build the last mile of that road from Lakeside to the Butterfield Roundabout, utilising funds the government received from the sale of the Safehaven property when it was changed from leasehold to freehold.

During the final quarter of 2015, the government announced it had agreed to sell 279 acres of Crown land along the Seven Mile corridor to Dart Realty for US$14.57 million dollars.

Part of these proceeds will be used, the Premier announced, for the completion of the highway expansion. He added that it was these complex agreements that are presently holding up the final agreement and why the OAG is currently involved.

While the Premier stated that he does not engage in regular discussions with the OAG as a matter of general practice, his government was adamant in ensuring the arrangements struck meet the necessary legal requirements to avoid further concerns as have previously been raised by the OAG with the Dart negotiations.

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Commissioner of Police David Baines

Local activist, businessman and former political candidate for the district of Bodden Town Kent McTaggart has launched an anonymous survey that seeks to gain consensus from the public concerning the performance of Commissioner of Police David Baines.

Speaking to The Cayman Reporter on Wednesday 23 March, Mr McTaggart explained why he decided at this time to host such a survey.

He said, “There seems to be, if you listen to the local talk shows, growing resentment for both the Royal Cayman Islands Police Service and in particular it’s leader David Baines.”

He comtinued, “For every person you speak to who have had recent dealings with the police, there is a similar, underlining dissatisfaction with the police, almost in every conversation”.

Some of those comments he said have included sentiments such as “we don’t have confidence in the police to either serve or protect”, others yet have said “despite the best intentions, the police just don’t seem to be getting the job done”.

It was for these reasons, combined with the recent criticisms of how the police have handled both the search for five missing boaters and the third recent robbery on police property that prompted the survey.

The survey opened on Sunday night (20 March) and will close at 7pm on Sunday 27 March. The survey, which is being hosted by Survey Monkey is completely anonymous McTaggart insists, which he hopes will serve as encouragement to the public to not only participate but be truthful in their responses.

Mr McTaggart said, “The primary goal of the survey is to build consensus and to determine if the negative remarks in the local media reflect only a small majority or if those views are more wide spread”.

At the time of writing this article, the survey had already attracted some 466 respondents.   The survey, which consists of six questions and takes about 60-seconds to complete may be found at the following web address – https://www.surveymonkey.com/results/SM-DJLWWFHW/

Commissioner Baines has come under significant pressure in recent weeks regarding the commencement of search and rescue operations to find five missing boaters, including two children.

Shortly after, the central George Town Police Station (GTPS) witnessed its third robbery in one year. The string of thefts first began with the theft of a significant quantity of illegal drugs (both cocaine and marijuana) from the police evidence locker last July, and the more recent thefts of dirt bikes confiscated by police. A total of eight dirt bikes were reported stolen from the police impound yard; three were stolen on 29 February with another five stolen between 11-13 March.

The response at the time from the police was that GTPS was “no longer fit for purpose“ and that “legislators should ban importation of these types of bikes.“

More recently the RCIPS has ome under fire for what the Commissioner of Police admitted was an “abject failure” to respond to a report of a serious crime that took place in Rum Point, Grand Cayman. In that incident, two burglars broke into a holiday home where a regular visitor to Cayman and his son were sleeping. The homeowner awoke and chased the suspects off his property, but when he called the George Town Police Station, twice, he was told that a car was not available to deal with the situation. It took more than 14 hours and the intervention of the district MLA, Ezzard Miller, before anyone attended the homeowner’s property to take the details of the crime.

At the beginning of March 2016, Deputy Leader of the Opposition Bernie Bush filed a complaint with the Home Affairs ministry, the Deputy Governor’s office and the British Foreign and Commonwealth Office citing section 44 of the Public Service Management Law regarding the conduct of Commissioner Baines. In his complaint, the opposition UDP member, listed twenty different issues that he said amounted not just to inadequate performance over time but also represented misconduct.

Covering a laundry list of events, from the recent theft of drugs from the police evidence locker at the GTPS, to the recruitment of an officer from Jamaica who was charged with murder in his home country and subsequently convicted, Mr Bush took issue concerning what he alleged was the Commissioner’s lack of action over the mismanagement of gunshot residue evidence, unlawful search warrants used by his officers, the failure of officers to properly pursue drug case evidence and the necessary documents to support financial crime cases, as well as the number of police cars involved in accidents.

Mr McTaggart said he shared some of these similar concerns and believes the survey will provide sufficient proof that he is not alone in his “concern over the direction that Cayman is heading in“ as he encouraged the local public to participate in the survey.

Details of the survey, once completed, will be shared with and published by The Cayman Reporter.

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The shore entrance to Cheeseburger Reef. An elderly cruise visitor on a snorkel excursion at Cheeseburger Reef near the George Town Harbour died on Thursday 24 March.

A 79-year-old visitor to the Cayman Islands died on Thursday 24 March while snorkeling near the George Town Harbour.

The man, who was from the United States, was a passenger on the Norwegian Getaway cruise ship and was on a snorkel excursion with Resort Sports at Cheeseburger Reef.

Port Director Clement Reid told The Cayman Reporter on Thursday evening that Harbour Patrol assisted the man when he got into difficulties while snorkeling.

Two crew members responded and transported the man to the South Terminal, with one of the crew members performing CPR while the other operated the vessel.

A map of dive sites near the George Town Harbour

An ambulance and Emergency Medical Technicians were at the South Terminal waiting for the man to arrive, and he was transported immediately to the George Town Hospital, where he was pronounced dead.

The RCIPS advised that officers responded to a call regarding a water-related incident near Harbour Drive in George Town just before 1:00pm.

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Work is ongoing on the expansion of the Esterley Tibbetts Highway from two lanes to four

Chief Officer in the Ministry of Planning, Lands, Agriculture, Housing & Infrastructure (PLAHI), Alan Jones appeared before the Public Accounts Committee (PAC) last week to provide answers to the committee concerning the on-going NRA Agreement, more commonly referred to as part of the Dart For Cayman Investment Alliance.

In particular, the questions surrounded the continued negotiations on the Third Amendment to the NRA Agreement, which has been ongoing since 2013. Back in February 2015 Dart Realty confirmed an agreement had been reached with the Cayman Islands Government on part of the Third Amendment to the NRA Agreement that allowed Dart to retain 50 per cent of the Hotel Room Tax.

During that round of negotiations, it was agreed between the two parties that the Hotel Room Tax rebate would be eliminated and replaced with an increase in the development duty waiver cap already in place through the NRA Agreement.

PAC Chairman Ezzard Miller

Also in February 2015 it was announced that a further agreement as part of the Third Amendment to the NRA Agreement also provided for Dart to purchase the freehold title to the former Safehaven lands, which include the North Sound Golf Club, in accordance with legal requirements regarding disposition of Crown land.

Last week while speaking in Radio Cayman, Premier Hon Alden McLaughlin acknowledged that the Government would use part of the proceeds of that US$14.57 million sale value to construct the final mile of the Esterley Tibbetts Highway expansion from two lanes to four lanes.

While the PPM Administration have repeatedly stated that when they entered office as the majority Government, they found a signed and legally binding operating document that allowed little flexibility in terms of re-negotiation, several keys aspects of the original agreement have changed since that time, with a number of additional concessions being applied. The Government has been negotiating aspects of this Third Amendment since taking office in 2013.

When asked specifically by the Chairman of the Public Accounts Committee, North Side MLA Ezzard Miller for an update on the ongoing negotiations and when the public could expect its final completion, Mr Jones explained that the negotiations have concluded, and the Government was now in the process of deciding which of the Big 4 accountings firms on island it would selected to conduct an “independent evaluation of the value of that agreement in the context of the recent amendments, in order to show how the country received a better deal as a result on the negotiations.“

Mr Jones stated that the overall process should last another six weeks before it is finalised. This timeframe includes: approximately one week for the selection of an accounting firm, with a further four weeks for the evaluation to be conducted, and further one week for that opinion to be reviewed by the Cabinet.

Miller also enquired if, after the independent evaluation , the report would be made public, Mr Jones replied that that would be a decision for the Cabinet and that he was unable to make such a determination.

Speaking to The Cayman Reporter, Mr Miller stated, “These negotiations have been ongoing for almost three years, and the public is none the wiser on who has been leading these negotiations or what these negotiations have entailed, while accepting that these negotiations have been conducted with the countries best interest in mind.”

He added, “The public has a right to know what is being negotiated in their name.”

The last time the NRA Agreement was evaluated was in 2011/2012, however that evaluation was never made public.

In July 2015 the Office of the Auditor General stated that the previous UDP administration, between 2009-2013 acted unlawfully and “without proper authority” in the signing of the original NRA Agreement with Dart Realty, a point which the former Premier, now present Leader of the Opposition Hon McKeeva Bush has strongly denied stating that his Government received guidance from the Government’s chief legal advisor, the Attorney General, before signing the NRA Agreement with Dart.

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Health City Cayman Islands

Appearing before the Public Accounts Committee on Wednesday 23 March , Dr Delroy Jefferson, the Medical Director at the Health Services Authority, raised concerns that Health City is offering more than the tertiary care it was originally intended to provide to local patients in order to remain viable and sustainable.

Dr Jefferson said “The initial intent was for Health City to be a tertiary healthcare provider for services not already available in the Cayman Islands.  Their primary market was to be North America and Caribbean region. The expressed intent was that it not be a competitor to the local market, and as such they would not provide primary and secondary care that is already provided by the HSA“ or local marketplace.

“The mile posts have changed somewhat” he said. “The anticipated inflow from North to South that was originally expected has not yet happened. To date the influx of Medical Tourism has not lived up to expectations, as such, in order to make the Health City viable and sustainable, more and more services in the primary and secondary care are being provided by Health City, in direct competition with HSA.”

According to their website, Health City Cayman Islands is a medically advanced tertiary hospital that is an internationally accredited centre of global excellence who attract patients from the Cayman Islands, the Caribbean, the US, and Latin America   Their website outlines the variety of services provided, which include Medical Oncology/Chemotherapy, Orthopedic Surgery, Pulmonology, and recently added Obstetrics, Gynecology, as well as a Sleep Lab.

According to the Memorandum of Understanding (MOU) that was signed between Health City and the Cayman Islands on 7 April 2010, Health City received a Duty Concession for 50 years on all Medical Supplies and Equipment. While there is a cap of $800 million on all imported Life-Saving Medical Equipment , they enjoy unrestricted duty concessions on all Medical Supplies. These supplies include things like gauze and bandages, to prescription medicines.  According to section 2.10 (c)”during the first 50 years after the commencement of construction of Phase 1, the Company be exempted from liability to pay any duty or other charges whatsoever on life-saving medical equipment and medical supplies.  At the expiration of that 50-year period, the parties undertake to negotiate with a view to extending for a further 50-years.”

Also as part of the original MOU, it was agreed that no limit would be placed on the number of work permits issued to Health City while also obtaining five-year exclusivity from competition to setup large-scale medical tourism facilities in the Cayman Islands.

While Dr Jefferson agreed that the “quality of care is generally good; patients are happy, staff are friendly and accommodating and from a clinical perspective have a very good bedside manner, one of the things that is lacking is having a regulatory body that is specific to Medical Tourism Oversight.”

He said “at the moment it’s a free for all. There is no regulation that ensures that agreements are being adhered to.  There is no one body that is seeking to ensure that what was agreed is being adhered to no one is regulating, no one is monitoring in order to achieve sustainability.”

While Health City’s arrival has been a boon to local consumers, who benefit from the wider choices now available, it can be seen as providing additional competition for local healthcare providers.

Local, private physician, Dr Darley Solomon said he and other doctors vehemently opposed Government’s decisions to change the medical licensing requirements to allow for Health City to enter the marketplace and described that decision as “reckless“.

He said “When you have to alter the law in order to accommodate any institution or organization you have to ask yourself, ‘How are our healthcare standards being compromised?’ If the changes are to allow for a higher standard of healthcare then the overall system naturally benefits; the same applies in the reverse, if the changes are to accommodate a lower standard, then the impacts are also negatively felt across the industry.”

He also said he agreed with the statement made by Dr Jefferson that “It’s incumbent on Government to determine value for money with Health City, given the concessions they received.  Those concessions make it inequitable for local healthcare providers to compete.“

“The playing field is certainly not level,” he said.

However, HowevDr Solomon disagreed with the need for more regulation, saying “The local laws (prior to the amendments) are sufficient and the existing bodies responsible for its supervision seem to be working, we should simply follow the law with equal rules for all”.

“We don’t need more regulation,” he said.

Health City said, “For the most part we are not competing with local healthcare providers. This is due to the majority of our services being within the cardiac realm as well as within the realm of high end orthopedics which are not available on island”.

“We had to prove ourselves to the local community prior to reaching out to others. How could we ask other nationals and companies to use our services if the persons in our own backyard didn’t use or believe in our services?” a spokesperson from Health City stated.

The hospital insisted that there has been “no breach of the original agreement with the Cayman Islands“.

Defending its proven track record of providing high quality healthcare to the local community, Health City admits a large majority of the patients served have come from the local community.

“All medical tourism facilities grow within the local community firstly until they expand fully into foreign markets. We are demonstrating this growth at Health City where initially we only had five per cent of Non Caymanians outpatients in the first six months whereas now we are close to 40 per cent for the last two months,” the spokesperson revealed.

Responding to the question of Health City not living up to the promise, the spokesperson said, “In the region we are not aware of any other medical tourism facility achieving our successes to date in their first two years.”

The hospital added, “We have achieved our promise in the said timeframe by offering the highest of quality which is proven through our JCI accreditation which was achieved in an amazing quick timeframe.”

On the question of more regulation, Health City management say they are open to whatever legislators deem best for the island, but stated, “Any regulator usually has the higher expertise than the body it is regulating. We do not currently see any organization on island that meets that standard from a medical tourism perspective as we are the only JCI accredited institution. That being stated we do meet all of the local standards as set by the local bodies.”

Under the MOU with the Cayman Islands, Health City was expected to inject some $200 million into the local economy during the first phase with a further $1.2 billion over the first 15 years. It was also anticipated to create 2,300 new jobs by 2024. In its first year alone the hospital was projected to attract more than 17,000 overseas patients, while actual figures have been under 1,000 with 93 percent of all patient services being provided to Caymanians since 2014.

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Leader of the Opposition Hon McKeeva Bush

The three Opposition MLAs hosted a public meeting in the district of West Bay on Tuesday night on the heels of the Governor’s announcement that Commissioner of Police David Baines intends to “leave his post in May 2016″.

Under the cover of a partial district power outage which happened to coincide with the commencement of the public meeting, speakers Hon McKeeva Bush, Bernie Bush and Capt Eugene Ebanks didn’t miss the opportunity to suggest the power outage was not just another coincidence, as they implied “involvement by forces who seek to quiet the truth.“

Though both MLAs Bernie Bush and Capt Eugene Ebanks addressed the crowd of close to 100 people who gathered in the darkness to hear from their district leaders, it was Leader of the Opposition, Hon McKeeva Bush who took centre stage and commanded the platform for most of the evening.

In what many present considered the start of their 2017 re-election bid, Mr Bush wasted no time calling for “a time of change“ and that his group, “the CDP, stood ready and willing to deliver that change in 2017.”

Pouncing on the recent announcement by HE Governor Kilpatrick that Police Commissioner Baines would be leaving his post in May 2016, Mr Bush continued to echo his calls for a Caymanian to be appointed as his replacement.

Mr Bush said “Some in the media have been slapping us in the face because we have dared to question the current leadership and demand that a Caymanian have the top job.“

He added, “We are not saying to set up an idiot to be Commissioner, but surely we must be the leaders we say we are and indentify a smart and capable Caymanian leader from within the current ranks.”

Mr Bush criticised Premier Hon Alden McLaughlin for “talking much, but doing little“ to address the current issues within the RCIPS, starting with the theft of drugs from the police impound yard.

Mr Bush also took the opportunity to reveal a few details concerning the activities of the National Security Council (NSC) of which he is a member. While being critical of the NSC for meeting only twice a year, he said “The Premier, who is also a member, promised to bring Baines before the Council to explain the theft, but it never happened.”

Mr Bush censured the work of the NSC, saying it has been “operating without a plan or without a strategy“ to deal with the pressing issues facing the country. He said “There is no plan on Cyber Crime, no plan on Terrorism, there is no plan for the high number of refugees entering our shores from Cuba, with scores more expected in the coming months”.

Using these instances to underpin the public’s current concerns about the leadership of the RCIPS who have also been sharply criticised for not having an identifiable strategy to deal with rising crime, Mr Bush declared that “the public should support the police, however it must first begin with building confidence, which is sorely lacking at the moment“.

He said, “Until the myriad of injustices have been cleared up and the so-called investigations have been dealt with, with no white-wash or cover-ups, then and only then can the public have confidence in the Police once again.”

Lamenting the need to protect our borders Mr Bush said the “Cayman Islands needs its own Coast Guard in order to maintain our coastal borders, he also said this unit needs to be properly staffed and equipped, capable of responding to any contingency” obviously referring to the concerns raised by the public over the recent search and rescue for five missing boaters.

While on the one hand stating that as a member of the National Security Council he was “restricted“ from telling all that he knows, he wasn’t shy when remarking on their effectiveness and suggested the Council was “rudderless“.

While directing part of his rhetoric towards former Governor Duncan Taylor, who has been listed in a civil lawsuit filed by the Leader of the Opposition, Mr Bush was also careful to remind the public not to forget who is responsible for these failings, pointing to the country’s current Premier, Hon Alden McLaughlin.

Mr Bush told the audience that “instead of working to represent the interests of Caymanians who voted him into office”, whenever the opportunity came for the Premier to question the activities of either the Crown or the Police, whether as Premier or member of the NSC, “all he can talk about is how good present relationships are under his watch as compared to my former administration“, suggesting that the country deserves better than what it is presently receiving, and again echoing the need for change.

Mr Bush continued his assault on the current government who he said are criticising the Opposition for demonstrating unity, but “unity is strength and not politics as usual as the Premier insists“, referring to the two private members motions that have been filed by the eight non-Government MLAs; one calling for a motion of no-confidence in the governance and administration of the RCIPS, with the other citing the need for an independent review into the failed search and rescue for the five missing boaters.

Mr Bush said “not another Tempura investigation, but instead a truly independent inquiry where the people can expect answers to some probing questions.”

Commenting on the press statement issued by the Office of the Premier on 24 March, whereby it was stated that the Premier did not agree with the need for an emergency session and instead insisted that the next regularly scheduled meeting of 25 April would be sufficient to hear the motions brought by the eight members, Mr Bush said “the Premier was not prepared for the unified opposition response“ nor was that “the kind of politics they are used to“, as he continued his calls for unity.

Mr Bush also stated, “it is not the Premier, but the Speaker, who sets the LA agenda” and “if he or his Government wants to stay home, they can”, but “we will be meeting on 13 April” as he extended an invitation for his fellow West Bay representative, Minister of Education, Labour and Gender Affairs, Hon Tara Rivers to be in attendance.

“Then and only then will the country see who is playing politics,” Mr Bush said.

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West Bay MLA and Deputy Leader of the Opposition Bernie Bush

West Bay MLA and Deputy Leader of the Opposition, Bernie Bush on Thursday (31 March) wrote to Detective Inspector Richard Oliver of the Royal Cayman Islands Police (RCIPS) requesting an integrity test be performed on the out-going Commissioner of Police, David Baines.

Mr Bush copied the Foreign & Commonwealth Office (FCO), Deputy Governor Franz Manderson and the Director of Public Prosecutions (DPP) in the email, which outlined eight specific questions which Mr Bush said contravene Section 82 of the Police Law 2010.

An integrity test is a specific type of personality test designed to assess an applicant’s tendency to be honest, trustworthy, and dependable.

Speaking to The Cayman Reporter, Mr Bush said the reason why he pressed for this is because “The Commissioner has successfully avoided for six years giving specific answers to specific questions”, with his departure now imminent “it is time for the public to receive the truth and that David Baines is afforded the same treatment that has been required of others, “ Mr Bush asserted.

Mr Bush added that he was acting independently in his request for an integrity test and it was not done in conjunction with the two private members motions already filed in the Legislative Assembly and to be debated in a special session on 13 April.

Outgoing Commissioner of Police David Baines

Section 82 (1) & (2) of the Police Law 2010 states, “Where a person is released on bail or detained in custody, a police officer involved in the investigation of the offence shall, as soon as practicable, send to the Director of Public Prosecutions all information or evidence as has been obtained in the case. The Director of Public Prosecutions shall decide whether the person should be charged with an offence.”

The questions which were put to DI Oliver include:

1. Has the Commissioner and/or a member of the RCIPS acting on his instructions or otherwise ever failed to submit a file to the DPP in breach of section 82 of the Police Law or otherwise?

2. Has the Commissioner and/or a member of the RCIPS acting on his instructions or otherwise stopped any prosecution by offering no evidence or not proceeding after a person has been arrested and/or charged in breach of section 82 of the Police Law or the inalienable powers of the DPP under the Cayman Islands Constitution 2009 or otherwise?

3. Has the Commissioner and/or a member of the RCIPS acting on his instructions or otherwise ever issued a letter to a member of the public to confirm that the member of the public has never been arrested or charged with a criminal offence in the Cayman Islands?

4. How many letters has the Commissioner ever issued to a member of the public to confirm that the member of the public has never been arrested or charged with a criminal offence in the Cayman Islands?

5. Has the Commissioner and/or a member of the RCIPS acting on his instructions or otherwise ever issued a letter to a neighbour and/or social contact of the Commissioner of Police to confirm that the neighbour and/or social contact has never been arrested or charged with a criminal offence in the Cayman Islands in circumstances where that neighbour and social contact as well as others were arrested on a boat by the RCIPS Marine Unit where ganja was found thereon?

6. Has the Commissioner and/or a member of the RCIPS acting on his instructions or otherwise ever issued an instruction to discontinue a prosecution and/or investigation and/or offer no evidence in the case of a person arrested or charged with the criminal offence of driving whilst under the influence of alcohol or other alleged offence in the Cayman Islands?

7. Has the Commissioner and/or a member of the RCIPS acting on his instructions or otherwise ever received a communication from a member of the public and thereafter issued an instruction to discontinue a prosecution and/or investigation and/or offer no evidence against said member of the public arrested or charged with the criminal offence of driving whilst under the influence of alcohol or other alleged offence in the Cayman Islands?

8. Has the Commissioner and/or a member of the RCIPS acting on his instructions or otherwise ever ceased an investigation or issued only a warning or failed to submit a file to the DPP before or after of the completion of investigation of any person for an alleged offence in the Cayman Islands?

Nr Bush said in his email that “a timely and full response was desired as a motion on the governance of the RCIPS is shortly before the legislature“ referring to the emergency Meeting of the Legislative Assembly called by the eight non-Government members to debate two private members motions, one of which calls for a lack of confidence in the governance and administration of the RCIPS. That meeting is scheduled to take place by order of the Speaker of the House, on 13 April.

In addition to the eight questions that were presented to the RCIPS, an additional four questions were also submitted to the Court Administrator and Chief Officer of the Portfolio of Legal Affairs citing that the answers should likewise be shared with DI Oliver as part and parcel of the integrity test Mr Bush requested be performed on Mr Baines, prior to his departure from the police service.

Those additional questions are as follows –

1. The number of cases where the RCIPS has filed charges but taken no further action to bring the matter to court and reasons therefore.

2. The number of cases where the RCIPS has filed charges with court proceedings but the RCIPS has requested that the cases be terminated and reasons therefore.

3. The number of cases before the court that the DPP has been requested by the Commissioner and/or a member of the RCIPS acting on his instructions to terminate any charges or court proceeding.

4. The number of cases where the RCIPS has filed charges but any further action is unaccounted.

Mr Bush, who is no stranger to questioning the performance of Commissioner Baines, previously submitted a letter to the Ministry of Home Affairs citing over 20 complaints against Mr Baines, pursuant to Section 44 of the Public Service Management Law and calling for Mr Baines’ performance to be appraised and for his immediate removal if his performance was found wanting.

On Friday 4 March, Mr Baines responded to those complaints calling them “misrepresentations and false accusations“.

Mr Baines, in a brief statement at the time said, “Mr Bernie Bush once again demonstrates his ample capacity to repeat rumor, speculation and gossip without checking the facts, thereby speaking with total confidence from a position of total ignorance.”

At the time Mr Bush said “no one should be above oversight” and that included the Commissioner, as he alleged misconduct and inefficiency on issues ranging from the theft of drugs and firearms from the police impound yard, to over four dozen criminal procedure code cases that were not prosecuted as a result of the statute of limitations expiring.

Mr Bush said he hoped for a response to his call for an Integrity Test in time for the 13 April sitting of the Legislative Assembly, however if one is not forthcoming he said any “delay will be an answer in and of itself to the voting public.”

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Austin Harris

In what has been described as the largest data leak in history, some 11.5 million documents contained in over 2.6 terabytes of data from the world’s fourth biggest offshore law firm, Mossack Fonseca, reveal the hidden wealth of some of the world’s most prominent leaders, politicians and celebrities.

David Cameron and his father, Ian Cameron. Composite: Reuters

As reported by both the BBC and the Guardian, journalists from more than 80 countries have been reviewing 11.5m files leaked from the database of Mossack Fonseca in what has been styled “The Panama Papers”.

The records were obtained from an anonymous source by the German newspaper Süddeutsche Zeitung, which shared them with the International Consortium of Investigative Journalists (ICIJ). The ICIJ then shared them with a large network of international partners, including the Guardian and the BBC.

Mossack Fonseca is the world’s fourth biggest provider of offshore services operating out of Panama. It has acted for more than 300,000 companies with a strong UK connection. More than half of the companies are registered in British-administered tax havens, as well as in the UK itself.  Though there is said to be nothing unlawful about using offshore companies, the files raise fundamental questions about the ethics of such tax havens.  Rt Hon Dame Margaret Hodge MP, former member of the UK Public Accounts Committee said during an interview with BBC World Business Report that “the documents make a strong case for aggressive tax avoidance.”

The documents show the myriad ways in which the rich have exploited secretive offshore tax regimes. 12 national leaders are among 143 politicians, their families and close associates from around the world known to have been using offshore tax havens. Among them, Russian President Vladimir Putin who is said to have secretly shuffled as much as $2 billion through banks and shadow companies, as well as an  offshore investment fund run by the father of British prime minister David Cameron.

Ian Cameron, the father of PM David Cameron, was a director of Blairmore Holdings Inc, an investment fund run from the Bahamas but named after the family’s ancestral home in Aberdeenshire, which managed tens of millions of pounds on behalf of wealthy families.  The fund was founded in the early 1980s with help from the prime minister’s late father and still exists today. The Guardian has confirmed that in 30 years Blairmore has never paid a penny of tax in the UK on its profits.

Incorporated in Panama but based in the Bahamas, the fund retained up to 50 Caribbean officers each year. Their job was to sign paperwork and fill roles such as treasurer and secretary. They included the late Solomon Humes, a lay bishop with the non-denominational Church of God of Prophecy. He acted in various roles including vice-president over a number of years from the mid-1990s.

Blairmore is shown to have been controlled using an obscure financial instrument known as bearer shares. These do not carry the name of the owner. They are similar to banknotes in that they simply belong to the person holding the certificate in their hand.

Despite the Prime Minister repeated public comments speaking out against tax avoidance, going so far as to call tax havens who support these types of services as being “morally wrong”, his own family’s fortunes have been built on a network of offshore investment funds based in Panama City and Geneva and have reported to have boasted “their ability to skirt UK tax” laws.

According to the UK’s Daily Mail, David Cameron on Monday (4 April) refused to reveal whether any of his family’s money is still held in tax havens, despite his backing new laws that will force companies to disclose their offshore investments.

In the Cayman Islands, this G20-led initiative to promote greater transparency on the beneficial ownership of companies registered in the Cayman Islands, prompted the PPM-led coalition to introduce a centralised platform for beneficial ownership rather than the UK-preferred central public registry.

In an interesting turn of events, a previously scheduled press conference hosted by the Cayman Islands Ministry of Financial Services, Commerce and Environment, headed by Cabinet Minister Hon Wayne Panton was scheduled to be held on Monday (4 April) at 10am.

However, following the news of the data leak of Mossack Fonseca, the media was informed that this press conference would not be taking place, with no indication when a new date would be scheduled.

What is also interesting in the data leak is that while over 140 offshore firms are said to have been implicated in the leaked data files, so far this list does not include any prominent Americans.  Likewise, data revealed in the public domain does not, as yet, identify any Cayman citizens, politicians or companies.

Among national leaders with offshore wealth are Nawaz Sharif, Pakistan’s prime minister; Ayad Allawi, ex-interim prime minister and former vice-president of Iraq; Petro Poroshenko, president of Ukraine; Alaa Mubarak, son of Egypt’s former president; and the prime minister of Iceland, Sigmundur Davíð Gunnlaugsson.

In the UK, six members of the House of Lords, three former Conservative MPs and dozens of donors to British political parties have had offshore assets.  The families of at least eight current and former members of China’s supreme ruling body, the politburo, have been found to have hidden wealth offshore.  The documents also reveal at least 33 people and companies blacklisted by the U.S. government because of evidence that they have been involved in wrongdoing, such as doing business with Mexican drug lords, terrorist organisations like Hezbollah or rogue nations like North Korea and Iran.

Twenty-three individuals who have had sanctions imposed on them for supporting the regimes in North Korea, Zimbabwe, Russia, Iran and Syria have been clients of Mossack Fonseca. Their companies were harbored by the Seychelles, the British Virgin Islands, Panama and other jurisdictions.

A key member of FIFA’s powerful Ethics Committee, which is supposed to be spearheading reform at world football’s scandal-hit governing body, acted as a lawyer for individuals and companies recently charged with bribery and corruption.  The world’s best soccer player, Lionel Messi, is also found in the documents. The records show Messi and his father were owners of a Panama company: Mega Star Enterprises Inc. This adds a new name to the list of shell companies known to be linked to Messi. His offshore dealings are currently the target of a tax evasion case in Spain.

The leaked data covers nearly 40 years, from 1977 through the end of 2015. It allows a never-before-seen view inside the offshore world — providing a day-to-day, decade-by-decade look at how dark money flows through the global financial system.

The documents make it clear that major banks are big drivers behind the creation of hard-to-trace companies in the British Virgin Islands, Panama and other offshore havens. The files list nearly 15,600 paper companies that banks set up for clients who want keep their finances under wraps, including thousands created by international giants UBS and HSBC.

One leaked memorandum from a partner of Mossack Fonseca said, “Ninety-five per cent of our work coincidentally consists in selling vehicles to avoid taxes.”

The company has flatly denied any wrongdoing. It says it has acted beyond reproach for 40 years and that it has had robust due diligence procedures.

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As nations around the globe scramble to respond to allegations raised in the “Panama Papers”, which have revealed a staggering amount of what former UK Public Accounts Committee MP, Dame Margaret Hodge has described as “aggressive tax avoidance”, fingers have begun to be pointed at offshore financial centers such as the Cayman Islands and the British Virgin Islands.

Neither of these British Overseas Territories has been implicated in the over 11 million recently leaked documents dating back to 1977.

The leak from Mossack Fonseca, a law firm in the Central American nation, has kicked off a global offshore tax hunt. At least one world leader has already resigned with more under fire, as the fallout continues.

Circuitous accounts used to circumvent tax bills are sometimes perfectly legal, but also often cater to questionable and unscrupulous activity. The wife of Icelandic Prime Minister Sigmundur Gunnlaugsson, allegedly held stakes in financial institutions as Iceland was negotiating with them. This revelation prompted calls of accountability from the country’s opposition, coupled with thousands of Icelandic protestors in the streets, forcing the Prime Minister on Tuesday (5 April) to announce his intention to step down as leader of the country’s coalition government.  No replacement has yet been named, and Iceland’s president has not yet confirmed that he has accepted the resignation.

Responding to claims his family and in particular his late father, Ian Cameron’s company Blairmore Holdings Inc, held accounts with Mossack Fonseca, UK Prime Minister David Cameron told the BBC on Tuesday, “I have no shares, no offshore trusts, no offshore funds”. Other elected officials may struggle in the coming days to explain the size of their offshore accounts.

Western financial institutions may have the most to lose. UBS and Credit Suisse agreed in recent years to pay large sums to settle accusations of helping rich clients evade U.S. taxes. In the Cayman Islands, there have been at least three recent financial institutions which have come under fire for running afoul of federal tax guidelines.

When The Cayman Reporter contacted the Cayman Islands Monetary Authority (CIMA) seeking a response to the federal indictment handed down against Cayman National Securities and Cayman National Trust Co, which entered guilty pleas in federal court to helping clients evade up to USD$130 million in taxes, CIMA said ” there is nothing further that the Authority can state regarding the matter.”

While some nations have dismissed the allegations as “a series of fibs” and “ridiculous”, others have issued a censorship directive to editors on the story for a full media blackout, in the UK, calls are being made to “impose direct rule” and thereby control over the financial services sectors in both the Cayman Islands and British Virgin Islands.

On Monday afternoon (4 April), the Ministry of Financial Services, Commerce and Investment issued a press release making its own response to the “Panama Papers” stating, “With the benefit of continued local and international engagement with industry, and with international regulatory bodies; as well as specific discussions with the UK, the Cayman Islands continues to enhance its system of sharing beneficial ownership information, in order to more effectively collaborate globally with law enforcement and tax authorities in the fight against serious crime.”

The statement continued, “Implications from the current ‘Panama Papers’ disclosure have further amplified the need for this global collaboration, but in accordance with accepted international standards in order to underpin confidence in the conduct of international business.”

The release went on to indicate that a series of sweeping new amendments will be forthcoming in June 2016.

“There currently are two main sets of work in Cayman’s programme”, the release indicated. “The first set is a series of changes, which will begin to be enacted in June this year, to further strengthen Cayman’s legislative and regulatory framework. Overall, the enhancement programme will include amendments to key pieces of legislation, including beneficial ownership provisions; the elimination of bearer shares, which have been immobilized in Cayman since the year 2001; and amendments to the Confidential Relationships and Preservation Law.”

Minster Hon Wayne Panton revealed, “Since summer 2015, a working group led by the Ministry of Financial Services, and including representatives from a cross section of Cayman’s financial services industry, has been working to examine existing legislation and to recommend these enhancements to Cayman’s Government.”

He added, “These amendments are in keeping with our action plan, which was publicized in June 2013 immediately following the UK’s chairing of the G8 Summit, to prevent the misuse of companies and legal arrangements.”

“They also build on Cayman’s existing mechanisms for sharing information for tax purposes, including the sharing of beneficial ownership information. These mechanisms, such as tax information exchange agreements; the Multilateral Convention on Mutual Administrative Assistance in Tax Matters; the double tax arrangement with the UK, allow for the sharing of information with more than 90 jurisdictions,” he said.

For the second set of work, Minister Panton noted that Cayman has been in dialogue with the UK in relation to the UK’s request for a custom UK/Cayman mechanism for information exchange.

“Beneficial ownership is a major initiative for the UK Prime Minister, and we support him in the efforts to combat serious crime,” he said.

Minister Panton also noted in February this year, the UK accepted Cayman’s invitation to visit and discuss Cayman’s system of sharing beneficial ownership information with law enforcement. This led to Cayman and the UK working together on a joint commitment, which outlines the agreement between the two governments regarding the enhanced sharing of beneficial ownership information.

“We are pleased that the proposed joint commitment recognises that Cayman’s proposed enhancements to our current beneficial ownership regime represent a viable alternative to the UK’s approach of a central register.  This affirms our longstanding adherence to implementing international standards in a way that is effective and appropriate for our jurisdiction’, he said.

Minister Panton thanked Cayman’s financial services industry for supporting Government’s efforts to further strengthen its system, saying it demonstrates industry’s willingness to comply with globally accepted and practiced regulatory standards.

Meanwhile, on Tuesday (5 April) UK Labour Party Leader Jeremy Corbyn told the BBC that “the territories”, including the Cayman Islands and the British Virgin Islands, were encouraging tax avoidance on “an industrial scale”, to the detriment of public services in the UK.

When asked if direct rule was the solution, Mr. Corbyn said, “If the local government is simply going to condone this level of tax avoidance and tax evasion of money that has been made in Britain… then that’s something that has to be considered.”

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West Bay MLA and Deputy Leader of the Opposition Bernie Bush

West Bay MLA and Deputy Leader of the Opposition, Bernie Bush who on 31 March submitted a further eight questions to the senior investigator for the Anti-Corruption Commission, Detective Inspector Richard Oliver, citing breaches of the Police Law 2010 against Commissioner of Police David Baines, says his efforts to establish some degree of accountability are being thwarted.

Mr Bush told The Cayman Reporter that his questions called for an “Integrity Test” to be performed on Mr Baines prior to any departure, and subsequent to his notice of the same, he now says the Royal Cayman Islands Police Service (RCIPS) and DI Oliver in particular, are “passing the buck“ with regard to his complaints.

Prior to his 31 March complaint, Mr Bush previously submitted a letter to the Ministry of Home Affairs citing over 20 complaints against Mr Baines, pursuant to Section 44 of the Public Service Management Law and calling for Mr Baines’ performance to be appraised and for his immediate removal if his performance was found wanting. Since this time, the Governor, HE Helen Kilpatrick has issued a press statement saying that the Commissioner will be leaving his post at the end of May 2016, a year before his contract was scheduled to expire.

In an email sent to DI Oliver, the Anti-Corruption Commission and copied to the Deputy Governor’s Office, the Office of the Director of Public Prosecutions and the Foreign and Commonwealth Office, Mr Bush said he received a response from the Commission Secretariat, Ms Deborah Bodden seeking “clarification on his request so that it may be properly considered“.

In the email, seen by The Cayman Reporter, the Commission Secretariat asks “ whether you are seeking to make a complaint against Mr Baines in his capacity as Commissioner of Police and/or in his capacity as Chairman of the Anti-Corruption Commission (ACC); or whether this is more of an FOI request in which you are seeking information.”

The Secretariat also requested confirmation from Mr Bush to likewise “clarify therefore whether your complaint or the information you seek, whichever is appropriate, relates to the RCIPS or to the ACC”.

In his response, which the West Bay MLA said was provided with the aid of his legal counsel, Mr Bush stated that his request to the Anti-Corruption Unit (ACU) for an integrity test of Mr Baines “was clearly stated as being in his capacity as Commissioner of Police, and not in his capacity as Chairman which you characterise as a complaint”.

Further he said, this is a “matter only for the RCIPS officer charged with investigation of these type of matters.”

In his response concerning whether his questions were directed at the RCIPS versus the ACC, Mr Bush replied,“It is self-evident from the email to DI Oliver that the information being sought relates to CoP activities in the RCIPS.”

Mr Bush further stated in his correspondence to the Commission Secretariat that “this entire process could be shortened if the Commissioner of Police, David Baines, simply provided the answers to the queries directly to DI Oliver”.

Speaking to The Cayman Reporter, Mr Bush said the reason that he pressed for this is because “the Commissioner has successfully avoided for six years giving specific answers to specific questions”, with his departure now imminent “it is time for the public to receive the truth and that David Baines is afforded the same treatment that has been required of others, “ Mr Bush asserted.

Former police consultants Dennis Walkington and Richard Oliver were picked to staff the new police Anti-Corruption Unit earlier in 2010, shortly after David Baines took over as Commissioner of Police as part of his “new look” for the RCIPS.

DI Oliver also represented the Cayman Islands at the first Commonwealth Regional Conference for Heads of Integrity Commissions and Anti-Corruption Bodies in the Caribbean in late June 2015 in Grenada.

The post MLA Bernie Bush says RCIPS is “passing the buck” on Integrity Test appeared first on The Cayman Reporter.

Dr Leonardo Raznovich

In a 6 April 2016 press statement, Dr Leonardo Raznovich, a former professor at the Truman Bodden Law School, has charged that Minister for the Overseas Territories and Africa, James Duddridge lied to the House of Commons concerning the LGBT (Lesbian, Gay, Bisexual and Transgender) situation in the Cayman Islands.

In his press statement issued on Wednesday, Dr Raznovich stated, “Minister for Overseas Territories and Africa, James Duddridge, misled the UK Parliament about the LGBT situation in the Cayman Islands.”

The press statement stipulated that on Thursday 3 December, in the House of Commons, according to Hansard, Mr Duddridge, with whom the Premier had met that week in the context of the Overseas Territories Joint Ministerial Council, when asked by Crispin Blunt MP during Question Time at a session of the UK Parliament on the subject of progress regarding discrimination of LGBT persons in British Overseas Territories, stated, “I thank the Chair of the Foreign Affairs Committee for raising this issue.  Progress has been made“.

He mentioned that “the Cayman Islands Premier reported to their parliament on their recognizing equal marriage, which is a great step forward.”

UK Minister for Overseas Territories and Africa James Duddridge

“Mr Duddridge, however, knew that this statement was incorrect,“ argued Dr Raznovich, “and is therefore misleading because that same day, on 3 December 2015, Mr Duddridge wrote to Helen Grant MP, referring to the Premier’s comments on 26 November and noting simply that the Premier has instructed the Department of Immigration to seek to identify a way that same-sex partners can be granted a legal right to reside in the Islands.”

“There was no mention in his letter of the Cayman Islands recognising same-sex unions, let alone equal marriage“ the press statement asserted.

Dr Raznovich asked, “Why did Mr Duddridge use such misleading words in the House of Commons? It is only a matter of speculation at this stage.  Perhaps to appease MPs of his own party who had raised concerns about the Cayman Islands breaching human rights by discriminating against LGBT people? Perhaps to allow the Foreign Office to use his statement in Parliament as a means to address the diplomatic complaint made by Argentina and to cover up the human right violation in one of its overseas territories?”

 Speaking on behalf of himself and his partner, Dr Raznovich noted that, “We have written to UK MPs and the Argentine government to place them on notice regarding Mr Duddridge’s misleading words.”

The Cayman Reporter subsequently wrote to both the Governor’s Office and Minister Duddridge for comment however a response was not forthcoming by press time.

On a previous occasion the Governor’s Office did confirm to The Cayman Reporter that HE Helen Kilpatrick maintains a friendly relationship with Dr Raznovich and has visited his home in a social capacity. Dr Raznovich is a former lecturer at the Truman Bodden Law School, where the Governor’s daughter, Olivia Connolly is the president of law school’s Student Society. She is also involved in organising the LGBTQ conference “Queering Paradigms” scheduled to take place in the Cayman Islands in June.

Dr Raznovich, who previously appealed an Immigration Board decision to deny his right to remain in the Cayman Islands as a dependent of his “lawful husband”, became the first, openly gay individual to launch a legal challenge relating to the rights of same-sex couples in the Cayman Islands.

Dr Raznovich and his “husband” were married in Argentina in 2012 and have been together for 16 years. In his appeal, filed with the Immigration Appeal Tribunal, Dr Raznovich requested that the Immigration Department provide an appeal statement detailing the reasons for the refusal by the Business Staffing Plan Board to add Dr Raznovich to his partner’s work permit as his dependent.

Dr Raznovich, who originally gave the Immigration Board and the Business Staffing Plan Board two-weeks to respond to his queries, says “it has now been over six months” as he accused authorities of “stalling the same-sex marriage appeal”. However, Immigration authorities insist that they could not evaluate or accommodate the application, as there is no legal framework in the Cayman Islands to recognise same-sex unions.

Prior to his departure from the Cayman Islands to attend the Overseas Territories Joint Ministerial Council in London in 2015, Premier Hon Alden McLaughlin told members of the Legislative Assembly that he considered the issue of same-sex unions as important as the matter of beneficial ownership. He said he was doing his best to stop or at least delay any imposition by the UK through an Order in Council to recognise same-sex unions by addressing the immigration problem urgently.

Mr McLaughlin said that it was clear that claims that the regulations in the immigration law are discriminatory had merit and the government was likely to lose this argument and be forced to address the law anyway. Concerned that the pressure would mount to go further, the premier told legislators that this could be prevented by widening the definition of dependents and giving more discretion to the immigration board to include common-law partners and same-sex couples.

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UK Minister for Overseas Territories and Africa James Duddridge

Although it was announced on Monday (11 April) that the Cayman Islands and UK governments have reached an agreement on a centralised information platform, letters surfaced last week indicating that UK officials were not happy with Cayman’s responses during the protracted negotiations.

According to a story published by the UK’s Independent newspaper on Friday 8 April, during the long process “the governments of two notorious tax havens have repeatedly ignored UK ministers’ requests to meet about cracking down on corporate tax avoidance.”

The two territories were said to be the British Virgin Islands and the Cayman Islands. Both the Cayman Islands and the British Virgin Islands are British Overseas Territories and receive defence and foreign affairs support from the UK

Two letters sent in March 2015 and signed by David Gauke, a Treasury Minister, and James Duddridge, the Foreign Office minister responsible for Overseas Territories and Africa, said draft proposals by the two governments on the issue of beneficial ownership “do not go far enough”.

The official letters were obtained using freedom of information requests in the UK and quote the British ministers as being “disappointed” at being stood-up after “numerous attempts” to meet with the premiers of the British Virgin Island and Cayman Islands.  The letters indicate that the ministers were expecting to meet with the premiers of the BVI and Cayman Islands when they visited London last year, but that the meetings did not take place.

“As discussed on the telephone on 24 March [2015], we were due to meet in London yesterday with the other Overseas Territories to continue our dialogue about international standards on tackling all forms of illicit finance, and to focus on how we can work together to ensure companies cannot hide their beneficial ownership from law enforcement and tax authorities,” both the letters say.

They continue: “It is therefore deeply disappointing, despite numerous attempts, that we have not been able to meet collectively to discuss a way forward on effective implementation of the G20 Principles on beneficial ownership, despite our shared public commitment to do so.”

These comments seemed way out of date when compared to remarks made by the Minister of Financial Services, Hon Wayne Panton on 5 April, and further confirmed on Monday 11 April by Premier Hon Alden McLaughlin during a press conference where he announced that full implementation of a Centralised Platform for Beneficial Ownership would be passed into law by June 2017.

In the press release issued by the Ministry of Financial Services, Commerce and Environment on 5 April, the Ministry stated that following a visit to the Cayman Islands in February 2016 by senior UK officials, “The Cayman Islands Government is finalising with the UK an Exchange of Notes that outlines the joint commitment of the UK and Cayman to the sharing of beneficial ownership information for law enforcement and tax authority purposes.”

The release continued, “The UK is negotiating similar Exchanges of Notes with each Overseas Territory and Crown Dependency. For Cayman, the Exchange of Notes confirms our commitment to the following criteria:

• The UK (via a designated point of contact in the Cayman Islands) and domestic law enforcement and tax authorities must be able to access company beneficial ownership information without restriction, subject to relevant safeguards
• These competent authorities should be able to quickly identify all companies that a particular beneficial owner has a stake in, without needing to submit multiple and repeated requests
• Companies or their beneficial owners must not be alerted to the fact that an investigation is under way.”

It was the UK’s intent to have all of the Exchanges of Notes and the Technical Protocols with the Overseas Territories and Crown Dependents signed in advance of the Prime Minister’s Anti-Corruption Summit in May 2016. To accommodate this timeframe, the UK initially set four weeks to conclude all discussions; when it became apparent that more time was needed to review the Technical Protocols, the deadline was extended to Wednesday, 6 April.

“Since summer 2015, a working group led by the Ministry of Financial Services, and including representatives from a cross section of Cayman’s financial services industry, has been working to examine existing legislation and to recommend these enhancements to Cayman’s Government“, said Minister Panton.

“These amendments are in keeping with our action plan, which was publicised in June 2013 immediately following the UK’s chairing of the G8 Summit, to prevent the misuse of companies and legal arrangements”, he said

There currently are two main sets of work in Cayman’s programme. The first set is a series of changes, which will begin to be enacted in June 2016, to further strengthen Cayman’s legislative and regulatory framework. Overall, the enhancement programme will include amendments to key pieces of legislation, including beneficial ownership provisions; the elimination of bearer shares, which have been outlawed in Cayman since the year 2001; and amendments to the Confidential Relationships and Preservation Law.

For the second set of work, Minister Panton noted that Cayman has been in dialogue with the UK in relation to the UK’s request for a custom UK/Cayman mechanism for information exchange.

“Beneficial ownership is a major initiative for the UK Prime Minister, and we support him in the efforts to combat serious crime“, he said.

Minister Panton also noted that in February of this year, the UK accepted Cayman’s invitation to visit and discuss Cayman’s system of sharing beneficial ownership information with law enforcement. This led to Cayman and the UK working together on a joint commitment, which outlines the agreement between the two governments regarding the enhanced sharing of beneficial ownership information.

Minister Panton thanked Cayman’s financial services industry for supporting Government’s efforts to further strengthen its system, saying it demonstrates industry’s willingness to comply with globally accepted and practiced regulatory standards.

On Monday, Premier McLaughlin together with Chief Officer for the Ministry of Financial Services, Mr. Dax Basdeo held a press conference where they confirmed that the Cayman Islands and the United Kingdom have signed an agreement on the enhanced sharing of beneficial ownership information.

He said, “This agreement confirms that the Cayman Islands will implement, as we have said for some time, a central platform that will allow designated Cayman Islands officials to directly obtain and provide details of beneficial ownership of companies incorporated in the Cayman Islands, to the UK, as required by law and treaty.”

The Premier clarified that “this is not a central registry“ meaning that the information on beneficial owners will still remain with the service providers managing them “rather than being uploaded to the platform itself, however, on request said information will be accessed via the central platform.”

The Premier said that “this agreement is reciprocal and holds the UK to the same standards in cases where our law enforcement officials may need information on companies incorporated in the UK.”

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UK Minister for the Overseas Territories and Africa James Duddridge

UK Minister for the Overseas Territories and Africa James Duddridge has denied an accusation by Dr Leonardo Raznovich that he lied to the House of Commons concerning the LGBT (Lesbian, Gay, Bisexual and Transgender) situation in the Cayman Islands.

A spokesperson for the Foreign and Commonwealth Office (FCO) told The Cayman Reporter that Mr Duddridge did not intend to imply in the UK parliament that the Cayman Islands had decided to recognise same-sex marriages when he answered a December 2015 parliamentary question concerning LGBT anti-discrimination measures in British Overseas Territories.

Dr Raznovich alleged in a 6 April press release that Minister Duddridge misled the House of Commons regarding efforts being made in the Cayman Islands to recognise same-sex unions.

In his statements to the Chair of the Foreign Affairs Committee concerning what progress the Cayman Islands had made with regard to the issue, Minister Duddridge stated “the Cayman Islands, only this week, their Premier reported to their parliament on their recognising equal marriage, which is a great step forward”.

Dr Leonardo Raznovich

This was a comment which Dr Raznovich considered to be misleading.

When contacted by The Cayman Reporter, a spokesperson for the FCO stated, “We continue to encourage all the Overseas Territories to respect human rights in their widest meaning and to embrace policies of inclusiveness”.

The FCO spokesperson said that while Mr Duddridge’s response mentioned the Cayman Islands specifically, “however to clarify, this was with specific reference to applications for work permits for foreign same-sex couples and was not intended to imply recognition of marriages within the Cayman Islands themselves.”

On 26 November 2015, Premier Hon Alden McLaughlin speaking in the Legislative Assembly, stated that he was doing his best to stop or delay any imposition, by the UK through an Order in Council, to recognise same-sex unions, by seeking to address it via the Immigration rules.

Other members of the Legislative Assembly, including former PPM member Anthony Eden, raised their concerns implying that recognising same sex unions via the Immigration Law was the same as recognising it across the board. Mr Eden, a founding member of the party and the first elected member for Bodden Town, decided to leave the PPM party he helped found based on the government’s position to allow gay spouses as dependents.

The Premier insisted that was “exactly what the government was avoiding“ by tackling the issue of dependents.  Mr McLaughlin at the time stated, “If we are able to make suitable amendments to accommodate persons in Dr Raznovich’s category, we may avert, for the time being at least, the pressure to recognise formally same-sex unions and avoid the possibility of being forced to do so by the UK.”

Dr Raznovich expressed in his press release that in the Premier’s remarks to the LA there was no mention of recognition of same-sex couples, let alone equal marriage in the Cayman Islands. As such, Dr Raznovich questioned the remarks made by Mr Duddridge and speculated on the reasons for doing so.

He said, “Perhaps to appease Members of Parliament (MP’s) from Mr Duddridge’s own party, who had raised concerns about the Cayman Islands breaching human rights by discriminating against LGBT people.”

Dr Raznovich initiated an appeal with the Immigration Appeals Tribunal seeking to be added as a dependent on his same-sex partner’s work permit on that basis that they had been legally married overseas.

The Immigration Tribunal responded stating “there is no mandate in the Cayman Islands to recognise same sex unions” and therefore restricts them from making a ruling in this regard.

Dr Raznovich insisted however that “the application sought simply to add him to his spouse’s work permit, as a dependent. It was not a challenge to the local Marriage Law.”

He further charged that “the definition of marriage does not need to be changed to accommodate our application, nor does there need to be any changes to the law of the Cayman Islands.  The law, as it applies and is currently in force today in the Cayman Islands actually requires that our application be granted.”

Dr Raznovich claimed that the procedural failures of the Immigration Board was a “travesty of natural justice” and the “failure to apply the laws of the Cayman Islands constitutes the discriminatory act and breaches of the Bill of Rights and the European Convention on Human Rights.”

In his conclusion, Dr Raznovich urged the members of the Immigration Appeals Tribunal “to do the honourable thing and resign if they feel unable to reach a decision.  If they are fit for duty, they should do their work rather than hide their head in the sand and correctly apply the laws as they are currently in force today.”

With six months having passed since the date of the initial appeal, no further responses from the Immigration Appeals Tribunal have been forthcoming.

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Speaker of the House Hon Juliana O’Connor-Connolly

Speaker of the House Hon Juliana O’Connor-Connolly was bound by a rigid code of conduct prescribed by law when she granted the ruling government’s request that a special meeting of the Legislative Assembly be adjourned on Wednesday 13 April.

Eight non-government members plus one member of the Government in Minister Tara Rivers attended the LA at 10am for the scheduled meeting. However shortly after the commencement of that meeting, Minister Rivers rose to inform the Speaker, that according to the rules of the Legislative Assembly, a quorum was not present and therefore the meeting could not proceed.

According to the Cayman Islands Constitution Order 2009, Section 74 (2) states “For the purposes of this section a quorum shall consist of a majority of the elected members of the Legislative Assembly in addition to the person presiding.”  In a parliament consisting of 18-members, the majority required to make quorum would be 10.  Only nine members were present on Wednesday morning and therefore a quorum was not achieved.

According to Standing Orders, the house was adjourned for five minutes in order to allow the Serjeant-at-Arms to solicit any member who may otherwise be present in the Legislative Assembly building, but not in the chamber itself, to present themselves.

Prior to the Serjeant-at-Arms retiring from the confines of the Assembly as instructed by the Speaker, the member from East End, MLA Arden McLean proclaimed that the Premier, Hon Alden McLaughlin was said to also be present in the building.

Though subtle, this was a key comment from MLA McLean, because according to Standing Orders, any member who is within the “precinct of the Legislative Assembly“, which includes the “building“ may be called to attend a duly convened meeting or give good cause why they would be unable to attend.  The Speaker informed the House that she had not received any such notifications from the Government.

It was also suggested that the attendance of both members of the Government in the persons of Minister Tara Rivers and the Premier, was a mistake and although the Premier “was seen in the building”, upon the return of the Serjeant-at-Arms, he was no longer “within the confines of the building”.  The Speaker then proceeded to set a further adjournment of the House until 2pm, in order to give the other members of Government sufficient time to present themselves, with the expectations that the meeting would proceed as called.

At 2pm however, the Premier attended in the absence of Minister Rivers and he too proclaimed, as Minister Rivers did during the morning session, following the commencement that the Opposition had failed to meet the requirements of a quorum, and moved that the meeting be adjourned. Prior to this adjournment however the Premier explained to the House that his Government failed to attend because “other Ministers had informed him that the date of the 13 April meeting conflicted with prior commitments” and this was said to be the reason for their absence.

This 11th hour proclamation by the Premier seemed dubious to the Opposition and Independent members present who quoted Section 6 of the Standing Orders which state, “It is the duty of a member who is unable to attend a meeting of which he has been given due notice, or a meeting that is adjourned to a later date, to inform the Clerk as early as possible on his inability to attend and where necessary whether he has received written leave of absence from the Governor under Section 23 (b) of the Constitution.”

While this was had not been received by the Speaker, the meeting was adjourned until 25 April. It is understood that when the meeting is reconvened, the matters relevant to the two private member’s motions concerning both the governance of the RCIPS and the call for an independent review of the search and rescue operations related to the five missing boaters who disappeared without a trace on 6 March 2016, will be debated and discussed prior to any other business of the House.  Therefore, despite the failures of the Government to attend, the Opposition will have an opportunity to debate their motions, albeit not on the date it had intended of 13 April.

Following a brief debate, the Speaker adjourned the House despite the objections of the Opposition members. The Speaker, Hon Juliana O’Connor-Connolly, hurriedly departed the Assembly while both the Opposition Leader, Hon McKeeva Bush and East End MLA, Arden McLean protested.

Prior to the adjournment, questions also arose over which document supersedes governance procedures in the Legislative Assembly, whether it be the Standing Orders 2006 or the Cayman Islands Constitution Order 2009.

In providing this clarification, the Attorney General, Hon Samuel Bulgin quoted Section 5 of the Cayman Islands Constitution Order, 2009 which states “5.—(1) Subject to this section, the existing laws shall have effect on and after the appointed day as if they had been made in pursuance of the Constitution and shall be read and construed with such modifications, adaptations, qualifications and exceptions as may be necessary to bring them into conformity with the Constitution.

(2) The Legislature may by law make such amendments to any existing law as appear to it to be necessary or expedient for bringing that law into conformity with the Constitution or otherwise for giving effect to the Constitution; and any existing law shall have effect accordingly from such day, not being earlier than the appointed day, as may be specified in the law made by the Legislature.

(3) In this section “existing laws” means laws and instruments (other than Acts of Parliament of the United Kingdom and instruments made under them) having effect as part of the law of the Cayman Islands immediately before the appointed day”

Therefore, all existing laws should be read as if they had been written in conformity with the constitution, giving the constitution final authority over all other laws.

This however was challenged following the adjournment by North Side MLA, Ezzard Miller. Speaking to The Cayman Reporter Mr Miller stated, “The Standing Orders are not a Law, but instead represent the rules and procedures which govern the activities of the Legislative Assembly.  As such, the relevant sections quoted by the Attorney General, in his view, do not apply and the Standing Orders (2006) should, as a matter of procedural correctness, have authority over proceedings in the Legislative Assembly”.

He also criticised the actions of the Government in refusing to both be present for the meeting and for failing to provide due notice for their absence, in accordance with the rules set out in the Standing Orders, only to admit at the 11th hour that Ministers had previous commitments which restricted them from attending, only to agree to attend on 25 April to conduct the same business that was slated to commence on the 13 April.

Mr Miller said “this is a sorry day in the history of the democracy of the Cayman Islands. I just cannot believe that the members that the people elected, would be so childish.”

As ordered, the next meeting of the Legislative Assembly will take place on Monday, 25 April 2016 at 9am.

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On Sunday, 3 April  at HMP Northward, seven men celebrated a great accomplishment.  For some, it was the first time they had successfully completed anything, and shows that proactive measures are being taken within the walls of Cayman’s prisons to positively impact the growing concern of recidivism in the country.

Prisons Director Neil Lavis

The night marked the culmination of the Sycamore Tree Project, a programme that unites offenders with victims of crime to open dialogue, promote understanding, forgiveness and restoration.  It was a proud moment for each of the participants with fellow inmates, staff and family members in attendance.

The eight week programme was introduced by Director Neil Lavis who had seen the powerful effects of the programme in his former posting in Wales.  Speaking to a packed Chapel, the Director applauded each participant on their success and for having the courage to face their past and do the hard work of acknowledging the impact of their actions on themselves and others.

HMP Northward. Seven out of 10 prisoners who serve time at HMP Northward return following their release.

In 2015 the Cayman Islands ranked 18th in the world in imprisoning its residents. The prison population rate of the Cayman Islands is 346 prisoners for every 100,000 people, which is more than twice the world average of 168 prisoners for every 100,000 people.

Additionally, approximately seven out of 10 prisoners end up back in the criminal justice system following their release from prison.  Just as with our rate of incarceration, the reoffending rate in the Cayman Islands, which stands at 73 per cent, is higher than in the rest of the Caribbean with an average of 60 per cent.

Speaking to The Cayman Reporter Mr Lavis, a 30 year prison services veteran, indicated that the idea was a successful project that he had become involved with when he was the Governor of HM Prison Swansea in 2010.

“This project started off with one course but by the end of my tenure we were running four courses a year and also doing direct face-to-face victim and offender mediation. The course confronts offenders with the harm that they have done to their victims, gives them a greater understanding, and as a result reduces the likelihood of offending once released,” Mr Lavis said.

STP Graduates with Director Neil Lavis and Chaplain Cathy Gomez.

According to reports in the Welsh news media from 2011, HM Prison Swansea prison faced many of the same problems as those experienced at HMP Northward, Cayman’s male prison and HM Fairbanks Cayman’s women’s prison.

Having not only the past benefit of his former role, and the relevant real world experience he gained, Mr Lavis said that “two large studies in England and Wales carried out by Sheffield Hallam University have found that attending this type of course improves victim empathy, changes prisoners attitudes to offending, and as a result reduces the likelihood of offending”

He added “this was our first course and we aim to build on this with our second course beginning in May.”

He also explained that he would eventually want to expand some of the prison offerings to include direct victim/offender mediation as “another proactive way of reducing not only prison recidivism, but also to perhaps for the first time change the mindset of some of Northwards inmates, giving them a real second chance to make better choices in the future.”  

Victim/offender mediation is a process that provides interested victims an opportunity to meet their offender, in a safe and structured setting, and engage in a mediated discussion of the crime.  The first victim-offender mediation programme began as an experiment in Kitchener, Ontario in the early 1970’s, and was originally funded by church donations and government grants with the support of various community groups. Following several other Canadian initiatives, the first United States programme was launched in Elkhart, Indiana in 1978. From there it has spread throughout the United States and Europe. It has been estimated that 400 such programmes exist in the U.S. alone, and similar numbers in Europe.

Based on The Sycamore Tree project in the UK run by Prison Fellowship, a faith-based organisation, the programme within HM Cayman Islands Prison Service is conducted by Prison Chaplain Cathy Gomez, assisted by prison staff, but is open to any prisoner, regardless of faith, and is not limited by the type of offense.

Ten inmates started the Sycamore programme here in Cayman and nine completed it.  Several gave testimonies during the service, speaking of the benefits of attending the programme and encouraging other inmates to attend the next series planned for May 2016.

Ms Gomez was overjoyed by the work the inmates did and how much each one grew during the process.  She highlighted that the programme focussed on the fact that everyone is an offender having all done something to hurt another person.  She stated that “we are all victims as well, having all been hurt by another.  It is this common ground where healing and restoration can begin.”  Each participant was encouraged to not only seek to ask forgiveness, forgive others but also forgive themselves for past mistakes.

The programme was conducted at HMP Northward on a weekly basis.  Ms Gomez was assisted by staff volunteers Officer Irvin Long and Supervisor Julia King whom she expressed gratitude to.

“The programme was a great success and I look forward to more and more of the inmates taking advantage of future offerings,” Ms Gomez said.

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A US judge released transcripts on Monday (18 April) of guilty pleas from three prominent FIFA defendants in which they expressed regret and suggested that bribery in the organisation was widespread.

Jeffrey Webb

Former FIFA Vice-President Jeffrey Webb, Argentinean-Italian marketing executive Alejandro Burzaco and Brazilian intermediary José Margulies said they regretted their actions and suggested that bribes were standard practice. All three, who are confined to US house arrest, will be sentenced for corruption in New York in June.

As reported by the Guardian newspaper, but also covered globally, Mr Webb said “I abused my position to obtain bribes and kickbacks for my personal benefit,” as he explained that he was told in 2012 that sports marketing companies would offer “side payments” or bribes in exchange for commercial rights to soccer matches.

“I believed that such offers were common in this business,” he told the judge.

Renard Moxam

He confessed to receiving bribes for the sale of commercial rights for 2018 and 2022 World Cup qualifying matches, and in 2012, 2013 and 2014, including for the Copa América Centenario tournament, which will be held in June 2016.

“I deeply regret my participation in this illegal conduct,” said the dual Cayman Islands-British citizen, who was educated in the United States.  Mr Webb is married to an American and resides near Atlanta, Georgia.

He confessed to conspiring to defraud his employers and conspiracy to commit money laundering offenses by transmitting money from the United States to front accounts in Panama, the Cayman Islands and elsewhere.

In addition to being a FIFA Vice President, before his fall from grace Mr Webb was also the President of both CONCACAF and the Cayman Islands Football Association (CIFA.)

Speaking to The Cayman Reporter, former Technical Director of National Football Teams Renard Moxam said “Jeff admitting his guilt is a small step in the right direction, but the culture that I believe lead him astray has existed for a long time and continues to exists in FIFA, CONCACAF and perhaps other Federations and in football overall.  It would be good if others would admit their guilt also.”

Mr Moxam, who has been an outspoken critic of the manner in which the scandal been handled locally since Webb’s original guilty plea said, “I believe now there needs to be a concentrated effort in retrieving all of the funds that have been diverted from the authentic beneficiaries’, i.e. the clubs and players of CONCACAF and other Federations, and are reimbursed to the clubs and the players and the national associations, including CIFA (Cayman Islands Football Association).  Whilst that is the proper thing to do, I am not optimistic that will happen given the toxic environment which continues to exist.”

After his confession, the court last November lifted Mr Webb’s security detail and allowed him to leave his Georgia home seven days a week from 8am to 5pm, ostensibly to care for his then 18-month-old son.  His freedom of movement was limited to a 20-mile radius, and Webb was still subject to electronic tagging.  Court papers complained last month that Webb kept up a millionaire’s lifestyle quaffing champagne, gambling and partying while under arrest at the US home he may have purchased “with bribes and kickbacks”.  Photos of this “partying” were in January shared on social media and quickly spread not only throughout the Cayman community but across the world.

In a letter to the US attorney’s office, FIFA’s lawyers requested an “immediate” audit of Webb’s funds and assets, expressing concern that he may not have fully disclosed them to the court.

Former Cayman Islands National Team player and now Coach Philip Hydes opted not to comment directly on the legal case admitting his former friendship with Mr Webb, however he did state that “my greatest disappointment comes from how the youth have been neglected and are themselves, the real victims in all of this.”

He said, “We all knew that money was being provided for development of the game in Cayman and no one was being held accountable.”

Mr Hydes expressed similar concerns raised by Mr Moxam, calling for the current leadership at CIFA to step down.

He said “They must do the right thing.  Anyone who is a member of the current administration should do the honourable thing and step aside to allow a new administration to take the game forward and remedy the disaster that has become CIFA; and that includes not just former President Bruce Blake, but the entire administration.”

When asked what the focus should be moving forward he said “emphasis must be placed on the overall development of the game, but that development must be inclusive, including coaches, the national teams (at all levels) but more importantly, starting with our primary school and youth programmes.”

US prosecutors have in total accused 40 officials and marketing executives of soliciting and receiving tens of millions of dollars in bribes and kickbacks in a case that has sparked an unprecedented crisis at FIFA. Of the 40, sixteen new officials were charged by the US Department of Justice on 3 December.  This is in addition to the 14 people – nine FIFA officials and five corporate executives all of whom were indicted on corruption charges.

So far 15 individuals have pleaded guilty and agreed to cooperate with US prosecutors in exchange for a possible reduction in sentence.

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