Newly appointed Auditor General Sue Winspear

The Governor’s Office has confirmed that no Caymanians applied for the post of Auditor General in response to queries from The Cayman Reporter.

Briton Sue Winspear has been appointed to the post following the departure last year of former Auditor General Alastair Swarbrick.

Ms Winspear is currently an executive leader at Britain’s public audit office and has 30 years of financial and auditing experience. Ms Winspear comes from a similar background as HE Governor Helen Kilpatrick, having worked both as Director of Resources, for the London Borough of Sutton; and Acting Chief Executive of the London Borough of Sutton.

Governor Kilpatrick held a variety of posts across London boroughs, including controller of financial services at Greenwich. In 1995 she left the capital and was appointed director for resources and county treasurer at West Sussex County Council.

In her current capacity in the UK, Ms Winspear has responsibility for about 200 directors and audit staff, leading the financial audit, value for money studies, investigations and other assurance work in the government departments of Health, Education and Local Government. She also had responsibility for external relations and communications.  This position is expected to be concluded in July.

Deputy Governor Franz Manderson

Ms Winspear also played a role as Director of Resources for the London Borough of Sutton.

The local Sutton Guardian newspaper revealed that welfare reforms and rising rents where exposed after figures revealed the number of homeless families in Sutton had soared by nearly 50 per cent in a year. Some 411 families were classed as homeless at the end of March, up from 280 at the same point in 2015.

The statistics, disclosed to a meeting of the council’s strategy and resources committee, showed a 46.8 per cent increase in families living in temporary accommodation in the past 12 months. Dean Killick, founder of the charity Sutton Nightwatch, described the figures as a “a shock to the system” and called for the council to provide more support.

According to a release from the Governor’s Office, Ms Winspear’s appointment was agreed by a selection panel that included Ernst and Young partner Dan Scott who was also consulted on the renewal of the now outgoing Commissioner of Police David Baines’ contract renewal in 2013.

The post of Auditor General reports directly to the Governor rather than the Head of the Civil Service – Deputy Governor Franz Manderson.

Four of the most powerful local posts in public safety and finance bypass the civil service and legislature to report directly to the Governor. These include the Auditor General, the Commissioner of Police, the Attorney General, and the Deputy Governor. The Governor also has direct oversight of the Complaints Commissioner and Information Commissioner.

Deputy Governor Franz Manderson said, “The Auditor General, Complaints Commissioner and Information Commissioner are all Oversight Bodies supporting democracy and are enshrined in our Constitution. The Commissioner of Police is governed by the Police Law and also falls under the Constitution under the Governor’s reserve powers for internal security.”

He continued, “It is therefore quite natural that I do not take part in the appointment of the Head of our Oversight Bodies as they must remain independent of the civil service. I work closely with the Commissioner of Police and the Deputy Governor takes part in the recruitment of the Commissioner of Police.”

Mr Manderson explained that while his office has no direct authority over both the Auditor General and the Complaints Commissioner, they do report to Parliamentary Subcommittees in accordance with Section 114 of the Cayman Islands Constitution Order 2009.

He said he is “entirely comfortable with these Constitutional arrangements.”

Section 114 sets out the rules that bind the post of the Auditor General, and reads, “(6) In the exercise of his or her functions, the Auditor General (and any person acting on his or her behalf in the exercise of those functions) shall not be subject to the direction or control of any other person or authority, save that the Auditor General is answerable to the Public Accounts Committee of the Legislative Assembly and must attend upon the Committee at its request”

Section 114 (5) requires that the functions of the Auditor General and the accountability of that post and the Audit Office shall be further prescribed by law.

In some Commonwealth countries, an Auditor Generals Law sets out the functions and requirements for that office. However no such law exists in the Cayman Islands.

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Art is serving to provoke thought on the decisions that lead to incarceration at HMP Northward.

“Confinement Assemblage” by artist Peter Polack on permanent display at HMP Northward.

The work of local amateur artist Peter Polack is now permanently on display at the Cayman Islands’ adult male prison. Called the “Confinement Assemblage” and comprised of six pieces, the works of art are located at the entrance of the visitor reception area and have become the subject of much interest.

Not only have inmates and their families viewed the display, but it is also proving to be popular among tourists who occasionally visit the prison as part of their island tours.

The “Confinement Assemblage” is intended to provoke thought by allowing inmates and their families to contemplate the decisions that lead to incarceration as part of the rehabilitation process.

“Doorway to Everywhere”

The artist himself is no stranger to the criminal justice system. In addition to his hobby as an artist, Mr Polack is also a prominent defense attorney of over 30 years and says that the display “represents the various choices persons make that not only leads them to prison, but what may await them upon their eventual release.”

The exhibit, which is made up of two primary colors – red and black representing the prominent colours of the judicial system, is made up of six pieces, each with their own specific meaning and ultimate message.

HMP Northward Acting Deputy Director of Rehabilitation Richard Barton

The first piece in the collection is called “Caged Heart” which Polack says represents life in society when you have things bubbling over inside of you; sex, drugs, gangs etc.  It also can serve to represent the caged heart while serving in prison where an individual’s passions are also caged.

The second piece is called “Doorway to Everywhere” and you can take this door to anywhere be it to prison, school, a successful career or it can lead you nowhere, but if you take the wrong door as many do, this leads to the third piece entitled “The Stairway to Redemption”.  With its high steps this also has a two-fold meaning; either representing the steps that lead to the gallows or the prison while representing the high requirements that an individual must attain leading to a release.

The fourth piece is called “The Descent” which  represents a mirror of what individuals face when they get a sentence in a court as they descend down the staircase on their way to jail, leading to the “View from within” representing the cold, dark reality of life behind bars.

Finally the viewer will find themselves on the “Bridge to Nowhere” where the individual can either make further mistakes and return to prison or change their life for the better and never return.

“The Descent”

Mr Polack believes that the permanent display will complement the already positive and pioneering efforts being made by prison director Neil Lavis to reduce the rates of reoffending.  One such effort is the Sycamore Project, which Mr Polack believes is supported by the permanent display as it requires viewers to confront and contemplate the life choices they make continually and the eventual outcomes that result.

HMP Northward Acting Deputy Director of Rehabilitation Richard Barton said “The art project and its different meanings works hand in hand with the on-going efforts within the prison to address rehabilitation” as he thanked Mr Polack for sharing his works with the Prison.

Mr Barton encouraged not only inmates and their family but also members of the public to visit the prison and view the permanent display.

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BVI Premier Dr Orlando Smith

As has been reported in regional media, the British Virgin Islands has published the exchange of notes and technical protocols agreed with the United Kingdom government relating to beneficial ownership of companies ahead of the Cayman Islands.

While details of the Cayman Islands agreement have yet to be published, it is likely that it will be similar in nature given that both territories were given the same parameters from which to establish their respective platforms.

Under the agreement, the BVI and the UK have mutually recognised the need to share beneficial ownership information for preventing and detecting illegal activity in both jurisdictions as well as the importance of sharing the information expeditiously.

It is intended for the information in BVI to be held through an electronic portal, similar to what has been proposed in the Cayman Islands under what is called the Centralised Platform for Beneficial Ownership, with the information being accessed by BVI competent authorities only. That information, in turn, will be shared with UK law enforcement agencies on request.

Premier Hon Alden McLaughlin and Chief Officer in the Ministry of Financial Services Dax Basdeo announce the agreement between the Cayman Islands and the United Kingdom on a centralised platform for beneficial ownership information.

According to the Exchange of Notes and Technical Protocols – the Government of the British Virgin Islands will establish and maintain an electronic platform that will allow it to immediately access adequate, accurate and current beneficial ownership information on corporate and legal entities incorporated in the British Virgin Islands.

The British Virgin Islands platform will be held electronically and we be searchable by both name of corporate and legal entity and the name of the individual. Acting only on the furtherance of their functions, United Kingdom law enforcement authorities will be able to request and access this information.

The most significant aspect of these technical protocols is contained in the response time relevant to any specific request. Under the agreement, which was signed on 8 April 2016, UK Law enforcement agencies will be provided with the information being sought with 24-hours of the submission of a request for information unless it is notified that the request for information is urgent, in which case provisions have been made to provide this information within as little as one hour.

Similar to what is expected in the Cayman Islands Centralised Platform, harsh penalties will be levied against those who would disclose to the parties being investigated any notice or details of what is released. The protocols also criminalise any disclosures of information in order to reinforce the severity of the offence.  Under the agreement, law enforcement authorities will be given unrestricted access to information being sought which may be used in criminal and/or civil proceedings and may be disclosed by law enforcement authorities in accordance with the applicable legal provisions, including data protection and freedom of information requests.

It is expected that while the commitments outlined on the Exchange of Notes will take effect upon the signature of the participants, namely 8 April, the Technical Protocols which will underpin the Notes, will come into effect no later than 30 June 2017, together with the necessary legislative regulatory changes that will be required to affect full implementation.

BVI Premier Dr Orlando Smith said, “The new agreement will further enhance the BVI regime which already surpasses that of many other jurisdictions in the world. It will also ensure that in order to protect our business and the interests of BVI, when it comes to transparency and information exchange, BVI’s rules and regulations are totally fit for purpose. As the UK Prime Minister said recently, the commitments we and our colleagues in other Overseas Territories and Crown Dependencies have made will be far in advance of many other countries, including the United States.” He added, “The BVI has worked for over 30 years to carefully and legitimately build an industry that is well regarded and trusted by clients, global regulators and other international authorities. This agreement will play its part in ensuring that this continues to be the case.”

The idea for publicly accessible registries of beneficial ownership was one of the main points agreed by the G8 at the Lough Erne Summit in Northern Ireland, in June 2013, at which the issue of tax avoidance by companies and wealthy individuals was placed at the top of the agenda by the United Kingdom.

Included in the “Lough Erne Declaration” endorsed by the Summit’s participants was a recommendation that “companies should know who really owns them and tax collectors and law enforcers should be able to obtain this information easily.” The G8 also adopted an Action Plan, which sets out “core principles that are fundamental to the transparency of ownership and control of companies and legal arrangements.” It argues that companies should obtain and hold information on their beneficial ownership, and that central registries containing these details should be set up at national or state levels.

While much debate has surrounded a UK demand that registries should be open to the public, Overseas Territories including the BVI and the Cayman Islands have successfully negotiated the establishment of these platforms, without the need to make them open to the general public. According to the agreements reached with the Cayman Islands, information on beneficial ownership will remain with the specific service provider but shared electronically on the Centralised Platform which will be accessed only by competent persons and will be available exclusively for law enforcement agencies, including the UK.

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Prisons Director Neil Lavis

Following a damning UK Prison Inspectors report in 2012 which labeled HMP Northward as “decrepit”, Prison Director Neil Lavis told The Cayman Reporter that many improvements have been made over the past four years.

Nick Hardwick, Her Majesty’s chief inspector of prisons, was asked last January by HE Governor Helen Kilpatrick to inspect the two jails on Grand Cayman after concerns raised in the local media about prison conditions on the island.

Following a brief visit, which consisted of inspections at both HMP Northward and Fairbanks, the women’s facility, the inspectors said their findings were “disturbing” and recommend that many of the facilities should be demolished.

“Cells in Northward were dark, stifling and intimidating. Prisoners lived in overcrowded cells on dirty overcrowded wings devoid of privacy. Conditions were shambolic with most accommodation barely fit for human habitation,” the report revealed.

The inspectors said that conditions at HMP Fairbanks were only marginally better but still very poor.

The inspectors said the worst facility was the ‘high-risk unit’ where a small number of prisoners were locked up in appalling conditions for over 22 hours a day, and in some cases for many years.

“In our view, the facility had no legitimacy,” the inspectors said. They added that there was little for prisoners to do and both jails were characterised by indolence and inactivity. Many prisoners at Northward told them it was easy to get illegal drugs and alcohol with no action to prevent drugs coming into the jail.

“The smell of cannabis pervaded throughout the establishment at all times of the day and night,” the report said.

The visit by the British prison inspectors followed two recent reports by Cambridge University Institute of Criminology and the Canadian Institute of Public Administration on the quality of life of inmates. The previous inspection by British inspectors took place 11 years ago.

Mr Hardwick said, “What we found was troubling and concerning, particularly given that the prisons operated in the name of Her Majesty’s Prison Service. Whatever one’s view of the role of imprisonment, most people would expect prisons to hold prisoners safely and decently, and to ensure prisoners leave as better people than when they came in. Northward and Fairbanks fall well short of this standard.”

The British Foreign Office said it was confident the Cayman Islands government had the appetite, ability and commitment to address the shortcomings identified by the inspectors.

As HMP Northward this week celebrated its 35th Anniversary since it first opened, Prisons Director Neil Lavis spoke with The Cayman Reporter concerning the existing conditions but also the significant strides that have been made since the damning 2012 report.

Mr. Lavis said, “It should not come as a shock to anyone that the inspectors reported the poor state of the buildings. That was the case in 2012 when they visited as it is to this day. However we are just about to open a refurbished kitchen and have refurbished part of C wing to hold children.”

Lamenting the need for a new facility, Lavis stated “Evidence suggests that there is a link between the environment in which Prisoners are held and the way that they approach their sentence and rehabilitation.  We desperately need a new prison as this one was built back in the 1980s and is condemned in parts”

While acknowledging the Prison still has a long way to go in making the necessary improvements cited in the 2012 report, Lavis said that some progress has been made.

In 2012, Prisoners at HMP Northward told inspectors they did not feel safe and reported high levels of victimisation by both staff and prisoners. Today, staff-prisoner relationships are said to have improved significantly.  Following a recent follow-up survey by UK inspectors, two thirds of prisoners thought staff treated them with respect, while nearly all women held at Fairbanks said they “felt respected” by staff.

The survey revealed that a new complaints system has been in place for three months and seemed to be working well and prisoners were more positive about the new arrangements. During the 2012 report, Caymanians has previously reported far more negatively on a range of treatment issues, however during the past 18 months no new complaints have been raised which suggests improvements in direct equality issues.

In 2012, inspectors also raised concerns over the safety of juveniles who are incarcerated.  “We had serious concerns for the safety of a small number of children and young adults held at Northward. There were no systems to protect them from predatory behavior, and it says much that those who seemed most concerned for their safety were other prisoners,” said Mr Hardwick.  Since then the safety of juveniles at Northward has improved with the opening of a dedicated unit which provided a more pleasant and suitable living environment for young offenders.

Concerning issues of resettlement and rehabilition, considerable improvements have been made with the establishment of a rehabilitation and re-entry team.  Likewise the provision of unsupervised Release on Temporary License scheme (ROTL) for work and family ties has developed well in recent years, and the implementation of executive release schemes also has seen improved offender management and planning enabling prisoners to be released at their earliest eligibility date.

Mr Lavis has however argued that greater partnership cooperation is still needed with the private sector in creating further opportunities for resettlement into the community by former inmates upon their eventual release and insists more could also be done in the regard which would reduce the high rates of recidivism within the prison system.

Mr Lavis also explained that opening the prison up to the media for a day was to try and dispel some of the myths and show the hard work of the prison staff in the face of massive challenges.  He said the prison system receives people after every other system in society has failed them and does so in extremely difficult conditions with limited resources. As a forgotten place, he said the Corrections Week and anniversary provided an opportunity to show the excellent work at the prison in very trying conditions.

While important strides have been made to Northward following the 2012 UK inspectors reports, Mr Lavis also said the lack of resources at the Cayman Islands’ packed prison is presenting a serious and increasing challenge to prison management, and one of the unfortunate results is that rehabilitation often takes a back seat to security and safety at HMP Northward.  Speaking to the local media Mr Lavis said that negotiations are ongoing to increase the annual prison budget of around $10 million, which is already inadequate to meet the current needs of prisoners.

Local defense attorney Peter Polack said “Neil Lavis should be congratulated for carrying water with a basket” but also insisted “the answer is not newer or more prisons”.

Mr Polack cited comments made in local media by Premier Hon Alden McLaughlin, who pointed to the need to address the Rehabilitation of Offenders Law because too many people were carrying around criminal records for life. He said government had been working for best part of two years to make significant amendments so that when people have conducted themselves properly after one mistake, provided it was not a serious crimes that would make an offender always a potential threat to society, the convictions have to “go away”, as it was a barrier to employment.

Mr Polack questioned what is taking the Government so long to tackle an issue which should have only lasted three months.  

“An amendment to the law should have only taken three months as only the rehabilitation period needed to be amended.  Only three sentences need to amended or changed, why has this taken the Government three years to address?” he queried.

Mr Polack added,” Ten thousand Caymanians with criminal convictions should prove this point. “

The local defence attorney was also critical of the Governor, the Premier and Peter Gough, the special assistant to the Deputy Governor for “running double standards” on rehabilitation periods, citing that “the UK has less severe rehabilitation standards than the Cayman Islands.”

In the UK if you receive a fine for assault, DUI, etc. the rehabilitation period is one year before your record is expunged, in the Cayman Islands for the same offence it is five years.  In the UK if you are imprisoned for any offence for a period of up to six months, the rehabilitation is two years after the sentence has been spent, in the Cayman Islands it is more than triple that at seven years before your record can be cleared.

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Local attorney Peter Polack’s review of comparable legislation shows that not only is the Rehabilitation of Offenders Law stricter in the Cayman Islands than in the UK but the recent Conditional Release Law is also harsher locally.

It is, in some cases, three times harder for an offender to begin the long road toward rehabilitation and re-introduction into society in the Cayman Islands than it is in the United Kingdom.

A recent review conducted by local lawyer Peter Polack has confirmed that not only is the Rehabilitation of Offenders Law stricter in the Cayman Islands than in the UK but the recent Conditional Release Law is also harsher locally.

In England, a fine that takes one year to be expunged or cleared from an individual’s record, while it will take five years for a fine to be erased in the Cayman Islands. Similarly Cayman prisoners will be on licence for the entire remainder of their sentence whereas the UK only requires prisoners to serve only three quarters of that sentence.

Mr Polack said, “This disparity reveals a continued trend by the colonial powers to treat Caymanians in a different standard to that of the UK.”

Premier Hon Alden McLaughlin is responsible for the implementation of the Conditional Release Law as he is also the Minister of Home Affairs.

The Cayman Reporter reached out to the Premier to inquire why it has taken his administration over three years to implement minor amendments to the Rehabilitation of Offenders Law which will seek to reduce these disparities, however no response was forthcoming by press time.

While speaking on the morning talk show Straight Talk on Star 92.7FM, local attorney Steve McField confirmed that the government has been in possession of the necessary draft legal changes submitted to it by the legal department, but have yet to implement these amendments.

Government officials have also lauded the Conditional Release Law 2014, which was passed by legislators over two- years ago, but only came into effect in February, as a law that “paves the way for lifers to receive a minimum term tariff on their sentences and introduces a more formal rehabilitation and release regime for all prisoners.”

However, by comparison with similar systems in operation in the UK, prisoners in the Cayman Islands serving a term of imprisonment exceeding one year, are eligible to be considered for conditional release on licence after serving 60 per cent of the sentence imposed by a court.

In the UK however, offenders sentenced for similar periods will serve only half or 50 per cent of their sentence in prison, with the remainder having the option to be served in the community on licence.

Similar to the UK, prisoners in Cayman released on licence will have to report daily to a pre-assigned probation officer, who will make sure the offenders are keeping the terms of their licence. If an offender breaches their conditions, they may be recalled to prison

However, in the UK, an offender’s licence ends at three-quarters or 75 per cent of the way through the court imposed sentence, meanwhile in the Cayman Islands, a licence granted to a prisoner shall remain in force until the full expiration of the term of his or her sentence.

Likewise, as has been reported locally, the new legislation depends heavily on the rehabilitation and training of prisoners, combined with greater partnership with the private sector because the goal is to reduce reoffending. With an already existing tight budget and ongoing challenging conditions at the prison, the Premier, who has responsibility for prisons under his Home Affairs Ministry, said during this summer’s Finance Committee meeting that “no additional cash had been budgeted” in this financial year for the law.

Not expecting it to be implemented until the 2015/16 financial year begins in July, Mr McLaughlin said that “if it were to be implemented sooner, government would have to find money for it from somewhere else.”

However, in presenting the Strategic Policy Statement in the Legislative Assembly last November, Finance Minister Hon Marco Archer indicated that the 2016/17 final budget of the current Progressives-led administration will result in a forecast surplus to core government of $44.9 million.

The legislation also requires a conditional release board which replaces the existing parole board and which will make the future decisions and orders about those leaving prison under the new, stricter legal regime.

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Commissioner of Police David Baines disbanded the RCIPS Traffic Unit in 2011 as “it was not an efficient use of resources.”

An average of 180 tickets and citations are issued every two weeks in Grand Cayman, which is quite a lot on an island of its small size.

In 2011, Commissioner David Baines ordered a restructuring of police resources and disbanded the dedicated Traffic Unit because “it was not an efficient use of resources”, Mr Baines said. The dedicated unit was merged into the wider police service that year,  when violent gang-related action culminated in six young men being shot, five fatally, over an eleven-day period.

The average world traffic fatality rate is 17.4 per 100,000 people. Low-income countries now have the highest annual road traffic fatality rates at 24.1 per 100,000 while the rate in high-income countries is lowest, at 8.7 per 100,000.

With 60,000 residents Cayman has a rate of 20 fatalities per 100,000 making it one of the most dangerous places to drive a car in the world.

Safer rates are found in Afghanistan, Jamaica, Trinidad, St. Lucia and Mexico, while Iraq matches our rate

Immediately following the decision to disband the dedicated traffic unit in 2011, after being described as a waste of resources, according to the National Roads Authority website “The Cayman Islands recorded nine road traffic deaths in 2011, equivalent to approximately 16.5 traffic deaths per 100,000 inhabitants and almost double the WHO’s 2013 figure of High Income countries.”

And the troubling statistics only increased in subsequent years.

At least 12 people lost their lives in traffic fatalities in 2015, not counting Kate Clayton, a British woman who was injured in a major crash in North Side in January 2015. Coroners found she died as a result of issues relating to her medical care rather than her injuries. That number was three times more than the number of fatalities which occurred in 2014.

With more than 5,000 traffic offenses recorded in 2015, and a whopping 79 per cent increase in the number of tickets issued to drivers for speeding and other offences, traffic statistics seem to suggest that the decision to disband the dedicated unit may have been a deadly mistake.

During the first five months of 2016, already six people have lost their lives along Cayman’s roadways; an average of one fatality a month.

Among the dead are Ethel Venola Ebanks (86) who died Thursday 28 January on Stake Bay Road, Cayman Brac. Her car crashed into a light pole as she was exiting a supermarket car park.  Denvil Roy Mitchell (40) died following a collision on Shamrock Road in Savannah Sunday 21 February when his motorcycle was hit by a Burgundy KIA Sportage near to the Countryside Shopping plaza.  Chris Ollen McLaughlin (30) of East End died following a single-car collision near the Blow Holes, East End when his Toyota left the road and collided with a CUC pole shortly after 11:30pm on 11 March.  Esther Scott (66) was killed on the evening of 18 April on her own property in East End just after a delivery had been made to her home by a Sterling dump truck. Police said she appears to have been struck by the truck as it was leaving. Anthony David James Moore (34), from Savannah, was knocked off his bicycle and killed by a hit and run driver on Hirst Road in the vicinity of Butterfly Circle early on Saturday morning (30 April.)

And in the most recent fatality, though not considered a road fatality which occurred only days after the recent Hit and Run occurred, on Monday 2 May in Bodden Town when Rhoden Luis (69) was killed after becoming pinned between his truck and a palm tree in his yard after the truck shifted into gear while he was working on it.

With the release of the 2015 statistics which indicate there were over 1000 traffic accidents, 1100 tickets issued for speeding, 119 DUI’s and 12 fatalities, the RCIPS said in response to the rise in road accidents that “senior management are said to be moving to change“ what has proven to be a costly decision to disband the dedicated traffic unit.

This reallocation of resources, police say, will be accomplished by “pooling resources from a reconfiguration of internal units as part of the recent shift change, and providing officers for dedicated duty to the Traffic Management Unit in order to increase traffic enforcement and investigation”, which will result in a return of the dedicated unit in 2016.

An expert from the crown prosecution service in the UK, criminal justice advisor (CJA), Claire Wetton, spent three months in Cayman at the beginning of 2015 and was tasked with improving the quality of public prosecutions in general but particularly in serious cases such as financial crime, money laundering, asset recovery and drug trafficking. During 2014 there were 2,759 cases, including traffic matters.

In her report she indicated that “The CJA was advised that the quality of the evidential files has reduced since the traffic unit, which was a successful unit, was disbanded.”

Ms Wetton wrote in her report, “There is the necessary expertise within the RCIPS, however there is no longer a centralised traffic unit and this has a significant effect on the quality of the files delivered to the ODPP. Traffic prosecutions are a significant proportion of cases heard in the summary court and the quality of the files continue to be a reason for adjournments. I do not know why the traffic unit was disbanded and this may have been done for good reasons, but if it were possible to assess the effect this has had on file quality, consideration could be given to whether it needs to be re-established in some format.”

During her time on island she found numerous shortcomings in the local criminal justice syste, with “scope to increase and improve coordinated working within the criminal justice system, particularly between the police service and the Office of the DPP,” she wrote in her summary report.

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Kenneth Bryan has declared his intention to run for office in the May 2017 General Elections. Photo: Submitted

Independent Kenneth Bryan has become the first political candidate to publicly declare his intentions to begin his election campaign bid, approximately 12-months ahead of the next scheduled elections in May 2017.

Though a former PPM candidate in 2013, Mr Bryan said this time he will be running as an Independent but pointed out that “he is willing to work with other likeminded individuals or candidates in the future”

Promising to focus on creating new industries for Cayman, Mr Bryan says “as a Country we spend all of the money we make annually, while both pillars of our economy, namely Finance and Tourism are under threat.  Therefore the need to create new industries for Cayman is essential.”

He added that “these new industries must also specifically provide jobs for Caymanians that enable them the opportunity to earn a viable income and at the same time create strong revenue for our government coffers.”

Other priorities for the first-to-declare candidate include addressing the social shortfalls that presently plague the Cayman Islands such as his top three priorities of unemployment, housing and crime.

Mr Bryan passionately declared, “We need to find a new formula for Education”, placing specific spotlight on “creating a safe learning environment for our children”, referring to the recent headlines of school violence.

“Over the next year I intend to gather together the right people, with the right minds, who I know will rigorously work toward creating a better environment our children so deserve,” Mr Bryan emphasised.

Bryan made mention that “perhaps we might cross-reference with the private schools in creating this new formula for success; however it is evident that the current model is not working and the creation of new school buildings have done little to change this troubling trend.”

When asked why he decided to make his announcements so early ahead of other candidates, Mr Bryan stated that this was simply a fulfillment of a promise made shortly after his very close and narrow 2013 defeat, adding that he assured his faithful constituents he would be back and that he would do so in a timely manner prior to the next election campaign.

This he said was him “honouring his intentions.”

Mr Bryan also noted suggestions made by the present Government that early elections may not necessarily be a certainty, therefore by him launching his campaign bid early he is “preparing for any eventuality.”

Making reference to the current calibre of some politicians’ agendas, running what he described as “murky campaigns” that seek to “smear their opponents and supporters”, he instead pledged “to run a clean and fair campaign” that will not fall prey to such temptations.

“The people are tired of this kind of politics,” he said, as he announced his intentions to contest a seat in the constituency of George Town Central, under the voting system of One Man One Vote which has been promised would occur by the Deputy Governor.

His public announcements so far are invitations whereby he is seeking those interested persons who would support his bid for election, to also become a part of his campaign team, stating “there are many roles for our people to play and areas where different expertise will be required.”

Bryan stated that there will be a role for many in his upcoming election bid. He encouraged those who may have supported him in the past and are still showing strong support, to identify themselves and be a part of the exciting things that are to come.

He added however that he “also encourages those who may not have supported” him in the past, “to never-the-less share their concerns” and allow him the opportunity of working on “bringing those concerns to the forefront and together find resolutions for the betterment of our small nation.”

Concluding, Mr Bryan said in the progressing months, announcements will be made concerning the launch of his campaign headquarters.

Additionally, he encouraged readers of The Cayman Reporter to be on the look-out for further details as he moves ahead, and once again thanked his supporters for their confidence in him as a potential representative.

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As the fallout from the Panama Papers has spread, international social media have been awash with cartoons on the subject.

The International Consortium of Investigative Journalists (ICIJ) published on 9 May a searchable database that strips away the secrecy of nearly 214,000 offshore entities created in the 21 jurisdictions covered by the Panama Papers, among them the Cayman Islands.

The 21 jurisdictions covered by the Panama Papers data vary from the rolling hills of Wyoming to the bustling streets of London to tropical getaways like the British Virgin Islands, and yes, even the Cayman Islands.

Information contained in the recently published database found at offshoreleaks.icij.org , represents the largest ever release of information about offshore companies and the people behind them. This includes, when available, the names of the real owners hidden behind layers of corporate structures, and reveals new details about offshore entities usually kept hidden from the public. They reveal how politicians, banks, criminals and sports celebrities have taken advantage of the secrecy provided by some financial services jurisdictions and, in some cases, broken the law.

In most cases, the identity of the individuals behind the companies registered in these jurisdictions remains secret. That is until recently when both the Cayman Islands and the British Virgin Islands published the Exchange of Notes and Technical Protocols relevant to their agreement to a Centralised Platform of Beneficial Ownership, which enable law enforcement agencies to access information on these companies within 24-hours of making any such request. In cases of urgency, this information according to the Technical Notes, can be accessed and shared within one hour following the initial request.

Among the BVI-registered entities in the Panama Papers data is a company called Wintris Inc. As a result of the massive leak, it was revealed that the company was part-owned by the former prime minister of Iceland Sigmundur David Gunnlaugsson. Mr Gunnlaugsson and his wife, Anna Sigurlaug Pálsdóttir, purchased Wintris in 2007 from Mossack Fonseca through the Luxembourg branch of Iceland’s Landsbanki, and used the shell company to invest in millions of dollars of Icelandic bank bonds. Gunnlaugsson entered parliament in 2009, but failed to declare the assets held by Wintris. After ICIJ and its media partners revealed his connection to the BVI company on 3 April, mass protests erupted outside the parliament building and, barely 48 hours later, Gunnlaugsson announced he was resigning as prime minister.

The Cayman Islands also appears on the published list of companies, showing over 2,500 companies having direct links to the Cayman Islands, with company incorporation in Panama, British Virgin Islands, and the Bahamas The searchable database however also includes a disclaimer which stipulates the list is not intended “to suggest or imply that any persons, companies or other entities included in the ICIJ Offshore Leaks Database have broken the law or otherwise acted improperly”, but goes on to point out instead the “legitimate uses for offshore companies and trusts.”

However, those campaigning to abolish banking secrecy see it far differently.

“The problems go far beyond tax,” explains the Tax Justice Network in the introduction to its Financial Secrecy Index. “In providing secrecy, the offshore world corrupts and distorts markets and investments, shaping them in ways that have nothing to do with efficiency. The secrecy world creates a criminogenic hothouse for multiple evils including fraud, tax cheating, escape from financial regulations, embezzlement, insider dealing, bribery, money laundering, and plenty more.”

The Panama Papers revelations reignited the debate about the need for public registries in which information about who ultimately controls a company be accessible to all. The UK has made disclosure of beneficial owner data mandatory and public, but British overseas territories such the British Virgin Islands and the Cayman Islands, some of the busiest offshore jurisdictions have agreed to share that information only when it is requested by law enforcement.

Answering questions in the Legislative Assembly recently, Minister for Financial Services Hon Wayne Panton said the system agreed by the UK and the Cayman Islands over how beneficial ownership information will be shared with the relevant authorities is safer than a centralised public register because the new platform for access will not require information to be aggregated in one place, which would have made it vulnerable to hackers.

As reported in local media, Minister Panton told the Legislative Assembly that “the threat from online criminals is diminished because the data is retained by the individual financial institutions, and overseas authorities must use a local agency to access requested information.”

The minister explained that protection from cyber-attacks was a major concern for his ministry and the industry, and government was working with Cayman Finance on the details of the system, which has a technology committee that included people from the sector with relevant expertise. In the Legislative Assembly, Cabinet approved $1 million dollars to be used to initially fund the creation of a new cyber-security initiative.

As the fallout from the Panama Papers continues, the US government announced last week that it has sent legislation to Congress to create a centralised federal registry of the actual owners of any newly created company. US authorities said the registry would help law enforcement authorities ferret out the real people behind anonymous companies used in money laundering and other wrongdoing.

The governments of Australia and Germany have said that they too intend to create public registries of company owners.

The post Panama Papers include the Cayman Islands appeared first on The Cayman Reporter.

A US Customs and Border Protection aircraft, used in maritime drug trafficking interdiction.

U.S. Customs and Border Protection (CBP), Air and Marine Operations (AMO) recently conducted operations in Central and South America, using the Cayman Islands as a hub. The operation was primarily intended to assess the risk of illicit maritime traffic transiting the Western Caribbean.

In an interview with The Cayman Reporter, a CBP spokesperson said “U.S. Customs and Border Protection (CBP)engages international partners to collaborate and address mutual concerns related to the illicit flow of narcotics and other contraband. This operation enables CBP to enhance its awareness of maritime traffic, legitimate or otherwise, transiting the Western Caribbean.”

For a period that spanned some 10 days, and in what was described as “active and on-going operations”, the CBP operated out of the Cayman Islands Owen Roberts International Airport, and have become somewhat of a familiar spectacle to ground crews working the tarmac, who first reported sightings of the familiar military grey painted aircraft.

US Customs and Border Protection planes have become a familiar sight on the ORIA tarmac.

U.S. CBP and Marine Operations aircraft have flown several missions to the Cayman Islands this year as part of their ongoing missions, which are operated independently of the Cayman Islands or its authorities, but instead fall under the command and direction of the US Government.

The aircraft being flown by the CBP is the Bombardier DHC-8, which is is a fixed-wing, medium -range multi-role patrol aircraft equipped with multimode radar and electro-optical/infrared sensors that can detect and monitor maritime and surface targets. Video recorders document suspect activities for evidentiary use, and according to a CBP spokesperson “is well suited to accomplish the mission of detecting, disrupting, and interdicting maritime smuggling.”

US Customs and Border Protection’s Air and Marine Operations (AMO) operates two models of the DHC-8 airframe, the Q200 and Q300. These are some of the most fuel efficient aircraft in operation and have the lowest per hour cost of any maritime patrol aircraft in their inventory.

A US Customs and Border Protection aircraft, used in maritime drug trafficking interdiction.

This maritime patrol aircraft can also be converted to a cargo configuration or into a passenger aircraft, making it an ideal aircraft to respond to natural disasters and other emergencies. In 2010, the Caribbean Air and Marine Branch used this aircraft to assist with the relocation of emergency personnel and medical equipment during the crisis following the massive earthquake in Haiti.

While acknowledging that the missions flown out of the Cayman Islands and the movements and patrol areas were described as “operationally sensitive”, The Cayman Reporter inquired if CBP resources either had in the past, or could in the future provide boarder protection assistance for the Cayman Islands, the spokesperson indicated “while not the focus of the operation, U.S. CBP Air and Marine Operations aircrews would advise Royal Cayman Island Police Service of any imminent threat to the Cayman Islands detected while on patrol.”

While data for 2015 was not presently available, in 2014, Air and Marine Operations (AMO) contributed to the apprehension and arrest of 84,397 suspects and the seizure of 997,440 pounds of marijuana, with an estimated worth of $2.55 billion, 115,144 pounds of cocaine, worth an estimated $11.6 billion and 763 weapons.

AMO’s mission sets fall into four broad categories that reflect the agency’s core competencies of interdiction, investigation, domain awareness, and contingency operations and national tasking missions.

AMO performs a range of aviation and maritime contingency operations and national tasking missions, including Disaster Relief, Continuity of Operations, Humanitarian Operations, Enforcement Relocation, Search and Rescue, and National Special Security Events.

Though using the Cayman Islands as a frequent hub, the AMO DHC-8 aircraft are based in Aguadilla Puerto Rico, Miami, Florida, and New Orleans, Louisiana.

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Austin Harris

By Austin Harris

According to an article first published in the Financial Times, the Cayman Islands branded a transparency drive backed by David Cameron as “pointless”, as it mounted a vigorous defense of offshore finance in the run-up to Thursday’s anti-corruption summit.

The overseas territory said it had asked to participate in the high-level summit at Lancaster House, which aims to agree practical steps to “expose corruption”, because it wanted to “add perspective” and address misunderstandings.

Wayne Panton, Minister of Financial Services said “The Cayman Islands already had a more effective approach to rooting out wrongdoing than the approach favoured by the prime minister, which requires companies to list their ultimate owners on a public register.”

He said the UK’s decision to push public registers could be criticised as “weak policymaking” because it did not require the information on the register to be verified. “The small element of abusers of the international financial system … are the very people who are not going to be honest with voluntary disclosures”, Mr Panton stated.

In an interview with the Financial Times, he said the Cayman Islands had adhered to a higher standard for the past 15 years because it required company service providers to collect and verify the information. “The suggestion that going to a central public registry with unverified information is a better approach is frankly very disappointing,” he said.

UK Prime Minister David Cameron, when answering questions from members of his party and the Opposition on 11 May, said that he would be asking the overseas territories to agree to commit to three things when the Anti-Corruption Summit kicks off on Thursday 12 May. They were – Automatic Exchange of Tax Information, Common Reporting Standards for Multi-National Companies and Central Beneficial Information Registries.  He added that “of course we would like to push them further to provide a public registry of beneficial ownership”, when answering questions put to him by Labour Party Leader Jeremy Corbyn.

Though the Cayman Islands agreed to putting in place a Centralised Platform of Beneficial Ownership in April 2016, which they lauded as a “victory” for the Cayman Islands, rather than introduce a public registry as initially requested by the UK. However in May 2016, the UK turned up the heat, demanding a commitment for Automatic Exchange of Information.

During the question and answer time of the UK parliament on the day before the Anti-Corruption Summit was scheduled to begin, Labour Leader Jeremy Corbyn continued his calls to shut down what he classified as “dodgy tax havens”, going so far as to say “we need a British Government who is prepared to chase down this type of corruption.”

In his response, Cameron actually lauded the OT’s for having come a long way in this process and even went as far as defending this progress by stating “most of the OT’s have gone much further than most developed nations in terms of allowing access to information”. He added that it was “far easier today to obtain this information in the OT’s than, for example, it is to obtain the same information from Delaware in the United States.”

These remarks however, are in stark contrast to comments made by the Prime Minister in 2013 when he stated “for too long a small minority have hidden their business dealings behind a complicated web of shell companies.”

While Cameron did seek to appease his Opposition colleagues by stating that UK continues to push the OT’s for public registries, Minister Panton told the Financial Times he “ruled out putting the verified information into the public domain”, saying that business might move to “a jurisdiction that respects privacy more”.

“We believe there is a very clear distinction between secrecy and privacy,” he said

Pundits suggest this argument is likely to go down badly with campaigners who have urged Mr Cameron to “strike a decisive blow at the UK’s role in facilitating global corruption” by demanding full transparency from Britain’s offshore centers.

They say the leaks from a Panamanian law firm demonstrate the threat from secret shell companies, underpinning the need for public registers revealing their beneficial, underlying owners.

David McNair from One, a lobby group, said, “The Panama Papers prove how overseas territories facilitate grand corruption. For the UK’s credibility, the anti-corruption summit must secure public beneficial ownership registers in these jurisdictions.”

The Anti-Corruption Summit opened on Thursday, 12 May in the UK. Additional pressure from the UK has prompted Cayman to repeal its benchmark legislation, the “Confidential Relationship (Preservation) Law” after criticism from the Tax Justice Network, which said individuals risked jail for merely asking for information.

Mr Panton rejected the criticism but said it was taking action “because of perception that it unfortunately created”.

Mr Panton said there had been a “disproportionate focus on the role of offshore”, which neglected the failure of onshore centers, particularly states such as Wyoming, Nevada and Delaware in the US, to meet international standards. He said, “I think the UK has a problem but it pales in comparison with the US problem.”

This point, made by Minister Panton is sound, and the proof may be found in the cynical rationale to the British authorities’ apparent reluctance to counter flows of dirty money into the UK, by diverting attention to the offshore centres, and taking the focus off of the UK’s on involvement in this so-called “corruption”.

Cameron himself has been the loudest spokesperson about tackling abuses of the financial system. In a speech last year, he declared, “I’m determined that the UK must not become a safe haven for corrupt money from around the world.”

But those whose job it is to fight corruption raise a troubling question: what if that is precisely what has already happened?

In a further article published by the Financial Times entitled “Dark Money: London’s Dirty Secret”, it made the argument that “while the vast leak of confidential documents from Panama has reinforced the notion that such outposts (offshore) are the core of the secrecy industry, some experts argue that the real capitals of clandestine finance are in much less exotic places.”  This point was made during David Cameron’s response to Jeremy Corbyn on 11 May when he stated clearly that some of those less exotic places include Delaware in the United States.

Making a case for the argument which suggests offshore is merely a conduit to further the activities of the onshore world, the Financial Times took it a step further when they stated “Britain’s private bankers manage $1.65 trillion of client assets, according to the professional services firm Deloitte, the biggest tally after Switzerland. That is enough money to buy Apple three times over. The City is intimately connected to British Crown dependencies and overseas territories such as Guernsey and the Virgin Islands that supply front companies, anonymous trusts and other types of financial camouflage.”

If you lump them all together,” says Alex Cobham, head of research at the Tax Justice Network campaign group, “the British secrecy network is the biggest in the world.” The National Crime Agency estimated in a report last year that “hundreds of billions of US dollars of criminal money almost certainly continue to be laundered through UK banks, including their subsidiaries, each year.

In July 2014, UK MP Margaret Hodge, who then chaired parliament’s public accounts committee, used the committee to vent public anger over tax dodging. In one memorable exchange, she roasted tax officials after only a single prosecution resulted from the revelation that thousands of Britons had held undisclosed accounts at HSBC’s Swiss bank.

This therefore supports the question: whose job is it to fight corruption and are the Cayman Islands and other OT’s simply being used as a smoke-screen to hide the real dark money that continues to flow through the UK?

Any opinions expressed are the author’s own

The post Commentary: The British secrecy network is the biggest in the world appeared first on The Cayman Reporter.

Outgoing Commissioner of Police David Baines

In less than 14 days, Commissioner of Police David Baines is scheduled to depart the Cayman Islands following the announcement by HE Governor Helen Kilpatrick on 29 March that he would be leaving his post one year prior to the expiration of his contract.

However, questions put to the Ministry of Home Affairs and Royal Cayman Islands Police Service (RCIPS) independently by Deputy Leader of the Opposition, West Bay MLA Bernie Bush concerning Mr Baines’ performance and possible misconduct remain unanswered.

In a press release issued by the Governor’s Office at the end of March, announcing the planned departure of Commissioner Baines, Governor Kilpatrick stated “the recent barrage of unfair criticism and defamatory comments has undermined the commissioner’s authority to the extent that his leadership of the RCIPS is no longer tenable.”

This “barrage” came in the form of two private members motions filed by members of the unified Opposition concerning the effectiveness and management of the RCIPS. Although Premier Hon Alden McLaughlin criticised the Opposition for what he called their “irresponsible actions”, the motions in question did finally come before the Legislative Assembly (LA) in a special session on 25 April.

West Bay MLA Bernie Bush

However, prior to the private members motions brought and debated in the LA, Deputy Leader of the Opposition, Bernie Bush on 3 March, submitted a 27-point complaint against the Commissioner of Police, pursuant to Section 44 of the Public Service Management Law calling for Mr Baines’ performance to be appraised and for his immediate removal if his performance was found wanting.

Speaking to the media at the time, Mr Bush said the issues raised in his questions “amounted not just to inadequate performance over time but also misconduct.”

The litany of complaints included, but were not limited to: GSR contamination mismanagement; problems with search warrants; the number of police vehicle crashes per year; the hiring and payment of a policeman charged with murder in his home country (and later convicted); drugs and firearms going missing from police custody; potentially illegal roadblocks; 582 outstanding warrants of arrest; the increase in public complaints against the police; and discriminatory hiring practices.

Additionally, on 31 March, Mr Bush submitted a further eight questions to the senior investigator of the Anti-Corruption Unit, Detective Inspector Richard Oliver requesting an integrity test be performed on Commissioner Baines prior to his departure.

Her Excellency Governor Helen Kilpatrick

Mr Baines belittled the complaints as “groundless” and dismissed them as nothing more than gossip. In a short statement issued on 3 April, Mr Baines stated “Mr Bush, once again, demonstrates his ample capacity to repeat rumour, speculation and gossip without checking the facts, thereby speaking with total confidence from a position of total ignorance,” as he went on to assert, “Why let facts get in the way of a ‘grandstanding’ media headline?”

At the time, speaking to The Cayman Reporter, Mr Bush said the reason why he pressed for answers was due to the fact that “the Commissioner has successfully avoided for six years giving specific answers to specific questions.” With his departure now imminent, Mr Bush said, “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.”

The Chamber of Commerce Council also called on the out-going Commissioner to produce and publish a report detailing the difficulties within the Royal Cayman Islands Police Service.

In a short statement from the Chamber Council, the members said that the change in leadership with David Baines’ departure presented an opportunity to review the service, as they pointed to concerns about violent crime and selective enforcement of the law.

“Once this assessment has been undertaken, the incoming commissioner should prepare a plan of action to improve the ability of the Royal Cayman Islands Police Service (RCIPS) to protect and serve the people of the Cayman Islands. To the extent that the plan requires any legislative or government support that should be identified,” the release stated.

The Cayman Reporter wrote to the Governor’s Office enquiring if the 27-point complaint and eight subsequent questions raised by Mr Bush would be answered prior to Mr Baines’ departure scheduled for 31 May, and if an integrity test would be conducted.

In the response, the Governor’s Office advised only that, “The Governor will reply to Mr Bernie Bush in due course.”

Although recent attempts to gain comment from Mr. Bush regarding what he previously called “passing the buck” on the part of both the Ministry of Home Affairs and the Anti Corruption Commission for failing to address his concerns were unsuccessful, The Cayman Reporter did obtain details on the eight subsequent questions put to the senior investigator of the Anti-Corruption Unit Richard Oliver.

The questions raised served to underpin Bush’s request for an integrity test, and were as follows:

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 Director of Public Prosecutions (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.

The post Baines’ departure: Questions remain unanswered appeared first on The Cayman Reporter.

Outgoing Commissioner of Police David Baines

53 applicants have applied to become Cayman’s next Commissioner of Police according to the Governor’s Office in response to questions submitted by The Cayman Reporter.

Of them, we are told some include Caymanian applicants, but no details were provided on how many Caymanians may have applied.

The search for a new Commissioner of Police began shortly after HE Governor Helen Kilpatrick in March announced that David Baines would not be continuing in his role, which at the time was said to be attributed to the “barrage of unfair criticism and defamatory comments” that “undermined the commissioner’s authority to the extent that his leadership of the RCIPS (Royal Cayman Islands Police Service) was no longer tenable.”

Deputy Police Commissioner Anthony Ennis was said to be taking over the reins of the service until a suitable commissioner had been identified and appointed through the recruitment process.

Mr Baines will receive “what he is entitled to” under the remainder of his contract, according to the governor’s statement, including more than $130,000 in salary.

At least five other senior police officers also gave notice of their intention to leave the police service, but these departures are said to be unrelated to Mr Baines’ decision to leave his post one year ahead of the scheduled expiration of his employment contract.

RCIPS Chief Superintendent Kurt Walton

After less than one year at the helm of the RCIPS Financial Crimes and Joint Intelligence units, Detective Superintendent Stephen Ratcliffe resigned and was scheduled to depart the island. No replacement has yet been identified.

The RCIPS did indicate in local media reports that Mr Ratcliffe, whose father was police commissioner here in the 1990s, was leaving for “reasons personal to him”, though several independent sources suggested that his departure relates to a dispute with senior management in connection with a high profile probe.

Ratcliffe was one of eight officers to walk off the job in 2015, including cold case chief Denis Walkington who was identified as the only detective permanently assigned to the Cold Case Unit, whose investigations include the disappearances of Anna Evans and Nathan Clarke who both vanished without a trace.

Deputy Commissioner Stephen Brougham whose contract ends in September 2016, also indicated that he will leave the police service when his contract expires.

Prior to the announcement of Mr Baines’ departure, Superintendent Robert Scotland, the head of uniform and district operations, announced his intention to depart for other employment outside of the police service and is scheduled to make his departure on 31 May – the same date that Mr Baines is expected to leave his post.

The chief of detectives, Superintendent Mike Cranswick, is also expected to leave when his contract expires in early June 2016. According to a published police statement, “the contributions of both Mr Cranswick and Mr  Scotland to the RCIPS have been substantial and they will be missed.”

Rounding off the senior officer departures is the absence of Superintendent Angelique Howell, who left to pursue an articled clerkship at a local law firm, but remains on an 18-month secondment and could potentially return to the police service.

Chief Superintendent Kurt Walton will be the second highest-ranking member of the police service following these top brass departures. One other full-time police superintendent, Adrian Seales, remains at the RCIPS.

There has been no indication that any succession planning has already taken place to account for these senior level departures. The Governor’s Office informed the public in a press statement following the lack of confidence motion concerning police management and methods debated in the Legislative Assembly on 25 April that “succession planning for Caymanian officers is already required in the new commissioner’s job description.”

As the search for a new top cop continues, the Governor’s Office has indicated that the interview panel to decide who the next Commissioner of Police will be consists of: the Governor, the Deputy Governor , the present Commissioner of Police, Bermuda Police Service (Commissioner De Silva) and two members drawn from nominations from the Premier and Leader of Opposition.

Also according to the Governor’s Office, the vacancy has been advertised locally and internationally on standard police recruitment forums, and of the 53 applicants received so far, it is expected to begin the short-listing process next week and have interviews arranged in due course.

Once a selection has been made, the Governor’s Office indicated that they would afterwards issue a statement to announce the appointment once it has been confirmed.

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The current bulk fuel storage facility at Jackson Point on South Church Street. The Navasota Energy proposal involved moving bulk fuel storage from both the Jackson Point Terminal as well as the Home Gas propane facility on Walkers Road to an alternative site in East End.

A local company calling itself Clean Gas Ltd announced last week its intention to break up the nearly 50 year monopoly in Cayman’s propane sector by submitting a planning application for the development of a bulk storage facility capable of holding up to 300,000 gallons of propane fuel.

The company plans to develop the facility in Grand Cayman’s Industrial Park area just off Sparky’s Drive, on land close to the islands’ sole utility provider Caribbean Utilities Company (CUC), and is the brainchild of four local investors namely Randy Merren, Marcus Cumber, James Bergstrom and present Minister of Financial Services, Environment & Commerce Hon Wayne Panton. The same initial investors also have holdings in C3 Pure Fibre, the islands’ newest telecommunications and cable provider.

Speaking to the local press, investor Marcus Cumber said “It’s about giving a choice to consumers in the Cayman Islands. When we saw Digicel enter the market against Cable and Wireless, telecom prices dropped significantly; the same thing will happen with propane fuel.” He said “you will see that before we even open our doors prices will come down” in Cayman.

Assuming planning approval is granted, Mr Cumber said the build-out of the headquarters and storage facility would be fairly simple, allowing for a fast start up before the end of the year and the company would create employment for seven employees. He said he “was confident those posts could be filled by Caymanians”.

“Clean Gas will service residential, industrial and commercial accounts, and perhaps even the small tanks provided at gasoline stations”, Mr Cumber said. It will not, however, enter the propane appliance market. “We just want to be a supplier and we just want to bring the price down,” he said.

This is not the first time that a fuel storage facility and alternative fuel provider has been entertained by the incumbent PPM-lead coalition government.

The PPM government announced in June 2014 that it had engaged Navasota Energy to provide an alternative fuel provider to the long standing Rubis and Sol brands, formerly Texaco and Esso. Negotiations began shortly after the PPM took office in May 2013, with the Memorandum of Understanding (MoU) being signed in April 2014. The signing of this MoU was listed among a number of other accomplishments the PPM boasted following their first year in office in a report which was tabled in the Legislative Assembly entitled “On course: Achievements 2013-2014”

The proposal called for the development of a “modern bulk fuel facility” and according to the MoU, Navasota would act as a consultant or adviser to government, and was said at the time, “to not be costing the government anything”.

“The Cayman Islands location has geographical advantages for the supply of fuel to various other Caribbean jurisdictions,” Hon Kurt Tibbetts, Planning Minister said. “So Navasota has entered into a memorandum of understanding with the Cayman Islands whereby they are going to seek interested parties and, if they are successful, then we will sit and talk to these interested parties to see whether it is something that is feasible or not.”

According to the MoU signed in April 2014, the proposal would consider an onshore bulk storage facility that could initially fill fuel tankers heading to the Central and Eastern Caribbean Sea. It was also considered at the time, that the facility could provide fueling for both the islands Cruise Ship industry as well as reducing the cost to the national flag carrier Cayman Airways by several million dollars annually as a result of the discounted fuel that would be provided.

The proposal also claimed to reduce the cost of living by a minimum of 15 per cent as a result of increased fuel volume, which would in turn dramatically reduce the cost of fuel across the island, and thus produce a reduction in the cost of living.

According to the then proposal, a storage location would need to be considered close to shore, but in a far more remote area than the current bulk storage facility located along the densely populated South Church area, where the current Jackson Terminal is located. A site in East End was identified as ideal for this new development which also would produce a reclamation of land that is currently used on South Church Street, the site of the existing bulk fuel supplier, and relocating this facility, together with the Home Gas propane facility located on Walkers Road, to an alternate location away from schools, homes and local businesses. The cost of this reclamation would be borne by the current suppliers, once the new facility was to be constructed.

Those initial talks stalled and were eventually torpedoed when the Independent MLAs for East End and North Side, namely Arden McLean and Ezzard Miller respectively opposed the development saying they would “not support the development in their backyard”.

Commenting on the recent proposal by Clean Gas Ltd, a spokesperson for Navasota Energy said the company was befuddled by the recent announcement stating that “the proposal calls for a relocation of dangerous substances from one densely populated area to another, which is akin to playing Russian Roulette with the local population” in the event of a disaster.

The pipeline that has been utilised for the past 30+ years to transport fuel and propane from the South Church Street depots to CUC and the Airport is a “schedule 20, single wall pipeline”, whereby industry standard today is “schedule 40, double wall pipeline”; suggesting that the current infrastructure is not only out-dated, but falls below the minimum industry standards for safety.

The key difference between the current proposed project and the former 2014 proposal is that under the Navasota plan, the facilities would be moved out of George Town and its heavy population. In addition to relocating the bulk fuel storage tanks located at Jackson Terminal, it also included plans to relocate the propane storage tanks used by Home Gas, which are located on Walkers Road near three major schools.

In addition, while Clean Gas Ltd said it planned to create employment for seven people, the Navasota proposal would have more than doubled that with 18 permanent jobs created, with additional infrastructure which would have included a new 4four-lane highway from Newlands to East End, together with a Community Centre in East End, paid and maintained by the developer.

However, as a result of the staunch criticisms from the Independent MLAs this large scale project was shelved, which again according to Navasota “deprived 60,000 people of the Cayman Islands the benefit of a lowered cost of living simply to satisfy the out-dated fears of two local MLAs”.

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The Aedes Aegypti mosquito transmits a variety of arboviruses such as Dengue Fever (DENV-1, DENV-2, DENV-3, DENV-4), Chikungunya (CHIKV), Yellow Fever (YFV), and also Zika (ZIKV), which have caused outbreaks within the wider Caribbean and other sub-tropical regions over the past decade.

There is a serious need for the creation of new technologies to combat the growing threat of the Aedes Aegypti mosquito in the wider Caribbean and in recent years, specifically the Cayman Islands. The Genetically Modified (GM) Mosquito has been heralded as that possible solution and 22-million will be released in the Cayman Islands over a period of 9-months in order to prove this theory, which according to the World Health Organisation (WHO) is showing much promise.

The reason the region has been placed on high alert is because they transmit a variety of arboviruses such as Dengue Fever (DENV-1, DENV-2, DENV-3, DENV-4), Chikungunya (CHIKV), Yellow Fever (YFV), and also Zika (ZIKV), which have caused outbreaks within the wider Caribbean and other sub-tropical regions over the past decade.

At present, all the existing mitigation tools used to combat this threat to the region as well as locally have become largely ineffective, and in the Cayman Islands the Aedes Aegypti have developed a resistance to the commonly used insecticide that is used in both aerial and terrestrial spraying.

Whereas dengue viruses are endemic throughout territories of the United States, including Puerto Rico and the U.S. Virgin Islands, most recently, focal outbreaks of locally transmitted dengue have occurred in Florida, Hawaii, and Texas. In 2005, DENV (Dengue) was considered a global public health concern.

Also in 2005, Chikungunya (CHIKV) emerged, first in the Indian Ocean but quickly spread and typically manifests as fever, joint pain, and rash. In 2014, 12 cases of locally acquired chikungunya infections were reported in Florida, according to the Centers for Disease Control (CDC). Chikungunya first appeared in the Caribbean in 2014 with the first major outbreak recorded in 2015.

This diagram shows how GM mosquitos work

In 2007, Zika virus (ZIKV), which typically manifests as fever, joint pain, rash, and conjunctivitis, emerged for the first time outside Africa and Asia, in Yap State in Micronesia. Six years later, the virus caused a large outbreak in French Polynesia and then spread to other Pacific islands.  In May 2015, autochthonous cases of Zika virus infection were confirmed in Brazil and by the end of that year, Brazil had declared an outbreak, and the virus had spread to several neighbouring countries, including Central America, Mexico and the Caribbean. The CDC says it is expected that Zika transmission will increase throughout the region escalating the incidence of infection in returning travelers and the possibility of local transmission.

Presently, a Yellow Fever outbreak was detected in Angola late in December 2015 and confirmed by the Institut Pasteur Dakar (IP-D) on January 20, 2016. Subsequently, a rapid increase in the number of cases has been observed. As of May 19, 2016, Angola has reported 2420 suspected cases of yellow fever with 298 deaths.

All of these abroviruses are transmitted by a specific mosquito; the Aedes Aegypti which is commonly referred to as “the yellow fever mosquito” and may be recognised by its distinctive white markings on its legs and a marking in the form of a lyre on the upper surface of the thorax.

The concept of the GM Mosquito is a new angle on an old technique, which emerged from the sterile insect technique (SIT) which was first developed in the United States and later in the Caribbean in the 1950s to combat and eliminate the screw-worm which was decimating livestock herds across the American South.  At the time, red meat and dairy supplies were affected across Mexico, Central America, and South America.

Sterile Insect Technique proved to be a successful method of biological insect control, whereby overwhelming numbers of sterile insects are released into the wild. The released insects are normally male, as the females cause the damage usually by laying eggs in the crop, or, in the case of mosquitos, taking blood from humans.  The problem identified with the Sterile Insect Technique was that radiation was used to create the insect, which in part impacted the overall health of the insects and was discontinued, however the theory was sound and provided the foundation upon which the more modern, GM Mosquitos are based.

The improvement to this technique, according to Dr Alan Wheeler, Assistant Director of Research and Development at the Mosquito Research and Control Unit (MRCU), can be found in what is described as a “dominant lethal gene” which allows the mosquito to mate with other female Aedes Aegypti but because it is sterile, the larvae that is produced die at the fourth stage of gestation and never emerge as adults; thereby reducing the overall population and subsequent spread of viruses.

Much hysteria has been created on the worldwide web as it relates to genetic modification suggesting “it is against God’s Will”, however according to Dr Wheeler, much of this criticism is unjustified and genetic modification has existed for centuries. “Look at dogs, for example, which no longer represent the animals that first appeared in the world but have been bred or genetically modified to produce the result that is desired in a much quicker time frame,” he said.

The genetic modification of mosquitos were developed by a UK company, Oxitech, who are partnering with MRCU in this initiative and are described as a pioneer in controlling insects that spread disease and damage crops, in a way that is sustainable, environmentally friendly and cost effective. Avoiding the previous sterilisation by radiation used in the former sterile insect technique, modifications are made with the insertion of two genes into the mosquito that make it sterile.

Dr Wheeler says the process is “incredibly environmentally friendly and if successful, there will be no need to spray insecticide which, in some cases, has proven to have negative impacts on humans, it is target specific to the Aedes Aegypti and not any other type of mosquito, which counters the argument that they will interrupt an important part of the natural food chain”, adding that “Aedes Aegypti are an invasive species and not indigenous to the Cayman Islands.”

Dr Wheeler accepts that biological control does not have a good history, drawing the example of Australia, where rabbits were first introduced for hunting, but because of the alarming rate of reproduction caused Australia to be over-run by rabbits which lead to the introduction of foxes to cull this threat. However soon after it was discovered that rabbits were too fast for the foxes and they thereafter adapted to hunting and killing local birds. Dr Wheeler says “the beauty of this process is that the mosquito’s are sterile and will not produce offspring which limits the negative impacts, and should any negative impacts be discovered as part of this 9-month trial process, they can be immediately removed from the population as easily as they were first introduced.”

Given than the GM mosquitos are bred to address specifically the Aedis Aegypti, it will not harm the other 36 indigenous species of mosquito such as the Black Salt-Marsh mosquito that has been identified as an important part of the natural food chain and is most commonly found after sunset and is responsible for most of the bites encountered in the Cayman Islands. The difference in this and the other 35 species found in Cayman is that no others carry the arboviruses such as Zika.

If the process of GM mosquitos is successful in Cayman it will not mean the eradication of all mosquitos but merely the disease transmitting mosquitos. This, if successful, will also have tremendous positive impact on the Cayman Islands tourism sector.  “We actually receive several thousand calls every year from perspective tourists who are considering the Cayman Islands as their next vacation destination, but because the fear of mosquito-borne diseases are so real, many choose otherwise”, Dr Wheeler stated, while adding “imagine the economic windfall for the Cayman Islands if it could boast not just crystal clear water and white sandy beaches, but also that it boasts a disease-free zone from caused by the invasion of Aedes Aegypti.”

22 million GM mosquitos are scheduled to be released over a period of 9-months in the Cayman Islands as part of an ongoing experimental technique which will be closely monitored. The experiment is not exclusive to the Cayman Islands and are also being trialed in Brazil and Panama and other impacted countries, however if successful the programme will be expanded to include Cayman and other nations impacted by the outbreak of the arbovirus transmitting mosquitos.  The mosquitos will not be modified in Cayman, but instead mosquito eggs will be imported by MRCU, bred in captivity in a laboratory environment where the males can be separated from the females, with only the sterile males being introduced into the wild.  The females will be destroyed.

The costs associated with this experiment are somewhat of a closely guarded secret and Dr Wheeler was careful not to reveal these costs, but said that in his opinion, “It is extremely cost-effective and if successful, the cost benefit to the Cayman Islands both in terms of public health as well as the direct economic benefit in increased tourism more than justifies the experiment and its associated costs.”

Dr Wheeler also stressed that contrary to some public opinion, and in particular information that has emerged online following the outbreak of Zika which he says “is unsubstantiated hysteria”, the GM mosquitos do not represent a threat to human beings in anyway but in fact, “represent an environmentally friendly solution”.

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The Parent Teacher Association (PTA) at Savannah Primary School has taken the school’s lack of resources into their own hands, launching a petition demanding that the Ministry of Education address any deficiencies at the school.

Savannah Primary School. The school has grown from 175 students in 2004 to 500 students in 2016. It is now one of the largest primary schools in the Cayman Islands based on student numbers.

Following the Cayman Islands Baseline Inspection of Schools Report of June 2015, which identified numerous issues impacting the academic performance of students between the ages of five years to 18 years of age in public schools across the Cayman Islands, and which gave Savannah Primary School a failing grade, parents are petitioning the Cayman Islands Government to take immediate action.

The baseline inspection report identified several issues relevant to Cayman Islands public schools including, but not limited to inadequate teaching quality, inadequate staffing levels, poor quality of accommodation and resources, poorly prepared and inadequate numbers of teaching assistants, and unprepared and inadequate numbers of special education needs coordinators.

Almost one year later, with no apparent action being taken by the Ministry of Education to provide adequate staffing and resources at the fast-growing school, parents of the Savannah Primary School, following a meeting of the Parent Teacher Association (PTA) Executive Council on 20 May, have taken their need for resources to a petition that is presently circulating in the public domain seeking to force Ministry of Education officials to take notice and take action.

The Savannah Primary School PTA has been asking for more resources from the Ministry of Education for the past year.

The petition, which can be found at www.change.org and is also included on the Facebook page for the Savannah Primary School Cayman Islands, was launched on Wednesday, 25 May and states the following:

“We, the parents of Savannah Primary School students are gravely concerned at the unsatisfactory level of academic achievement and the increased behavioural related issues within the School. This is as a result of inadequate staffing resources being allocated to the school.”

“For the upcoming 2016/17 Academic Year, we are strongly calling on the Ministry of Education to increase the resources being allocated to Savannah Primary School to the appropriate number required to properly deliver Education and enhance discipline for all students at the school in accordance with the Governments Broad Outcome of becoming a Centre of Excellence in Education.”

“This includes increasing the numbers of teachers, support assistants and Specialists (specifically to address those students with special learning and behaviour needs) at the school from the current level to the appropriate number required. Without the appropriate resources being allocated, there can be no sustained improvement in the academic levels at the school.”

The petition was first circulated in hard copy immediately following the PTA meeting of 20 May and after only the first day attracted almost 200 signatories from parents of Savannah Primary School supporting the initiative.  An online petition began on Wednesday 25 May, which as of press time had attracted a further 40 online signatures.

The Cayman Reporter spoke with Mark Scotland, President of the Savannah Primary PTA since 2005, who  said “The PTA of Savannah Primary have been appealing to the Ministry of Education for over a year now concerning the conditions at the school which has witnessed an explosion in growth of 175 students in 2004, to almost 500 students in 2016.”

Mr Scotland mentioned that even before the Baseline Inspection of Schools Report was published in 2015 that “The PTA had been appealing to the Ministry of Education for greater resources”, adding that the area of greatest need was in the special education programmes offered by the school which is described as “severely understaffed and as result is leading to significant classroom disruptions”.

While the lack of appropriate resources has been known for some time, government officials have yet to provide the necessary funding to address these gaps, which impact all public primary and secondary schools across the Cayman Islands.

Ashley Watler, Executive Treasurer for the Savannah Primary School PTA said, “We reached out to the Ministry of Education in June 2015 asking for specifically four things – confirmation that six assistant teachers would be provided, the provision of a deputy principal, provision of SENS (Special Education Needs Specialists), and the need for greater accommodations to meet the needs relevant to the growth of the schools.”

She stated that the “Ministry of Education came back with a negative response saying that they are unable to confirm when these resources will be filled though they hoped to have it included in the 2016/2017 18-month budget that is scheduled to be debated on 30 May 2016”, which will represent the final budget of the PPM-lead Coalition Government ahead of the 2017 General Elections.

Speaking on “Straight Talk with Austin Harris” on Wednesday, Independent Bodden Town MLA Alva Suckoo said, “Despite the boast of achieving a budget surplus for three consecutive years, the Cayman Islands Government (CIG) is bound by commitments outlined in the Framework for Fiscal Responsibility (FFR) which prohibits CIG from spending any part of this surplus.”

However, he contended that “it was a question of priorities” and given the Government’s remarks that education is important, “valuable resources have been spent on Cruise Berthing for example, that could have been used to address the gaps that exist in education.”

In response to the needs raised both by the Baseline Inspection Report combined with the long-standing demands from parents, Mr Suckoo said he submitted a Private Member’s Motion on Friday, 20 May which is presently awaiting the approval of the Speaker of the Legislative Assembly, Hon Juliana O’Connor-Connolly .  The motion will ask the Government to “immediately put in place policies and make the appropriations required in order to address the issues raised.”

The Private Member’s Motion also seeks to achieve a commitment from the Government to consider resources for the completion of “a third primary school in the district of Bodden Town no later than June 2018” which he says is needed in order to facilitate the population growth of Bodden Town and by extension, the annual numbers of new students enrolling in primary schools in the district.

Attempts to contact Minister of Education Hon Tara Rivers for comment were unsuccessful as of press time.

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Elected representatives approved some 51 amendments to the National Pensions Law on 4 May in the Legislative Assembly.

Another petition has found its way in the public domain, this time challenging three out of the 51 amendments that were recently approved in the Legislative Assembly to the National Pensions Law. The petition, which can be found at www.change.org and represents an initiative started by Michael Caputo, has already gained 70 supporters as of press time. It challenges three specific amendments.

Those amendments being challenged include: increasing the pensionable age from 60 to 65, increasing the pension threshold to $87,000, which Minister Tara Rivers said during her contribution would offer a better income replacement of around 60%, when combined with the increase in retirement age. The third challenge outlined in the petition also opposed being prevented from receiving your pension benefits in a lump sum after you leave the Island.

Amendments to some 51 out of a total of 95 clauses in the National Pensions Bill, were approved on Wednesday 4 May in the Legislative Assembly. However it was not a unanimous vote for the long awaited Bill, some 20 years in the making, as four members were counted absent when the division on the legislation was called for at 9pm.

Opposition Leader Hon McKeeva Bush, his fellow Opposition members Bernie Bush and Captain Eugene Ebanks were counted as absent. Independent North Side MLA Ezzard Miller voted for the amendments. Bodden Town MLA Anthony Eden did not attend Wednesday’s sitting.

Independent MLAs Alva Suckoo, Winston Connolly and Arden McLean joined with Government MLAs and voted in favour of the amendments

Minister Rivers, in laying the Bill, also hinted that there were still yet more changes that are required and may be forthcoming in the LA. In her extensive presentation, the minister said the bill addressed long-standing concerns, including the culture of non-compliance, with larger and more fines and better regulation of the actual pension providers.

As well as an increase in the pension age, the time employers must start paying pension for their work permit holders has been cut to six months after their start date but local workers must begin immediately. Employees working less than 15 hours will still require a pension because, she said, the idea of leaving them out was not supported during consultation.

North Side MLA Ezzard Miller in his contributions to the debate described the law as “not fit for purpose”.

“Any law that needs that amount of changes cannot meet the test of being good legislation,” Mr Miller argued. He said he agreed with the increasing of the retirement age from 60 to 65 but he did not understand why the definition needs to be reworded.

Mr Miller said the original law was hijacked by the financial services sector and the Chamber of Commerce, maintaining that, with around fifteen plans, it was clear they were making profit from it.

Pointing to the sheer number of pension funds available, Mr Miller argued that the government would not be able to afford to regulate the sector, and instead called for a single national pension plan and an entirely new system that met the government aims of actually having a scheme that gave people enough to live on when they retire.

He also queried what impact fines would have on the significant numbers of employers who have not complied but have never been prosecuted.

George Town MLA, Winston Connolly, in his contribution to the debate, agreed that the law needs a complete overhaul and suggested that the Bill be removed and Government start from scratch to create a proper bill that will meet the needs of the working people in Cayman.

Premier Hon Alden McLaughlin came to the support of his employment minister, who is now the only non-PPM member in government, congratulating her for fulfilling what was a key plank in her 2013 political campaign. However while on the one hand the Premier praised the minister, he also challenged the notion that the amendments presented will help workers build a pension they could live on in their retirement.

“It is not perfect, but it is better that what exists in the present regime,” the Premier added.

While no deadline has been stipulated for the closing date on the petition now circulating online, Mr Caputo indicated that once the necessary signatures have been achieved he will submit the petition to East End and North Side Independent MLAs Arden McLean and Ezzard Miller respectively.

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Hon Wayne Panton, Minister of Financial Services

Despite recent regulatory changes, which include planned changes to financial services legislation, the Cayman Islands remains in the top three foreign owners of US government debt.

According to an article that first appeared in Bloomberg, “the tiny Cayman Islands” is home to $265 billion of Treasuries as of March 2016.

This is up 31 percent from a year earlier, according to data from the US Treasury Department. Cayman ranks behind usual suspects China and Japan.  Those nations, the world’s second- and third-biggest economies, each own more than $1 trillion of Treasuries.

The surge in ownership of US debt for Cayman shows that hedge funds are joining more traditional mutual fund managers in buying Treasuries amid lackluster returns in other assets, with many global stock indexes posting losses in 2016. Negative bond yields in Europe and Japan are also pushing asset managers into the $13.4 trillion Treasuries market, which is on pace to gain for a third consecutive year.

Cayman Islands holdings of US Treasuries has steadily increased.

Hedge Funds love to set up shop offshore, according to Forbes, and it’s not because of the weather. About 85 percent of the world’s hedge-fund assets are domiciled in the Cayman Islands, according to a 2014 report by consulting firm Oliver Wyman & Co., outranking the competing jurisdictions of BVI, Bermuda and Jersey. The Cayman Islands has three times as many Funds as the second most popular offshore jurisdiction for funds, the BVI.

In addition to having a robust regulatory regime in a stable jurisdiction with a legal system that is based on common law, institutional investors flock to the Cayman Islands specifically for its tax neutrality, which allows investors to avoid being saddled with the income or withholding tax burden on all redemption payouts.

Anthony Travers, chairman of the Cayman Islands Stock Exchange

In addition, Cayman is attractive to institutional investors in US Treasuries because many highly professional service providers including, lawyers and accountants are located in the Cayman Islands, which creates greater “speed to market” by allowing Funds to be easily established and registered.

Eight out of 10 hedge funds are domiciled in the Cayman Islands because they can invest in the US without going through the convoluted US tax filing procedure for thousands of investments a year. In short – the Cayman Islands location makes the paperwork easier for foreign investors.

Hedge funds invest in exotic investment strategies, such as investing in shares with the expectation that their prices will go down, not up. Investment is often made through a single managed fund which, in turn, can invest in dozens of hedge funds, most of which are micro-businesses operating in tax neutral jurisdictions such as Cayman.

Hedge funds established in the Cayman Islands will typically take the form of either a company, a limited partnership (the most common form) or a unit trust. In practice most registered funds are set up as exempted companies limited by shares as this is the simplest vehicle to establish and administer.

Exempted companies are the most commonly used form of vehicle for hedge funds. Incorporation is rapid (usually within 24 hours of receipt of instructions) and is relatively inexpensive. The initial filing requirements upon incorporation are straightforward. An exempted company must have a registered office in the Cayman Islands and keep registers of its directors and any security interests granted by the company at its registered office

Investor’s subscribe for shares, usually under the terms of a subscription agreement and an offering document, and the fund in turn invests the capital raised from subscribers in the investments and market(s) described in the offering document.

The Companies Law (2013 Revision) (the “Companies Law”) permits any exempted company to apply to the Registrar of Companies to be registered as an Exempted Segregated Portfolio company (SPC). Once registered as an SPC, a number of segregated portfolios can be operated by the Company which each have the benefit of statutory segregation of their respective assets and liabilities. Such structures have been used for multi-class, umbrella and master-feeder hedge fund structures.

The benefits of the Exempt Fund are that there are no Cayman Islands Monetary Authority (CIMA) filing fees, no requirement to appoint an auditor and no requirement to appoint a fund administrator. This structure provides a low cost solution for emerging managers.

The success of Cayman’s Hedge Fund industry however has not happened without its fair share of challenges and the avalanche of regulatory changes since the 2009 financial crisis, have caused a few headaches for fund managers in the Cayman Islands.

As of 2010, changes to United States federal law now requires US persons to have yearly reports of their accounts and their non-US financial accounts. The law also requires all non-US financial institutions to search records of suspected persons for reporting their assets and identities.

The Cayman Islands has in place an intergovernmental agreement with the United States which requires Cayman funds to disclose information regarding investors whose accounts may be considered “reportable accounts” under the Foreign Account Tax Compliance Act (“FATCA”). Reportable accounts are financial accounts where the account holder is either a ‘specified US person’ or is a non-US entity that is the controlling persons of which include one or more specified US persons.

In 2015, the Cayman Islands opened the Centralised Platform for the Exchange of Beneficial Ownership Information but only just last month, declined to participate in the Automatic Exchange of Information as required by the recent UK Anti-Corruption Summit.

On the European continent, a decision by the European Securities and Markets Authority (Esma) not to grant a Europe-wide marketing “passport” to US hedge fund managers meant that almost all of the world’s largest hedge fund managers must continue to apply to national regulators in each EU member state for permission to sell their funds in those countries.

Anthony Travers, chairman of the Cayman Islands Stock Exchange, said Esma had adopted a “fortress Europe mentality” and that its decision would deny European investors access to managers that could deliver superior returns.

The Cayman Islands government in response said it would amend its financial services regime to ensure an EU marketing “passport” could be extended to funds and managers domiciled there.

“We expect this will satisfy Esma requirements and strongly position Cayman for a positive assessment,” said Hon Wayne Panton, Minister of Financial Services.

Despite challenges within the regulatory environment in both the US and Europe, Cayman is still expected to continue to benefit from its historical position as a globally respected offshore fund domicile aided by its evolving oversight that is said to be keeping pace with the shift in global regulations.

When asked what growth opportunities and challenges the next 12 months hold for US hedge fund managers considering establishing Cayman funds, Ben Leung, Managing Partner of EisnerAmper Cayman said “The Cayman Islands is still the world leader as a hedge fund domicile and has been for some time. It is a tried and tested jurisdiction and an easy sell for investors who do not need the ‘product’ explained to them. As the world becomes more complicated, this may become more important to investors as a reliable option”.

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Newly-elected CIFA president Lee Ramoon with Brazilian football legend Romário.

The Cayman Islands Football Association (CIFA) held its annual CIFA Congress this past weekend whereby it elected a new President to replace out-going, beleaguered former President Bruce Blake who announced in March 2016 he would not be seeking re-election amidst controversy but would remain on the executive council as first vice president.

Taking on the top job for an organisation struggling to revitalise its image will be former national team captain Lee Ramoon who is considered “Cayman’s most successful footballer”, having played over 200 football games, including appearances on the national team, both as a player and eventual team captain.

Mr Ramoon beat out lone challenger Alfredo Whittaker for the president’s post in the Saturday internal election of the CIFA membership.

Speaking to the media following his election, Mr Ramoon acknowledged “everyone wants to see change and it is about to happen, but it will be baby steps”. Mr Ramoon said he was thankful to the membership for placing their trust in him to tackle the challenges ahead for the cash-strapped association while pledging to try and repair the association’s fractured relationship with the Cayman Islands government.

The Cayman Islands Football Association (CIFA) has been hindered by controversy since the arrest of former president Jeffrey Webb for racketeering in the international FIFA scandal and the revelations made during the recent local corruption trial of former treasurer, Canover Watson, which revealed a number of questionable financial transactions involving the local football association and other members of the current CIFA Executive Council..

Although no charges or further arrests have been made, and while those persons named during the trial have vehemently denied knowledge of any wrong doing, it has cast a long shadow of doubt over the entire administration and questions have been raised whether replacing merely the president is sufficient.

In March following then embattled Mr Blake’s announcement that he would not seek re-election and would instead stand down and welcome a duly elected successor at the CIFA Congress, former Director of National Teams, Renard Moxam called for a “clearing of the decks” and the instalment of new leaders at every level of the executive council, not only in the president role.

He maintained at the time that “in order to maintain the integrity of the Association,” he said, “It’s up to the players and coaches” attached to each club to “say enough is enough“ and demand changes. Changes he said “which are essential for the success of future generations”.

This was the similar stance taken by Sports Minister Hon Osbourne Bodden who in February 2016 issued a strong statement in the media that the government would not be funding any aspect of CIFA programmes until it had been satisfied that “certain financial irregularities” first brought to light by the Canover Watson corruption trial were addressed.

“After listening and hearing the stuff that came out of the Canover Watson trial, which is now done so we are free to talk about it, we heard about the accusation of money being funneled through CIFA,” the Minister stated while being interviewed on local television.

He added, “I think that without a doubt in the interest of football the CIFA executive who has been there and have been involved for a long time, should question themselves. How can you remain there under a cloud like that? For the interest of football they should do the right thing and the honourable thing” calling for all involved to step down.

Though Mr Moxam was unavailable for comment by press time, The Cayman Reporter did speak with former national team player and current coordinator of the national youth football programme, Neil Murray who said, “The elections were a long time in coming but it was understandable why it had taken so long. The process was handled professionally and without any contention” and called it a “fair and justifiable result”.

Although Mr Murray expressed disappointment that not all the clubs who were entitled to vote were present to cast their vote, he gave his support for Mr Ramoon who he said was “an excellent choice”.

Mr Murray added that Mr Ramoon’s “reputation on and off the field as well as his professional career accomplishments speak for themselves. He played the game at the highest level and his passion for the game is without question. It’s about time we actually has someone on the Executive who understands the importance of playing a game and representing your country on the field.”

When asked what he thought the most pressing priorities for the new president should be, Mr Murray stated that he believed “Lee’s focus will be on the youth and establishing proper youth programmes within the clubs and leagues.”

He added that “clubs must contribute to the development of our youth leagues and other clubs must be willing to assist those clubs who experience difficulties with starting their youth programmes.”

While stipulating that the seniors leagues should not go ignored, he acknowledged that “the greatest emphasis must now be placed on your youth and their future, above all else.”

Mr Ramoon was not available for comment at press time.

The post Lee Ramoon elected new CIFA President appeared first on The Cayman Reporter.

Donnette Thompson with her mother Noreen.

Social activist and father of a special needs child Kent McTaggart has taken up the mantle demanding help for Donnette Thompson, a 10-year old girl who was born with cerebral palsy following a medical injury she sustained at birth.

She also became the subject of a case that led to the recent amendment of the Health Services Authority Law reversing a 12-year old clause exempting doctors from lawsuits in cases of medical malpractice or negligence.

Kent McTaggart

In February 2016, Justice Richard Williams upheld the controversial section 12 of the Health Services Authority Law that provided blanket immunity from medical malpractice suits, for anyone who works for the authority. In his ruling Justice Williams expressed being “personally uncomfortable” with the ruling he was obligated to uphold and said “the issue as to whether a statute providing immunity against claims in damages, including for clinical negligence, is incompatible with the Bill of Rights is one of great public importance.”

The law was repealed in May 2016 by unanimous vote in the Legislative Assembly, however according to Premier Hon Alden McLaughlin, the amendment would not apply retroactively, meaning there is no right to seek compensation in relation to anyone killed or injured as a result of medical negligence in the last 12 years; including the claims for damages made by Noreen Thompson, mother of Donnette Thompson.

A screen shot of the Go Fund Me page set up to help Donnette and her family.

Speaking on “Straight Talk with Austin Harris” on Monday, Kent McTaggart challenged members of both the public and private sector to step up and “change the stars” for this young Caymanian child “by doing the right thing” and contributing money to the family of Donnette Thompson.

McTaggart said, “Not only did our Government fail one of our own, but they continue to ignore the pleas for help, while seemingly being satisfied that their repeal of the law was sufficient.”

Mr McTaggart however did not agree, as he challenged the islands’ legislators to part with a portion of their hefty monthly pay-cheques, which in some cases are over $20,000 per month for some legislators who double dip by collecting both a salary and pension.

He is being sssisted by other likeminded individuals in the Cayman community, such as Justin Frazer who has created a fundraising and public awareness online platform located at www.gofundme.com/RescueDonnette.

The webpage allows members of the local and international community to make financial donations that will be used in the daily care of Donnette, something Mr McTaggart says is badly needed.

Aiding fundraising efforts is also Shyvon Hydes, who is providing logistical support for an effort that has set a goal to raise CI$125,000.

“The Government provides a monthly stipend of CI$550 for Donnette,” Mr McTaggart said. “But this paltry sum pales in comparison to the real costs associated with the care required for a special needs child like Donnette.”

Donnette was diagnosed at birth with Hypoxic Ischaemic Encephalopathy (HIE) and subsequently thereafter developed Spastic Quadriparesis, as well as a Bilateral Brachial Plexus Palsy. As a result of the severe disabilities it is unlikely that Donnette will ever live an independent life.

Mr McTaggart said, “What has happened to Donnette and her family is nothing short of a complete disgrace! This precious little girl Donnette has severe physical and mental handicaps caused from medical malpractice. The laws of the Cayman Islands protected the medical practitioners from liability, therefore Donnette’s family has been essentially forced into poverty while trying to care for her.”

In order to meet her essential needs, Mr Mctaggart appealed to members of the public to “search deep within and then dig into your pockets and to help us raise a little money to assist sweet Donnette in getting the necessary care she requires and to further alleviate the heavy burden her mother is under.”

Donations are being accepted either directly online at GoFundMe, which as of press time had already generated just over CI$3,700, or by contacting Kent McTaggart on 525-2992, or Shyvon Hydes on 929-1979.

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HE Governor Helen Kilpatrick

Responding to the complaint filed by West Bay MLA Bernie Bush alleging inadequate performance over time but also misconduct on the part of out-going Commissioner of Police David Baines, pursuant to Section 44 of the Public Service Management Law, HE Governor Helen Kilpatrick sought first to draw the distinction between command decisions versus the execution of those decisions by subordinate officers on the ground.

In her response to Mr Bush, Governor Kilpatrick said “In considering whether any of the allegations made justify further investigation and/or disciplinary action, it is important to distinguish between complaints regarding the strategic and central control of an entire force by a chief officer versus complaints regarding the tactical execution of plans or tactical control of detachments on the ground by suburbanite officers.”

West Bay MLA Bernie Bush

In so doing, while providing a detailed response to the 20 questions, following legal advice, the Governor, in her estimation found that the complaints were largely “unsubstantiated” or “soley concerned with the conduct of subordinate officers for which the Commissioner should not be disciplinarily responsible.”

Dismissing the allegations, the governor provided a detailed response to the questions raised, citing repeatedly that “responsibility rests with either the Ministry of Home Affairs” or “subordinate officers” and were largely “out of the Commissioners control.” These factors whether it be the matter of missing drugs or firearms, the proper functioning of the CCTV systems, the high number of police vehicle crashes, missing video evidence or the theft of police vehicles, the governor said

In the matter if the 42 statute barred cases that failed to be prosecuted, Governor Kilpatrick stated, “The complaint largely concerns discrete actions by subordinate officers for which the Commissioner should not be held disciplinarily responsible.”

Outgoing Police Commissioner David Baines

In the matter of what Mr Bush defined in his original complaint as the “Search Warrant debacle” that alleged the RCIPS failed to properly caution a witness before an interview, leading to the Grand Court ruling that the statement was inadmissible, the governor insisted that “since the time of the interview the extent of citizens’ entitlement to free legal advice”, as outlined in the Bill of Rights, “had yet to be tested in the courts”. And while acknowledging the “illegality” of the search warrant, both the courts and the DPP’s office were “nonetheless prepared to admit the evidence obtained in the search”.

In the matter of the missing 57 kilos of drugs and firearms stolen from a police evidence locker, which attracted much media and public criticism and was later described by Mr Baines as a possible “inside job” involving “corrupt officers”, who thus far have never been identified the governor stated she was “satisfied that the appropriate remedial action was taken” and therefore the allegation made by Mr Bush, did “not warrant any independent investigation into the Commissioner’s handling of the matter and/or any disciplinary action.”

Responding to what Mr Bush alleged was the increase in the numbers of complaints made against the police since 2009 and Mr Baines’ arrival, the governor provided graph evidence, though failed to identify its source, which showed that contrary to Mr Bush’s claims, complaints against the police actually “dropped from 224 in 2009 to 56 in 2015”, as she dismissed the allegation as “not having any substance”.

Similarly, as it related to the contention that there was inadequate succession planning put in place concerning the police helicopter, Ms Kilpatrick said “whether the complaint of inadequate succession planning is intended as a general complaint or to relate to the helicopter staff only”, the governor described the claim made against Mr Baines as being “insufficiently substantiated”

As it related to the allegations concerning the failure to set up a Police Complaints Authority or the “exorbitant sums” that have been paid out in civil actions, the governor stated unequivocally that this responsibility rests with the Ministry of Home Affairs, which falls under the Premier, Hon Alden McLaughlin and therefore the “Commissioner should not be disciplinarily responsible for.”

As it related to allegations of poor staff management, which included possible discrimination against Caymanian officers that was evidenced by a mass exodus from the RCIPS in 2009-2010, the governor again suggested the facts contradicted the claims.

In her response she stated, “some officers have left the service due to performance issues, whilst others have been actively developed and supported.” The governor went on instead to congratulate the performance of David Baines by stipulating that “since the Commissioner has been in his post, two ‘Caymanian Only’ recruitment classes and pay awards have been secured to address the disparity of salaries between locally recruited and expatriate officers, that arose as a result of the moratorium preventing salary increases”, which again Ms Kilpatrick pointed out, were mandated by the elected representatives and therefore not the actions or lack thereof by the commissioner.

The governor’s response to Mr Bush on 12 of May was copied to the Premier, Hon. Alden McLaughlin, the Deputy Governor, Franz Manderson, Chief Officer for the Ministry of Home Affairs, Eric Bush together with at the time, the Deputy Chief Officer Wesley Howell as well as to Commissioner of Police, David Baines who was scheduled to leave his post on 31 May.

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