Archive for March 29th, 2011
CFI says firm can handle $7M bill
(CNS): In the wake of the largest award following a civil trial in the history of the Cayman Islands, the insurance company holding the $7 million tab says it may be appealing the judgment but if it has to pay it will not impact the firm’s ability to do business. Hurlstone Ltd and others were awarded the whopping sum following a lengthy legal battle in which the contractors had counter-sued Sagicor General Insurance, now Cayman First, for abuse of process and malicious prosecution, and won. The case was related to the reconstruction of Windsor Village after Hurricane Ivan in 2004. The insurance firm had originally filed suit against the contractors, accusing them of fraud and conspiracy over the cost of the work, but withdrew the suit before the trial at the end of 2008.
Cayman First Insurance (CFI), which is now left holding the bill for the historic award handed down by Justice Alex Henderson of $6,938,064 plus interest and some $85,000for reputation, said that the company is considering an appeal so it could not go into detail about the judgment.
However, it was quick to try and reassure customers that the parent company of CFI has taken action to ensure that the firm’s capital base is maintained at a level to meet the requirements mandated by CIMA.
“CFI has determined that, based on existing information, the company’s capital and ability to operate will not be impaired by the developments associated with the Judgment,” the firm said in a statement in the wake of the award. It also said steps had been taken to ensure that policyholder and other stakeholder interests were adequately protected.
CFI is now under the controlling interest of an entirely new organisation but it said the directors were committed to meeting any legal obligations related to the legal proceedings, once finalised, despite the fact that the matters pre-date the involvement of the new owners.
With an AM Best rating of A-(Excellent), along with significant enhancements to the company’s reinsurance program, the company said it was a strong and viable entity. Speaking to the press in the Bahamas this week, Ian Fair, chairman of Bahamas First, said the group would suffer "absolutely zero" financial impact by the award as the case had come up as a potential liability during due diligence before last year’s sale. He explained that the potential financial ramifications were "ring fenced" and excluded from the transaction.
The award against the firm follows from the Hurlstone family and others counter-suing Sagicor General Insurance (Cayman) for abuse of process and malicious prosecution, and after the insurance firm’s original suit was abandoned the insurer’s allegations could not be sustained. The Hurlstone plaintiffs said their characters and business affairs had suffered greatly as a result of the allegations made by the insurance firm in 2006. They also suffered as a result of having their assets frozen during the process of the insurance firm’s suit, which the attorneys said was extremely detrimental to their clients.
Henderson described the unproven allegations as of a serious nature: that the work undertaken by Hurlstone had been inflated and the contractors had conspired to commit fraud against the insurance firm. The judge said that Sagicor never possessed a body of evidence capable of proving it was defrauded or was the victim of a conspiracy. The allegations against Hurlstone and the others were based on a report produced by Alan Purbrick of Capital Consulting, which turned out to be wrong.
When Hurricane Ivan ripped through Grand Cayman in September 2004, Cayman General was a wholly owned subsidiary of Cayman National Corporation. Following the problems the insurance firm faced with the significant claims after the storm, the government accepted a 24% share of the company as part of its settlement for damages sustained in the hurricane to public property.
Cayman General then sold its shares to Sagicor, who in turn sold all of its shares to the Bahamas First Group, which has since renamed the firm as Cayman First Insurance.
No ribbons as civil servants move to GAB
(CNS): Although there have been no ceremonies, ribbon cuttings or photo opportunities to mark the completion and opening of the new government administration building (GAB) as yet, the first of the country’s civil servants are moving in. Computer Services, followed by the planning department were the first public sector departments to start moving last week, and during the course of this week the Public Service Pension Board will join them. Dates havenow also been set for the health ministry staff, the Portfolio of Internal Affairs and the community affairs ministry to move during the first week of April. Civil servants from education, financial reporting, the Attorney General’s Office and the civil service portfolio will follow soon after.
“Moving into this state-of-the-art administration building is quite a milestone for our public service, said Chief Officer of District Administration, Works, Landsand Agriculture Kearney Gomez, who was the CO in the ministry when the project started. “This facility will no doubt enhance our service delivery but moreover, it provides civil servants with a safe and healthy work environment,” Gomez added.
He explained that the transfer of civil servants was being phased in order to streamline the move and minimise disruptions in service to the public. “Nevertheless, we ask for patience and understanding as departments settle into their new accommodations.” The CO added.
Although specific dates have yet to be confirmed, during the second half of April Hazard Management and GIS will move, followed by the relocation of Department of Lands and Survey, the Deputy Governor’s Office, the Internal Audit Unit, the ERA, General Registry, the premier’s ministry and the maritime authority in May.
Although there have been none of the usual ‘official photo ops’ when the keys were handed over to government or when the first staff moved in, it is understood that the ministry still plans to have an opening ceremony sometime in the future.
The project was initiated by the former leader of government business, Kurt Tibbetts, during the 2005-2009 PPM administration and is a certified LEED building as a result of a number of green energy saving features. Although the development of the public service building cost around $80 milllion to build, it is expected to save government more than $10m per annum in accommodation costs.
The building has become something of a political footballm with the premier blaming the construction of the GAB (as well as the school projects) for the public deficit. Bush has also toyed with the idea of selling or leasing the building to private investors in order to release capital but in the face of possible public protests the idea has since been shelved.
Clinton appears ‘free’ in GT
(CNS): Hours before the former US leader was due to appear at a mysterious and expensive speaking engagement at the Ritz Carlton, Bill Clinton was spending some time on Monday soaking up the local atmosphere out in the open of downtown George Town. He had already been spotted on Seven Mile Beach and out and about in his car on Sunday, and despite efforts to keep the 42nd American president under wraps, Clinton appeared to be relaxed and happy meeting and greeting with locals and tourists along the Harbour front in George Town. Accompanied by officers from the RCIPS and his own unmistakable secret service detail, the former president stopped to chat and shake hands with a number of people in Cayman’s capital for free. (Photos Dave & Chris Wright)
Clinton was in the Cayman Islands on Sunday and Monday to appear as the guest speaker at special dinner on Monday evening organised by a company called Whisky Productions, which cost $1500 a ticket, well out the price range of most locals.
The details of which charitable organisation or indeed which profitable organisation was on the receiving end of the funds raised by Clinton’s after dinner presentation at the Ritz remained a mystery as a result of a media blackout of the event.
Clinton was believed to be speaking on the topic of humanity, as per his dinner presentation in Jamaica last October. The organisers were reluctant, however, to reveal the ‘hows and whys’ of the event, including the beneficiaries of the former president’s efforts or what he was paid for the speech at the $1500 per head event and how much will be raised and for whom.
With the local RCIPS also covering security for Clinton’s short stay on the island, the cost of the support from the local law enforcement to the public purse has not yet been revealed.
Clinton arrived in Cayman under the cover of darkness in the early hours of Sunday morning at Owen Roberts International. After the private jet which brought him and his entourage touched down in Cayman, the RCIPS Uniform Support Group accompanied the secret service in a motorcade to the Ritz Carlton, where Clinton was staying.
His presence stirred considerable attention during his short stay, with locals as well as visitors trying to catch a glimpse of Clinton before he departed on his private jet just after 9pm on Monday evening.
Tourist arrivals continue steady increase
(CNS): Statistics from the Department of Tourism show that visitors to theCayman Islands are still on the up, with a ten percent increase in air passenger arrivals and close to a twelve percent rise in cruise visitors throughout February. The DoT reveals that 29,911 people who flew into Owen Roberts international Airport last month said they were here visiting. Meanwhile, down at the cruise ship terminal, ships brought in a total of 144,379 people, an 11.9% increase on 2010. Both sets of statistics are also an improvement on 2009 and bode well for the tourism industry in general. The breakdown of visitors travelling by plane also reveals that arrivals from Canada once again showed the biggest increase.
The introduction of the direct WestJet service from Toronto to Grand Cayman, which began last year, appears to be continuing to boost arrivals from the North American destinations as there was a 35% increase in the number of passengers coming from Canada during February.
However, the growth was not confined to the Canadian market as passengers from all over North America were also up last month as total arrivals from the US increased by over nine percent. Arrivals from Europe also increased from 566 passengers to 791, only arrivals from the UK, Ireland and other destinations showed a fall in numbers.
While the continued passenger numbers remained promising, many people in the tourism sector continue to state that the improvement in numbers is not converting into economic improvement. They say that while arrival statistics have shown a continued increased over the last few months, those visitors are not spending as much as people would hope in the restaurants and shops or on tours and services, leaving many tourism related businesses still struggling.