Archive for April, 2009
Offshore goes on alert
(CNS): With one week to go before the Offshore Alert Financial Due Diligence conference opens the man behind the offshore watchdog news letter and the conference David Marchant said people had signed up from literally all over the world for what was likely to be the most important conference to date. “I’m thrilled that residents from more than 28 countries have signed up to attend,” he said, adding that many were from Cayman and other offshore jurisdictions. Given the current global climate, the key note speaker Jeffrey Owens, Director of the OECD’s Centre for Tax Policy and Administration is bound to create considerable attention.
Over the years the annual the conference has attracted considerable attention from financial professionals both onshore and off and Cayman’s own Eduardo D’Angelo Silva, Chairman, of the Cayman Islands Financial Services Association said it was an important conference when it comes to understanding the arena. “Thanks to the high calibre and knowledge of its speakers and organizers, this conference has consistently provided its attendees with a comprehensive overview of the offshore financial world and a superb setting for learning and exchanging ideas. It is a fundamental tool for those who aim at understanding and progressing in this area," he said.
The event takes place this year between 26 – 28 April in Miami and will see finance professional from all sides of the spectrum – vendors and clients, money managers and investors, asset protection experts and asset recovery specialists, regulators and regulated, those who specialize in privacy and those who specialize in transparency attending. “They are bankers, attorneys, accountants, officers, directors, financial services providers, tax consultants, company managers, compliance personnel, insurance managers, fund managers, trust practitioners, venture capitalists, asset tracers, liquidators, regulators, law enforcement, private investigators, intelligence-gatherers, and journalists,” said Marchant. “This will surely give you the ammunition you need to make your case to the corner office. After all, this is the one conference that will give you the solutions to your biggest challenges in times like these.”
As well as keeping delegate up to date with the latest offshore products and services the conference aims to educate about the risks involved, how to stay on the right side of the law and how to locate, freeze and seize concealed assets.
The three general session include a key not address by Owens from the OECD whowill b talking frankly about “the list”. Then there’s the offshore view from Wendy Warren, CEO of the Bahamas Financial Services Board. And a session from senior officers at the IRS who head its offshore enforcement programmes.
Hot Topics also include tax investigations involving UBS and LGT Bank, Ponzi schemes such as Bernard Madoff in the USA, Allen Stanford in Antigua, and DMG in Colombia, the crackdown on bank secrecy. Marchant noted there will also be a speed networking event, two cocktail receptions and several food breaks offering the opportunity to mingle with some of the most significant and influential experts in the complex world of offshore finance.
For more details visit the 7th Annual OffshoreAlert Financial Due Diligence Conference.
Forget politics its carnival!
(CNS): For those not that over excited about the impending election and referendum there are other things on the Cayman calendar for people to look forward to not least the annual Batabano carnival which takes place between 24 April and Saturday 2 May. In preparation for the big day over the last three weeks LIME in partnership with Appleton and the Batabano Committee have been holding “Happy Hours” at several bars across the island to Cayman into the carnival spirit.
The final warm up event will take place this coming Friday at Calico Jacks starting at 8:00 pm with a great night of entertainment planned. Several of the Mas Bands will be there showcasing their beautiful costumes, so it will be a last minute opportunity for people to sign up and get ready to play Mas on Saturday 2nd May in the Street Parade.
Barnaby Richardson, Marketing Manager for Jacques Scott said it was a last chance for carnival goers to get ready for the Mas fun “This is the only remaining event before Carnival starts next week and one of the final opportunities for people to get their costumes. We supported these events as Appleton is the spirit of Carnival and also because we wanted to educate some of our new residents to the islands, who maybe don’t know what Carnival means and give them an opportunity to participate,” he added.
Chair of the Batabano Committee Donna Myrie-Stephen said everyone was looking forward to a fun event on Friday with lots of prizes and surprises. “It’s an opportunity to get a sneak preview of the costumes before the big parade,” she said.
Meanwhile, this past week New Horizon student, Raidez Perez, won the title of designer of this year’s official Jr. Batabano T-shirt. A panel of independent judges, including local artist Al Ebanks, chose Raidez’s design over more than 28 entries. In their submissions for the competition, students were asked to create a t-shirt design that represents the Batabano slogan “All nations’ one celebration” or choose any theme that highlighted the energy and spirit of Batabano.
Raidez’s winning design used animated costumed dancing letters to spell out “Batabano.”
Ebanks said it was a tough decision as all of the entries were very good. ““This design not only showed that the artist has talent, but also creativity and originality,” he said.
Raidez wins an ipod for her winning entry, donated by Mark and Cindy Scotland, and her school will receive a plaque in honour of her achievement.
The calendar of events for Batabano has according to organizers something for everyone from the Junior Carnival and Family Fun Day on 25 April through to the Adult Street Parade and Dance on 2 May.
Myrie-Stephen, said the committee is delighted with the support offered by the community as a whole. “This is a fantastic time of year and it is a wonderful opportunity for locals and visitors alike to come out and enjoy the festivities as all different nationalities bring their flavor to the festival.”
One of the signature events is the Masquerade Fete at Pedro St. James Castle scheduled for Thursday 30 April. This year the late Byron Lee will be honoured for his numerous contributions towards the enhancement and development of Batabano. The evening will feature a special presentation by The Dragonaires titled “Remembering the Dragon – Byron Lee”.
More events on the festival schedule include the Friday Fete on 1May and this year the wrap up event for carnival festivities will be the Coco Fete set for 8 May. For more information on the entire experience for this year simply log on to www.caymancarnival.com
LSD found in drug raid
(CNS): Police said this morning that four people have been arrested on various drugs offences during a police operation in George Town on Friday night that involved the search of two houses. Officers from the uniformed section carried out what police said was an intelligence-led operation that resulted in the seizure of an unrevealed quantity of drugs, which will be analyzed but police suspect to be cocaine, ecstasy and LSD. Along with the arrest of the two men and two women on suspicion of possession of cocaine, ecstasy and LSD with intent to supply, police said they had also seized a vehicle.
“Drugs are extremely destructive for communities and we will continue to target those involved in their use and supply,” said Inspector Adrian Barnett who led the operation. Police also noted that while the appearance of both LSD and ecstasy is not common in Cayman, this is not the first time police have seized both drugs.
Along with the drug operation police also arrested another ten people including three teenagers for various offences from assault to motor vehicle theft. One 16-year-old boy was arrested on suspicion of being in possession of a restricted weapon, another 16-year-old on suspicion of theft of a motor vehicle, and a 17-year-old boy was arrested on suspicion of burglary. A 20-year-old man and a 24 year old man were arrested on suspicion of consuming a controlled drug and a 23-year-old man on suspicion of possession of ganja. A 29-year-old man was arrested on suspicion of handling stolen goods, while two men aged 37 and 55 were arrested on suspicion of driving under the influence of alcohol. A 38-year-old man was also arrested on suspicion of being in possession of a restricted weapon, and a 41-year-old man for suspicion of assault.
Anyone with information about crime taking place in the Cayman Islands should contact their local police station or Crime Stoppers on 800-8477 (TIPS). All persons calling Crime Stoppers remain anonymous, and are eligible for a reward of up to $1000, should their information lead to an arrest or recovery of property/drugs.
West Bay debate fires up
(CNS): In an explosive and combative Chamber of Commerce forum on Friday, independent candidate for the district of West Bay Woodward ‘Woody’ DaCosta said it was time for a complete change of policies and questioned where the representation for West Bay had been for the last twelve years. He said the incumbents had been big on promises but short on delivery, and also raised controversy when he asked if one of his panel colleagues had seen the Chamber questions beforehand as it was evident he was using pre-written notes.
DaCosta asked Chamber moderator Wil Pineau if Captain Eugene Ebanks had already had sight of the questions as, unlike the rest of the panel who were speaking off the cuff, he was reading from prepared answers. DaCosta also said rules were rules but they had been broken to allow the UDP to rearrange and change their appearance dates, even though his own request had been denied.
“I’m glad to have Captain Eugene here,” he said noting several changes to the UDP line-up and raising the fact that Cpt. Ebanks was reading from scripted notes. “The answers are supposed to be made from candidate’s hearts and half the answers here have been read out, and it ticks me off,” he said to wide applause. Reginald Choppy Delapenha, another panel member, agreed rules are rules and that all candidates should be treated equally.
Pineau confirmed that some candidates had been allowed to change dates but emphatically denied that anyone had seen the questions beforehand. Ebanks defended himself and said, “I have not been scripted. These were areas I researched and I asked if I could make notes and you said it was fine,” he said turning Pineau. “Some people speak off the cuff better and others are better from notes.”
Throughout the evening the four-member panel, which also included Dora Ebanks, faced some taxing and topical questions. It opened with Boatswain Beach and the haemorrhaging of more than $½ million of government funds every month, and was it time to sell, lease or keep subsidising?
Delapenha said the country should not sell the facility but it was time to find a way to make the Turtle Farm profitable or minimise the loss. Ebanks, after taking a few seconds to find his notes, said, “I think Boatswain Beach is a very vital part of our tourism product, I feel it can be a very viable facility but it needs some supporting amenities.”
DaCosta noted that it was a losing enterprising from the beginning. “It was a poor plan, a capital project that over-ran and it was clear it would not be solvent,” he said, adding it was time for a public/private partnership but the property should not be sold. He said it was evidently not viable at a cost of $68 million, with a maximum capacity of just over 3,000 visitors per day, and the product had to be changed around. Dora Ebanks said if it was losing money we could lease it.
The panellists were asked if they supported the proposed changes to the constitution and why. Ebanks answered first, avoiding the actual question, he said it was a personal issue and people should vote their conscience. Reading from the party manifesto, he said the UDP was committed to educating the public and the UDP could work with the document if it was a "yes". If it was a "no" the party was committed to working towards a new constitution.
DaCosta noted that Ebanks had not answered the question but told the audience why he supported it. He said the constitution obligated the UK to protect the Cayman Islands and the document safeguarded the interests of Cayman as a Christian society. Dora Ebanks said she was not sure she understood the question, but she recommended that Caymanians vote "no" as she did not believe in the party system and the constitution allows for that, which might lead to war and violence. Delapenha said it was a considerable improvement on the current constitution and people needed to understand the implications of voting "no". He said the document had been agreed by the Cayman delegation and the UK.
The panel discussed unemployment, tourism, daylight saving, the environment, crime, West Bay issues, the failure of the current incumbents to serve the district, the lack of a civic centre and education.
When asked about their support for the proposed Beulah Smith High School, which has been put on hold because of the government deficit, they all said the school should be built. Delapenha said it should be a priority as it cost less to educate a child than keep a young person in prison and the money could be found for it as well as another primary school since the district of West Bay was growing rapidly.
DaCosta promised the people of West Bay that if they elected him he would find the money and build the school within three years. Ebanks said it was needed and he would support having it built when the country could afford it, but he said the country was in debt and the district was not that pressed for it so it would have to stay on hold. Dora Ebanks said she thought it was already budgeted for and didn’t understand why it wasn’t being built, but she thought it would be good to have.
The question of immigration policy saw both DaCosta and Delapenha explain Cayman’s problematic dependence on the money now generated from work permits and how the system was intended to support the economy not have the economy depend on it. DaCosta said that until the policies are changed to create new revenue streams we would be dependent on the $50 million per year fees and not be able to address the inequalities. “Until policies are changed,” he said, “we will be in the same revolving hamster wheel.”
Delapenha agreed that the government was becoming dependent on the money generated by permits but immigration policy should serve the needs of local businesses and Caymanians, and that until it was changed it would hard to address local unemployment. Reading from theparty manifesto, Ebanks said it was clear the immigration system wasn’t working and the UDP would introduce a Human Resources Authority.
Jamaican police end airliner hostage siege
(CNN): Police in Jamaica have captured an armed man who had barged onto a passenger jet at an airport, robbed passengers and held six crew members hostage Monday, Jamaica Information Minister Daryl Vaz said. The gunman, described by Vaz as "mentally challenged," seized the Boeing 737 late Sunday at Sangster International Airport in the resort city of Montego Bay and demanded passage to Cuba. (Photo: Jamaica Observer)
Alcohol is top drug problem
(CNS): Announcing Cabinet approval for the formation of a plan to tackle drug abuse in the Cayman Islands for the next five years, Joan West-Dacres (left), the Executive Director of the National Drug Council, said that while Cayman’s drugs of choice were ganja, cocaine, tobacco and alcohol, it was the abuse of alcohol which represented the biggest problem to the community. She said the National Anti-Drug Strategy 2009-2013 aims to significantly reduce the prevalence of substance abuse and misuse in Cayman and was particularly timely as risk factors were on the increase.
The plan primarily aims to co-ordinate all of the disparate and independent programmes, activities and initiatives relating to drug misuse, abuse and treatment, to avoid duplication and plug gaps. It will also measure the problem and seek solutions and legislative change where necessary. Explaining its significance, West-Dacres said there was a clear need for a policy that could provide an enhanced strategic and coordinated approach.
“Taking into consideration the ongoing issues of substance abuse, misuse, the social and economic impacts, utilising a broader approach in order to formulate a National Anti-Drug Strategy is now timely,” Dacres said, adding that in spite of deficient data, quantitative indicators ofdrug use in the Cayman Islands are significantly increasing and there is a notable under-utilization of the institutional care infrastructure organized to handle the drug problem.
She said the NDC, through a consultative process with key stakeholders and guidance from an external consultant, had formulated “A Comprehensive Approach to Drug Control, the National Anti-Drug Strategy (2009-2013)".
“The primary aims of the strategy are to significantly reduce the prevalence of drug use among the Cayman Islands population and to reduce the social harm and health damage it causes in the society,” she added. “It addresses both illegal and legal substances,” she said, later indicating that the misuse and abuse of alcohol was the most problematic issue for the Cayman Islands.
West-Dacres said there were three general objectives to the strategy, which were: preventing illicit drug use, treating those with drug dependencies and combating the availability and distribution of illicit drugs on and within the islands.
Although the strategy is focused on prevention and treatment, law enforcement would still form a major part of the strategy, and while West-Dacres said there would be legislative review, there were no plans to decriminalise any illegal drugs and the policy for zero tolerance would remain. West-Dacres said the strategy would allow for immediate action in some areas, which would in the first year require little or no additional funding, such as the review of legislation, development of best practices and improved collaborative efforts.
Overall, the plan seeks to strengthen and assist families and communities affected by drug abuse; provide a national policy framework for the delivery of a comprehensive drug education programme; guarantee the delivery of treatment and rehabilitation services that meets the needs of the individual; support the supply reduction efforts of law enforcement and interdiction agencies; develop a culture and practice of data collection and dissemination in relation to substance abuse; provide clear indications about the merit and worth of current actions and activities at the local level; encourage multi-agency cooperation and the involvement of civil society and the private sector and the international community.
Minister for Health and Human Services Anthony Eden was also present at the presentation of the plan and said he was pleased that Cabinet had approved the plan. “We are all aware that the misuse of drugs and other substances is not only a problem that affects the abuser, but also impacts every aspect of society and economy, including health care, family life, law enforcement, employment, and the list goes on. As a government we need to do whatever we can to protect the people of the Cayman Islands from the abuse of legal and illegal substances,” he said, adding that it was critical that there was a national commitment to comprehensively address and prevent issues related to drug control and the strategy was a blueprint for the response to the misuse and abuse of both illicit and legal drugs.
The NDC was established in 1997 to co-ordinate the country’s anti-drug measures and came out of a plan approved by the government for the period of 1995-1999,which was not fully implemented. During the presentation of the new strategy, no mention was made of how the NDC had fulfilled its mandate since 1999 save to say that it had for the last ten had oversight of the National Anti-Drug Strategic process and the revision of the National Anti-Drug Strategy (NADS).
Google avoids £100m UK tax
(Times): The internet giant Google with the motto “don’t be evil”, avoids paying more than £100m a year in UK tax despite pulling in annual revenues of more than £1.25 billion. Even though the web search engine operates as Google UK Ltd in London, British firms which advertise with it pay their subscriptions to a subsidiary based in Ireland, where corporation tax is far lower than in the UK. This structure, condemned this weekend as “unfair” and “unacceptable”, allowed Google legallyto avoid paying £110m of UK tax in 2007, according to research by an expert on corporate tax avoidance.
UDP invite falls foul of law
(CNS): The UDP confirmed on Friday evening that Miss Cayman Islands, Nicosia Lawson, would not be speaking at their youth rally as promoted due to her role as a civil servant. According to the Public Servant’s Code of Conduct, government workers have a right to attend public meetings but they must remain politically neutral to protect the integrity of the office. UDP General Secretary, Rolston Anglin, said due to a miscommunication Lawson was promoted as being a speaker but that this had to be cancelled.
Cayman Islands government workers were warned earlier this month by the Chief Secretary George McCarthy not to engage in political activities in the run up to the General Election on 20 May. Civil servants cannot assist parties in their campaigns, fundraise or put bumper stickers on cars, never mind actually speak on the platform of a political party or candidate.
“In accordance with the rules of civil servants Ms Lawson will not be able to speak at this event and we sincerely apologise for the mixup which resulted in us inviting her as a speaker,” said Anglin on Friday.
A recent memo reminding public sector workers about the rules concerning elections from the Chief Secretary’s Office said they were entitled to gather information and ask questions to allow them to make an informed vote. The Cayman Islands Civil Service Association recently asked for a more specific list of do’s and don’ts regarding what civil servants can and can’t do, as it stated that it is frustrating for public officers as they try to engage in the election without violating neutrality.
Lawson, who is on sabbatical as Miss Cayman from her job at the Cayman Islands Development Bank, had been invited to speak at a special rally organized by the UDP for Cayman’s younger voters on Friday night, which Anglin said had generated a lot of excitement and he was expecting a large turnout at the free concert. “We are looking forward to having some clean fun as well as interacting with our youth. The entertainment is great and we are looking forward to this event,” he added before the concert started.
Entitled “Empowering Our Youth”, the UDP youth rally featured local boxing hero Charles Whittaker, Richard Christian and Yentel McGaw, as well as artists such as Big J, Jeffery Wilson and Atomic Disco.
Lawyers to talks funds online
(CNS): One local legal firm is turning to online technology to help keep clients informed regarding issues affecting the local hedge fund industry. Solomon Harris is hosting its inaugural Webinar on ‘Managing Distressed Cayman Funds and lessons learned for new funds’ on Tuesday. The firm said using the web will help it reach as wide an audience as possible on this topical and important subject.
Partner, Paul Scrivener, head of the investment funds group explained that recent significant stresses placed upon hedge funds, particularly in Q4 of 2008, have given the firm’s investment funds group invaluable insight into the issues facing managers with liquidity problems and the legal and practical tools available to them. “We were keen to share our experiences in a practical way with those involved in the industry and we felt the medium of the webinar was the ideal way to reach the widest possible audience,” he said.
Solomon Harris ahs also recruited back attorney,
“We are delighted that Nick has decided to rejoin us. He is a first-rate funds lawyer and the experience he gained in Dubai only adds to his skill-set. Nick will be our third lawyer in Europe and we know that he is going to make an invaluable contribution to our team there,” said Scrivener.
Candidates back on the campaign trail
(CNS): In the wake of the Easter break, the candidates for the 20 May General Elections returned to the hustings last week competing for attention with the Chamber debates. Both the political parties were backon the campaign trail hurling insults, while the independents also began working hard at setting themselves apart. In George Town Burns Conolly turned the heat up on government and the party system, while in Bodden Town Vincent Frederick presented some unusual propositions and Theresa Lewis-Pitcairn noted that, despite three cabinet ministers living in the district, Bodden Town had been neglected.
Speaking to the people of Windsor Park on Thursday night, Burns Connolly doubted that they were better off with the two-party system and said the solution was voting for him and other independents to make a difference. Heavily criticising the current government, he accused it of neglecting the needs of the people. “They have forgotten that you must come first. That you need jobs first, and that you need dignity, hope and a future for your children, that you need a good roof over your head and some solid walls around you first,” he said, addingthat on 20 May voters should show them that they have forgotten about them too.
Criticising government spending and education policy, Connolly said if elected he would introduce Kindergarten years into the public school system and add an after-school programme. He said there was no need for expensive schools as the church halls were empty. Saying a vocational training school was a priority, he did not say whether that meant he supported the existing plans for the George Hicks campus to become a vocational college. He said the need to give non-academic kids a chance was important as it was time to stop losing good kids to bad situations.”I will ensure they all have a fighting chance. We cannot afford to lose even one child in Cayman. We are a small country, we need all hands on deck,” he added.
Meanwhile, in Bodden Town, Theresa Lewis-Pitcairn focused on the neglect of the district and false promises made by the incumbents, and said that Bodden Town needed investment and development. She also urged unity and asked voters not to let frustrations with leadership past and present encouraging cultural divide to limit the community.
Addressing unemployment, Lewis-Pitcairn said retraining was crucial to help Caymanians back into the workforce and promised to introduced specific programmes that would fit the needs of employers and give young men hope. She noted that they also had a part to play. “I want to see our young men ready and able to upgrade their skills. I want them putting some money aside to take care of their kids. I want to see them spending quality time with their kids; lifting them and hugging them and letting them know that they are safe and loved,” she said.
On crime, she said, Cayman was spending too much money, time, energy and resources on responding to crime instead of addressing what causes It. Lamenting poor levels of training in the police service, the divisions because of a failure to introduce cultural sensitivity training, and poor levels of transparency communication, she also said their was a lack of trust between the public and the police. “People say to me that the disconnect between the public and the police only helps to fuel criminals,” she said, adding that under her leadership there would be a review of law enforcement. She reminded people, however, that crime was not just a policing issue but there were socio-economic considerations.
Earlier in the week Vincent Frederick told the people of Bodden Town that the country is in “a state of despair due to the political and social injustice being thrust upon us.” He also flew the flag for independents when he told voters that they had been better off with them in the past and would be again. “Why skip from party to party and getting nothing but hardship,” he said.
Talking policy, Fredericks put forward his solutions to problems of unemployment and said he would reduce the foreign workers in the civil service and limit them to three year contracts with no exceptions. He was not afraid to limit the number of foreigners employed in Cayman, he said, and as a revenue raising measure he intended to introduce an infrastructure fee (income tax) on their earnings. “The foreigners enjoy our beaches, our hospital services, our roads, our houses, and depend on our law enforcement to protect them…… putting extra burden and strain on the society,” he said adding that he proposed a fee based on a percentage of the foreign workers income and any other form of incentives that they make.
Fredericks explained his proposition would start at 1% for workers making under CI$2,500.00 per month, 2.5% for workers making CI$2,500.01 and so on up to 5% for workers making over CI$5,000.00 per month. Another revenue raising measure he proposed was an annual infrastructure fee on all commercial buildings over 500 square feet.
“Every day we see a new building going up in the air and when it’s completed there are no other fees except for the one time planning and building permit fees,’ he said. To enforce the collection of these and other fees he proposes, Frederick said he would form the ‘National Infrastructure Bureau’.
He also noted he would re-write the proposed national conservation bill which, he said, protected iguanas more than people. He described it as a law written by foreigners robbing Caymanians of their heritage. “Why do we need someone from Russia to come here to tell us how to fish and how to eat?” he asked rhetorically, adding that he would change the law to allow the importation of spear guns and parts for Caymanians.