Archive for June 25th, 2009
Space blob secrets revealed
(Space.com): Perplexing "blobs" of gas seen in the faraway universe are a bit more comprehensible thanks to a new study. Glowing with an eerie brightness, the massive blobs seem to surround very young galaxies. NASA’s Chandra X-ray Observatory and other telescopes examined the distant gas balls and found that their luminosity is likely due to energy released by black holes and star formation inside the galaxies. For ten years the secrets of the blobs had been buried from view, but now we’ve uncovered their power source," said James Geach of Durham University who led the study.
OECD says economy on up
(Bloomberg): The Organization for Economic Cooperation and Development raised its forecast for the economy of its 30 member nations for the first time in two years as the US slump shows signs of easing. The combined economy of the world’s most-industrialized countries will shrink 4.1 percent this year and grow 0.7 percent in 2010 has said today. The new projections compare with March forecasts for contractions of 4.3 percent and 0.1 percent but conflict with that ofthe World Bank, which this week said the global recession will be deeper than it predicted three months ago.
McLaughlin refutes overruns
(CNS): Former Education Minister Alden McLaughlin has said that the claims being made for overruns on the two new schools are not as a result of any major changes to plans but an attempt to get more money for the project by the developer, Tom Jones International (TJI). He said the $17 million figure that has been suggested is way beyond any legitimate claim that could be made based on changes, and that before leaving office his ministry had notified the attorney general and a legal team had been engaged to look into the matter.
“I very much hope that the new government is not going to concede just because the developer makes a claim,” McLaughlin said.”Up until I left office matters were still under discussion and no concessions had been made about the claims as we believed that, by and large, they were not entirely genuine. We believed that the developer was taking advantage of the election to get more money, thinking government would give in to any demand.”
McLaughlin told CNS that, after his ministry had taken the concerns about the claims to the attorney general, a law firm was contacted. He said that the developer had experienced cash flow problems, which the government had helped with. He had also experienced troubles with his own sub-contractors and there had been considerable disruption in the run-up to the election, with the developer threatening to stop work.
He said thatthe figure quoted by Leader of Government Business McKeeva Bush in a statement earlier this month of $17 million was far, far too high to account for any of the changes that had taken place. Hunter Jones of TJI told CNS that $17 million was the high end but it was possible that overruns would be that much. However, McLaughlin maintained, “No major changes were asked for that could justify the overruns that are now reportedly being claimed.”
He said the schools contracts were fixed and there should be no major differences in the price at the end of the project than stated in the contract. He said if there were any claims for more money then they must be properly addressed and it would be wrong of the leader of government business to indicate he would pay without proper investigation.
“He should not signal that he will give TJI more money just because he asks,” McLaughlin told CNS. “If there are claims then they must be made the proper way, where they will be arbitrated and determined if anything should be paid.
A number of people in the construction industry said when the contracts were awarded that there would likely be problems along the way as the contracts awarded to TJI were in one case over 30% lower than the next lowest bid submitted. Even though the former minster was criticised about the cost of the new schools, many said the contract was a very good deal for government but it would be unlikely that the contractor would be able to succeed given the low bid.
Jones said last week that the current claims were as a direct result of changes to the plans and have nothing to do with any problems with the estimated costs in the bid that won the firm the contract. However, he was unable to offer the details when he spoke to CNS as to what changes could warrant as much as $17million.
The two projects, which include the construction of the Clifford Hunter School in Frank Sound and the redevelopment of a new school at the John Gray campus, were contracted to total around $110M for both schools.
Flu virus remains mild says head doctor
(CNS): Although Cayman now has nine cases of swine flu (the novel H1N1 virus) none of the patients have suffered severe symptoms as a result of the infection. Medical Director Dr Greg Hoeksema (left) has said this reinforces the point that this flu at the moment is no more concerning than the other three influenza viruses that also continue to circulate in the Cayman Islands. The Health Services Authority confirmed an additional two cases of the novel H1N1 virus in the Cayman Islands, on Wednesday bringing the total number of confirmed cases to nine.
The latest two adults to become infected are, like previous patients, experiencing a mild illness and recovering at home without antiviral medications.
Dr Anna Matthews, Acting Medical Officer of Health, said the rise in the number of cases hads been expected and was in keeping with global patterns of transmission. She expects to see a continued increase in the number of locally confirmed cases, particularly in light of the mobility of the population.
The HSA said that it remains vigilant in its public health surveillance initiatives to mitigate the spread of the virus and monitor its activity locally.
Isle of Man catches up
(CNS): Although UK Crown dependency, the Isle of Man, is already on the OECD ‘white list’, it has only just agreed to share information about those Europeans who save with its banks to EU members. The Cayman Islands, however, which remains on the ‘grey list’ has already been providing this information about its European bank account holders for several years. The move by the Isle of Man was announced at the OECD meeting in Paris this week but it is not due for implementation until 2011.
Isle of Man Treasury Minister Allan Bell said the decision to adopt the measure showed the offshore centre’s desire to remain at the forefront of international tax co-operation and transparency.
Offshore centres have been under growing pressure to conform to international standards of financial transparency since last year, as governments and international bodies focused on the role of tax havens in the financial crisis. The economic downturn has also led to an intensification of national efforts to maximise tax revenues by calling for greater financial openness from offshore jurisdictions.
This has resulted in a flurry of tax treaty signings in the last few months, in which offshore centres have agreed to share information with specific countries for the purposes of tax investigations. Cayman now has ten treaties in place, while the Isle of Man has fifteen, three over the magic OECD number. However, Cayman already shares bank saving details with 27 European countries, ensuring that citizens of those countries declare the interest they earn here in Cayman for tax purposes in their country of origin.
The Isle of Man is one of three UK Crown dependencies on the ‘white list’ of jurisdictions that have met OECD standards — Guernsey and Jersey being the other two. Although these islands have the 12 Tax Information Exchange Agreements as specified, neither of these jurisdictions meet the EU savings directives yet.
The Isle of Man is said to be making a greater effort to restore its reputation as a leading financial centre and shrug off the tax haven label, particularly since last year’s collapse of Icelandic bank Kaupthing Singer & Friedlander, which led to the loss of millions of pounds of depositors’ money.
Cayman firms join up to promote finance business
(CNS): Addressing the widespread disenchantment with the financial services industry as a result of the global financial crisis and the subsequent vilification of the offshore industry by powerful political groups, two local financial services providers have joined forces to host a forum in New York. Stuarts Walker Hersant Attorneys-at-Law and RBC Wealth Management say they will be focusing on the issues and opportunities facing private and institutional investors in today’s economic climate.
The seminar is entitled "Offshore Financial Markets Post Madoff", and will be held at the Harvard Club of New York on Tuesday 30 June. Jane Wareham (left), International Legal Consultant with Cay Solutions Ltd, a Canadian affiliate company, is working with Stuarts Walker Hersant to help organise the event.
“We felt that the timing was right for us to host a discussion about the impact of recent events on the financial services industry and in particular the potential impact of governmental and international agency proposals on private and institutional investors,” she said. “We have had a great response rate and expect to engage a number of influential industry figures. The event will also provide a useful platform to help communicate the facts about offshore financial services jurisdictions amidst a lot of negative perception.”
Deanna Bidwell, Managing Director of RBC Wealth Management, Royal Bank of Canada’s wealth management division, said that clients are increasingly reassessing their banking and investment relationships with their service providers.
“It has never been more important for the banking industry to review the best ways to serve and protect the interests of its clients and demonstrate its commitment to providing solutions to the issues presented by the current financial crisis. We are confident that our forum will prove very beneficial to wealthy investors and their advisors alike, and help educate them about the role of offshore financial services centres,” she added
The firms said they expect around 90 people at the invitation only seminar. Experts speaking at the event include Timothy Ridley, former Chairman of the Cayman Islands Monetary Authority; Anthony Akiwumi, Head of Litigation at Stuarts Walker Hersant Attorneys; Professor Andrew P. Morriss of the Institute for Government and Public Affairs, University of Illinois; Professor Houman B. Shadab, Associate Professor of Law, New York Law School; Joseph A. Field, Senior International Partner, Withers Bergman LLP, New York; and Margaret R.A. Paradis, Partner, Baker & McKenzie LLP, New York.
Global and international taxation developments, the potential impact of proposed US legislation and regulation on offshore financial centres, US litigation issues, and how fund of funds and hedge funds will have to adapt to meet private investors’ expectations are some of the topics on the agenda. The current global financial crisis, increasing attention on offshore banking centres, and high profile fraud scandals such as those involving Wall Street financier Bernard Madoff and Texas Billionaire Allen Stanford will also be discussed.
The two firms said they would also use the event as an opportunity to garner support for Facing Africa, a UK-based charity dedicated to helping sufferers of a devastating flesh eating disease, which affects children in sub-Saharan countries. Both companies’ involvement in Facing Africa has already raised considerable funds for the victims of the disease, as well as the children’s ward of George Town Hospital right here in Cayman.
Cayman Prep & High School recently raised over two thousand dollars for the project after a presentation about the infection by seven-year-old Tiggi (Jane Wareham’s daughter) at a morning assembly last month. “We asked all the students to donate at least two dollars, a toy or some clothing. In return, we all got to wear our own clothes instead of our uniform for the day” Tiggi explained. “We also gave away t-shirts to help promote the cause”.
“We are delighted with the results of our efforts and deeply grateful to our corporate supporters for their generous donations,” said Jane Wareham, “We have engaged in an initiative with the children’s ward at George Town Hospital in which local children will also share in the proceeds of our fundraising activities. We have some exciting plans for the future, which include a road race and special hospitality events.”
More information about the seminar, including the event agenda and speaker biographies can be found at www.caymanseminar.ky.
CIFSA to spread word over diner
(CNS): Continuing its series of guest lunches, the Cayman Islands Financial Services Association says it is going to host its first business dinner to tell guests about the lobbing efforts the organization is making in Washington with regards to Cayman’s bad press. The dinner will feature Jack Quinn (left) and Manuel Oritz, the main drivers behind the Washington-based lobbyist firm Quinn Gilliespie and Associates (QGA), which has been retained by CIFSA to represent the industry.
“The dinner presents an unrivalled opportunity for the industry to hear first hand how Cayman is perceived in Washington, the challenges we face, and the strategies being used to address them,” said event organizer and CIFSA Vice Chairman, Eduardo D’Angelo P. Silva.
“In the wake of a lot of recent negative publicity, CIFSA is a major proponent of Cayman’s financial services industry among international audiences and is playing a critical part in enhancing its reputation on the world stage.”
Manuel Ortiz is a leading Democratic strategist who helps his corporate clients negotiate Washington’s changing environment and is widely recognized as one of the capital’s top lobbyists. He is also an experienced advisor to corporate leaders in developing advocacy style campaigns to help achieve their goals. Prior to joining QGA, Ortiz was a transactional attorney with an international law firm.
Kids make use of used paper
(CNS): Earlier this year Kids Adventures Preschool embarked on a campaign to get local business to donate their used paper for the children to use for colouring drawing and various art projects as part of a green initiative, and the word is the project was a great success. KAP said that, due to the large amounts of paper donated, two other preschools will now share in the donations – New Testament Preschool and St. George’s Preschool.
“We hope for additional donations that can be distributed to other schools in the community,” Cheyenna Stewart said. “With summer upon us there will be a lot of arts and crafts projects scheduled and the continuous supply of paper is much needed.
More than fifteen local companies donated to the Go Green Campaign and the schoolsaid they also received a number of anonymous donations as well. “We would like to say thank you to them as well. The Go Green Campaign will be an ongoing campaign and we are glad to say we have repeat donators,” Stewart added.
If anyone missed out and has paper and or supplies they would like to donate please contact Cheyenna Stewart at 939-8282 or e-mail kidsadventurepta@hotmail.com. You can also drop off items to the preschool which is temporarily located in Trinity Square on Eastern Avenue.
Referendum activists bring in expert
(CNS): Once enacted, the new Cayman Islands Constitution will give voters in the islands the chance to initiate referendums on domestic political, social and economic issues, which could directly influence legislation. With the introduction of that new democratic tool, local activists, People for Referendum, are hosting a special open public meeting today, with Dr John Matsusaka, President of the Initiative and Referendum Institute, to begin what the group says is an important education process about people-led referendums.
The People for Referendum said that Dr Matsusaka had agreed to share some of his expertise on the subject of his research and experiences in voter participative initiative and referendum governance systems while vacationing in Grand Cayman.
“The opportunity to hear from such a scholar on this subject is of interest to all of us in the Cayman Islands as the implementation of the revised Cayman Islands Constitution begins and the legislation to give effect to the beginning of binding voter initiated referendum systems to influence governance will be discussed in the near future. It is incumbent upon all voters to become educated on this very important subject,” the local activists added.
At the meeting, which will take place at the UCCI this afternoon (Thursday 25 June) at 2:45pm in the Cascade Room (Administration Building, second floor), Dr Matsusaka will share his expertise and offer some insight into what this new constitutional provisions could mean for the community.
According to section 70 of the new Constitution, voters in Cayman will be able to initiate a referendum if they can present a petition to Cabinet signed by not less than 25% of the electorate and any subject of national importance, provided it does not contravene the Bill of Rights or the Constitution. The referendum would be binding if assented to by more than 50% of registered voters – unlike the referendum for the Constitution itself, which required only 50% of voter turnout to pass.
Dr Matsusaka’s research focuses on the financing, governance, and organization of corporations and governments. He has published numerous scholarly articles, served as a consultant for the White House Council of Economic Advisors, and is the author of For the Many or the Few: The Initiative, Public Policy, and American Democracy (University of Chicago Press, 2004).
Dr Matsusaka, an expert on referendums and other ballot propositions, is also a noted expert on government budgets and taxes, and in 2001 he joined with 60 plus economists to write President George W Bush a letter urging his rejection of the Organization for Economic Cooperation and Development’s (OECD’s) so-called "Harmful Tax Competition" initiative.
For more details, email rights@pfr.ky
Cops take kids on underwater adventure
(CNS): As part of the effort by West Bay police to reach out to young people in the district, officers from the station took 17 students who had done well in school from John A Cumber Primary School, Wesleyan Christian Academy and Grace Christian Academy on a trip aboard Nautilus Cayman last week. “We have had really good feedback from teachers and parents about this initiative, which sees the police reward young people for their efforts in the classroom,” said Area Commander, Chief Inspector Angelique Howell.
“It’s important that young people build constructive and healthy relationships with the police and this is one way we hope to do this,” added Howell, who sent her thanks to the schools for their support and also to Nautilus Cayman, which donated the trip to the children.
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.