Archive for July, 2009
Two released after shooting
(CNS): UPDATE Friday 3pm — Two men who had been detained shortly after the shooting in West Bay Wednesday night by officers responding to the scene have been released from custody. “We are now satisfied that the involvement of these men is not criminal and they were, in fact, themselves victims in this incident,” Superintendent Kurt Walton said. Two other men who were arrested in the early hours of Thursday morning in connection to the triple shooting, which left 20-year-old Marcus Ebanks (left) dead and two teenagers seriously injured, remain in police custody.
Ebanks died after being taken to hospital on Wednesday evening (July 8). A 14-year-old-boy who was seriously injured in the shooting has been flown off-island for treatment and the 18-year-old victim remains receiving medical attention. Family Liaison Officers continue to support relatives who are going through extreme pain and suffering and the RCIPS sends condolences to those who lost a loved one this week.
A team of detectives led by Superintendent Walton are operating from a Major Incident Room at West Bay police station. Speaking about the investigation so far, Walton confirmed that the victims had been outside a property on the junction of Turtle Lane and Bonaventure Road with four others when two masked men emerged from the bushes and opened fire. It is unclear at this point how the offenders made off from the scene.
Superintendent Walton expressed thanks for the assistance that has been provided by the public so far, but called for anyone who has information who has not yet passed it on, to do so. “What happened is tragic,” he said. “If you have information about what took place or the events that led to it – it is your duty to come forward. Speak to an officer you know and trust or call Crime Stoppers, but get your information to us somehow. Even if you think it is insignificant, it could be vital to us.”
Two dedicated hotlines which are manned 24-hours a day have been set up for residents to reach the investigation team directly. The hotline numbers are: 926-1773 and 926-3975
These numbers are manned 24 hours a day and callers can remain anonymous if they wish.
“We need to put an end to violence,” said Walton. “We need to take those responsible off the streets. If you can assist us to do this, please come forward.”
Speaking at a press breifing on Thursday afternoon Police Commissioner David Baines said the polcie were appealing to the public to come forward and explained how two masked gunman emerged from the busheson the junction of Turtle Road and Bonaventure Road and opened fire on some seven unarmed and innocent young men who were sitting on a wall in the area. He described a scene of panic and mayhem caused by the shooting and said that police had not yet established how the murderers had made their escape.
The new commissioner confirmed the identity of the murdered man as 20-year-old Marcus Ebanks and said his brother, 18-year-old Rod Ebanks, had also suffered serious injury but his life was not in danger. However, 14-year-old Adrian Powell is still fighting for his life and has been airlifted to the United States. Baines also said that the mother of the Ebanks brothers is a serving police officer with RCIPS.
Speaking about the four arrests, (two of whom have now been released), he noted that during the course of an investigation people are often arrested but it does not mean that there is any evidence to charge those people or that they were the gunmen and said that the RCIPS was still in need of the community’s assistance.
The commissioner said that the police needed to hear from anyone with any information no matter how insignificant it may seem. He explained that in both Wednesday evening’s shooting and that which took place on Sunday morning, where Omar Samuels lost his life following a shooting in McField Lane, people had been reluctant to assist the police.
“In both cases there are people who know and saw more than they are saying,” said Baines. “The police rely on the people to help. The community are the eyes and the evidence of the police.” He asked the community to search their consciences and come forward. He said that two people were dead and a boy was fighting for his life.
Baines said that there was no truth to any speculation that Samuels, who was shot and killed on Saturday night, was a police informant and he said that there was absolutely no evidence to suggest that the young men who were shot at last night were involved in anything illegal or criminal or were engaged in using drugs or part of gangs.
Baines pleaded with the community to come forward with any information they had regarding people who they knew to have weapons. “Rarely do we get the chance to save a life but every weapon taken off our streets could do just that and anyone who can tell the police about a weapon could be saving the lives of their own loved ones.”
He said he was aware of the issues of mistrust between the community and the police but that anyone with information on either shooting could talk to any police officer that they trusted or, if not, they could contact Crime Stoppers. He said that he would be doing what he could to protect the integrity of information given to the RCIPS and he intended to sack any police officer that would leak information given in the course of investigating a crime.
Anyone with information on this or an crime can also call their local police station of 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.
Mac accused of ‘disrespect’
(CNS): The outgoing chair of the Cayman Islands Monetary Authority has hit out over his impending removal by the new government and described its failure to tell him he is going as “blatant disrespect”. He accused the administration of politicizing CIMA by undermining its expected independence from government. In a long statement Carlyle McLaughlin said he first heard of his removal from a reporter and has still not been told officially.
“I have still had no discussion or communication with anyone in an official capacity about my ‘removal’ as chairman of CIMA,” he stated. “I can only say that my disappointment with such blatant disrespect is appalling after the many years of service I have provided to my country. It should now be clear that the LOGB considers this position as a political appointment even though my fellow directors and I have been elected for 3 year terms, something that has been in place for several years now.”
“I did not consider myself a political appointee because I felt I was nominated as Chairman because of the skill set I brought to the equation,” McLaughlin wrote, adding that he was not close to Alden McLaughlin.
Pensions due despite BAICO problems
(CNS): Despite the fact that British American Insurance Company Limited (BAICO) is in financial trouble all employers are still being ordered to pay pension contributions for their employees. A release from the Ministry with responsibility for the National Pensions Office states that if employers are uncomfortable with that plan there are other options open to them. “Employees and employers are reminded that pension participation is a condition of employment in the Cayman Islands and neither the employer nor the employee has a choice on whether to participate in a pension plan or not,” the Ministry said.
In the wake of the Cayman Islands Monetary Authority’s cease and desist order to BAICO on 29 June, the Pensions Office, the Board and the Ministry said that BAICO operates a registered multi-employer Pension Plan in the Cayman Islands, and while the firm is experiencing financial problems, there are five other multi-employer pension plans operating in the Islands, all registered with the office and they are accessible through the office’s web-site.
The ministry advised employers to visit www.npo.gov.ky under the Employers/Pension Plans button on the right hand side and said other useful information is included on the web-site including information on changing plans and pension providers. It said that business owners and employees should inquire about their responsibilities with respect to pension benefits by contacting the office on 945 8960.
“Once again contributing to a pension plan, on a regular basis, by both the employee and the employer in the Cayman Islands, is not optional. Employers are reminded, that although they get to select the “t’ype’ of pension plan to be provided (defined benefit or defined contribution) employees must be consulted on the actual plan to be used, decided by a majority vote,” the ministry stated.
“The implementation of any pension contribution holiday would require enabling legislation,” Anglin stated. “The proposed pension contribution holiday is not a general suspension of pension contributions but is a specific, targeted suspension due to the current economic climate. There are many details yet to be ironed out, such as the conditions and length of time it should be in effect.”
FS denies being UDP ally
(CNS): Financial Secretary Kenneth Jefferson did not allow the dust to settle before rebutting the leader of the opposition’s statement yesterday (8 July) accusing him of colluding with the UDP to discredit the previous administration and demanding an explanation for the deficit. Jefferson said he was not a “willing ally” in discrediting but he and his office were allies to the truth. He said he also welcome the first admittance by the PPM leader that his government had received a prediction in February from the FS of a $68 million deficit.
Stating that he stood by his statement delivered to the Legislative Assembly on 1 July, he said that the public should get themselves a copy and that there was no need of further explanation as requested by Kurt Tibbetts as he had already answered the questions.
“This 16-page statement is available at the Legislative Assembly and the public is encouraged to obtain a copy of it to acquaint themselves with the facts,” the FS said. He said he welcomed Tibbetts’ most recent comments as it was the first time he had admitted to receiving Jefferson’s 9 February deficit prediction, “…in stark contrast to recent public denials,” Jefferson added.
The financial secretary also denied telling the previous government that the $29 million deficit was still true on 5 May.
“The Leader of the People’s Progressive Movement’s 8th July statement questions the credibility of the recent $74 million forecast deficit, by stating that on the 5th May 2009 the previous administration was told by the Financial Secretary that the projections for a forecast deficit of $29 million were holding true,” Jefferson said. “On the 5th May 2009, the Financial Secretary was in Miami, Florida. Moreover, the 5th May 2009 Cabinet Note did not contain projections; it contained actual results for the nine months to 31st March 2009.”
He said yesterday’s charge that the present hovernment had found a “willing ally” in the financial secretary in carrying out an exercise to discredit the previous administration was not true.
"The Portfolio of Finance are allies to the truth and are not involved in any exercise to discredit the previous administration,” he added.
He also re-affirmed that the health of public finances at 30 June 2009 was severely challenged, and going forward a determined effort was required by legislators and the public service to restore balance between public revenues and public expenditures.
CNS note: There is now a link to the 16-page statement made by Ken Jefferson on 1 July on the bottom of the right hand column (this page below the CNS comment policy).
Defence accuses cop of conspiracy in murder trial
(CNS): In the second day of the trial of William Martinez-McLaughlin for the murder of Brian Rankine, the defendant’s counsel painted a different picture of the events of the night of 16 May 2008 than that presented by the Crown. Grilling the prosecution’s key witness, Jason Hinds, who has admitting to being with McLaughlin on the night of the murder, Mark Tomassi suggested that the brutal murder was committed by Hinds over a drug deal gone bad and that he had conspired with a local police officer to concoct his testimony and clear him from the crime.
Tomassi questioned the witness on the testimony he gave at the opening of the trial when Hinds had described Martinez-McLaughlin as the murderer. The defence’s lead counsel queried Hinds for a full day on his alleged movements on the night, his motivations and his relationship with Detective Sergeant Wright, who was one of the main officers handling the case. He suggested to the witness that it was him who was responsible for the murder of Brian Rankine because of his hatred for homosexuals and the failure of a drug deal. He then suggested that Hinds already had a family relationship with Sgt Wright from Jamaica, who was present at the arrest, and together they had conspired to clear him of the murder and put the blame on his client. “He was your buddy, wasn’t he?” Tomassi said. “Your friend from Jamaica?”
Hinds denied having a family relationship with Officer Right but did say he had known him from seeing him on the road in his home of Spanish Town in Jamaica. Hinds also said he had not conspired with Wright but had felt more comfortable telling him the truth over what had happened. “What you have cleverly done with the help of Sgt Wright is swap positions with my client,” Tomassi suggested.
During the cross examination, Hinds persistently denied Tomassi’s accusations often saying, “No Sir” or “I do not know what you are talking about.” However, Tomassi suggested that Hinds had a hatred for homosexuals, which he believed Brian Rankine to be after he had allegedly complimented Hinds on his dancing in the Eastern Star Bar in East End. Tomassi also suggested it was he who had set up the drug deal with Rankine and made the decision to drive to George Town and not the defendant as he had suggested. He said that when Rankine did not supply the amount of drugs Hinds had been expecting, it was he who murdered Rankin in a fit of rage as he suggested the witness was known as a dangerous man who should not be crossed.
Tomassi questioned Hinds in detail on his testimony and asked why, if his accountwas true, that he had not driven off and left Martinez-McLaughlin on the many occasions that presented themselves to report the murder. Hinds said he was shocked and confused as well as being scared of the defendant and was not thinking clearly.
Tomassi also asked why, having already driven once from George Town to East End that night, he was prepared to do it again late at night without seemingly knowing why. Hinds insisted he was simply doing his co-worker a favour and he had been offered compensation for the gas. Hinds also denied being involved in any drug deal but was unable to give an account of what he thought the drive to George Town to McField Lane was all about and what was supposedly going on between Rankine and the defendant.
Tomassi also raised the issue of a missing machete that was not in the evidence list, which Hinds admits to using to bury his own clothes that Hinds said the police had taken. Tomassi also questioned why a knife belonging to Hinds that was at the scene of the arrest was not taken into evidence and tested.
He questioned Hinds on his drug use, and Hinds said that he had used ganja in Jamaica but had given it up since arriving in Cayman and had only taken one pull from a spliff that had belonged to McLaughlin on one occasion.
Having established that Hinds was no stranger to drugs, Tomassi continued his inference that it was he who had taken Rankine, whom he described as a vulnerable and scared young man, to George Town for the intent of securing drugs, but when the deal went bad Hinds had killed Rankine, whom he considered a homosexual, in an angry rage and then set about creating his story, which was helped by the good fortune of his friend Sgt Wright being on the case.
Hinds continued to deny all of the lawyer’s repeated allegations throughout the day and on re-examination by the Crown told Solicitor General Cheryll Richards that he had given up smoking ganja when he moved to the Cayman Islands four years ago because of the stiff penalties.
No complaints process in key departments
(CNS): An audit by the Office of the Complaints Commissioner determined that for six government entities a failure to establish an effective internal complaints process (ICP) amounted to maladministration. It made this ruling against the Department of Employment Relations, the Planning Department, the Royal Cayman Islands Police, the Immigration Department, the Ministry of Health and Human Services, and the Department of Tourism. In all, the OCC found that 22 government entities did not have a formal ICP, while the DoER, the DoT, the Legislative Department and the Planning Department had no ICP at all.
Nevertheless, the audit of the ICPs of 76 government entities revealed that since the inception of efforts to encourage government entities to develop and implement ICPs there has been a significant increase and improvement in customer complaints processes.
An effective ICP is a process by which complaints against an organization are received, investigated and resolved in an orderly manner. Maintaining an effective ICP is essential for an organization to capture and utilize information about what customers are feeling, experience and expect from an organization. A formal ICP includes a documented procedure that the organization follows when processing a complaint. In some cases an informal ICP can be effective.
In 2005, the OCC launched a project to determine which government entities had a formal or informal process through which they received and addressed any concerns of the public they served. Each entity was surveyed and asked to say if they had established a formal or informal ICP. There have been three such surveys which in turn produced three reports – one in 2006, another in 2007 and the most recent in 2008.
In June 2008, in order to judge for itself whether the entities had indeed established ICPs and whether they were formal or informal and effective or ineffective, the OCC declared an Own Motion Investigation. The report on this investigation, “Do government entities hear their customers? An audit of their Internal Complaints Processes”, was tabled in the Legislative Assembly on Friday 3 July 2009.
This audit confirmed that while the majority of the 76 entities audited had formal ICPs, 22 entities did not, despite the OCC’s efforts to guide them in establishing one. Some of these entities have a high volume of interaction with the public while others almost none.
The OCC found that the Department of Employment Relations, the Department of Tourism, the Legislative Department and the Planning Department had no ICP at all. The Cinematographic Authority and the Public Health Services both have their complaints addressed through the ICPs of their associated bodies.
The following entities had informalICPs: Cayman Islands Postal Service, Cayman Islands Stock Exchange, Department of Children and Family Services, Department Counseling Services, District Administration, Elections Office, HM Prison Service, Immigration Department, Lands and Survey Department , Mosquito Research and Control Unit, National Housing and Development Trust, Portfolio of Finance and Economics, Radio Cayman, and UCCI, as well as the Portfolio of Internal and External Affairs, the Ministry of District Administration, Planning, Agriculture and Housing, and the Ministry of Health and Human Services.
In the cases of maladministration, the OCC found that the Department of Employment Relations had previously had a formal ICP but had subsequently abandoned it and had not replaced it with an effective formal or informal ICP.
The Planning Department did not have a formal or informal ICP and officers were not able to provide clear information as to who handled complaints or how they are handled. It admitted to receiving complaints, but was unable to verify how many or how they were actioned.
The RCIP admitted that although it had a formal ICP and a Professional Standards Unit to address complaints, its system did not function properly. It admitted to needing to overhaul its ICP and that it had began work on that process.
The Immigration Department was found to have an informal ICP but the public was denied access to the process through the Immigration frontline staff, who were found to be blocking people from filing complaints. The Immigration process also failed to meet reasonable timelines.
The Ministry of Health and Human Services admitted to not having an ICP. It acknowledged the importance of having an ICP and committed to taking action to create a formal ICP for its Ministry. The Department of Tourism admitted that it did not have an ICP and also committed to establishing one as quickly as possible.
The OCC reported that it has experienced a drop in the number of complaints made against government entities, which the Office believes is due partly to the improvements to operating procedures in many government entities, including ICPs, and partly to the existence and influence of the OCC.
“The first three reports were based on the surveys of the government entities,” said Complaints Commissioner Dr John Epp. “This investigation, however, was an objective assessment of the claims made in the 2008 survey and is therefore an accurate reflection of the levels of preparedness of government entities to process complaints.”
Through the course of this investigation, the OCC recognized that while the majority of government entities have implemented an ICP, a continued effort is required by many to ensure that the public is encouraged to make complaints using these processes.
The OCC is located on the 2nd floor, 202 Piccadilly Centre, Georgetown, Grand Cayman, phone number (345) 943 2220. The website is www.occ.gov.ky.
Sharp rise in H1N1 cases in Cayman
(CNS): The local H1N1 countis up to 33 after CAREC confirmed 11 more cases since the beginning of the week. However, Health Minister Mark Scotland said his ministry is closely monitoring the situation and the H1N1 flu strain currently in Cayman is not a serious threat. According to a WHO update, new guidelines will soon be released advising countries with confirmed H1N1 cases to cut back on testing all suspected cases and move toward larger surveillance indicators, such as influenza-like illnesses or pneumonia hospitalizations.
“I am confident that these figures reflect the accessibility of our health care system as well as the robust surveillance system that is in place,” Scotland said. “However, to make sure that we are doing all we can, Cayman is hosting a meeting today with our regional Pan American Health Organisation (PAHO) representative Dr. Ernest Pate. As part of PAHO’s ongoing support and technical assistance, Dr Pate will meet with public health officials and hospital staff to review our response to the current flu pandemic.”
The Minister of Health continued, “I have further confirmed with public health officials that they will continue to follow the World Health Organisation (WHO)’s guidelines in formulating our response strategy.”
Minister Scotland gave the assurance that any change in the local response will be communicated to the public as soon as possible. “Our health services are ready to respond, in the event that the nature of this flu strain should change. For now, the strongest message remains: When you are sick, stay at home,” he concluded.
Man shot dead in West Bay
(CNS): Updated 7:45 am Thursday — One man is dead and two teenagers have been wounded in a shooting which occurred on Bonaventure Road in West Bay last night. Police said that the 911 centre received a call just before 8pm on Wednesday night (8 July) reporting that shots had been fired in the area. Police and medics responded and the three men were taken to hospital, where the 20 year old man was pronounced dead. The 18 year old, the brother of the dead man, is being treated for injuries and the 14 year old boy is in a critical condition fighting for his life and is expected to be flown off island today .
Two men were spotted by police leaving the area soon after the shooting and were taken into custody for questioning to ascertain their reasons for being in that area. “This is a tragic incident which has claimed one life and left two others seriously injured,” said Superintendent Kurt Walton, who will be leading the enquiry.“Our sincerest condolences go out to the families of those involved.”
Walton made an emphatic plea to the public for any information about what took place. “These young men’s lives have been destroyed and their families are devastated. We need all the information we can get to help piece together what led to the events that took place,” he said.
Scenes of Crime Officers continue to process the scene and detectives are carrying out enquiries and taking statements.
Following the shooting incident, a disturbance broke out outside the government hospital in George Town. A fight erupted in the car park involving a number of men. One of those involved ran into a chain link fence, tripped over and sustained a serious neck injury for which he is currently receiving medical attention. Police at the scene arrested a 19-year old man. What sparked the disturbance is currently under investigation.
“What has happened has rocked the community,” said Walton. “But now is the time we must come together to bring those involved to justice. We do not need any more violence. If you have information about what took place, please come forward and assist us.”
Last night people at the scene said that as many as ten shots were fired at the junction of Turtle Road and Bonaventure.
Officers would like to hear from anyone who was in the area at the time of the incident who may have seen something that can help the enquiry or anyone with information about the events leading up to the shooting.
“If you saw anyone in the area or any vehicles leaving the location we would like to hear from you,” said Walton. “Any small piece of information could help us piece together what happened.”
Residents are asked to contact West Bay police station on 949-3999 or Crime Stoppers on 800 TIPS (8477). All persons calling Crime Stoppers can remain anonymous.
Family Liaison Officers are working with the relatives of the victims and counselling will be made available.
West Bay officers will be out in force providing reassurance to residents over the coming days. Anyone with concerns who would like to speak with an officer can call their Neighbourhood Officers or Area Commander, Chief Inspector Angelique Howell, at the West Bay police station on 949-3999 or email angelique.howell@rcips.ky.
Tibbetts denies deficit deception
(CNS): The dispute between the previous administration and the financial secretary over the state of government finances for the year end 2009 rolled on today (8 July) following another lengthy statement by Leader of the Opposition Kurt Tibbetts questioning the explanation offered by Kenneth Jefferson in the Legislative Assembly last week. Tibbetts said that the FS had still not explained why he told Cabinet and Finance Committee there would be a $29 million deficit and total cash reserves of $126 million as at the end of June this year if he did not believe it.
He also denies Jefferson’s inference that attempts by the PPM administration to reduce the predicted deficit was an exercise in deception.
“As far as my administration was concerned, this was a legitimate effort to reduce the predicted operational deficit. It was not some exercise in deception as the Financial Secretary seems to infer in his statement. At least, it was not so on our part,” Tibbetts said. “What he intended or perceived the purpose of the exercise to be is a matter which the Financial Secretary needs to explain, especially since he and his office played the key role in the exercise.”
The leader of the opposition has stated that at the end of that “difficult exercise, a revised budget position was arrived at which placed the projected deficit at $29M at the end of June, 2009 and overall cash reserves at $126M.” He said that although it was far from ideal it was based on the work that had been done and the assurances of the financial secretary, which, he added, was considered as the realistic position. “We had to face the fact that the government would be running an operational deficit at the end of the fiscal year and we would have to make this announcement to the country in advance of the impending General Elections,” Tibbetts acknowledged.
The leader of the PPM has accused Jefferson of being at pains, in his statement delivered to the Legislative Assembly on 1 July, to distance himself from this matter and of inferring that elected ministers fabricated the projections when he had told ministers that there would be a $68 million deficit.
“This is both untrue and an abdication of his responsibility as Financial Secretary to provide the Cabinet, Finance Committee and the Legislative Assembly with sound, objective and truthful advice in relation to the finances of government,” Tibbetts said. He added that the veracity of the financial secretary’s claims must be considered against the background of what he described as incontrovertible facts.
“The projections and the attendant Supplementary Budget were prepared by the Financial Secretary and his office, not by the elected ministers,” said Tibbetts. “The projections and Supplementary Budget were formally presented to the Cabinet by the Financial Secretary to be approved for presentation to Finance Committee. The Financial Secretary personally presented the Supplementary Budget to Finance Committee at its meeting on 20th and 21st March, 2009. The Revised Forecast Financial Results for 2008/9 presented to Finance Committee by the Financial Secretary on 20th March, 2009, stated among other things, that at the end of June, 2009 the Operating Deficit for the government would be $29.4M and that the closing Cash Balance would be $125.5M.”
Tibbetts noted that in the FS’s presentation to Finance Committee, he told members, among other things, that it was a realistic budget. At the time Jefferson had said: “The budget which the Government prepared and presented in April 2008, I believe, I am confident was a realistic budget. It reflected what the Government could do with the revenue expectations it had for this particular year, and indicated that the surplus expected for that year was approximately $14M ($13.8M).”
The financial secretary had gone on to say that there would be a deficit and told Finance Committee that there were many meetings held with chief officers, chief financial officers, where they were grilled over revenue expectations, the cost expectations, and therefore the March supplementary budget was realistic.
Tibbetts recalled again the 5 May cabinet note that the financial secretary presented to the elected ministers to which he had attached a Financial Report for the period from 1 July, 2008 to 31 March, 2009. “In this report the Financial Secretary set out what he claimed was the actual financial position of the government as at the end of March, 2009,” the leader of the opposition said. “The note stated that the net deficit for the 9 month period to 31st March 2009 was $18M and that the cash position or reserves of the government as at that date was $110M.”
Tibbetts said the financial secretary also advised Cabinet that the projections on which the supplementary budget was based were holding true. However, the financial Secretary told CNS last week that he was not on the Island at that time and had not prepared the note or told government on 5 May that the $29 million deficit was still a realistic proposition.
In his latest statement, the opposition leader went on to say that the financial secretary did not advise his administration that there were any concerns about the deficit being substantially greater than had been projected during FinanceCommittee in March. Tibbetts stated that the information the financial secretary presented on 2 June, one week after the new government was sworn in, showing that over the course of the single month of April 2009 the actual deficit had risen by what Tibbetts described as a whopping $20M from – $18.8M to $38M — was information which he never shared with the PPM administration.
“To put this in perspective, the Financial Secretary is saying in his statement that although during the entire nine month period from July to end of March the cumulative deficit was $18.8M, the deficit for the month of April alone was $20M. This defies belief. It is inconceivable and the Financial Secretary has not explained how this could happen. Instead, he seeks to divert attention from this issue by stating that this indicates that the $29M deficit projected in March was unrealistic,” the leader of the opposition added.
“I believe that that the above facts must cast real doubt on the veracity of the Financial Secretary’s statement of 1st July. They must also, regrettably, raise questions about the accuracy of the various predictions and projections made by the Financial Secretary regarding both revenue and expenditure. That is so not just in relation to those projections on which my administration relied, but also to the present projections on which the present government is currently relying. This is an extremely worrying state of affairs and one which must be addressed urgently for the sake of the country.”
Tibbetts said that the present state of both the world and the local economy presented real challenges and well before the meeting of Finance Committee in March 2009, the PPM administration was keenly conscious of the challenges and that was why in October efforts were made to reduce operational expenditure.
He said he had issued a policy directive to the civil service to restrict the hiring of new staff and reduce expenditure by 6%. He said these were elected government initiatives and no action was suggested by the FS, who in October 2008 predicted an operating deficit at the end of June, 2009 of $16M. Accusing the FS of omitting critical facts Tibbetts said Jefferson was trying to pin responsibility for what he claims to be the financial position of the government entirely on the former elected ministers.
“If he is to be believed, it is tempting to ask why we need a Financial Secretary at all,” Tibbetts added. “More than 50% of the operational expenditure of government goes to pay for the civil service; salaries, health care, pensions, etc. These costs are therefore not very flexible and will only decrease if the number of civil servants is reduced or salaries are cut. Conversely, these costs will increase if the civil service grows. Under the present constitution elected ministers have no administrative authority and therefore cannot control decisions relating to the hiring of civil servants without the agreement and support of the Chief Secretary as Head of the Civil Service and the Chief Officers in the ministries and portfolios.”
Tibbetts stated that despite the provisions of the Public Management and Finance Law, elected ministers have little control over operational expenditure which, in addition to the costs relating to the civil service, includes the purchase of supplies and services to keep the engine of government running. These decisions are by and large within the province of Chief Officers.
“When the decision was taken in October, 2008 that operational expenditure had to be reduced it was important that this was implemented immediately, hence the reason it was effected by a process of directives to the civil service and a public announcement. If, as the Financial Secretary has suggested, we had waited and instead of issuing the directives had opted for the process of revising the budget provisions and calling a meeting of Finance Committee and of the House to reduce the overall budget, many weeks, indeed possibly as much as 2 months, would have elapsed before the decision would have had any effect.”
He said it would have taken time because of the work that would have been required by the Portfolio of Finance and Economics and the preparation of a revised budget for a meeting of Finance Committee.
Last week the Financial Secretary claimed that he warned the PPM in October 2008 that unless the matter was taken to the Legislative Assembly “there was a grave danger that without a cost-reduction Supplementary Budget exercise (by Finance Committee), the promised reduction would be spent as time went by in the financial year.”
Tibbetts suggested that the FS had put this forward as one of the principal reasons why the operational expenditure was not significantly reduced as a result of the directives given by Tibbetts’ administration. “Quite frankly, this is nonsense,” Tibbetts claimed. “Is the Financial Secretary suggesting that merely reducing the budget appropriations through Finance Committee would have the effect of containing operational expenditure by the public service? If so, then how does he explain what occurred since the budget was reduced by Finance Committee on 21st March, 2008 and the position at 30 June, 2009 during which period he says a further $19M in unauthorized operational expenditure has been incurred by the civil service?”
Tibbetts said the new government had without question chosen to present the current financial difficulties of the government in the worst possible light in order to discredit the administration. “That is not unusual. But what is unacceptable is that they appear to have found a willing ally in the Financial Secretary in carrying out this exercise.”
Tibbetts then suggested that the 1 July statement by the FS raises more questions than it answers and that there remains much for the him to account for in relation to the advice and guidance which he gave to the PPM government over the past year.
“It is critical that the government develops a better system of projecting both revenue and expenditure. I do believe that the advent of an elected minister with responsibility for finance under the new constitution will go a long way to introduce the level of accountability necessary to ensure good governance in a democracy,” Tibbetts added in his statement.
The PPM Leader said it remained a mystery why the FS chose to make the statement after and not during the recent debate in the Legislative Assembly when the new government sought and obtained approval for appropriations totaling $573M for the first 4 months of the new fiscal year.
“Might it be because he did not wish to have his statement made the subject of scrutiny and debate in the House?” Tibbett asked, adding that he believed the Jefferson still owes the country and the previous administration an explanation for the huge variance in the projections which hegave to Cabinet and to Finance Committee in March of this year and the position which he has now stated.
“This is even more necessary since he later confirmed those earlier projections in a Cabinet Note dated 30th April which he presented toCabinet on 5th May. Even now, after all this time he has still not provided a satisfactory explanation,” he declared.
Eleven down one to go?
(CNS): The Cayman Islands signed its eleventh tax information exchange agreement (TIEA) on Wednesday at a ceremony held at the Netherlands’ Ministry of Finance in The Hague. Government said the agreement with the Netherlands is based on the Organisation for Economic Cooperation and Development (OECD) standard for bilateral exchange of information on tax matters and is seen as another step in removing the Cayman Islands from the post G20 OECD ‘grey list’ with the eventual signing of twelve TIEAs.
Signing on behalf of Cayman, Leader of Government Business McKeeva Bush said it affirmed the Cayman Islands’ commitment to openness and transparency that characterise the way that business operates in the two jurisdictions.
As Cayman struggles to elevate its international reputation in the wake of an onslaught from the world’s leading nations seeking to crack down on so-called tax havens, the new UDP government has committed to signing agreements with as many OECD countries as possible. However, there are a number of indications that the signing of the target twelve treaties may not necessarily be enough to remove Cayman from the ‘grey list’. The OECD may soon be pushing for more TIEAs or evidence of the effectiveness of the agreements and implentation before elevating what it defines as uncooperative jurisdictions to the ‘white list’.
“The Cayman Islands, as far back as 2000, gave an unequivocal commitment to the OECD to co-operate on the issue of the exchange of tax information,” Bush said at the ceremony. “This signing today is a further illustration on our part to honour that commitment. It also demonstrates our willingness to partner with other countries to discourage those who are so minded to, from seeking to evade their obligation to pay their taxes to their respective jurisdictions.”
He added that the Cayman Islands have repeatedly reassured the rest of the world that we provide no safe harbour to those who are involved in any unlawful activities, be it tax evasion, money laundering or any form of trans-national criminal activity.
“We pride ourselves as a major international financial service centre that guarantees high standards of services underpinned by internationally recognised and accepted levels of regulation,” Bush noted. “We therefore welcome the kind gesture of the government of the Kingdom of the Netherlands to host this signing ceremony. We are grateful to all those who have worked very hard to facilitate this occasion, and we look forward to our two countries working together to ensure the effective implementation of this agreement.”
Thanking all those involved he said the signing ceremony marked the culmination of meaningful negotiations between the technocrats in Holland and Cayman.
Bush was joined by a number of delegates from the Cayman Islands including Attorney General Samuel Bulgin, and JC de Jager, State Secretary for Finance, signed the TIEA on behalf of the Netherlands.