Archive for May, 2010

Missing teenage girl found safe

Missing teenage girl found safe

| 11/05/2010 | 3 Comments

(CNS): Police say 15-year-old Shandi Sandoval has been found safe and well. Following a series of police operations in the Prospect and Bodden Town areas yesterday, Monday 10 May, the missing teenager was traced and a 19-year-old man was arrested on suspicion of misleading the police. The man is currently in police custody and police enquiries are ongoing. Shandi is currently in a place of safety, police say. On Tuesday 4 May, the 20-year-old man suspected of assisting Shandi by providing food and shelter was arrested.

He was released on police bail and police confirmed today that enquiries continue into this matter

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Cameron new prime minister

Cameron new prime minister

| 11/05/2010 | 41 Comments

(CNS): Update 2:45 pm — Leader of the Conservative Party, David Cameron, has arrived at 10 Downing Street from Buckingham Palace, where Queen Elizabeth asked him to form the next British government. This followed talks with the third party Liberal Democrats to form some sort of coalition government. Gordon Brown has resigned as Leader of the Labour Party, which will now chose a new leader. In a speech made outside his new home, Cameron gave no indication of the deal made by the Lib Dems and the Tories. Nevertheless, a Tory in Number 10 will please the Cayman government, which appears to believe that the Conservatives will be more sympathetic to their opposition to introduce taxes to the islands.

However, given the size of the UK’s own deficit, it is unlikely that the new overseas minister is going to look more favourably on the CIG entering into further borrowing without some form of new revenue measures.

While the premier may have hinted that he would prefer a Conservative government, the reality is that the Tories would be far more likely to advise the CIG to push for even more public service cuts as well as some form of taxation. The Tories may be the party of a little bit less tax; they are by no means the party of no tax. In  the end, although Cayman may bid farewell to Chris Bryant, the CIG won’t be saying goodbye to the UK policy when it comes to the impact of contingent liabilities.

Following talks with the Conservatives immediately following the elections, which resulted in a hung parliament, the Lib Dems opened up talks with Labour Monday morning but with many Labour MPs opposed to forming an alliance with the Liberal Democrats, those talks appear to have broken down irrevocably and the Libs returned to the Tory camp.

Liberal Democrat leader Nick Clegg  is said to be looking for a coalition government, with members of his party given Cabinet positions. However, Cameron may baulk at that and the parties may be working towards a looser arrangement in which the Liberal Democrats agree not to vote down a Tory budget or trigger an election by joining the Labour party in a no confidence vote, but to vote on all other issues on a case-by-case basis.

A key issue for the Liberal Democrats is a reform of the electoral process.

As the UK’s turmoil drags on, who will make the decision to settle Cayman’s own financial turmoil remains a mystery.

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UCCI case ‘too slow’, says AG

UCCI case ‘too slow’, says AG

| 11/05/2010 | 16 Comments

(CNS): What was a relatively straight forward fraud has taken too long to be resolved, the auditor general said on his last day in post as he talked with CNS about unfinished business. Dan Duguay explained that while the audit office had for its part finished its audit into what had happened to public funds at the University College of the Cayman Islands and the apparent fraud by the former president, exactly one year on since Duguay handed over the information to police they had still not concluded their criminal investigations. He said he still hoped it would come to some fruition as he felt the people of the Cayman Islands deserved some answers.

“This has gone too slowly in my opinion and I have told every commissioner that has come here, including the interim ones, that it was a relatively straight forward fraud,” said Duguay. “We gave the police most of the information, though to be fair they did find other things we had not found, but by now that should have come to some fruition and it has not.”
He said the office had raised its concerns with the police that there had been no conclusions or public disclosure on what had happened. He said it was a substantial amount of public money that was lost and that there should be some explanation.
Duguay warned that the perceptions people would have as a result of the lack of closure were ones of suspicion. “As weeks and weeks go by with the police saying they have nothing to report, people get suspicious,” he added, saying that rightly or wrongly the public would perceive somebody must be covering something up.
After six years in office Duguay departed on Friday, 7 May, after what he said was a particularly busy time with three important reports being published and circulated publicly in the last few months. However, the office was continuing on with a number of other important audits, he said.
One area that his office had been examining and would continue to do was the schools projects. “The AG’s office has been talking to government for many months regarding the schools,” Duguay said, explaining that the current government had asked for advice on a number of issues relating to the projects in the wake of problems with the original contractor and how best to find a construction manager to pick up the pieces. Duguay said it was not necessarily a bad thing but given the size of the project the audit should take a look at the tendering process, for both the original and what will now be new contracts, as well as the project itself.
The exiting AG said the Government Office Accommodation Building was also on the audit office’s radar but so far it appeared to be both on time and under budget. Duguay said that it had been set to be a good news audit except for recent concerns that had been brought to his office’s attention about some changes to the original furnishingcontract, which the audit office was now examining.
“If the contract has been changed then the office would want to look at that,” Duguay said, adding that it does not automatically mean it’s a bad thing, but if a contract is changed after its awarded and it appears to have gone to a more expensive bid, this is the kind of question that an auditor general should be asking, Duguay pointed out. “It’s not necessarily wrong but when you hear things like that this it makes you want to investigate them. If there was any kind of change the office would want to see those changes had been made properly.”
Another unfinished project for Duguay that his team is now working on is an examination of how custom duty waivers are introduced and managed for specific developers. Duguay said there were a number of questions to be asked, such as what research are such decisions based on and how much does it actually cost or benefit government to implement them.
“The question of how government manages customs duty waiver programmes has been something that the office has had concerns about for some time, going back to the waivers given to the Ritz-Carlton when that was under development,” Duguay stated. “How does the information get to people, how much is it going to cost?” Duguay asked, adding that government has the right to give waivers but it should be called on to account for what revenue is lost as a result of such decisions and in face of what gains if any.
Duguay noted that while there were many other projects under consideration by the office the arrival of a new auditor meant his team would now have to wait and give consideration to what the new man may consider to be a priority. While there was plenty of unfinished business for the team he leaves behind, Duguay said his successor would now be the one to assess what would be the next report from the AG’s office.
Duguay leaves Garnett Harrison as Acting Auditor until the arrival of Alistair Swarbrick from Scotland, who has been given the contract to serve as the office’s next auditor general. CNS has contacted Swarbrick for comment on his new post and the various issues surrounding the government accountability and transparency, among other controversies. However, the new AG refused to comment, save to say he was “delighted to have been appointed as the Auditor General of the Cayman Islands” and that he was “looking forward to working with the Cayman Islands Audit Office team in the interests of the people.”
The last and most controversial of Duguay’s reports, the State of Financial Accountability, will be the subject of the PAC’s examination of witnesses on Tuesday.
Since taking office Duguay has proved to be an advocate of transparency and openness. However, many, including himself, believe that his decision to discuss his findings openly have also played a part in the controversy that has surrounded his reports. Check back to CNS this week for much more on Duguay’s review of his time shining a light on the Cayman Islands Government books.

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FOI being denied, warns ICO

FOI being denied, warns ICO

| 11/05/2010 | 34 Comments

Cayman Islands News, Grand Cayman Island headline news, Cayman Islands Freedom of Information(CNS): The information commissioner has raised concerns that government departments are merely paying lip-service to the idea of freedom of information but have not embraced the culture. Feedback to the office suggests the public is been denied access to records requested under the law and Jennifer Dilbert says there are genuine concerns that the public is being misinformed by public officials who are not following the proper procedures. Requests for people’s identity, incidents of intimidation and unfounded refusals have all been reported to her office.

As a result Dilbert is making an appeal to people to report their experiences to her office so that the ICO team can address the problems.

Despite some encouraging statistics and improvements, Commissioner Dilbert said she is still concerned with the negative feedback the office has received from members of the public where the doors to information have essentially been closed. The ICO said she has identified weaknesses in the FOI process. “What is concerning are the number of people who share with us their negative experiences,” Dilbert said.  “People are being told that the records they seek are not covered by FOI, or they are simply being informed that the information does not exist.”
 
As a result Dilbert says she is keen to press upon the public that her office can help and is asking people to bring their concerns to the office to improve their FOI experience. She explained that there are set procedures by which requests must be dealt with, which include logging the request and sending the applicant a formal response letter, people cannot be denied an FOI request over the phone and should be sent a formal letter setting out why  the request has been denied under the law.
 
“The public needs to know that if they are not satisfied with the response they receive to their request, they can contact my office,” the IC added, stating that her staff was there to help not just in the most complex legal cases but where people had been treated unfairly or intimidated.
 
The IC said government officials should not be asking applicants for their real names if FOI requesters don’t wish to give them as they are entitled to make requests under a pseudonym. Nor should they be asking people why they are making a request or what they will use the information for.
 
Dilbert stated that if people had experienced this and had not informed her officer already she would like to hear from applicants. While there are some genuine reasons why a request can be refused, all applicants have the right to appeal and in some cases the office can mediate the appeal without starting a formal hearing.
 
Dilbert said shehad concerns that people who are not appealing decisions may not be aware of their right to do so.  “I am always open to feedback from the public, but if they do not follow through with their request, they are not able to benefit from the rights afforded to them under the law.” 
 
Ironically, the information commissioner herself says her office is alsoencountering resistance from some public authorities to provide her office with copies of the information it needs concerning records in dispute, and under appeal. The ICO has adopted a policy, which is used worldwide by other information commissioners, in which they first attempt to resolve the situation through a mediation process.
 
“This process allows the ICO to investigate the issues, review the request, and work to settle the matter amicably with all parties” says Cory Martinson, Appeals & Policy Analyst at the ICO. “During this phase we normally require that copies of the records in question be forwarded to us so that we can determine if exemptions have been correctly applied in accordance with the law”. 
 
The FOI Law states that the Information Commissioner may examine any record to which the law applies, but this point has already been contested and challenged by two public authorities.
 
In February 2010, the commissioner made her first formal order for the production of a record from the Cabinet Office, which was then complied with and the records were produced. More recently, however, the commissioner faced resistance from an agency who did not feel that they needed to provide the ICO with the records at issue.
 
The commissioner revealed that the agency sought the guidance of a private lawyer, at what must be a considerable expense, to represent them in an appeal that is only in the earliest stages of mediation.
 
“The role of the ICO is to work with all parties,” Dilbert said “We do not look at the situation in an adversarial way against the government, but in order to do our job my team must be able to see the record and know what we are dealing with.”
 
Parties to mediation are assured that records collected during the process will not be released by the ICO and will be kept in a confidential and secure manner. The solutions suggested in mediation do not set precedence, and details are not shared with the information commissioner, so that there is no suggestion of bias before a potential hearing.  Any party may opt to discontinue mediation at any time and proceed to a formal hearing before the commissioner, a process which is set out in a user-friendly way. However, as mediation can often resolve appeals quickly, effectively and with less cost, the ICO encourages all parties to participate.
 
Freedom of information legislation is intended to promote transparency and government accountability. Since the FOI Law was enacted in the Cayman Islands in January 2009, over 1000 requests have been received from applicants seeking access to records but less than half have been granted.
 
The main role of the Information Commissioner’s Office (ICO) is to hear appeals when access to information has been denied and monitoring government’s overallcompliance with the law in order to do the latter Dilbert says she needs to hear from the public exactly what their FOI experiences have been. For more information on the ICO or to ask for assistance regarding a refused or delayed request call 747-5405 or visit www.INFOCOMM.ky

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Man arrested after woman stabbed in neck

Man arrested after woman stabbed in neck

| 10/05/2010 | 1 Comment

(CNS): Police said this evening that officers are continuing their enquiries following the arrest of a 26-year-old man on suspicion of attempted murder. At about 8:13 on Sunday evening, 9 May, a woman sustained serious neck injuries while at her home in the George Town area. Police say the victim of the attack called the police at the time of the incident and the man arrested remains in police custody. Meanwhile, police are seeking witnesses to another violent incident on Saturday morning in which a 29-year-old man was stabbed with a bottle outside the LI nightclub.

Police said that at about 0.33 am on Saturday, 8 May, police received a report that an altercation had taken place outside LI nightclub in George Town. As a result of the incident a 29-year-old man sustained neck wounds from a broken bottle and was conveyed to the Cayman Islands Hospital George Town, where he was detained but has since been released.  Police are appealing for witnesses.
Police say they are also looking into a violent domestic incident which reportedly occurred outside Jet Nightclub along Seven Mile Beach on Saturday night.
Anyone with information is asked to contact George Town CID Det Constable Andrew Bowen.

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Man drowns swimming off South Sound coast

Man drowns swimming off South Sound coast

| 10/05/2010 | 7 Comments

(CNS): The RCIPS have now confirmed that a Jamaican man died while swimming over the weekend. A police spokesperson said this afternoon that at around 1.20 pm on Sunday, 9 May, the police received a report that a swimmer had gone missing close to Sand Cay, South Sound. A search was then launched and the Marine Unit Tornado was deployed. A short time later the body of a 43-year-old Jamaican male was recovered from the sea by Marine Unit officers. CPR was conducted as the body was brought to shore and he was conveyed to the Cayman Islands Hospital, in George Town where he was pronounced dead on arrival.

Police said that his next of kin have now been informed and at this stage there would appear to be no suspicious circumstances surrounding the death.  A post mortem examination will be carried out.
 

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First two weapons in as gun amnesty underway

First two weapons in as gun amnesty underway

| 10/05/2010 | 6 Comments

(CNS): The police firearms amnesty was officially underway this morning when the strong boxes were placed in police stations on Grand Cayman and Cayman Brac. Two different sized, specially designed boxes have been placed in the foyer of George Town, Bodden Town, West Bay and Cayman Brac police stations, enabling the general public to bring in firearms without fear of prosecution. A handgun and a shot gun have already been deposited in the relevant boxes at the Bodden Town station under the no-questions-asked-amnesty which will run until 10 June. (Photo by Dennie Warren Jr)

The 30 day window of opportunity has been pt in place in an effort to reduce the number of guns on the streets of Cayman. Given the significant number of guns that appear to be circulating here and the recent alarming escalation of gun violence police are hoping for a good response from the community whom they said had indicated they would support the move.
The campaign was announced last week by the commissioner with support from Dorlisa Ebanks the mother of 4 year-old gun victim Jeremiah Barnes.  Police are hoping that those who know where weapons are will hand them in and save lives.
Unveiling the campaign poster, which calls for people to help cut gun crime in Cayman, as well as reminding them of the ten-year prison sentence for possession of unlicensed firearms, Police Commissioner David Baines said it was about making the community safer. He pointed out too that ten years is a long time away from friends and family and by handing in weapons people in the community who knew where guns were hidden could save a loved one from a long prison sentence or more importantly save their lives.
 “The fact is that too many young lives have been lost to gun crime in Cayman and too many guns are available on our streets for use by gang members,” Baines said. Superintendent Marlon Bodden has warned that once the amnesty is over those who did not take advantage of the opportunity would find that the police would be carrying out major proactive operations to crack down on gun possession. Officers he said would be working harder than ever to ensure investigations would be airtight and those illegally possessing firearms would face ten years in jail. 
The police have confirmed that the identity of those bringing the guns into police stations will be protected but the weapons themselves would still be investigated for any connection to crimes. Bodden explained it was not a blanket amnesty on the crime or the involvement of specific weapons in particular incidents but individuals who were not involved in shooting anyone but had access to illegal guns could feel secure that they could bring the weapons in anonymously with no questions asked.
 
 
 

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Mac says government still workingon three year plan

Mac says government still workingon three year plan

| 10/05/2010 | 8 Comments

(CNS): The government has still not revealed the details of the three-year plan it sent to the UK Foreign and Commonwealth Office in March or what the UK’s response has been to these medium term financial proposals for eliminating the current deficit. In a message delivered to the Cayman Finance Summit the premier told the industry that government had submitted a three-year economic plan to London, which had raised queries in specific areas. He did not confirm if the taxation question had been one of those queries but again promised not to introduce income or property tax.

Following further speculation about the government’s 2009/10 deficit and the immediate need to bring a budget to the Legislative Assembly for the start of the 2010/11 fiscal year on 1 July, the issue of taxation has once again been raised by the premier. Cayman may still be forced to introduce some form of taxation in order to get approval from the UK for further borrowing to plug the continuing government deficit as well as complete the major capital projects.
Cayman Finance members had asked McKeeva Bush to address them on this issue when he delivered the opening address at last Thursday’s summit at the Ritz-Carlton. However, the audience heard that the premier had been called off island on “urgent tourism business” and was not available to deliver his opening address.  Instead Acting Chief Officer (Financial Services) at the Ministry of Finance, Dax Basdeo, delivered a message on behalf of the premier.
Basdeo said that as a result of the UK election Cayman’s own financial plans for the next budget had to be put on hold since a current minister can’t bind an incoming one and Cayman’s 2010-11 budget needs the approval of the new minister responsible for Overseas Territories.
“We amended the Public Management and Finance Law that required a budget before May 1st to allow us to bring the budget to the Legislative Assembly before the beginning of the new fiscal year,” Basdeo said on behalf of the premier. “We are taking the delay of the budget presentation to continue finding areas within the public service where we can reduce the 2010-11 budgetas this is one of the key areas that needs to be addressed in order to finalise our budget. Cabinet has set a goal of reducing human resources related costs by eight percent and operational cost by ten percent.”
The message also stated that government was still seeking increased revenue by encouraging investment to generate revenue. The agreement with Dr Devi Shetty for the construction of the Cayman Narayana Health University was cited as an example along with the Memorandum of Understanding with DECCO for the construction of two cruise ship piers. He said these were long term projects that would increase government coffers in the future but in the short term government was still looking at more immediate sources of revenue.
“While the UK has been encouraging us to introduce some form of direct taxation, the premier has asked me to assure all of you that Cayman will not even consider income tax or property tax,” Basdeo said. “Whatever is decided, we are committed to doing a cost benefit analysis before any decisions on new revenue-earning systems are taken to help ensure fairness to all.”
During the address Basdeo also told the financial experts gathered for the summit that the government was working on a number of key international initiatives. He said government was tracking legislative developments on a number of fronts including  the HIRE Act, which may have implications for Cayman Islands structures, and potentially for US citizens residing in the Cayman Islands as well as the discussions in Brussels regarding the Alternative Investment Fund Directive and the EUSD II.
The message contained details of some of the changes made to bolster policy, legislative and communications infrastructure within the Ministry of Finance. Basdeo added that the Financial Services Secretariat had been strengthened with an integrated team of policy, legislative and communications experts under the ministry’s direction. “In addition to day-to-day management of activities in the areas of policy, legislation and communications, this core team also provides support and coordination for the stellar public-private sector committees that have been reinvigorated or newly-established, including the Financial Services Council, the Financial Services Legislative Committee and the Tax Information Exchange Agreement negotiating team,” Basdeo said.
The ministry was also in continuous dialogue and working lock-step with the Cayman Islands Monetary Authority, Tax Information Authority, Portfolio of Legal Affairs and the Attorney General’s Chambers, with the common goal of ensuring the country’s international cooperation obligations are fully met.
With the various new resources, Basdeo said, government was looking to make significant progress by leveraging Cayman’s historic position as a financial services centre of excellence and becoming a locale for innovative, international business, competing with the likes of any other major cities in the world.
“We are seeking out more opportunities to be at the decision-making table to help inform policy with our unique perspective of being a small country that punches well above our weight in the global financial services market,” Basdeo stated on behalf of the premier. “We believe it is a place we have rightfully earned based on the sophistication of our legal and regulatory framework, our welcome participation in several third-party reviews and the credentials of our financial services sector in terms of talent, expertise and global reach.”
In the message the premier stated that Cayman should not let others speak for it in the fluid environment of global financial services and that Cayman Finance has set an excellent example to follow over the past year. “Government is committed to doing its part in this regard in the context of international relations and building a virtual diplomatic corps,” Basdeo added.

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Pension expert warns of major losses during holiday

Pension expert warns of major losses during holiday

| 10/05/2010 | 15 Comments

(CNS): Local pension experts have warned that the two year pension holiday could result in fund losses close to $200,000 for those aged 25 and under who decide to take advantage of the break. Government recently passed legislation removing the legal obligation of employers and employees to pay pensions if the employees are in agreement, not surprisingly, the pension industry has been warning that the two year holiday if taken will have a serious impact on people’s future financial security. Brian Williams, CEO of Saxon agent for Silver Thatch Pensions recently told members of the human resources industry what he believed the negative implications will be.

Last week Williams warned the Cayman Islands Society for Human Resource (HR) Professionals that based on projections by Canadian Actuarial Consultant Eckler the impact on participating employees’ cash balances with 40 years until retirement would be to reduce their account balance at retirement by $193,000.
Amendments to the pension law which were recently passed in the Legislative Assembly have now come into effect and employers who are up to date with employee contributions and who get the agreement of their employees can now take a holiday from their legal obligations to pay into pensions schemes. The goal was to reduce the burden on employers as a result of an increase in work permit fees and to give employees who are also feeling the economic pinch access to the 50% contribution they are asked to make under the law. Government also hopes it will give the numerous delinquent employers time to catch up on thesignificant outstanding payments.
“Given the economic hardship at the moment, people have been asking for some form of relief,” Rolston Anglin the minister with responsibility for private pensions told the LA recently. “We don’t have an income tax that we can use to manipulate the economy … we needed to find a mechanism by which we could help and we will see if a change in this law will have the desired effect.”
However, emphasising the importance of pension contributions Williams said Saxon was keen to keep residents educated about the developments in the pension industry and equip them with the knowledge to make sound investment decisions for their future given the implications of the holiday. 
 “It is essential that the local community is informed and equipped with the knowledge and insight to appreciate the long-term ramifications of their decision to participate,” Williams said. “There is no better channel than to ensure that the HR professionals have their finger on the pulse to answer employee queries and make informed decisions. With this change in law, due to the current economic climate, many people will be inclined to cut back on their contributions, but this can hugely impact pension income received upon retirement, and it is our mission to make certain that Cayman has access to this information.” 
Williams covered various topics of interest including the intention of the amendments, the impact on the economy, the impact on plans, the pension suspension application procedure and approval process and the implications upon the expiration of the pension holiday were explored.  
“It was a highly informative session and …. I greatly appreciate the opportunity to meet with our community of professionals and share my insight as well as learn their viewpoints on these developments.”   
Since the economic crisis however, many people have seen their pension statements go into serious decline which has made them question why they should be forced to pay into schemes which appear to be losing money. Government is expecting that there will be a significant take up of the so called holiday freeing up the money to be spent in the local economy.  According to the amendment Caymanians can take a break of up to 12 months and non Caymanians two years. Government has also indicated its intention to review the legislation after its first year.

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Legal aid still unsettled

Legal aid still unsettled

| 10/05/2010 | 12 Comments

(CNS):  Some of the questions surrounding the recent legal aid review  were discussed during Public Accounts Committee last week. Although the results of the report undertaken earlier this year have remained under wraps, Valdis Foldats, who was a member of the Legal Aid Review Committee told PAC, in his opinion, that the cost of a legal aid clinic would be far more expensive than the current arrangements. The review was finished several weeks ago in March but government is refusing to reveal its contents, despite an FOI request submitted by CNS. The PAC meeting gave the first indication in public that the findings may not be to government’s liking.

During the PAC examination of the auditor general’s report on the Legal Aid Programme, Foldats re-emphasised that a public defenders’ office or legal aid clinic would be considerably more expensive than the current system, which for all its flaws was cost effective.
Foldats admitted that there were a number of issues that needed to be addressed regarding the current legal aid programme, but as a result of the premier’s announcement to change the system the courts had not implemented any of the recommendations made by Duguay in his audit, even though they agreed with his findings.
Foldats explained that since the premier’s announced intention last October to introduce a clinic, the reduction of the budget and the committee’s review of the system, no decisions had been made about the future of legal aid and it was not clear if it was going to stay in its present form. He said the premierhad indicated the desire to remove the judiciary from the decision making process and the system remained in question.
The clerk of court pointed out that the Law Reform Commission’s original review of the system in 2008 had made a number of recommendations, which were noted in the auditor general’s report and which he said the court had hoped would have been implemented.
“I would have hoped the Legislative Assembly would have acted upon the Reform Commission’s report as it was apparent that reform was needed,” he added. The commission had found that the current legal aid system was good value for money but had established the law and regulations needed to make the system function properly and made a number of recommendations.
Foldats, who was a member of the more recent reviewwhich examined possible alternatives, advised PAC on his calculations that a minimum of 13.5 attorneys would be needed to match current delivery, and given the cost of work permits, benefits and salaries as well as the cost of support staff and office premises, this would far exceed the current $1.8 million that the system is given each year.
During the PACs questioning the issue of who gets the legal aid work was also examined and Ellio Solomon a UDP member of PAC and the Legal Aid Review Committee made accusations about lawyers pushing civil cases into the courts in order to get the money instead of sorting the disputes through mediation.
Foldats said he disagreed with Solomon’s comments. Attorneys were officers of the court, he said, who have a duty to act properly and they would be appalled by his accusations, which Foldats advised Solomon to withdraw – which he did not and continued to imply that lawyers were cheating the system.
The clerk told PAC that most of the legal aid civil work focused on difficult divorces, often involving child custody issues and violence, cases where people needed legal assistance and lawyers were certainly not forcing cases into the court room. “If people need a divorce they need legal assistance; it has to be done in the court; a divorce cannot be done through mediation; it’s a legal matter,” he said.
Pointing out that the current legal aid rate of $135 per hour paid to any lawyer who was conducting legal aid work was far below current commercial rates, Foldats also noted that many attorneys worked over and above the hours they billed — effectively working for free.
The issue of who gets the work was also a key point raised by PAC members and Foldats said that as a result of the recent review he had canvassed all the local law firms to ask them their current position regarding providing legal aid services and 23 attorneys said they were prepared to do the work.
It was also confirmed by the other court witnesses, Jennifer King and Delene Cacho as well as Foldats, that there were in reality a very small number of lawyers who were able to assist the courts when it came to the work. The idea that one firm was taking a significant amount of the legal aid budget was explained by the fact that the firm had the highest number of lawyers willing to undertake legal aid work.
In recent months the court has seen the number of even the most willing attorneys decline as problems over receiving legal aid payments have mounted as a result of uncertainty surrounding its future.
Foldats noted that he agreed broadly with the AG’s findings in his review of the legal aid programme and that there needed to be more accountability and tracking in the system but that the problems were down to the lackof funding. He pointed out that the most important remit the system had to fulfill was that all those who faced serious crimes who had a right to legal representation were assisted by the current system.
The PAC chair focused on why the Law Reform Commission’s original recommendations had not made its way into legislation. It was revealed that the bill and regulations had been revised and were ready for consideration by the Legislative Assembly since last year. Miller committed to doing what he could to find out why the legal reforms had not been brought to the House.

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