Archive for August, 2011
Customs to see in containers without even looking
(CNS): Officers from the customs department will soon know exactly what is in people’s containers without even opening them, as a result of purchasing state a of the art high energy X-ray cargo inspection system to cut the flow of weapons, narcotics and contraband in and out of the country. The close to $3milllion contract was awarded to Smiths Detection Supplies which the Caribbean firm states is its largest contract to date. The system distinguishes between organic and inorganic substances by using color-coded material discrimination.
Jeff Jackson, Assistant Collector project coordinator said the acquisition of the HCVM which is the most advanced technology of its kind in the Caribbean demonstrates the department’s commitment to combat drug smuggling and other prohibited items and safeguard customs revenue.
In a release Smiths said the HCVM uses viZual threat identification technology which allows the detection of narcotics and other suspect substances hidden in standard commercial shipments. Coupled with other HI-SCAN Cargo Inspection Systems, the full array of scanners will help reduce the need for manual inspections by showing customs officials that goods in containers match those declared on the manifest.
Eduardo Parodi, Director of Sales for Latin America & Caribbean, Smiths Detection, said: "This is Smiths Detection's fifth High Energy System deployed in the region; all our systems have had a strong history of return on investment for their end users in terms of narcotics seizures as well as revenue collection. The effective use of advanced technology supported by our investments in regional service capabilities truly allows Smiths Detection to stand out among competing manufacturers."
Smiths Detection deploy more than 65,000 X-ray inspection units in more than 180 countries, 6,000 desktop explosives trace detection systems, 186,000 chemical detectors, and around 500 cargo inspection systems worldwide. It is part of Smiths Group which employs around 23,000 people in more than 50 countries.
According to information on the CTC website it was awarded the contract officially in May and is now required to provide customs with an effective way of verifying that the contents of either an imported, in-transit or exported cargo container at the port and other inspection sites correspond to the manifest or do not conceal forbidden or controlled items.
Smiths will not only provide the fully mobile X-ray inspection systems but will install the system and deal with the maintenance and service and after sales support.
Bankers say FATCA makes them tax collectors
(Reuters): A U.S. law meant to snuff out billions of dollars in offshore tax evasion has drawn the criticism of the world's banks and business people, who dismiss it as imperialist and "the neutron bomb of the global financial system." The unusually broad regulation, known as FATCA, or the Foreign Account Tax Compliance Act, makes the world's financial institutions something of an extension of the tax-collecting Internal Revenue Service — something no other country does for its tax regime.
Conceived as a way to enlist the world in a crackdown on wealthy Americans evading tax, it gives global financial institutions and investment entities a choice: either collect and turn over data on U.S. clients with accounts of at least $50,000, or withhold 30 percent of the interest, dividend and investment payments due those clients and send the money to the IRS.
Foreign institutions and entities that refuse, or fail, to do so face bills for the taxes due, a draconian penalty of 40 percent of the amount in question and heightened scrutiny by the IRS.
"FATCA is a blunt instrument for which foreign banks have no choice but to each spend tens of millions of dollars to help the U.S. enforce its own tax law," said Scott Michel, a tax lawyer at Caplin & Drysdale in Washington, D.C.
10th storm brewing as Irene ploughs through Bahamas
(CNS): In the early hours of Thursday morning the tenth tropical depression of the season formed some 435 miles WSW of the southernmost Cape Verde Islands. The NHC stated that the depression was expected to become a storm sometime today. Meanwhile, Irene is still battering the Bahamas causing extensive damage on some of the country’s smaller islands. At 10am local time the NHC said Irene was around 75 miles NNE of the capital Nassau which is believed to have escaped the worst of the hurricane. Irene is moving towards the north-northwest at 13 mph with maximum sustained winds of almost 115 mph making the storm a category three dangerous hurricane with further strengthening possible today or tonight.
Hurricane force winds currently extend outward up to 70 miles from the centre but tropical storm force winds extend outward a further 290 miles.
Forecasters expect Irene to continue on its NNW track through tonight with a turn toward the north by early Friday. The core of the hurricane will move over the north-western Bahamas today and pass well offshore of the east coast of central and north Florida tonight and early tomorrow. Irene is forecast to approach the coast of North Carolina on Saturday.
Police still have leads in missing person enquiry
(CNS): Although police still do not know what has happened to twenty five year old Kerran Baker who has been missing since the end of July a senior officer said Wednesday that this does not mean that there are no lines of enquiry. CI John Jones said that the police are still pursuing a number of leads and have collected considerable information during the investigation but it was not necessarily in the interest of the case to reveal what they know. Jones also added there were still people out in the community who knew more than they were telling police and he urged them to come forward.
“The fact that we have not got to bottom of where Kerran is doesn't mean that we have got no leads,”Jones said. “We are just not sharing the details of these leads because it is not going to benefit the investigation. There are certain sensitive areas regarding some of the lines of enquiry.'
Jones said however, the investigation team which consists of 15 officers was still pursuing several very specific lines of enquiry and when the time was right or when it became a benefit to the case the police would reveal more.
Detective chief Inspector Mike Chadwick who is head of CID and the senior investigator in charge of the missing person enquiry echoed Jones' comments when he said not every part of the police probe was for public consumption in order to protect what may become a criminal case.
“There are a number of lines which are still outstanding which we can't detail as it would not be healthy for the enquiry but we are discussing the issues with Kerran's family,' Chadwick said. “We have been very honest and open with the family and what we don't share is for good reason. If it becomes a murder enquiry we do not wish to prejudice the investigation'
The officers once again indicated that it was apparent that Kerran and not disappeared through choice and that it was likely she was the victim of a crime and someone out there knows what happen to Kerran.
John Jones said he believed there were people who knew more than they were revealing that may be able to assist the police but for whatever reason had not come forward with that information and he urged them to reveal what they know,.
“We are pretty sure there are some people who know more than they are letting on,” he said. “We need them to think about the stance they are taking everyone has seen the nightmare that Kerran's parents are going through.'
Jones said things were not getting better for them with the passage of time as Kerran remained missing, he said things got worse and asked those who may have information to think about if it was one of their family members.
Jones also had a message for who ever was out there that may have harmed Kerran when he said they would have a terrific weight on their conscience but the police would not rest until the person was brought to justice if they were responsible for any crime.
Kerran Natale Baker (25), a Jamaican national also known as KerryAnn, has lived and worked in Cayman for the last two years at a doctor's surgery. She was last seen on CCTV footage at Foster’s Supermarket near the airport at 7pm on 30 July. Kerran was reported missing to the police on Sunday 31 July after a friend had visited her apartment and found half unpacked groceries on the counter in her apartment in Bodden Town alongside her handbag.
Her white car was discovered parked at Pedro St James around noon on Monday 1 August and the keys were found in the bushes around fifty feet away the following day.
Anyone who may have information on the whereabouts of Kerran is asked to call any of the local police stations, the crime hotline 949 7777, Wilmot Anthony Kerran’s father 321 4271 or Crime Stoppers at 800(TIPS) 8477.
DoT failed to bid $1.2m job
(CNS): The auditor general has revealed that the tourism department completely failed to engage in a tendering process for a contract worth more than $1.2million for the 2009 Jazzfest in contravention of the PMFL regulations. In Alastair Swarbrick’s latest report he reveals that the department simply ignored the requirement for government contracts worth more than $250,000 to go through a tendering process and instead just gave the job of producing the government financed musical festival to BET without any competitive bidding. Swarbrick said at a press conference Wednesday that the responsibility for this significant breach in the regulations and procedures lay with the chief officer or the deputy governor. (Left: Alica Keys at Jazzfest)
In his report the country’s public auditor reveals that despite section 37 of the public management and finance law regulations the department of tourism awarded a contract worth CI$1,252,522 to BET Event Productions (BET) without a competitive bid despite the fact that there were numerous other companies who offer the same services. He also revealed that as well as being subject to a public tendering process the contract should also have been subject to the oversight of the Central Tenders Committee.
The report also reveals that as part of the contract BEP was supposed to acquire written approval from DoT for any contracts or commitments it entered into with other firms, artists or subcontractors. However, Swarbrick said that in several cases this was not done and added that finding documentation during this audit in connection with these contract proved very challenging. In addition there was no evidence of any signed contracts with those who were sub contracted to do the technical work related to the shows in several cases.
He noted that there was no way to say if government received value for money on the overall contract and he said significant risks had been taken with public money especially given the size of advance payments that were made to the artists which were signed up for the 2009 festival.
“In our review of the contract, we noted that most of the artists’ contracts, a significant part of the contract amount, called for all of their fees to be paid prior to the event. We believe the advance amounts were excessive and that undue risks were taken by DoT officials,” the report reveals.
Speaking to the media on Wednesday morning Swarbrick said that the decision by DoT officials to just not bother with a tendering process was one of the reasons why the Jazzfest 2009 had been selected by his office to be one of the case studies used to illustrate the problems that arise as a result of the failure to follow proper procedure when it comes to spending public money.
He said in this case the accountability for the contravention of the PMFL regulations lies ultimately with the chief officer in the ministry and the deputy governor. He said despite the fact that the law had been breached however; the audit office had not yet approached the attorney general in connection with any legal proceedings. Swarbrick said that the office was still considering what action it would take in connection with all of the things it discovered during the course of its overall investigations into the management of government procurement.
In the meantime, however, the auditor noted that he had made a further eleven recommendations in this report for government to consider as ways of addressing the wide and fundamental failings of the system. He also pointed out that the report was now in the hands of the country’s elected officials and it would be up to the legislators and the Public Accounts Committee to assess his findings and if necessary demand accountability.
See the Auditor General’s latest report below.
Anglin won’t take stand when crown closes case
(CNS): Devon Anglin will not take the stand or call witnesses in answer to the crown’s case against him for the murder of four year old Jeremiah Barnes lastyear. Despite changes to the criminal evidence act Anglin was arrested just weeks before the new bill was passed which now allows a judge or jury to draw a negative inference if a defendant doesn’t answer charges. This means that in this case the judge cannot lawfully hold Anglin’s silence against him. With no defence witnesses to be called tomorrow once the prosecution closes its case leading counsel will present their closing speeches to the court. During today’s proceedings the lead investigator on the case and one of the crown’s last witnesses was lauded by the judge when he congratulated him on the thoroughness of the investigation.
As former RCIPS DCI Peter Kennett concluded his evidence from the witness stand in connection with his role as lead investigator on the case, on Wednesday, Justice Howard Cooke told the former top cop who has now retired that he had overseen and conducted a painstakingly, thorough investigation. Referring to the written evidence before him the judge said whatever the outcome of the case it was evident that no stone had been left unturned in the police investigation.
During his time on the stand Kennet confirmed that he had been the officer to take the very first statements from Jeremiah’s parents on the night of the shooting and within hours of their child’s murder. He revealed how both of them had been traumatized by the death and were both extremely upset and in shock, but the senior officer said he felt it was extremely important to get an early account of what had happened to Jeremiah.
The case resumes at 10am tomorrow morning when the crown will read in a number of witness statements to the record which are uncontested evidence.
Scientists find option to GM mozzies for dengue
(AF): Scientists have made a promising advance for controlling dengue fever, a tropical disease spread by mosquito bites. They've rapidly replaced mosquitoes in the wild with skeeters that don't spread the dengue virus.Some scientists have been trying to fight dengue by limiting mosquito populations. That was the goal in releasing genetically modified mosquitoes last year at sites in Malaysia and the Cayman Islands. Australian scientists took a different tack, they report in Thursday's issue of the journal Nature.First, they showed that Aedes aegypti mosquitoes, the chief carriers of the dengue virus, resist spreading that virus if they are infected with a particular kind of bacteria.
Then they tested whether these resistant mosquitoes could displace their ordinary cousins in the wild, thus reducing the number of dengue-spreading mosquitoes. The resistant mosquitoes have an advantage in reproduction. Resistant females can mate with either resistant or ordinary mosquitoes, and all their offspring will be resistant. But when ordinary females mate with a resistant male, none of the offspring survive.
Mac lost CI$450k public cash
(CNS): The decision made by the Cayman Islands premier to circumvent the proper process in acquiring financing for government cost the public purse CI$450,000, the auditor general has revealed. In his latest damning report of government's handling of the procurement process, Alastair Swarbrick raises several very serious concerns about the events which led to the cancellation of the tendering process in favour of a deal that not only failed to deliver the promised savings but in the end resulted in a serious loss to government's coffers. He says the decision to go with Cohen & Co, which promised to save government $24 million on the long term loan, was made directly by the premier against ministerial advice and without any evidence that the savings were possible.
In his latest report, which uses three cases studies to illustrate the myriad problems in government procurement, the auditor general shows that when the proper process is ignored things can go very wrong when it comes to value for money for public cash. The government loan case study demonstrates clearly how, when the process was circumvented, the government lost money but once it came back on track during the third bid, following the regulations and engaging proper expertise, the public did end up with value for money.
However, before that occurred two tendering process were cancelled and the premier in his role as finance minister had turned to party officials to advice him about securing a $155 million loan for government.
According to Swarbrick's report, McKeeva Bush claimed that he abandoned the tendering process for the financing because he believed he could save government money and to avoid what he said was a conflict of interest regarding one government official involved in the bids, whose family member worked at one of the banks in the joint venture which had come out on top.
Swarbrick notes that the Public Management and Finance Law has a provision which allows the minister of finance to to secure a loan for government but he said it should still have been a transparent, fair and open process. He also raised concerns that the premier had gone to a the United Democratic Party treasurer, Peter Young, and not sought advice from a government civil servant or a government contracted expert with a specific accountable remit.
He said that there was no paper trail or documented transparency on the premier's decision to go to the political party ranks for advise or how Young had introduced Bush to Cohen and Co, but Swarbrick indicated that Young was familiar with some of the principals at the New York finance house. The auditor said that there was no evidence that Young had been paid any fees by government as a result of the introduction.
Once the introduction had been made, Cohen presented the premier with a proposal that promised to deliver $24 million in savings on the $155m loan, which Bush had been authorized to secure by the FCO to help government pay its bills during the 2010/11 financial year.
However, ministerial officials advised the premier against signing a deal with Cohen as they did not believe the promises made by Cohen were achievable. Despite that advice, the premier chose to sign the deal and commit the government to lending from Cohen and Co and the subsequent significant loses.
“We did not find any support or documentation for the decision,” Swarbrick revealed, adding that the decision was based purely on a written submission made by Cohen. “We saw no analysis to say the promises were achievable and the ministry officials did not believe they were.”
The ministry officials were proved right in the end as government was forced to withdraw from the agreement when the New York firm was unable to provide the promised savings and what they offered would have cost the country significantly more than the winning bid in the first tendering process.
The premier did not extricate government from the potentially costly financing deal, however, before two short term financing loans had been arranged via Cohen with SoctiaBank and Banque Havilland, which the auditor said proved very costly. On the short term and stop gap loans government incurred costs that exceeded those it would have paid it it had gone with the legitimate winner in the CTC bid by over a half million US dollars.
Swarbrick stated that the report highlights issues that his office brought to light in his first report. In particular, where the loan is concerned, it demonstrates the problems of both political interference and what happens when there is blatant disregard for the process.
“Government got the best deal when it followed the process properly,” he said. “This demonstrates that there is validity to the rules being in place and being followed.”
Swarbrick also noted that in the case of the Cohen loan the premier may not have directly broken the Public Management and Finance Law, which allows him to procure a government loan, but he did contravene the regulations and what he did was outside the accepted norms of good governance, transparency and fairness and above all value for money. He also noted that there is some conflict in the clause that allows the premier to secure a loan for government with the rest of the public finance law.
Check back to CNS later for more from the auditor general's report regarding the complete failure of the DoT to tender a contract over $1.2 million, in direct contravention of the law, and for the problems surrounding the CCTV bid, which the auditor states was unnecessarily held up as a result of Cabinet interference.
Mac costs public purse CI$450K
(CNS): The decision made by the Cayman Islands premier to circumvent the proper process in acquiring financing for government cost the public purse CI$450,000 the auditor general has revealed. In his latest damning report of government's handling of the procurement process Alastair Swarbrick raises several very serious concerns about the events which led to the cancellation of the tendering process in favour of a deal that not only failed to deliver the promised savings but in the end resulted in a serious loss to government's coffers. He says the decision to go with Cohen & Co which promised to save government $24million on the long term loan was made directly by the premier against ministerial advice and without any evidence that the savings were possible.
In his latest report which uses three cases studies to illustrate the myriad problems in government procurement the auditor general shows that when the proper process is ignored things can go very wrong when it comes to value for money for public cash. The government loan case study demonstrates clearly how when the process was circumvented the government lost money but once it came back on track during the third bid, following the regulations and engaging proper expertise the public did end up with value for money.
However, before that occurred two tendering process were cancelled and the premier in his role as finance minister had turned to party officials to advice him about securing a $155million loan for government.
According to Swarbrick's report McKeeva Bush claimed that he abandoned the tendering process for the financing because as he believed he could save government money and to avoid what he said was a conflict of interest among one government official involved in the bids who's family member worked at one of the banks in the joint venture which had come out on top.
Swarbrick notes that the public management and finance law has a provision which allows the minister of finance to to secure a loan for government but he said it should still have been a transparent, fair and open process. He also raised concerns that the premier had gone to a the United Democratic Party treasure – Peter Young and not sought advice from a government civil servant or a government contracted expert with a specific accountable remit.
He said that there was no paper trail or documented transparency on the premier's decision to go to the political party ranks for advise or how Young had introduced Bush to Cohen and Co but Swarbrick indicated that Young was familiar with some of the principals at the New York finance house. The auditor said that there was no evidence that Young had been paid any fees by government as a result of the introduction.
Once the introduction had been made Cohen presented the premier with a proposal that promised to deliver $24million in savings on the $155k loan which Bush had been authorized to secure by the FCO to help government pay its bills during the 2010/11 financial year.
However, ministerial officials advised the premier against signing a deal withCohen as they did not believe the promises made by Cohen were achievable. Despite that advice the premier chose to sign the deal and commit the government to lending from Cohen and Co and the subsequent significant loses.
“We did not find any support or documentation for the decision,” Swarbrick revealed adding that the decision was based purely on a written submission made by Cohen. “We saw no analysis to say the promises were achievable and the ministry officials did not believe they were.”
The ministry officials were proved right in the end as government was forced to withdraw from the agreement when Cohen as the New York firm was unable to provide the promised savings and what they offered in the end would have cost the country significantly more than the winning bid in the second tendering process.
The premier did not extricate government from the potentially costly financing deal however, before two short term financing loans had been arranged via Cohen with SoctiaBank and Banque Havilland which the auditor said proved very costly. On the short term and stop gap loans government incurred costs that exceeded those it would have paid it it had gone with the legitimate winner in the CTC bid by over a half million US dollars.
Swarbrick stated that the report highlights issues that his office brought to light in his first report . In particular where the loan is concerned it demonstrates the problems of both political interference and what happens when there is blatant disregard for the process.
“Government got the best deal when it followed the process properly,” he said. “This demonstrates that there is validity to the rules being in place and being followed.”
Swarbrick also noted that in the case of the Cohen loan the premier may not have directly broken the public management and finance law which allows him to procure a government loan, however he did contravene the regulations and what he did was outside the accepted norms of good governance, transparency and fairness and above all value for money. He also noted that there is some conflict in the clause that allows the premier to secure a loan for government with the rest of the public finance law.
Check back to CNS later for more from the auditor general's report regarding the complete failure of the DoT to tender a contract over $1.2milllion in direct contravention of the law and for the problems surrounding the CCTV bid which the auditor states was unnecessarily held up as a result of Cabinet interference.
Irene batters the Bahamas with 120 mile winds
(AP): A large and powerful Hurricane Irene was roaring its way Wednesday across the entire Bahamas archipelago, knocking down trees and tearing up roofs and posing the most severe threat to the smallest and least populated islands, officials said. Bahamian Prime Minister Hubert Ingraham said there have been no major injuries or deaths according to preliminary reports he has been receiving from throughout the widely scattered islands. But he added that they would not know the full extent of damage from the Category 3 storm until it is clear of the country on Friday.
Ingraham said the latest storm data seemed to indicate that lightly populated Cat Island was in particular danger because the storm was expected to pass over the entire length of the island. Forecasters said New Providence, the most populated island, would see tropical-storm-force winds for more than 12 hours.
This was only the third time since 1866 that a hurricane has gone across the entire length of the island chain, Ingraham said, and the country was bracing for extensive damage to buildings and infrastructure. But the prime minister predicted few casualties overall.
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