CIG has 4 years to sort debt
(CNS): The agreement signed by McKeeva Bush this week in Londongives the Cayman Islands government just over four years to address its debt problem. In the meantime, the Financial Framework pins the government down to some stringent rules and will see the UK taking a closer eye on how money is spent and managed. The agreement calls for “robust cost benefit analysis” on all development projects and the need for independent accounting, legal, financial, environmental and other technical advice on all public-private partnerships. All future projects will need to be properly justified and the appraisals published for public scrutiny before procurement.
According to the final draft of Framework for Fiscal Responsibility agreement (FFR) (attached below), from now on the Cayman government will need to retain sufficient expert advice “to ensure it is an intelligent customer” when it comes to private sector suppliers and partners on major projects. It also calls for “competent teams to manage all projects” and ensure quality of service.
The deal requires government to monitor civil service spending and performance as well as monitoring actual results against the annual budget. In future government will need to pay much closer attention toits liabilities, such as health care and the public sector pension’s burden. The FFR also calls on government to publish actuarial assessments publicly at least every three years.
The new arrangement requires the local government to send information to the UK regarding Cayman’s finances on a regular basis and on request. From tri-annual reports of contingent liabilities to monthly reports on its liquid assets, the UK will also be able to request, among other things, detailed updates on the progress of projects on demand as well as proposals for projects
Any breach of the arrangement will see the UK more or less take control of the local public purse and prevent government from making any significant spending decisions.
The stringent requirements of the new deal will put pressure on government to spell out the full details of any proposed project which involves government assets and public sector involvement, such as the proposed port development, the airport renovation and the ForCayman Investment Alliance.
Furthermore, the FFR highlights the risk of government companies and statutory authorities that may need significant funding to prop them up and has rated Cayman Airways, the National Housing Development Trust, the Tourism Attraction Board and the Cayman Turtle firm as having an 80% risk of requiring further government subsidies.
See final draft of FFR signed in London last week below.
Category: Politics
All this BS is necessary to convince us that politicians are not taking more money from the poor and shift it to the rich.
Because in the end nothing will change. All wil stay the same, only the public will have a different view of the situation.
It is not about the truth, it is about wat you make the people believe.
Greetings everyone,
I would like to take this opportunity of momentum to share with you a short video clip that encompasses much of what I have been submitting in my posts here on CNS.
I understand that by now the very existence of the moniker "Whodatis" invokes a negative reaction however, I hope all of you will put aside 7 minutes and 39 seconds of your life to view the following clip. (Perhaps the message will be better received when delivered by someone else.)
It is from a British / EU perspective yet is very relevant to the times in which we are living and it relates to every person alive on planet earth today.
Sincerely,
Whodatis
P.S. Please share your thoughts after viewing.
"The Gathering Storm" by Pat Condell
No, you're right. Anything with your moniker associated with it will not draw me to waste even one minute of my life. Sad, I know. And I may be wrong. But everyday one has to make decisions on evidence before one and the evidence from you over the last many months is such that would lead any truly rational unbigoted person to move on quickly as soon as your moniker appears.
Re: "No, you're right. Anything with your moniker associated with it will not draw me to waste even one minute of my life. Sad, I know. And I may be wrong."
Such reasoning reminds me of my young, over-emotional ex-girlfriend of some years ago.
To each his own I guess.
However, I would suggest you have a look at an earlier post within this thread:
There is much truth in your comments Whodatis. It pains me at times to read the repetitive nature of your posts. Mostly because they are true. When one considers the economic state of a majority of Western nations, and compare them to Cayman, the Western nations are in far worse shape (with a few exceptions) in terms of debt ratios, per capita income etc.
I believe Cayman becomes a target for a lot of disgruntled expats who have left the island (for one reason or another), and from others who have trouble living as a minority while working in Cayman. They are simply not used to living without the freedoms and rights they are accustomed to in their home country. There is jealousy and envy behind many of the posts as you have mentioned in previous posts.
Cayman becomes an easy target for outsiders to criticize because of its small size. It is easy to watch the Premiers every move and the rest of government and wealthy investors (Dart, Ryan, Imparato etc). It almost becomes a spectator sport of sorts. There is corruption in Cayman along with nepotism and narcissism (I remain no fan of the governments of the past 10 years in CI- yet I hold beefs with my own local governments mismanagement too) . Corruption which is no different than any other Western nations, except that in Cayman it is more obvious due to its small population and smaller economy and thus comes across as more personal.
Some expats may choose to ignore what is happening in their own country and government, because they would have to 'want' to see the reality, and sometimes dig a little deeper to uncover the follies and fraud of their own governments. For Caymans sake (and the people), I hope the corruption and nepotism can becontrolled but I don't hold a lot of hope.
Cayman is a special place, with welcoming people, and different opportunities. For those who are able to live and work there, accept it as it is, and not try to change the place to operate like where they came from, will likely have a better overall experience. And accept that they will not be able to live there forever, regardless from which country they hail."
Government Gastric by-pass.
Its what happens when intelligence, integrity, and discipline fail.
If not goivernment would eat itself to death.
Hail Brittania, mabye we will not go the way of the TCI. Whew. And mabye the Public sector welfare state will not be allowed to bankrupt the county, I am becoming hopefull.
time for us to be independents
Now that would be true justice. But very cruel.
We are so screwed. sorry CNS. Really could not find a better word. Let's take a close look at our situation shall we:
1) We have 4 years to set our books right and during these 4 years we must demonstrate:
a) Accountability
b) Value for Dollar
c) Transparency
okay. That basically means by 2015.
We have 1 year and 6 months left of UDP. Let's be real. UDP is currently all looking up these words cause they have yet to hear about them. So we have 1 year and 6 months of a government who knows not what these words mean let alone be able to operate within them.
This leaves us with 2 years and 6 months of PPM who seemingly will take office in 2013 thanks in HUGE part to a messed up UDP government who's planning and processing of plans was of a kindergarden variety. By that I mean done in a haphazzard way while blaming everyone else. Now comes PPM who did a fair amount of miss management themselves to put our debts thru the roof. Are we really thinking they are the ones to FIX this and in the time frame allowed?
Let me say this and CLEARLY. PPM is like 1 billion times better than UDP. But they will spend the first year alone unravelling the UDP crap. They will have 1.5 years to solve this issue and PEOPLE it just can not be fixed in 2 years much less 1.
My advice would be to set us on a 8 -10 year plan to restore the Cayman Islands to it's former glory position. This allows for secondary recessions and other issues beyond our control. A 1 2 or 3 year plan simply will not work unless we stopped everything capital AND became efficient. People we need to face facts. We are in a chit hole and it will take us time to get out of this hole. A plan of this length allows us to maintain some semblance of infrastructure and growth during these times while progressing towards restabilisation.
Basically this highlights the fact that Caymans brightest Government fed minds are not up to the task of asset management. One look at any of them is all it should take to see that disipline is not an attribute shared by anyof them. One look at any of the (not missing) financial records of the last 10 years tells the same story. Like any good parent the UK has let Caymans Government try to do things themselves and like a careing parent it will now take over the parts that CIG has shown it cannot do by itself in the hopes that it will still have a future when it grows up. The many who have gotten used to feeding off the money pile that is publics purse will of course fight, cry loudly, and end up nashing their teeth as they will now have to feed, shelter, and pay their fair share of healthcare and pension all by themselves. Excuses and blameing will be their call. Will this work in the long run? Only if the UK can keep up with the cunning Caymanian leaderships way of figuring out how to get around anything that will stop them from from the "take all you can and give nothing back" way of governing. Good luck Cayman, Your going to need it.
Four more years of an ongoing and unfettered financial orgy by Mac and his roving clowns… If that’s what the UK thinks is prudent fiscal control no wonder they are swirling the big white porcelain bowl!
4 years is Cayman politics is an eternity. This will gather dust on a shelf somewhere for 3 years and 6 months and then there'll be a mad panic.
Certainly!!!!! it looks like the governments can't control the public purse.So some body has to do it.It's a shame wehave come to this. Neither PPM or UDP has the sense to run this country. And as for the supposed to be independent – that's all hog wash. These guys, one one think that they are biological brothers. Tell McKeva to tell England why he gave all the starving public's funds to the churches by the millions.
Two old time sayings sum up my confidence in this Govt:
1. Take what they say with a grain of salt.
and
2. There is not enough salt in Turks Islands for the first one.
I do find it strange how they didn't put this in place during the PPM's tenure and only three full years AFTER the UDP tricked their way into power, and in spite of the fact that the UDP swears that England supports the UDP's contributions to their favorite church but not the PPM's spending on the schools!
Why would any small country take a lecture on fiscal probity from bankrupt Britain?
Experience, man…… EXPERIENCE! The best teacher there is.
Maybe because they are much worse?
I would take a lecture from them because
1. They are in control of the Cayman Islands.
2. As you have already pointed out, because they have the same problems so they may be able to guide us with solutions.
3. BECAUSE WE ARE IN A MESS, and we better deal with it now.
So while I might agree with you about England having the same problems and might even agree with you concerning if England really cares for us, in the end we are trying to fix our problems and England is pointing out the fact that we have problems.
Wonderful, finally, a power to try to curb the appetite for an elected member's over spending of the people's money. The amazing question is why have the voters continued to elect a man that abuses them and their money. CJ, I am with you, CIG start collecting the dosh from the cronies that is owed to the people.
Lachlan,
The PPM highlighted that their government was going to spend the most in the history of Cayman on capital works. They did…over $350,000,000 dollars. The UDP government has not been able to spend like normal and thus has spent only a fraction of that. Even with McKeeva's crazy travel I suspect he has only spent around $1-1,500,000 per year on that. Basing it on Chuckie's 940K first year and Mac's previous $900k+ travel year. So that is less than $3M.
The current government has spent on Low cost housing( $7-9M) and paving Cayman Brac ( who knows how much but lets say $5-6M). Not sure I can remember much more they have done.
Even when you take all the paving and travel into account it is a minor percentage of the previous government's spending of $87M on GOAB, $125M on the schools, $60M on roads, etc. Not supporting UDP nor PPM but those are the facts. On top of that the PPM increased our civil service size by 1,000 persons- the real ongoing MAJOR problem. The new constitution also will add another 450 civil servants to execute it fully so the madness has not stopped yet.
Cayman's fundamental problem now is the $450,000,000 it spends on the civil service, hand-outs to us, paying debt on past loans, etc. ( $60M just on interest this year, $70M on Social Services, $93M on healthcare!)
What is clear to me is that BOTH parties and ALL the politicians over the last 15 years have spent us into the hands of the UK. And they do not plan to let us off easy this time even though they supervised it from the Cabinet.
What Cayman needs is to rid ourselves of BOTH sets of politicians, get some new, educated blood in there next elections. We need decision makers that will CUT civil service costs in a meaningful way, cut government handouts, make the Authorities spend wisely and not at whim of their boards and most importantly prioritise ALL spending based on true needs of the Cayman Islands and not just based on what will get them reelected in 4 years.
So partly agree with you but you are looking at the wrong "man". This is not a McKeeva issue. If anyone will go down in history for spending the MOST public money it will unfortunatelybe Kurt, Alden and Arden who increased the size of the civil service and spent the most ever on capital works causing the most borrowing. I do agree with you that we need to curtail ALL elected members from spending our money.
It is obvious that this post will get lots of thumbs down as it appears the PPM tribe members outshine the UDP tribe members on this site but before you give it a thumbs down (hopefully you have read this far), think if anything that I have said in not factually accurate and think seriously about changing the "system" next election. This is not a Anti-UDP nor Anti-PPM post- they both put us in the mess over the last 10 years)
The PPM sepnt money on building infrastructure which the UDP had failed to put in place in their previous tenure. The recognised the need for new schools but did not build them. They recognised the need for a new Govt. Admin Bldg but did not build them. They failed to build the new roads that were needed and traffic congestion had reached unmanageable levels. Their level of spending reflected the neglect by previous govts. As for the size of the civil service I am sure that you are well aware that the PMFL was major driver of that and that is not really a political issue although you would like to make it into one.
The previous UDP Govt. wasted money on the white elephant that is Boatswain's Beach – some $65m plus $10m p.a. in subsidies. That was not needed infrastructure. The HSA was a complete train wreck under the UDP where there was a revolving door of CEOs who had to be paid out each time and but was brought to sustainability under the PPM. The current UDP Govt. is costing us money not simply in the excess travel (and I have no doubt that it will far exceed what you estimate but the true costs are hidden) but also in the damages that CIG will have to pay for its reckless actions from breaching the contract with TJI on the schools for political purposes, to breaching the contract with GLF, to the Cohen loan deal, to handouts to cronies, to easing their man Ryan from paying the $6m he owes CIG in UNSECURED debt.
Trying to make the UDP sound as if it is financially more prudent than the PPM is ridiculous.
"The PPM sepnt money on building infrastructure which the UDP had failed to put in place in their previous tenure." Of course, because the money they spent was too much. That is why UDP had to reduce cost it. It was too costly. When I drive pass the school in Frank Sound, all the time, I have to look and wonder. It is one of the 7 wonders of Cayman! The school looks more like a University. The monies to build such an infrastructure. Thanks to UDP the quoted the figures down. Alden is angry, but they had to do so during the recession.
I just don't understand… instead of PPM and crew, focusing on children being neglected, teachers needing financial help, and parents not doing their part in the upbringing of their children… no the crew had to spend, spend, spend on material things! You don't have to give big material things tochildren in order to love. That is PPM's downfall. The children are being neglected, caught up with technology, and coming out with worse grades. At least under UDP, there seems to be more of a focus on curriculum and grades. PPM was all about building, building, building… the same party that left the country in massive debt. UDP inherited the debt.
More simplistic UDP nonsense. The previous UDP Education Minister, Mr. Roy Bodden, is on record as having seen the need for new schools as far back as 2002 as there was overcrowding and that it turn created problems in terms of class room sizes and discipline etc. The PPM also developed and implemented a national cirriculum. The Education Law was also revamped. It is not a question of neglecting the children to focus on material things.
If they were overcrowding, simply build more classrooms.. build up or add adjacent to other buildings. Daaaaah!!!
That is what what was happening with John Gray, genius. Besides many of those old bldgs needed to be torn down.
Yes, tear down the old and simply build the new.
Daaaaah!! It doesn't take a rocket scientist!!!
Rocky, don't you know you are in PPM zone. They will forever deny that they overspent, and blame all on Global Recession.
Anonymous, don't you know you are in UDP zone. They will forever deny that the PPM invested wisely while they wasted and blame all on PPM.
Well said and agree with most of what you have stated. I support neither party. I support bright leaders who want to lead Cayman for the people. We cannot get there though unless we change the present leadership which has used the political system we have to create a one man authority. The longer the voters wait the worse things will get.
Well if I was in McKeewa’xs shoes I wouldn’t want to win the next election, and maybe that is already in his mind – leave behind the “poisoned chalice” full of shit to be cleaned up by the next poor bastard, while he buggers off to pastures new.
he already said he wouln't run.and how he is sick of it……… how come the media never follows up on this?
When and where did Bush say he would not run again? A lot of us would like to know.
I believe what he did say is now he can run again. We hope he runs all the way to China. And stay's there.
he said it in a couple of interviews around a year back…… when he still gave interviews….
….isnt that the same thing that PPM did in 2009?? What goes around, comes around!
The Governor has clearly kept a very keen eye on Bushonomics, and reported back to the UK accordingly. Evidently, neither he nor the UK is at all impressed. Great news for Accountability in this country, at long last. Good to see they have correctly identified CAL, Nat Hsng, Turtle farm and the TAB as heavily subsidised entities hanging around the CI neck like an albatross. Surely Govt will finally be forced to sort them out? The TAB is always out of the spotlight (strange – it's a tourism board that should be banging out press releases; but doesnt) but there is no reason whatsoever why it couldnt be abolished completely. Perhaps because its current boss was married to a current Minister?
Do we have to report how many of Mac's cronies like Stve MacField are on the dole? I hope so.
Cayman – this is GOOD news! This is exactly what we have all been bemoaning these last few years – that there should be more accountability of government. Let's be honest – we don't have the mechanisms to enforce it ourselves – elections only occur after several years more have passed, and politicians have pretty much free reign in the meantime. Even then we're just chosing between the lesser of two evils – our politicians spend 70% of their time worrying about their popularity and bitching about the other party, and only 30% for the good of the country.
We know that contracts here have been awarded without public consultation and without inteligent evaluation of true benefits to the population. We know that our civil service is over-staffed. Yet nothing really gets done and the farce that is Cayman politics continues.
The state of the UK's own affairs is irrelevant to us – some are just using it as an excuse to play-down our own sorry state. We ARE a British territory, and a benefit of this will hopefully be a set of checks-and-balances against our politicians that is dearly needed.
The despised, by the "top' finance civil servants (position, not ability), Public Management and Finance Law (PFML) took care of much of the fiscal prudence stuff that the UK is now enforcing on us. It was introduced after concerns by sensible politicians Roy Bodden and Kurt Tibbetts plus able civil servants like Joel Walton, George McCarthy and Donnie Ebanks at the spending like drunken sailors that was going on by the Government in the 1990s when we actually had money coming in. These gentlemen had the foresight to know it would not last. The PMFL was doomed from the start by certain very very senior civil servants (who happily are now gradually retiring -I would love to name them but CNS does not like that sort of thing) because the Law introduced the dreaded concept of ACCOUNTABILITY. They fought it on every front because it meant they had to work hard for their $140,000 a year and account for the money they spent in their Ministries Can you imagine? The nerve of it!!!. They bitched so much, they won and the PFML has been relieved of some of its 'accountability teeth". Now the UK has come along and said we have to do all these things anyway!! LOL.
Handcuffed at last!!!
…..so is the next Government, whoever that is, so this is NOT ONLY a UDP/McKeeva issue. Britian slipped one on us while we were crazy and blindfolded with this UDP/PPM bullsh*t.
Wake up Cayman. Get of of these silly parties quickly.
Let’s start by getting Ryan’s six million. We will need some of it to pay off the Italians.
This looks to me like the greatest thing to come down the pike for the Cayman Islands! At last, ACCOUNTABILITY!
They say they want to retain sufficient expert advice “to ensure it is an intelligent customer”. That's fine, but how about the procuror? It would be nice to have assurance of an intelligent procurer too. And “competent teams to manage all projects”. Is the afore-mentioned intelligence included in "competent"? And "actuarial assessments publically at least every three years." Say, fellows….. how about EVERY year. Let's keep a tight rein.
For those who wanted to be free of the UK's influence, I say Phttttpppppppt!
Good work, UK!
you will find all of caymans economic problems and solutions outlined in the miller shaw report!!!!……. why has it been ignored?????
Because, Miller-Shaw was an absolute waste of paper infomercial (paid for and pre-ordained by special interest groups). If "Reaganomics" would have been implemented, we would be much worse off than we are.
Unemployment would be higher, poverty much greater, income inequity even more evident…
(Why yes, I am going for the most thumbs down record, why do you ask?)
nicely explained..zzzz……..reaganomics??…any more cliches up your sleeve?????…..zzzzzzzzzz
I love snark as much as the next person but, why not address the issue rather thanpersonalizing your response?
A "Miller-Reich" or "Krugman-Miller" report would have some credibility. This report was pure crap because the findings and recommendations were predetermined by the selection committee that chose Miller and Shaw.
why don't you address the findings and recommendations of the miller shaw report instead of throwing out lame soundbites?
Dear UK,
We are hereby informing you that no one takes you seriously today.
Kindly …
Thereafter you may be allowed to consider fixing your mouth to warn another about fiscal responsibility and management.
*However, you are advised to clear all decisions in this regard with your European Union bosses beforehand.
Best regards,
The Real World
If you understand the U.K.'s problems so well and are still making the samemistakes, what does that make you?
Still, gotta admit this is a good first step in slowing down this runaway train…
Obviously a UDP minion!! Who else would make such a ridiculous statment!!
(Ahem!)
What's that about ridiculous statements …??
Finally, a PPM'r at his best!
Try again buddy.
Lol!
Q: What does a deflated bubble of fake superiority look like?
A: It looks like 90 (and counting) thumbs-downs on a CNS thread.
* Folks, it would help your case if some valuable feedback was forthcoming.
(I see nothing but ad hominens all around.)
You know, many of my posts prove to be controversial but rarely do I ever receive any meaningful rebuttals.
You can call me many things but a liar won't make the list.
Wow … 90+ "downs", 26 "ups", and 7 "entertained" thus far!
(Were you guys running all around the building sputtering and clambering over colleagues hitting "thumbs down" on unrelated computers?! Lol!)
I do believe this is a new record … anyway – please explain exactly what about my post was so off-putting?
Could it be the hard, ugly TRUTH of the UK today?
("Oooooh … I hate him!!")
Can we make it to 100 by day's end?
:o)
There is much truth in your comments Whodatis. It pains me at times to read the repetitive nature of your posts. Mostly because they are true. When one considers the economic state of a majority of Western nations, and compare them to Cayman, the Western nations are in far worse shape (with a few exceptions) in terms of debt ratios, per capita income etc.
I believe Cayman becomes a target for a lot of disgruntled expats who have left the island (for one reason or another), and from others who have trouble living as a minority while working in Cayman. They are simply not used to living without the freedoms and rights they are accustomed to in their home country. There isjealousy and envy behind many of the posts as you have mentioned in previous posts.
Cayman becomes an easy target for outsiders to criticize because of its small size. It is easy to watch the Premiers every move and the rest of government and wealthy investors (Dart, Ryan, Imparato etc). It almost becomes a spectator sport of sorts. There is corruption in Cayman along with nepotism and narcissism (I remain no fan of the governments of the past 10 years in CI- yet I hold beefs with my own local governments mismanagement too) . Corruption which is no different than any other Western nations, except that in Cayman it is more obvious due to its small population and smaller economy and thus comes across as more personal.
Some expats may choose to ignore what is happening in their own country and government, because they would have to 'want' to see the reality, and sometimes dig a little deeper to uncover the follies and fraud of their own governments. For Caymans sake (and the people), I hope the corruption and nepotism can be controlled but I don't hold a lot of hope.
Cayman is a special place, with welcoming people, and different opportunities. For those who are able to live and work there, accept it as it is, and not try to change the place to operate like where they came from, will likely have a better overall experience. And accept that they will not be able to live there forever, regardless from which country they hail.
Thank you for that feedback poster – I really do appreciate it.
Finally, someone speaks from a perspective of honesty and reality.
This is not a competition folks – it simply is what it is.
We need to stop being spineless cowards and face the reality of this world for what it is. For if we dont, our "leaders" will simply continue to lead us into the neverland of no return.
Troll alert! Category 2 troll – harmless, obvious and ludicrous.
It is obvious from your many posts over the year, Whodatis, that you were badly treated in the UK, either de facto or in your imagination. Your hatred is amazing. Did a lady turn you down? Or a man? Did you imagine some slight because your face is brown or black or yellow? Or was the slight a real one-quite possible I acknowledge? It happens here in Cayman after all.
Whatever, your posts are IDIOTIC. Ahem, did you understand that? You can hurl all the crap you like including the Chagos stuff you used to be obsessed with but the fact is , the UK economy, though effed right nowlike many others, WILL eventually recover through tough measures and taxation and so on. It's a big country (did you notice, you said long ago you lived there for a while?) with some 60million people. Your advice to Britain about putting its own economic house in order, is likely, I deeply regret to say, lost among the same advice from all the various political parties and political journalists who, unlike here, are free to aggressively push that same advice on the Government.
The fact of the matter is, dear Whodatis, like it or not, Britain carries the can for our stupid financial overspending, and although they may do it themselves, they are not prepared to let their dependents do it. Just like me. I drink a tad too much on Saturday nights but I have told my son I don't expect him to do it since it is unwise. Or else.
Tell me, does your hypothesis work in the other direction as well?
Do all of the posters who lambast and berate every single thing about the Cayman Islands on a daily basis suffer from the same afflictions (in your misguided opinion that is), as I?
(Interesting, as almost all of these individuals are dying to remain in Cayman and fighting tooth and nail to not return to their land of origin.)
I see that you played the race card, "angry Black man" card, Chagos card, jaded lover card – wow, you pulled out all the stops on this one didn't you?
Regardless, not a word of your post negates a word of mine and I didn't have to desperately insult any individual to make my solid point.
Unlike others, I simply relied on the facts and statistics that were directly relevant to the matter at hand.
Try it some time.
Re: "… the UK economy, though effed right now like many others, WILL eventually recover through tough measures and taxation and so on … "
Yes, because "tough measures and taxation" will be a new introduction to the nation – right?
Who told you that buddy? The same 'Oxbridge' educated economists that have been hanging around the British political class for the past 150 years?
Stop giving Caymanians British passports if this is what their attitude to you is
Since when is pointing out a reality considered an "attitude"?
You sound like an abusive parent.
Hmmm …??