Archive for June, 2013
Olympic Day celebrated in Cayman Islands
(CIOC): The Cayman Islands Olympic Committee (CIOC) celebrated their 40 Year Anniversary this past Sunday, 23 June, in conjunction with Olympic Day. The CIOC was established in 1973 and was recognised by the International Olympic Committee (IOC) in 1976. From the beginning as a small developing association, undertaking but a few tasks, it has now developed to a body representative of 29 member-sports (21 of which are Olympic), with significant undertakings both at home and abroad. The CIOC selects, organises and sends national teams to represent the Cayman Islands to all multi-sport Games; assists the member associations, athletes and coaches in sport development through international funding and fundraising efforts; and promotes Olympism across the Cayman Islands.
Olympic Day was introduced in 1948 to commemorate the birth of the modern Olympic Games on 23 June 1894 at the Sorbonne in Paris. The goal was to promote participation in sport across the globe regardless of age, gender or athletic ability. On 23 June, Olympic Day is celebrated all around the world: hundreds of thousands of people – young and old – get moving and participate in sporting activities. Over the last two decades, the event has helped to spread the Olympic ideals to every corner of the world.
This year, Olympic Day in the Cayman Islands was celebrated with a full day of events held at Public Beach. Eleven National Sporting Organisations came out to host amazing showcases and we thank their hardworking volunteers and athletes for making the day as successful as it was.
The day began with a 7-loop ride, organized by the Cayman Islands Cycling Association (CICA) at 9am; the cyclists began near the new Public Beach parking lot, headed on West Bay Road, looped through Lime Tree Bay Ave. and completed the loop back around on the bypass.
The Cayman Islands Football Association (CIFA) came out with over 50 kids who participate in the Maples Grassroot Programme to practice on the new addition of the Public Beach.
The Cayman Islands Golf Association (CIGA) and the Cayman Islands Rugby Football Union (CRFU) both held open participation which allowed the public to learn more about their sport.
The Cayman Islands Amateur Boxing Association (CIABA) held an impressive demonstration by the National Team, followed by drills where the public was able to take part.
The Cayman Islands Amateur Swimming Association (CIASA) organised a short loop in which members of the Executive, the Technical Director for Swimming and young swimmers took part.
The Cayman Islands Sailing Club had an entertaining out-and-back loop in which past Olympians competed against young Olympic hopefuls.
The Cayman Islands Beach Volleyball National Teams played entertaining matches with a mix of men and women and The Cayman Islands Gymnastics Association (CIGA) finished off the day with a display of exercises from children of all ages, including their parkour training group.
170 participants came out to complete the 3.1 mile loop course, representing 18 countries. There were many who were decked out in colourful attire, carrying their country flags and celebrating in the spirit of Olympism.
Dominic Corbin held a big lead as he finished first with an impressive 17:01 for the victory. Evans Simiyu took 2nd place in 18:59 minutes and Samuel young claiming the final men's podium spot in 19:07.
Laura Knox finished 13th overall and was the fastest lady of the day, crossing the line in 21:51, while Kerryann Simpson clocked a time of 26:05 minutes for 2nd and Jenni Bradwell was the 3rd female with a 26:32 posting.
All finishers received goodie bags upon completion of the loop, including event shirts and certificates of participation. Each participant was given complimentary refreshments, fruits, ice cream and an opportunity for random prizes.
The organizers wish to thank the many volunteers, participants and local donors of the many random offerings.
Individual results of the 5K Run/Walk may be viewed here:
In addition to the National Sporting Organisation who made this day possible, the CIOC wishes to thank the Department of Sports, DMS Broadcasting, and Calico Jack's for all of their assistance. A special thanks to The Red Cross for having a big presence on the day; Derek Larner, who went above and beyond to make the 5K possible; Andy Bonner of CaymanActive for the online registration and continuous management of the CIOC Website; and Craig Merren who continued to assist the CIOC throughout the day.
Another thank you to all of the gracious local businesses who made donations for the 5K raffle prizes and gift bag coupons: The Grand Cayman Marriott Beach Resort, The Westin Hotel Grand Cayman, The Brasserie, Priced Right, Casanova's, Dolce Vita, Red Sail Sports, Duke's Seafood & Ribs Shack, Agua, Grand Old House, Al La Kebab, Pirate's Den (PD's), Papa John's, GuyHarvey Gallery and Shoppe Store, Calypso Grill, Smoothie King and the Tortuga Rum Company.
See photos on the CIOC website and Facebook page.
Ozzie visits blood bank for World Blood Donor Day
(CNS): Health Minister Osbourne Bodden visited the Health Services Authority blood bank recently to help raise awareness of the importance of giving blood and to celebrate the 10th anniversary of World Blood Donor Day. Minister Bodden recognised Cayman’s generous blood donors and encouraged more people to follow their lead. “Thank you to all of our blood donors. By giving blood, you are saving lives, so please encourage your friends and family to do the same,” he said. “World Blood Donor Day is a goodreminder to all of us of the importance of continuing to give blood throughout the year.” (Photo: the minister and blood donor Tracy McComb)
Minister Bodden added, “A limited amount of blood in the Blood Bank is a threat to public safety, presently the Blood Bank has 25 per cent lower than optimum. All blood types are needed to keep supplies at a healthy level for our community.”
For more information, visit the HSA website or call (345) 949-8600.
Premier: FFR needs review
(CNS): Overly ambitious targets to cut expenditure that were agreed by the UK and the previous UDP government have "unintentionally stifled the rebound in the Cayman economy”, the new premier said this morning. Addressing the Legislative Assembly before Finance and Economic Development Minister Marco Archer brought the interim budget motion to the House, Alden McLaughlin outlined government’s medium to long term economic strategy to reduce expenses in a “gradual, phased approach” without causing economic or social harm and to the islands. “We stand behind the Cayman model of taxation and do not support the introduction of income tax, payroll tax, property tax or value added tax,” the premier stated.
The Progressive administration agrees with the underlying policy principles of the Framework for Fiscal Responsibility (FFR) set out in the Public Management and Finance Law, such as improving medium term planning, delivering valuefor money, more effective management of risks and improved accountability, McLaughlin said.
However, he said the four year financial plan agreed last year between the UDP government and the Foreign and Commonwealth Office as part of the 2012/13 Budget approval set “very aggressive targets” for reducing expenditure and capital investment while growing revenues “at a rapid rate” to comply with certain financial targets by the end of the 2015/16 financial year.
“We believe that these targets are overly ambitious given the short timeframe set for compliance and have stifled the rebound in the Cayman economy,” the premier said. “We believe that a more gradual, phased approach should be taken regarding the timeframe for compliance as the achievement of compliance must be balanced with the need for the government to implement measures to stimulate sustainable economic growth and diversification.
“In my opinion it makes absolutely no sense for the government to go about improving its financial position while ignoring the economy. This would put the livelihood of our people; education of our children; healthcare; infrastructure; personal safety and everything we enjoy today in great jeopardy.”
Referring to the recent meeting in London with FCO officials, the premier said the Cayman delegation “notified them of our intentions to develop a revised medium term fiscal plan for the Cayman Islands and they have indicated their support of our actions in this area.” He said this revised plan would be developed as part of the 2013/14 Budget process and presented to the LA with the substantive 2013/14 Budget in September.
“The government is currently a major player in the economy and if expenditure reductions are not managed carefully there could be significant negative shocks to the Cayman economy which can quickly compound and create recessionary pressures – something that we want to avoid as best we can and not to bring on ourselves,” McLaughlin explained.
The FCO has called for a quick reduction in the number of public servants, but while there “scope for some reduction”, he said, “we cannot just cut the number of civil servants with the stroke of a pen in order to meet some arbitrary target. Any reduction must be managed so that we do not negatively impact services to the public or add to the social ills of the country.” He said the Cayman government had agreed to reduce the size of the civil service through natural attrition and strict review of all contract renewals, a policy that has been applied by the deputy governor over the past year and has “stemmed the growth in the civil service”.
The premier said the government would be “critically examining” the various statutory authorities and government-owned companies to see how to improve their financial performance. “We are not going to rule out possible divestment or restructuring of these entities but will make sure that any decisions in that regard will be done the properly with transparency, consultation and appropriate analysis,” McLaughlin said.
Regarding the management of public debt and achieving sustainable revenue flows, government’s existing debt portfolio “should be refinanced in a way that creates a clear path to pay down and extinguish debt in a structured and affordable manner. Where possible and financially feasible we will implement a strategy to move away from interest-only bullet bond type borrowing instruments,” he said. “For any remaining non-amortizing debt we will establish a sinking fund to enable us to pay off those debts in full when they mature. Doing so will create a greater level of comfort and certainty in terms of the country’s ability to meet the debt obligations when they become due.”
Government revenue measures should generate cash for government operations withoutunnecessarily burdening private society “to the point where it discourages investment and economic growth. We stand behind the Cayman Model of taxation and do not support the introduction of income tax; payroll tax; property tax or value added tax,” the premier stated.
Reiterated the PPM’s election promise to introduce minimum wage legislation “as soon as practicably possible”, he said, “We must have an economy that allows each and every Caymanian the opportunity to obtain employment with an appropriate level of remuneration that they can support themselves and their families.”
In the medium to long term, government has identified “two critical and significant infrastructure development projects which need to be done as quickly as possible: the Grand Cayman Cruise Ship Berthing Facility and the Owen Roberts International Airport Redevelopment.” McLaughlin said, “Both of these projects are crucially important to the continued viability of the very important tourism sector of our economy and will positively impact the wider Cayman economy in both the short and long term once implementation gets underway.”
He also noted the possibility of another major infrastructure project, which would be a public private partnership, and if it came to fruition will serve as a catalyst for economic development in the eastern districts of Grand Cayman.
“The Cabinet is committed to following all due processes to ensure proper design, planning, financing, procurement and implementation of these projects to ensure that value for money is maximized and the desired economic outcomes are achieved,” he stated.
Last year, the UDP government made the decision to eliminate or significantly reduce the renewal of property insurance on the assets of core government and statutory authorities and government-owned companies, along with the renewal of the catastrophe risk insurance facility or CCRIF, without implementing alternative risk transfer mechanisms, the premier said.
“My Administration has taken the decision to reinstate these protections as they are necessary to help safeguard the country from the financial risks associated with the unpredictable loss or damage to our assets,” he said. “Let us not forget the lessons of Hurricane Ivan or Paloma. Many individuals and businesses are still dealing with the financial impact of these events and the current state of public finances with low cash reserves and prohibitions on borrowing does not leave much ability for the Government to deal with the aftermath of such events.”
Mac employed port workers
(CNS): Although politicians are supposed to play no part in the recruitment of public sector workers, the auditor general has revealed that McKeeva Bush, after he was elected to office in June 2009, instructed the Port Authority to hire two men, who reportedly never did the work they were supposedly employed for. In a report released by Alastair Swarbrick’s office on Tuesday regarding the many poor governance issues plaguing several of Cayman’s statutory authorities and government companies (SAGCs), he described the move by Bush as undue political influence. He further revealed that the men were paid a total of $90,000 and were first employed by Bush in January 2004 when he was the Port Authority chairman.
In his report on the financial and performance reporting of statutory authorities and government companies for the year ending June 2011, Swarbrick explained that the two men were taken on at the request of Bush to install and maintain a buoy system, as well as control and monitor boat access at the Sandbar in the North Sound and report any non-compliance with the rules at the marine attraction. However, the work was never completed and no reports regarding activity with boats at the Sandbar was ever done.
The men, who had been employed on Bush’s instructions in 2004, were terminated sometime in 2005. But when the former premier was returned to office and government in 2009, he issued instructions to the port director to reinstate the same two men at a rate of pay of $1,000 per month.
“Up to February 2012 a total of $90,000 had been paid to these individuals without any evidence of workbeing done,” the report stated. “Senior management informed my auditors that the installation of the buoys was never completed and no report of any kind was ever filed.”
Swarbrick said that the management of the Port Authority was responsible for employment and neither board members nor politicians should be hiring staff. He said the action was a “clear example of undue political influence” that he said undermineed the ability of the organisation to function effectively.
He also raised concerns about the port failing to comply with its own laws regarding fiscal management and problems with the management of its commercial leases, as well as board members being involved in contract negotiations and the use of sole source contracts for procurement without going through the proper channels.
The port was not the only entity where Swarbrick and his team had concerns, the report reveals.
Although the report was focused primarily on updating the public and the Legislative Assembly on the situation regarding financial reporting, the auditor general also took time to examine many of the other issues relating to government entities that are undermining value for money. He recorded numerous problems in addition to the financial issues at many of the SAGCs.
Some were far more serious than others, in particular the Cayman Islands Development Bank, where the board chairman in 2009/10 approved a loan for $131,000 with a 61% shortfall in insurance, which, despite a poor payment history, was increased to $329,000 the following year when the original loan was five months in arrears. All of the usual bank conditions were waived by the board chair, exposing the bank to significant loss, Swarbrick found.
In another case, a customer who did not meet the bank’s lending criteria was given a loan for $232,000 because of requests from politicians. There were also several occasions where the bank breached its own credit policy, giving loans to those who could not pay. In one instance, although the customer had an outstanding loan at another institution that was in arrears, the individual was given a loan based purely on a verbal statement that he could pay. Furthermore, the report said that there was missing documentation on loan files.
The government auditor also raised issues about the interference of board members in the management of Cayman’s airport. From board directors sitting in on interviews for regular staff to interference in the day to day management of the airport, he found numerous issues, including serious conflicts of interest of board members, which has also been reported on CNS. (See related article)
The massive hikes in fees for the former board chair, deputy and directors at the National Housing and Development Trust were also noted by Swarbrick. He pointed out that the tab for their meetings more than doubled in the 2010/11 financial year to $110,000 compared to the previous year’s price tag of $49,000 when they had increased the number of meetings and the pay for each one.
There were many other issues relating to a significant number of the government entities which Swarbrick said were cause for serious concern when it came to the breakdown of governance and management.
In addition to the obvious problems with accounting practices and financial management, the auditor general pointed to numerous worrying management failures that placed public money at risk and exposed the organisations to potential fraud or corruption.
Speaking at a press briefing about the report on Tuesday, Swarbrick refused to be drawn on whether he had reported any of his findings to the Anti-Corruption Commission, of which he is a member, but said it would be up to the commission to reveal what, if anything, it was investigating. He noted, however, that his office had an obligation under the law to report any findings of corruption.
In his report he said that while there was some improvement in financial reporting, there was still a long way to go before effective financial accountability was restored and warned that poor or late accounts were not the only problems.
“A number of matters I have raised in the conduct of my audits, such as the breakdown of governance, are very significant. I believe the Legislative Assembly should act to ensure SAGCs take action to mitigate the risks and opportunities for loss or abuse in the use of public resources,” he wrote.
See report posted below.
Archer outlines spending bill
(CNS): The Minister for Finance has asked the Legislative Assembly to approve an appropriations bill for $193.4 million, which will allow the government to function from 1 July to 31 October. Addressing the House Wednesday morning, Marco Archer said government expects to have a deficit of around $56 million during the four-month period. However, he said this “should not cause alarm”, as it covered the second half of the year where government revenues were less than operating expenditures. The minister also sought to maintain a $30 million overdraft facility, which he assured the House would be adequate and for which the government has already received verbal approval from the UK.
Bringing the motion for temporary appropriations to the House, the new finance minister, outlining the first government spending plans for this administration, said that during this four-month period the government would prepare the 2013/14 Budget and present it to the LA, and he assured the House that the full-year budget for the fiscal year ending 30 June 2014 would show a significant operating surplus.
Explaining expected spending, he said government had “sought to meet its moral obligations while keeping a tight hold on the public purse as we develop the full budget.”
This emergency spending package sought by the government, once approved, will take effect after the financial year ends on 30 June. It includes equity investments amounting to $8.9 million, which includes $2.5 million for the Cayman Turtle Farm to cover debt obligations; $2 million for the new Ministry of Home Affairs to establish a holding-area for those arrested and held in custody by the police, as well as funding to start the youth custody area at Northward Prison.
“All efforts are being made to complete this prior to November 2013, which is when the government needs to be compliant with the Bill of Rights as enshrined in the Constitutional Order 2009, with respect to the segregation of juvenile and adult prisoners,” Archer told the House.
The bill includes $1.8 million for the Ministry of Education for minor capital works and purchasing equipment and furniture; $1.7 million and $0.6 million for Cayman Airways and the National Housing Development Trust respectively to meet debt obligations.
Government is also asking for CI$173.8 million in operating expenses; $7.9 million in financing expenses to cover the interest payments on the outstanding public debt; $2.3 million for executive assets; and $0.4 million to fund loans made by the government to civil servants and to qualified persons needing assistance with expenses related to overseas medical care.
Outlining the main items on the executive assets list, Archer said the government needed $750,000 for miscellaneous road surface upgrades; $250,000 to settle on-going Gazetted land claims arising from roads development; and for Cayman Brac he asked for $350,000 for continued road development, $350,000 for further development of the Bluff playing field, and $250,000 to fund further development of the emergency shelter on the Bluff.
“All government agencies are expected to exercise fiscal constraint and prudence during the coming financial year,” the finance minister said. “While the government is upbeat and positive about the prospects for growth in the economy, there is still a long way to go before we can truly say that the economy has rebounded to a full-employment level. During the preparation of the full-year Budget for 2013/14, government agencies should be mindful that it is very likely that their budgets may be decreased below the level of appropriations in the 2012/13 financial year. In this current economic environment, government must innovate and deliver services at reduced costs.”
Archer explained how the Progressive government intends to deal with the controversial Nation Building Fund, which, when it was first introduced by then premier and finance minister, McKeeva Bush, in October 2009, was described in the LA by Alden McLaughlin, leader of the opposition at the time and now premier, as a potential “slush fund” for Bush.
The new finance minister said that “provisions for expenditures that are not supported by a proper framework have not been included in the interim budget.” However, he said that students who have been awarded scholarships to study overseas under the “Promotion of Nation Building” appropriation will not lose financial support, and he confirmed that provisions have been placed in the interim budget to continue in areas where the government was already committed.
“Government must also be grounded in reality and take a measured approach to our moral, safety and other obligations,” Archer told the legislature, explaining that items which were not adequately provided for in the 2012/13 Budget, such as the provision of medical care at overseas institutions for indigents, had to be adjusted in this year’s interim budget to ensure adequate levels of coverage.
Expected outputs from statutory authorities and government owned companies were based on the normal levels of services they provide. However, Archer stated that “this is one area that will be under enhanced scrutiny as the government develops the full-year budget.”
Archer said the forecast expenditures were meant to establish limits during the four-month period of the interim budget. “All efforts will continue to ensure that the government not only remains within those limits, but actually spends less than the amounts shown in the Schedule to the Government Motion,” he said as he asked for support for the motion.
Debate in the House on the interim budget is expected to continue until late this evening. However, with a strong government majority, it will undoubtedly be approved.
US Supreme Court overturns gay marriage provision
(BBC): The US Supreme Court has struck down a law that defines marriage as between a man and a woman only, in a landmark ruling. The court's 5-4 vote said the Defense of Marriage Act, known as Doma, denied equal protection to same-sex couples. The court also declined to rule on a California ban on same-sex marriage known as Proposition 8. The decision paves the way for gay unions there. Opinion polls show that most Americans support gay marriage. Twelve US states and the District of Columbia recognise gay marriage, while more than 30 states ban it.
The Doma decision means that legally married gay men and women are entitled to claim the same federal benefits available to opposite-sex married couples. On Wednesday morning, crowds gathered outside the Supreme Court hours before the rulings were due, in hopes of getting a seat inside the courtroom.
The legal challenge to Doma was brought by New York resident Edith Windsor, 83. She was handed a tax bill of $363,000 (£236,000) when she inherited the estate of her spouse Thea Speyer – a levy she would not have had to pay if she had been married to a man.
"Doma writes inequality into the entire United States Code," Justice Anthony Kennedy wrote in Wednesday's ruling. "Under Doma, same-sex married couples have their lives burdened, by reason of government decree, in visible and public ways," the decision added. "Doma's principal effect is to identify a subset of state-sanctioned marriages and make them unequal."
Tax havens here to stay
(The Guardian): The British media is now in moving-on mode on the issue of tax havens. It would do well to pause, be less excitable about the pantomime of brand shaming and actually examine the depth to which tax havenry is hardwired into our economic model and columns of state. Among the millions of column inches generated in the past two years on this issue, three words you will not find in sequential order are "City of London".
Extraordinary, when one considers the critical advantage our tax haven network offers the preponderance of offshore lawyers and accountants that cluster the Square Mile, siphoning off the rewards of capital flight. And that network that is growing, not receding.
OAG celebrates 10 years with Flowers Sea Swim
(CNS): Staff from the Office of the Auditor General’s lent helping hands to Flowers Sea Swim organisers on Saturday, 15 June. The OAG staff helped to register more than 800 swimmers who took part in the event, from first-timers to gold medal winning Olympians. The office has supported the popular event for over 10 years. Proceeds from registration will benefit the local charity Feed Our Future, which provides meals for school children in need.
Auditor General Alastair Swarbrick said, “It is always an honour to be able to participate in the excitement of the Flowers Sea Swim, and an added bonus that we can contribute to a worthy cause at the same time. Congrats swimmers!”
Cuba’s climate change threat prompts new strategy
(Huffington Post): After Cuban scientists studied the effects of climate change on this island's 3,500 miles (5,630 kilometers) of coastline, their discoveries were so alarming that officials didn't share the results with the public to avoid causing panic. The scientists projected that rising sea levels would seriously damage 122 Cuban towns or even wipe them off the map. Beaches would be submerged, they found, while freshwater sources would be tainted and croplands rendered infertile. In all, seawater would penetrate up to 1.2 miles (2 kilometers) inland in low-lying areas, as oceans rose nearly three feet (85 centimeters) by 2100. Climate change may be a matter of political debate on Capitol Hill, but for low-lying Cuba, those frightening calculations have spurred systemic action.
Cuba's government has changed course on decades of haphazard coastal development, which threatens sand dunes and mangrove swamps that provide the best natural protection against rising seas.
Everyone conflicted on Tempura, says top cop
(CNS): Police Commissioner David Baines agrees with the governor’s decision that he should be the one to handle any complaint by the former senior investigating officer in Operation Tempura, Martin Bridger. Speaking on Tuesday, Baines accepted that he and the RCIPS are conflicted as a result of other court actions relating to the controversial police corruption probe and Bridger, but told CNS, “Everyone is conflicted in this." Meanwhile, Bridger also issued a statement in response to Duncan Taylor’s letter to Scotland Yard and his decision to hand the issue over to Baines. The former Tempura boss said that the UK cops should never have involved Taylor, who does not have the power to initiate a criminal investigation.
However, Bridger also noted that he had concerns over Baines’ conflict in the case and how he could fairly investigate the allegations of crime being made by Bridger given the circumstances.
Baines explained, however, that the RCIPS holds all of the relevant documents and evidence relating to the entire internal police probe from start to finish and, as a result, the local police service “would have to be involved”, even if it worked with another external police service to investigate the matter.
“The RCIPS is the right starting point,” Baines stated. “One way or another, the jurisdiction sits with me.” He added that he was now waiting to hear from Bridger out abwhether he intended to pursue the complaint or not.
Noting that it was too early for him to comment much more on the issue, Baines nevertheless said that once he had Bridger's formal complaint, he would make a decision on how best to proceed.
It is not clear, however, if Bridger, who is currently in London, will be pursuing the complaint with Baines. In a statement Tuesday evening, the former Scotland Yard cop said the governor’s conclusion was right that it was not within his remit to commence an investigation.
“I was disappointed that that the Metropolitan Police involved the governor and surprised that it has taken the governor so long to come to this obvious conclusion,” Bridger said, adding that he would think carefully about taking his allegations of a crime regarding officials here to Baines because of the conflicts.
“I remain committed to doing whatever I can to ensure that the truth about Operation Tempura and what happened as a result of it is made public,” Bridger stated. “My efforts have been hindered by the various court actions taken against me by the attorney general and the Commissioner of Police, David Baines, the reason being to prevent me from using certain documents I hold which would assist in my defence of the Kernohan action.
"If and when all the issues are fully available and understood, the people of the Cayman Islands will then be able to make judgements on the actual ‘facts’. If at that stage the judgement of the people of the Cayman Islands is that we failed you, then of course I would respect that viewpoint,” the former Operation Tempura lead investigator stated.
“In fairness to those who have been named in the allegation of crime, I do not intend to say anymore on the matter at this stage,” he added.
Related article on CNS: