Headline News
Electric cars stalled again
(CNS): The government’s commitment to changing the traffic law before the end of 2010 to allow electric cars to finally take to Cayman roads seems to have been abandoned. CNS understands that the ministry responsible will not be bringing the necessary legislative amendments to enable the environmentally friendly cars to drive on local roads until sometime in 2011. For some seven years a number of people in the Cayman Islands have been lobbying government to amend the laws to allow electrically powered vehicles to drive on the actual highways and to offer people a green option when it comes to transport.
John Felder, one of many local people campaigning to make green vehicles a reality in Cayman and who has been importing the cars, was poised to establish the first charging stations for the vehicles. However, he told CNS this week he was disappointed that the political will to start the green revolution on Cayman’s roads was still missing. Felder said he would now be turning his attention to marketing and selling electric vehicles in Bermuda and Jamaica. Both of those countries approved legislation last year to allow the use of electric cars on their roads.
“Bermuda has agreed to waive all duty on electric vehicles and Jamaica has reduced the duty in that country. A network of charge stations is now in the works in Bermuda, and Jamaica will follow,” Felder said. Although he was not giving up on Cayman’s law makers eventually doing the right thing, he said Bermuda was poised to become the model for the Caribbean when it comes to electric vehicles.
Felder told CNS recently that he had a long waiting list of potential customers for his vehicles that want to buy and drive these eco-friendly, no-carbon, cost saving vehicles but until the laws were passed few people would be buying the cars. A small number of people have, however, bought Neighbourhood Electric Vehicles (NEV), some of which are being used on private sites such as Camana Bay.
Despite the fact that the modern versions of these cars can exceed 35mph, they are still not allowed on the country’s roads. Government officials said that amendments to the traffic law, which include the necessary changes to permit the use of electric cars on the roads in and around George Town, had been set to come before the country’s legislators in September.
Back in July Kearney Gomez, chief officer of the Ministry of District Administration, Communications and Public Works, told CNS that government was committed to the legislation and the necessary changes should form part of a comprehensive amendment of the traffic laws which would allow the cars on the road.
More cash coming for needy
(CNS): Government says it will find more funding for the department of children and family services in order to help the country’s most vulnerable people. Following a private member’s motion tabled in the Legislative Assembly on Thursday by opposition member Alden McLaughlin the minister for community services revealed that he is taking steps to appropriate more money to give to the needy. Mike Adam made a commitment to tackling the increased demand. McLaughlin told the House that he had received increased representations from his constituents who he said were in genuine need but had not been able to secure any help as a result of a shortfall in funding at a time when demand had gone up.
During the debate on his motion the member for George Town pointed out that in this financial year the various appropriations for the department of children and family services had been cut by over $2million. McLaughlin accepted that it may be a challenging for government to find the money given the need to cut expenditure but he suggested it could reallocate funds from things such as protocol and executive expenses to assist people in real difficulty.
He said it was an area that was causing some resentment in the community and it was not so much the amounts that were spent on executive expenses that were necessarily the issue but at a time when some people were struggling to put food on the table and keep a roof over their head it sent the wrong message for government to be seen to be receiving extra benefits.
“When top government officials appear to be living in the lap of luxury this causes resentment when people are struggling to make ends meet and they can not get any assistance,” McLaughlin said.
He noted that when people see the premier getting his utility bills and Christmas lights paid for by the public purse or when they see the deputy premier getting a new car it was a cause of public frustration.
“These sorts of instances create a great deal of ill will towards all of us as elected officials. What message does this send when we appear to be so insensitive?” he asked.
McLaughlin said he recognised as an opposition member he had no power to direct the government on how it allocates its budgets but he said if it could find the money from somewhere to help those in need then he would be quite happy. “If government takes it from protocol that would be wonderful but take if from somewhere,” he added.
In response to the private member’s motion Adam said his ministry had take steps to address the situation. “I am acutely aware of the needs of the vulnerable especially children and the elderly,” the minster said as he confirmed that he would find the money.
Other members also voiced their support for the motion including the member for North Side Ezzard Miller who noted that some of his constituents in need who had lost their jobs or business were being told they had to wait two to three months for an appointment with the department to be assessed.
The opposition member for Cayman Brac and Little Cayman, Moses Kirkconnell pointed out that his constituents were having a particularly hard time given so many of them were dependent on the public sector for work and were at the bottom of the civil service pay scale He said many families were suffering considerably as a result of the 3.2% pay cut. Anthony Eden also acknowledged that while money was tight for government they had a duty to do what they could to help those in need help.
The motion to reallocate funds to the department was accepted by the government.
Immigration board to change
(CNS): Expressing his frustrations with efforts to speed up work permit related decisions, the premier announced his intention to change the members of the immigration boards as well as introduce more new policies. McKeeva Bush also said government would be putting a stop to the questioning over permits of those coming to Cayman for short business trips and creating more residency certificates for CEOs and investors to encourage them to relocate here, especially those bringing business from China. Speaking in both the Legislative Assembly and at a public meeting this week, the country’s leader continued to point to immigration changes as one of the key areas which will help turn around the country’s economic fortunes.
Turning his attention specifically to the boards and the decisions they are making, Bush warned in the Legislative Assembly on Wednesday morning that he intended to review the membership. “We are going to change the people on the board, whether they are government supporters or not,” he said. “The tail cannot wag the dog.”
He also said that there would be new policies introduced at the airport which would stop officers from question those visiting Cayman for business meetings about temporary permits, as they did not need them, or taking their lap tops away. “Business people coming to the country for legitimate business meetings will no longer be held up at immigration control with questions about a work permit,” he told his legislative colleagues.
Speaking at the Bodden Town meeting on Tuesday night, the premier said he would extend Cayman’s welcome to staff or family travelling with those coming to do business without permits and red tape.
As part of the government’s goal to move away from the ‘brass plate’ style of business in the Cayman Islands and a move towards a physical presence, Bush said he was introducing more twenty-five year residency certificates for those bringing actual fund and investment business to the jurisdiction.
CEOs from China in particular, he added, would be offered various residency incentives to attract them and their business to the Cayman Islands, which in turn would generate more jobs for Caymanians
“We are moving now to attract businesses to these Islands by offering a 25 year residential certificate to owners and or CEOs and their dependants that move their businesses here. We will encourage business from China with a similar Chinese Investment Certificate,” Bush said on Wednesday. “We will also make it possible for foreign nationals who invest in developed real property of at least 2.5 million dollars to be eligible to apply for permanent residence for themselves and dependants.”
The premier has persistently stated that the existing immigration system is one of the main reasons why Cayman has lost business jobs. In the Legislative Assembly he berated the opposition benches for not doing anything about stopping the businesses from leaving when they were in office.
The premier has stated on many occasions that changes to the immigration system will encourage business to return as well as encourage new business sectors from the financial servicesindustry to set up shop in Cayman.
Wine shop gets new decision
(CNS): Local wine merchants Jacques Scott have moved another step closer to opening its new flag ship store in the district of West Bay after the Liquor Licensing Board (LLB) reconsidered its decisionsto refuse a transfer of license earlier this year. In a specially convened meeting as ordered by the chief justice last month, after a long courtroom battle, the board reconsidered the application this week based on the original information from a hearing in April. This time the board granted the change of location for a retail licence for the new store subject to planning approval. Jacques Scott confirmed they had been informed of the final outcome on Wednesday and were extremely pleased.
“We are delighted that the LLB have reconsidered, and thank them for so doing,” Peter Dutton the CEO of Jacques Scott said on hearing the news.
The wine merchants had first made their application in April of this year in order to begin the planning application process for a small commercial development next to Foster’s Republix in West Bay where Jacques Scott would be its own anchor tenant, with a flag ship wine and gourmet kitchen dining store at the heart of the development.
The application met with local objections and the board refused the license on various grounds including potential traffic problems, rising crime in the district and because it believed West Bay was already well served. However, the wine merchants applied to the courts for redress and after intense arguments before the chief justice the wine merchants prevailed in getting the board to reconsider its decision.
Throughout the courtroom wrangling JS had argued that the application was for a fine wine store not a bottle shop and there was no way it would add to the crime problems of the district as the store would close at 7pm, have a full time security guard and would not be selling single units of alcohol unlike any of the other West Bay package liquor stores.
The firm maintained throughout the legal process that the store would enhance the commercial opportunities in West Bay and boost the district’s fortunes bringing employment and new business.
Mac claims actions legitimate
(CNS): The premier has denied acting unlawfully in his decision to override the central tendering process over the financing of the CI$155 million loan. Speaking in the Legislative Assembly on Wednesday morning, McKeeva Bush said that Public Management & Finance Law gave him the power to legitimately abandon the tendering process and then act in the financial interest of the country. As controversy over the way the financing has been procured for the government loan mounted this week, the premier lashed out at the opposition and the local media saying their allegations could undermine the rate that the government will eventually get when the full deal is done.
As the Legislative Assembly opened for the third meeting of 2010/11 session, the premier dominated the morning’s business with two long statements. In his first he hit back at the opposition leader, Kurt Tibbetts, over a speech delivered while Bush was overseas that criticised government, and in the second he revealed a chronology of events, which he said led up to the selection of New York based Cohen and Company to be the entity that would supply the government loan.
Bush said that he did not see the tender documents before they were advertised on 1 July because of the way the system works. He said seven bids were received and these were opened on 28 July but the lowest bid of 3.5% was not recommended by the technical committee, which he said consisted of Financial Secretary Ken Jefferson, GloriaMyles and Debra Welcome. Following the opening of these bids four more financial institutions expressed interest in providing financing. As a result, the Treasury sought the CTC’s approval for an extension to allow these four institutions to submit their bids.
Bush did not say who the four extra bidders were but CNS understands that Cohen and Company was one of them as the firm had not been one of the first seven.
Bush said it was at that point that he discovered the original request for proposals didn’t include provision for the refinancing of all government’s debt, including Cayman Airways. As government is currently paying over $30 million in interest payments on existing public debt and other financing costs, the premier said he was right to concentrate on minimising the cost. Bush went on to say that the only way the new bids could legitimately be considered was to terminate the original tender and start over. On 24 August the Department of Treasury presented a report to the CTC that recommended the termination of the July tender for a new process to occur, which the CTC accepted.
The new request sought bids for the CI$155 million and liability management solutions for details of how government’s existing debt of half a billion dollars could be lessened and how bidders could assist statutory authorities and government-owned companies with their financing needs.
Bids came from seven institutions by the 9 September deadline, which were opened at a meeting of the CTC and handed to the technical committee for evaluation. Bush said on 22 September the technical committee presented a report to the CTC recommending a joint bid by two local banks. This was the second lowest bid as there were doubts, according to the technical committee, about whether the lowest 3.5% could deliver the money in the timeframe that government needed. Eventually, after ensuring this was the case the CTC accepted the second lowest cost bid from the two local banks.
Bush says it was at this point that he indicated to the financial secretary that the bid did not represent good value for money, nor was it offering the refinancing for CAL as mentioned in the second request.
“At that point I … informed the FS that because we were not accepting that recommendation, as it was not providing the financing to CAL and others, the bid process had failed and I considered it abandoned,” Bush told his legislative colleagues. “As the minister of finance it is my ministry that asked the CTC … to undertake the process, so I considered that I had that authority. In other words, if I had the authority to start the process, I had the authority to stop it.”
Bush then revealed that he contacted Cohen and Company while he was in New York to ask if they could provide the funding to CAL and if they could to contact the Treasury. Bush denied going to the offices of Cohen and Co as he said he did not know where they were. Meanwhile, despite having abandoned the bidding process, Bush said the CTC went ahead and awarded the loan to the two local banks.
Bush said that one of the reasons that Cohen & Company was chosen was because the firm was willing to provide financing for Cayman Airways. None of the other bidders made such a commitment so Bush questioned if any of the bids were in compliance with second the RFP. He also noted that the two local banks accepted by the CTC had been asked and they were not willing to provide financing of CI$19 million to Cayman Airways.
Bush also told the House he had a legal opinion from constitutional lawyer Professor Jeffrey Jowell that as finance minister he did not have to accept the CTC’s recommendation, but when asked to read it by the opposition he said he did not have it with him.
He said under section 34 of the PMFL the minister of finance may borrow money, make a loan, give a guarantee, and enter into any financial transaction for the purpose of avoiding liabilitiesor expenses caused by interest rate fluctuations, or by credit, liquidity or funding risks.
The premier claimed the offer from Cohen & Company was accepted because it would enable government to benefit from the current very low interest rate environment but still did not reveal what that rate would be. “I have stated time and time again that when the process is completed the full rates and conditions will be made public. But let me repeat again for the benefit of the leader of the opposition: this information had been given to the public … and why is it that the leader of the opposition can’t understand? Why is it that he would want to mention the word corruption?” Bush asked of his opposite number rhetorically.
He said that Tibbetts and the rest of the opposition did not know what they were talking about and the fundamental lack of understanding of basic finance was what had got the islands into the financial mess it did under the PPM administration.
“I asked them all to wait until the process was complete, as we now go to a bond issue and I would inform the country at that time. If we lose out on rates now because of the kind of airing the wild and unfounded allegations this matter has got from the opposition on TV, on CNS and on Rooster, the loss of the savings in millions of dollars in interest for the country, can only be blamed on their reckless and damming behaviour,” Bush stated.
Bush said he had saved millions of dollars for these Islands with the deal already signed and sealed but now could not give any guarantee that even with the falling interest rates in the USA that rates would be improved because of the “stupidity – the viciousness – the recklessness of the leader of the opposition,” Bush said.
The premier insisted there was precedent for his actions, and while it might not be set down in law, the practice has always been, over the years, that if Cabinet, was not satisfied with CTC, they carried out the process themselves.
“I am not naive to the realities of politics nor am I insensitive to the concerns of our people. I understand why people in the community have concerns,” the premier added. “My government took a very grave but legal decision to disagree with a process which gives many a sense of safety. This matter has revealed to me that the central tenders process cannot be a one size fits all methodology for capital works, service contracts and financing.”
Bush revealed that he had expected debate about his decision but he said it was coloured by partisan politics, innuendos, rumours and misrepresentations of the facts. He said he welcomed the review by the auditor general and said his government had nothing to hide.
MLA requests cash for poor
(CNS): Despite the good news last night that the government deficit has been reduced to only $15 million by the UDP administration, some of the community’s poorest people have revealed that they are struggling to get any support from the Department of Child and Family Services and are being forced to wait months for an appointment. The opposition has submitted a private member’s motion asking government to reallocate funds to the department to help those most in need. George Town member of the PPM and former Cabinet minister Alden McLaughlin said he hoped the government would be prepared to sacrifice some of the benefits and expenses currently being enjoyed by the premier and deputy premier for needy people.
However, McLaughlin said his motion was rejected by the Speaker in its first presentation and was reworded to ask government simply to find more funds for the department to help those who are in genuine need. He said many of his constituents are in real difficulties but they are unable to gain assistance.
In the motion, which has been accepted, McLaughlin is asking government to meet the increased demand for financial assistance by reallocating funds from somewhere else in the current budget.
However, given the premier’s revelations in Bodden Town last night that the government’s anticipated shortfall of over $50 million for the previous financial year was down to $15 million, if those operational expenditures are continuing into this financial year government could be in a better position to find the money for the county’s poor.
CNS has contacted the Department of Child and Family Services to find out how much of an increased demand the department is experiencing for its services and how much their current budget allocation for financial assistance for the needy but we are still waiting for a response.
Deficit ‘reduced to $15million’
(CNS): The premier has declared that the budget deficit for the financial year end 2009/10 has been dramatically reduced to only $15 million after predictions in June that it would be in excess of $50m. At a public meeting in Bodden Town on Tuesday evening Premier McKeeva Bush revealed that his government had managed to reduce spending by some $35 million less than expected. He compared this deficit figure of $15 million to the almost $81 million deficit left by the PPM administration in the 2008/09 budget year and claimed his government had made the dramatic $65 million reduction through hard work.
The premier said he expected people in the audience at the meeting would be accusing him of just blaming the previous administration when he talked about the financial turmoil his government inherited but he said he wanted to remind the country never to make the same mistake again and to compare the record of the PPM leaving behind an $81 million deficit with the UDP government that had managed to cut the deficit down to $15 million in its first full financial year.
Although the premier did not reveal details of the dramatic cure of the country’s financial deficit, he said that the details would be revealed shortly and that the figures were accurate.
Bush said that central government’s deficit for its first full financial year in office — June 2009 to June 2010 — was down to $13.4 million and he said that government companies and statutory authorities were down to a deficit of around $1.6 million, making the total public sector deficit only $15 million. Bush said it was a “tremendously better result" than the previous budget gap and said that the first quarter of the news financial year was even revealing a government surplus.
He said the UDP government had achieved these impressive results through prudence and good management and were by no means an accident but down to deliberate efforts of the ministries.
“The road is tough going but government finances are showing consistent improvement,” he said. “And as we continue to make the right decisions the tough road will improve for everybody.”
He reiterated his commitment to the 90 day time line made just over six weeks ago for Cayman’s economic turn around and said there were several economic improvements already apparent. The premier told the people of Bodden Town that turning round the economy was not just about quick fixes but a sustainable approach to address structural problems about how government was run and how the economy operates.
The premier also revealed that the first phase of the government’s assessment to reduce public sector spending had revealed significant savings in the first four government entities examined. Bush said official reviews of CINICO, the department of tourism, the prison services and public works, which collectively spent $72 million could reduce their budgets by $17 million. Although he did not reveal what services would be cut to achieve the savings, he said government had accepted 90% of the recommendations made by the reviewers and would be reducing the budgets by over $15million
Bush explained that the review would continue with the next eight agencies, which collectively account for almost $200 million in spending, and government would be looking for similar results. He said government would look carefully at areas for potential cuts and saving including the possibility of privatisation and how services can be delivered more efficiently.
Sex offender list petition filed
(CNS): Community activist Sandra Catron finally managed to get her petition for a sex offender’s register in the Cayman Islands filed with government on Tuesday. For several years Catron has been campaigning for the establishment of an official public list of convicted sex offenders which will name and shame those who have been found guilty of a sex related crime in order, Catron says, to make it more difficult for them to continue offending. Catron collected more than 1,100 local names for her petition but has been struggling for many months to get the petition accepted by the authorities. Finally, the chief officer in the Portfolio of Internal and External Affairs, Franz Manderson, agreed to take the petition at the Glass House. (Photo by Dennie WarrenJr)
Catron says that the anonymity that these offenders have, which is given to them indirectly in order to protect victims from public exposure, merely allows offenders to keep re-offending once they are released from jail and does nothing at all to help the victims.
“My motivation is to protectthe child victims and anonymity merely protects the perpetrators, who continue to abuse because people do not know who they are,” Catron told CNS after she had delivered the petition. Aware of the problems that many offenders are related to their victims and that the register would not be a fix-all, she said it was a step forward towards the community as a whole coming together to protect these young victims. “If nothing else it is a gesture to the victims to say we care and we are going to support you by exposing the perpetrators.”
She said it was important to start somewhere and find a way of stopping these offenders returning to the family situation where they committed the abuse in the first place and either continue to abuse the same victims or pick out new ones. If everyone knows it becomes harder for offenders to find victims.
Catron said the implementation of a register had to go hand in hand with much more support and counselling for victims as well as wider awareness of the real harm caused to victims. She said the petition was a first step and an expression of support for a proper register. Although there is a lot of work to be done before the register becomes a reality, Catron said that at least government was now aware of how much support there was for it.
It is not clear whether any register that is created would be held by the police or a ministry. Manderson cited the questions over which government department would eventually be responsible for it as the reason for the delay in government being able to accept Catron’s petition. Manderson has said he will hold on to the petition for a period of 21 days for review before handing the document over to elected officials to debate how they want to move forward.
Catron believes she has the support of law enforcement officials but wants to ensure that the register is an open public list and not just limited to the authorities and relevant agencies. “It is entirely pointless having a list that the public cannot access as it cannot prevent future offending if the wider community is not on their guard against an offender,” Catron said, adding that she did not believe vigilantism in Cayman would be an issue in the community as she had seen little outrage about the widespread abuse of children in the society.
Now the petition is in the hands of government, Catron says she hopes that the government will move quickly to enact the necessary legislation to establish the register. “Government has moved at what seems like lightening speed on some laws recently. I hope it will take this petition seriously and give this issue some priority.”
Cops release pictures of hotel robber
(CNS): The RCIPS have released video and pictures of one of the men involved in the robbery at the Ramada Grand Caymanian Resort on Monday morning. Police are repeating their appeal to the public to come forward with any information they may have that could assist officers in tracking down the two armed, masked men who tied up two members of staff before making off with money from the hotel safe. Although no one was hurt the staff members were bound for more than two hours before one of them was able to work himself free. The robbery took place at about 1.30 am but police say the suspects may have been watching the staff and the hotel in the days before the crime.
Detective Sergeant Richard Scott who is leading the investigation asked anyone with information to come forward. “This was a terrifying ordeal for the two men involved – luckily they weren’t injured. Initial indications are that this was a pre-planned robbery,” the detective said. “It could be that the two suspects had been watching the movements of staff for a few days prior to the actual incident. That’s why I’d be keen to talk to people who saw anything suspicious in the days and nights leading up to the incident, as well as anyone who may have been in the area around the relevant time this morning. The information you have may be vital to the enquiry and I’d ask you to get in touch with us as quickly as possible.”
DS Scott said information can be passed to the Criminal Investigation Department at George Town police station on 949-4222 or the confidential Crime Stoppers number 800-8477 (TIPS).
The first suspect is described as having a dark complexion, 5’6” in height and weighing 200 – 200lbs. He was wearing a black t-shirt, dark blue faded jeans and black and white sneakers. He had a black ski mask covering his face. The second robber had a slim build and was about 6’ in height. He was wearing a long sleeved hoodie with camouflage pants and white sneakers.
Footage of the robber can be seen on Cayman 27
Bodden Town MLA faces assault charge
(CNS): Following the charges brought against UDP Bodden Town representative Dwayne Seymour for attempting to obstruct and pervert the course of justice, the MLA now also face a charge of common assault. Police confirmed on Tuesday morning that two men, aged 41 and 37, have now been charged with the offence in connection with an incident which occurred at the Grand Cayman Beach Suites on Saturday 1 May. The incident relates to a fight which allegedly broke out between Seymour and another man with Garrone Yap, a Florida based personal trainer, following which all three men were arrested. Seymour is due to appear in court on Tuesday of next week when he will face this additional charge and those laid against him last month.
In a recent televised statement the government backbencher said he was surprised by the obstruction charges brought against him by police last month and he did not understand how what he called the "baseless charges" relating to an incident at the Grand Cayman Beach Suites had been laid against him more than five months after the event. Seymour also said he didn’t know the people involved in the charges and he was looking forward to clearing his name in court. He has so far made no comment regarding the latest assault charge.
Soon after the MLA’s troubles went public, the premier and leader of the UDP, McKeeva Bush, issued a statement backing his backbencher. "On behalf of the elected government, we wish to express publicly, our moral support for our backbench colleague Mr Dwayne Seymour during this difficult time,” Bush said in the official statement. Implying the charges related to struggles in Seymour’s marriage, the premier said the government understood the many challenges faced to keep a family together.
“As Caymanians we understand and empathize with the pain that is endured when someone, against God and against all social and ethical obligations, interferes with that sacrosanct relationship,” the statement from the press office of the premier read. “It is in the appreciation of the circumstance and of those considerations that we publicly voicetoday our continued support and confidence for our colleague and friend Mr Dwayne Seymour."
Following the incident, Yap, who claimed he was assaulted by Seymour and another as yet unidentified man, said he was not pursuing charges against the two men but that he had been injured in the incident. It is not clear if the legal department has elected to bring the charges based on the police evidence contained in the file on its own volition or whether Yap has since changed his mind and asked the authorities to prosecute the case.
Although common assault can involve violence, the charge can only be heard in the Summary Court, unlike the obstruction charges, which are considered more serious and can be tried in the Grand Court before a jury.