Politics
OT leaders find common ground in Gibraltar
(CNS): The Cayman Islands premier has said that the eight government leaders from the overseas territories that met in Gibraltar this week found many ways to work together to arrive at a consensus ahead of the annual Joint Ministerial Council Meeting of the Overseas Territories in London in November. The focus of this year's meeting with the UK and its territories will be on the jobs and growth. “With discussions on economic diversification, employment, promoting investment, and vocational training, I am confident that this year's JMC meeting will be a very informative and timely one,” Alden McLaughlin said, as he left the Mediterranean territory Wednesday.
“If the calibre of the discussions in Gibraltar were any indication, I am certain that the JMC will be a very productive meeting, and will provide an ideal forum for the Overseas Territories to work with the Foreign and Commonwealth Office to agree on action items and make commitments for our continued partnership in promoting the Cayman Islands and the other overseas territories," the premier added.
McLaughlin was joined by his JMC "Sherpa", Jennifer Ahearn, the chief officer from the health ministry, for the three day Pre-JMC meeting, which he said provided an excellent opportunity for him to meet counterparts in the OTs and discuss the unique OT issues.
"This Pre-JMC meeting provided a great forum to explore how we can work together collectively to better address some of these issues when we attend the JMC meeting in November," he said, adding that the solidarity he felt between the OT leaders was gratifying. McLaughlin described a renewed appreciation of the importance of building and maintaining relationships with his counterparts in the other overseas territories.
"While the eight overseas territories are diverse and have their own unique challenges, our discussions in Gibraltar this week were about the many areas in which we can work together, with a view to arriving at a consensus on the way forward that will strengthen our collective position," he said.
Both he and Ahearn left Gibraltar Wednesday for London, where the chief officer in her Sherpa role will attend a one-day meeting at the Foreign and Commonwealth Office to discuss the progress on the commitments from the 2012 JMC Communique, agree the priority items for this year's meeting, and confirm the agenda. The day will also include sessions on three key issues: Jobs and Growth, Health, and Criminal Justice.
Meanwhile, the premier will be joined by Financial Services Minister Wayne Panton and counsellor Roy McTaggart, who will all head to Jersey to meet with several key players in Jersey's financial services sector.
"Visiting Jersey will provide the Cayman Islands with an opportunity to learn more about the successes and challenges that Jersey has faced in many areas, with a particular focus on financial services,” the premier said.
The men also have meetings with the chief minister, the minister for treasury and resources, and the minister for economic development, as well as the bailiff, the lieutenant governor, and representatives from Jersey Finance Limited
McLaughlin said the trip would allow government to develop the relationship with Jersey, which, like Cayman, is recognised as a leader in the financial services industry.
The Joint Ministerial Council Meeting will be in London during the week of 25 November.
Governor gets down to work on new job
(CNS): 
Helen Kilpatrick was doing the rounds of the government building on Monday getting to know the people she will be working with over the next three years, as well as getting a glimpse of the work that needs to be done. On Tuesday she chaired her first Cabinet meeting with Acting Premier Moses Kirkconnell just weeks ahead of the delivery of the 2013 fiscal year’s full budget. With years of government finance experience behind her, Kilpatrick is expected to take an active part in helping the government sort out the public sector finances. During the tour on Monday with Deputy Governor Franz Manderson, she visited ministries, portfolios and some departments in the Government Administration Building.
Speaking with minsters, chief officers and line staff, she touched on topics ranging from aerial mapping and planning processes, to electronic filing systems and education scholarship. The first tour ended with lunch in the staff cafeteria. Below: Kilpatrick chairs first Cabinet meeting.
Premier visits seniors and home for troubled youth
(CNS): As the ministerresponsible for community affairs, Premier Alden McLaughlin called on residents at the Golden Age Home and also visited four young men who are currently resident at the Bonaventure Home for Boys, both in West Bay. Bonaventure, which was founded in 1974, was the first major service project of the Grand Cayman Rotary Club. The premier’s father, Alden McNee McLaughlin Sr, was one of the members of the club who came up with the idea to build a home to provides secure accommodation and rehabilitation for young boys risk between 13 and 18. Managed by the Children and Youth Services Foundation, a government owned company, the home provides programmes of rehabilitation; education and social development skills for young offenders.
The boys are sentenced via the court through the Department of Children and Family Services. A Therapeutic Community Programme has been in place at the home for more than a year and represents the adoption of principles that focus on rehabilitation rather than punishment, encouraging young people to dig deep and confront their issues, typically within a peer-group setting. Instead of punishment, they learn the logical consequences of their actions.
The BBH underwent renovations to reflect the philosophy. There is an open dorm layout for staff observation and safety, classrooms, and a group meeting room. Residents have a daily schedule consisting of education, group counseling, individual counseling, meals, recreation, dorm cleaning, and check-ins.
Boys must achieve goals in six separate levels before being allowed to re-enter the lives of their families and schools on a full-time basis. Achievement of each level can take weeks to months. The programme can cater up to 10 boys; currently there are four, with each of them achieving at different levels.
At the Golden Age Home in West Bay, the premier met with clients and staff, where some have worked for 20 years or more. “It takes special people to do this type of work to get someone to stay that length of time,” McLaughlin said. “Someone is doing something right.”
Speaker recognized for service to CPA
(CNS): Juliana O'Connor-Connolly, the speaker of the Legislative Assembly, received a plaque in recognition of her service to the Commonwealth Parliamentary Association (CPA) in South Africa last week at its 59th conference in Johannesburg as she ended her term as an Executive Committee member for the Caribbean. However, the delegation to Johannesburg, which included Education Minister Tara Rivers and Opposition Leader McKeeva Bush caused controversy in Cayman in the midst of a clamp down on government travel. Although O’Connor-Connolly’s trip was covered by the CPA, the airfares for both Bush and Rivers came out of the local branch of the CPA’s budget, which is funded by the tax-payer.
Having been distracted from her ministerial post for several weeks as a result of the courtroom battle following an unsuccessful petition challenging her election to office, Rivers came in for particular criticism from the public for attending the conference at a pressing time for her ministry, with high unemployment and the start of the school year.
Nevertheless, O’Connor-Connolly, who returned to the island earlier and in time for the governor's swearing in, defended Rivers' attendance at the conference. The theme was "Effective Solutions to Commonwealth Developmental Challenges" and included sub-conferences for delegates from countries and territories with a population of less than 500,000 and a conference for Commonwealth Women Parliamentarians. It also included a meeting of the CWP group to elect a new Chairperson to serve for the 2013-2016 period.
One of the mandates adopted by the CPA and its various branches, including the Cayman Islands, is increasing women's participation and representation in the political process, withan aim of achieving 30% representation by women in the parliaments of each Commonwealth member country by 2015.
"The involvement of women parliamentarians is vital to the aims and goals of the CPA, and member branches are encouraged to send as many women parliamentarians to the conferences as possible,” said O'Connor-Connolly. “Minister Rivers, being the only women in Cabinet, was initially asked to attend the regional conference held earlier this year in July, but was unable to do so at that time. She was, however, able to participate at the annual conference in Johannesburg and I am delighted that she was able to attend. She made many poignant contributions and a very favourable impression on many of the other delegates in attendance," the speaker added as she offered her support to the minister’s participation.
Rivers, who released a lengthy statement Tuesday morning said it was "a very enlightening and beneficial experience", which was relevant to her ministerial duties.
The Cayman Islands Branch of the CPA typically sends two delegates — one member of the opposition and one member of government — to each of the CPA conferences in which the Cayman Islands are invited to attend.
Related article on CNS:
Morale falls in CS over cuts
(CNS): Deputy Governor Franz Manderson said that he and the civil service management are currently exploring ways to boost morale among government workers after more than a year of cuts and other austerity measures. Despite the resilience of the service, morale “has been weakened”, Manderson said, and it was important that the critical services provided by the public sector were not compromised. Speaking in the Legislative Assembly Friday as he handed the baton over to the new governor, Helen Kilpatrick, Manderson said a great deal of effort and sacrifice over the past financial year in the CS had reduced its size and achieved almost $12 million in savings.
“What is of even more significance is that these savings and reductions in numbers were achieved while offering additional services to the public,” Manderson said. “With the support of the elected government, chief officers and I continue to explore ways to reduce the size and cost of the service, and together we have introduced a number of polices, such as the travel policy, which has already yielded dividends in terms of reducing the costs of official travel. I am grateful for the support of the premier in enforcing this policy,” Manderson added.
In his welcome address the deputy governor noted that Kilpatrick had “unique knowledge and experience” that was going to be of “great benefit” to him and his public sector team and her willingness to share her knowledge and expertise was welcomed.
“Chief officers and I look forward to working closely with you as we continue to build on the progress made to improve the overall performance of the civil service,” he added. “I am very proud of my senior team and the overall talent that exists in the service, which I am sure that you will recognize as you visit the various ministries, portfolios and departments and meet staff.”
Although significant progress was being made in relation to accountability across the civil service, he admitted that more must be done and said he was looking forward to discussing this matter with Kilpatrick and seeking her advice.
Along with law and order, one of the governor’s areas of responsibility is the issue of good governance and the civil service. As such, Kilpatrick will be heavily involved in theongoing changes which will see the public sector shaved down even further in the coming years in order to meet the timetable agreed between the CIG and the UK to get the country’s finances back on track.
However, with government planning a major overhaul of immigration and the obvious pressing need for more staff at the National Development and Workforce Agency to address the growing local unemployment problem, even more cuts will have to be made in other departments to cover those head count increases.
Rivers claims discrimination
(CNS): The education and employment minister has taken aim at the local media after the coverage and backlash over her decision to go to the 59th Commonwealth Parliamentarians Conference (CPC) in Johannesburg. In a lengthy statement released from her ministry, Tara Rivers implied that the press was discriminating against her in what she described as “hasty and ill-informed” reports. She said that she was unable to respond to questions from the local paper due to time zone differences and had not received any from CNS, even though they were sent directly to the press secretary who responded on Friday. Rivers claimed that her travel plans were never hidden as they were published on social media.
However, press releases from the premier’s office regarding both the Legislative Assembly meeting and the swearing in of temporary ministers while Rivers and the finance minister Marco Archer were away from the island told a different story. One release indicated that Juliana O’Connor-Connolly was travelling to South Africa for the CPA meeting and would not preside over last week’s parliamentary meeting but made no mention that Rivers would be joining the delegation which also included the opposition leader, McKeeva Bush. In a second release Rivers was described by the premier’s press secretary as being on leave and there was no mention made that she was on official business in South Africa when Winston Connolly was sworn in as a temporary minister while she was away.
While she was at the CPA Rivers missed, among other things, the start of the school year, the Caymanians teachers’ induction and the arrival of the new governor. However, Rivers justified her trip and accused the media of sensationalizing the issue.
"It is unfortunate that what is considered normal and expected participation of parliamentarians at such important conferences, especially women parliamentarians whose participation is actively encouraged by the Commonwealth Parliamentary Association (“CPA”), has been dealt with in this mannerby the local media,” she said in a statement stretching some four pages.
“The unfortunate coincidence and irony is that one of the main topics of discussion at the Commonwealth Women Parliamentarians conference was the discriminatory way in which women parliamentarians are often treated by the media in their respective countries. Discrimination against women in any and all forms is unacceptable and should not be perpetuated in the media or otherwise," as she implied that the reporting of her travel was discriminatory.
The new PPM government has introduced a travel policy to curb unnecessary travel by politicians and civil servants and cut the costs when it is necessary as a result of the public backlash regarding travel under the UDP government. However, Rivers appeared not to see why there was public outcry regarding her decision to go to Africa.
Rivers said her plans were in plain view of the people, as “posted information about my whereabouts and activities on my social media pages,” she stated. “But what the local media needs to appreciate is that we are in a new era of government and now is not the time to be sensationalising issues that have very simple explanations. Responsible journalism and understanding of the negative consequences of hasty and ill-informed reporting is paramount to stability and good governance. To carry on in any other manner is not good for our country or the media in which it is reported,” she added as she pointed the finger at the press.
"I do not expect to be above questioning or even criticism by the press that is part and parcel of being an elected official. I do, however, expect to be treated equitably and with respect by the press. It's disappointing that there was more importance given to rolling out a salacious story before the weekend, fueled from a one sided, ill-informed perspective, than to reporting from a balanced and informed perspective, “Rivers continued in her attack.
“From the obvious haste in which the articles were put together and the unreasonable time frame requested for a response to questions received at the 11th hour, coupled with the content of the article and editorial, it is clear that the intention was to impart controversy at the expense of the truth,” she said pointingto coverage in the Caymanian Compass.
“I have received an outpouring of support and anger from so many of my constituents over the recent coverage. It is important that the media understands the affect they have on our society when they choose to make eye catching headlines without real substance,” she said.
Describing the coverage as a storm in a teacup Rivers said she was “diligently attending the conference and representing the Cayman Islands’ experience through her many contributions to the discussions” throughout the week she was in Johannesburg.
She added that it was “a positive and enlightening experience” which she said the country “will greatly benefit “from because of her more informed capacity as minister. Thanking the Cayman Islands branch of the CPA for giving her the chance to go and the premier for supporting her she said she looked forward to building upon the experience.
In the lengthy release Rivers said she was now better equipped to tackle the many issues and subject areas for which she has responsibility.
"Participating in the CPC was an absolutely worthwhile and directly beneficial experience,” said Minister Rivers. “Much of the plenary sessions and discussions I attended and in which I participated centred around the concerns of education, employment and gender affairs. These are areas of concern throughout the commonwealth, and the ability to share ideas and experiences as parliamentarians and the networking opportunities which facilitates further exchange of information was extremely helpful," she said.
The minister said she was able to discuss the issue and come away with some examples of concrete solutions being implemented in jurisdictions that are similar to Cayman all of which was valuable information which she said would help guide her in developing similar programmes for the local unemployed
Rivers said she has a strong history of attending overseas conferences and implementing solutions locally. "As a civil servant in the late 1990's, I attended a workshop facilitated by the Commonwealth Youth Programme, held in Dominica, which dealt with developing National Youth Policies,” she said. “As a result of attending that conference, and the information learned there, I was able to successfully spearhead the development of the first comprehensive National Youth Policy for the Cayman Islands.”
Rivers stated that as a minister she expected to operate no differently, as she signaled more potential travel on the public purse.
“My participation at overseas workshops and conferences aimed at parliamentarians and ministers will be used to help facilitate the development of policies and programmes locally. Our country is simply in no position to lose out by not being at the table," she added.
See the official release from the ministry in full below
Accounts in for audit
(CNS): Although government has once again announced that all of its agencies have submitted their accounts to theOffice of the Auditor General (OAG) by the 31 August deadline, as required by law, it is still a long way from publishing an entire public sector financial report on time. The new finance minister reported that the quality of submissions has improved this year but the auditor’s office has so far remained silent on that issue because although the majority of government agencies have submitted something to the office by the deadline for the last three years, the information has not met the required international standard and the office is still working on previous years accounts due to the poor standard of submissions.
It is now ten years since government completed a full set of accounts, and public spending transparency remains elusive, regardless of the time and effort spent on trying to improve government books, as well as the employment of additional staff and consultants, plus assistance from UK experts.
Despite the claims over the last three financial years from government officials that the state of accounting has improved, the most recent report from Auditor General Alastair Swarbrick reveals that the improvements have been very slow in coming and have not yet achieved the desired result of publishing a clear and transparent report that can be understood by the public and clearly shows how taxpayers' money has been spent.
The Public Management and Finance Law stipulates that government ministries, portfolios and offices, as well as statutory authorities and government-owned companies, submit their 30 June year-end financial statements to the OAG by 31 August each year. However, it is only in the last two or three years that they have come close to doing so. The introduction of the new law and the impact of Hurricane Ivan in September 2004 threw public accounting into disarray. This and a lack of leadership on the issue, in addition to a skills gap in government finance departments has meant that government books are still in shambles.
Nevertheless, Finance Minister Marco Archer announced that all government ministries, portfolios and offices – which total 15 agencies – and its 26 statutory authorities and government-owned companies, had submitted their 30 June, 2013 financial statements by the statutory deadline of 31 August to the OAG for review and examination.
“On behalf of the government, I offer my congratulations to the oversight group – consisting of the deputy governor, the financial secretary, and chief officer of the ministry of finance – that supervised the achievement of this result; as well as to all other chief officers, chief financial officers and supporting staff, for another great accomplishment and for putting greater effort and focus on improving the quality of the financial information,” Archer said.
Premier Alden McLaughlin said he was delighted with the compliance because it solidified government’s top priority of “ensuring good governance, accountability and proper fiscal management”.
The auditor general is required to issue an opinion on the financial statements by 31 October but for every year so far since the PMFL came into effect, his office has had to go back time and again to government entities seeking more information before his staff could even begin to audit the accounts. Following the government statement this week, the OAG said it had no comment to make until it could "progress our work on the information we have received”.
In a recent report Swarbrick said the time had come for government to rethink the situation and recommended a simplification of the law because it was apparent the government would continue to fail to meet its own requirements if it did not. And, of greater importance, without change government could never achieve timely and transparent information for the tax payer, he said.
Although more entities have managed to meet the date as each year passes, with information slowly getting better from the statutory authorities and government-owned companies, core government finance officials are still woefully behind and it is understood that the audit office is still working on the previous year’s accounts for the ministries and portfolios.
The audit office also said recently that the country is still several years away from being in a position to publish its full set of consolidated accounts.
See most recent reports from Swarbrick relating to government finances below.
Rivers’ Africa trip official
(CNS): The minister for education was the official government representative on her recent trip to theCommonwealth Parliamentary Association Annual Conference in South Africa, the premier’s office has confirmed. This means that the cost of the trip will be partially paid for from the public purse. Although the office stated that Tara Rivers was taking leave when her counsellor Winston Connolly was sworn in as the temporary minister last month, officials admitted on Friday that Rivers was in fact government’s official delegate at the conference in Johannesburg. Although Connolly had originally been earmarked to go, Rivers took the spot instead because she missed an earlier CPA meeting in July as a result of the election petition challenge.
“CPA government Minister Rivers is attending the Commonwealth Parliamentary Association Annual Conference, including the Commonwealth Women Parliamentarian meeting as the official delegate representing the government,” a statement from the premier’s office released Friday stated. “This is an annual conference that the Cayman Islands branch of the CPA sends delegates to every year – one from the Government, one from the opposition. She was invited to attend the CPA regional conference earlier (in July) but was not able to attend that one, so the opportunity arose to attend this one, as the official delegate.
“The cost of the trip, as all such CPA conferences, is taken care of by the CPA. She intends to issue a press release covering the trip upon her return,” the press secretary to the premier added.
It is understood that the international CPA covers most of the cost for Cayman’s official CPA representative, Juliana O’Connor-Connolly, the speaker of the House, who was also in Johannesburg for the conference and who returned to the island by Friday in time for the swearing in ceremony for the new governor, Helen Kilpatrick.
Rivers was absent from the welcome events for Kilpatrick but is expected to be back in the ministry Monday. Opposition Leader McKeeva Bush, who was also on the trip, told CNS last week that the funds given to the local CPA come from the public purse.
With a new government travel policy, the premier has recently revealed that delegations on all official travel are being reduced to the bare minimum of delegates and officials are required to travel premium economy and not business class unless they pay for their own upgrades.
CNS has contacted the relevant government authorities to make a Freedom of Information request for the cost to local coffers for the Cayman delegation’s Africa trip.
Surplus $18M short of goal
(CNS): Although the UK appears to have fewer concerns about the current budget situation in the Cayman Islands than last year, the government has wound up around $18.7 million short of the predicted target. Finance Minister Marco Archer confirmed this week, as he went through the supplementary appropriations, that the unaudited results for the 2012/13 fiscal year saw government end the year with a surplus of $63.3 million. While this was the biggest surplus for many years, it was still short of the projected budget surplus of $82 million, which the former premier and minister of finance, McKeeva Bush, had presented last year after a protracted battle with the UK and a flurry of new fees and increases.
Although austerity measures across the civil service resulted in a fall in the operating budget of a welcome $10 million, government collected around $30 million less than anticipated.
The fall in predicted revenue was because the relevant legislation was passed too late to generate new fees or not passed at all and because predicted sources of revenue missing thier targets. For example, the special economic zone, Cayman Enterprise City, was expected to generate millions of dollars but the revenue collected was less than $200,000.
Although the new PPM government has not yet presented its full budget for the 2013/14 year, because of the need for an interim budget it has already cleared the broad outline with the UK after the FCO confirmed that it had accepted the government’s new four year fiscal plan and the route back to compliance with the Public Management and Finance Law.
Presenting a report on the first 99 days in office on Thursday, Premier Alden McLaughlin said that government had managed to tighten its belt recently and by not using its overdraft facility over the last quarter, it had saved government those fees as well.
“Government negotiated an increased overdraft of up to $46 million for more flexibility with cash flow, with the stipulation that government could not spend more than $30 million before 31 October. One of the positive effects of achieving expenditure restraint is the fact that government has not incurred an overdraft balance during the three-month period from 1 June to 31 August, 2013. Consequently, overdraft interest has been completely avoided,” McLaughlin told legislators.
Government is expected to deliver the full budget for 2013/14 during the week starting 23 September, more than a month ahead of the expiration of the emergency budget, which the finance minister and premier have said will give MLAs time to properly scrutinize the spending plans and question civil servants without sitting in the early hours of the morning in last minute marathon sessions, as has been common over the last four years.
CIG reports on first 99 days
(CNS): A self review of the PPM's first quarter at the helm of government covers a variety of achievements claimed by the new administration, from a re-drafting of the explosives law to a transparent policy regarding duty concessions. In a clear and concise easy to follow document, the government lists some promising new initiatives as well as a number of developments, from the UK's approval of its new four year fiscal plan to the restraint on expenditure over the last three months in the public sector. In the introduction the premier said that government had worked diligently to bring back stability since it was elected, starting with the restoration of confidence in government from the UK and the local business community
“Enhanced confidence in Cayman will assist us in our other priority — ensuring a vibrant economy so that Caymanians can secure jobs today and into the future,” McLaughlin said.
Admitting there was a lot to do, he said the PPM government had made great strides, especially with the UK accepting the multi-year budget framework. “We are able to put behind us the uncertainty and anxiety that has attended the budget process over the past four years,” he stated.
The premier also pointed to a number of other areas of controversy that the new administration had been working on. “We have tackled difficult areas like the Nation Building Fund, including the scholarship programme, as well as concerns with certain Government authorities head on; seeking to improve what was a bad situation.
"We have successfully pursued several initiatives relating to jobs and apprenticeship programmes to ensure that Caymanians have opportunities forjobs. We have reopened discussions with the Dart Group and good progress is being made on a variety of issues, including waste management,” he said.
According to the report, the Dart Group is still involved in talks with government regarding the George Town landfill on site, as well as continuing negotiations over the NRA agreement.
A scrap metal removal contract was signed with a local company that has generated CI$250,000 for government with the sale of 5,000 tons of scrap metal, which will be removed. Three new rear loader garbage trucks have been ordered and a 40-foot container load of various types of hazardous waste was also successfully shipped to Florida, in accordance with the USA regulations, for the first time in many years.
The report reveals that the National Conservation Law will be brought to the Legislative Assembly before the end of this year.
Before the year end, Cabinet will also bring the Commission for Standards in Public Life Bill, which covers a wide range of critical areas for good governance, including procurement, appointments to statutory authorities and government company boards, a new Register of Interests Law and setting standards for the behaviour of public servants.
Government has also agreed to an amendment to the Summary Jurisdiction Law to introduce a code of conduct for Justices of the Peace and training. Regulations have been drafted and a training programme is has been established for a Police Public Complaints Commission
“The Government has agreed to set up a commission that will act as an independent civilian oversight body for the Police and will receive and order an investigation of any complaint made by a member of the public against a police officer and or civil servant acting under the auspices of the police. Amendment to the Police Law 2010 to establish the Commission will be taken to the next session of the House,” the report states.
The Cabinet Office has begun the process of reviewing Cabinet’s Guidelines and a revised Code of Conduct for Cabinet. The report covers the economy, jobs, immigration, the Sister Islands culture, housing and numerous other issues that the government has turned its hand to since it was sworn in on 29 May.
“I reiterate that while we have done much in the first 99 days, there is much more to do, but I already feel a renewed sense of optimism in, and for, the Cayman Islands,” the premier stated.
McLaughlin was expected to formerly deliver the 99 day report on Thursday in the Legislative Assembly. The 100 day mark comes on Friday, coinciding with the arrival of the new governor, as well as the premier’s birthday.
CNS Note: Earlier information in this article and contained in the report below regarding a reduction in CUC bills is understood to have been detailed inaccurately by officials. CNS is awaiting an update from government and the ERA about the reality of a potential credit to CUC customers and a future rate reduction.
See full report below.
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