ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – Wednesday May 20, 2015 SportS | page 19 fight of the century goes to court Fans sue Pacquiao over his injury High of 89 Low of 78 Slight with wave heights of 1 to 3 feet. editorial | page 4 gold standard care at cayMan’s health city Civil service healthcare payments put off Brent fuller bfuller@pinnaclemedialtd.com What looked to be a difficult political de- cision for the Progressives-led administra- tion has been put off until after the May 2017 general election, government leaders announced Friday. Finance Minister Marco Archer said the head of the Cayman Islands civil service, Deputy Governor Franz Manderson, will begin reviewing whether government workers should begin funding a portion of their own healthcare costs through a co-payment system. Mr. Archer said government hopes a “modernized” healthcare payment system for civil servants can be put in place by 2018. “[The current system] is simply unafford- able and something must be done in the long- term interests of the Cayman Islands,” Mr. Archer said. According to details provided to the Cayman Compass as part of a 2014 Freedom of Information request, retired pensioner rates under the Cayman Islands National Insurance Company plans are $870 per month for non- married individuals, $1,306 per month for non-married people with children, $1,741 per month for married couples, and $2,176 per month for the CINICO family plan. Similar rates for working civil servants are $416 per month for single adults, $832 per month for married couples and the same for single adults with children, and $1,242 per month for families. Neither retired civil servants nor active government workers are required to make co-payments; their monthly premiums are funded entirely by government. In addition, both civil service plans under CINICO have a $5 million maximum “lifetime limit” for healthcare coverage. There are no limits on prescription drug purchases, or in- patient or outpatient care. Overseas accommo- dations and airfare, if the covered government worker or retiree must fly off island to obtain treatment, are covered 100 percent. Mr. Archer said late last year that keeping current benefits for civil service workers, re- tirees, seamen and veterans will result in health- care costs that eventually will overwhelm the Archer: cAymAn’s finAnciAl ‘freedom’ still needs work $552.8 million in core government spending proposed Brent fuller bfuller@pinnaclemedialtd.com The Cayman Islands may emerge from the end of its 2015/16 budget without the United Kingdom needing to approve future govern- ment spending plans, Finance Minister Marco Archer confirmed Friday. However, in order to achieve that step to- ward territorial financial freedom, the govern- ment’s revenue projections for the year must be solid, with no unexpected expenses arising. “We are not going to increase the tax burden,” Mr. Archer said. The key issue for the 2015/16 financial year is how to pay off government debts. The budget proposes spending $27.6 mil- lion on “financing costs” – interest pay- ments on its debt – and another $20 mil- lion to pay down principal debt amounts, Mr. Archer said. Those payments, along with other smaller amounts due, put government spending to retire debt at 9.9 percent of its expected core revenue. The maximum allowable expense to main- tain legally mandated financing ratios is 10 percent of core revenue. Contingency plans are in place in case gov- ernment does not earn as much money from taxes as it expects. Mr. Archer said a “sinking fund” of $18 million will be established to pay off government debt in 2015/16 should the need for extra cash arise. If Cayman’s government doesn’t meet all Colorful turnout for Mayfest Cayman is home to more than 120 diverse nationalities, several of whom shared their culture and heritage with the people of Cayman during Monday’s annual Mayfest celebrations in Bodden Town. The event aims to bring together citizens of the many countries who live in Cayman, to share food, music, dance and stories. Mayfest is hosted each year on Discovery Day by the Bodden Town Heritage Committee at the Harry McCoy Park. For more, see pages 6 and 7. – Photo: Jewel levy PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 »2 LOCAL&REGIONAL Wednesday May 20, 2015 • Cayman Compass www. REGmovies.com SATURDAY NIGHT: For your viewing pleasure, minors under the age of 18 will not be admitted to any lm starting after 6pm, unless accompanied by their parent. © Warner Bros. Pictures y x *Additional charges will apply per 3D ticket requested. - WEDNESDAY - $8.00 MAD MAX: FURY ROAD 3D (R) 1:00 I 4:00 2D I 7:00 I 10:00 2D AVENGERS: AGE OF ULTRON 3D (PG13) 12:30 I 3:35 2D I 6:40 I 9:45 2D PITCH PERFECT 2 (PG13) 1:10 I 4:10 I 7:15 I 9:50 FURIOUS 7 (PG13) 12:45 I 3:45 I 6:45 I 9:45 HOT PURSUIT (PG13) 12:40 I 2:50 I 5:00 I 7:30 I 10:05 Cuba establishes banking relationship in US, furthering ties WASHINGTON (AP) — Cuba has established a banking re- lationship in the U.S., clearing another major obstacle to the two countries re-establishing diplomatic relations, a se- nior State Department official said Tuesday. The official refused to identify the bank, though news reports had suggested Cuba was negotiating with a Florida-based financial in- stitution. The Cuban gov- ernment will make an an- nouncement soon, said the U.S. official, who wasn’t au- thorized to be quoted by name and briefed reporters anonymously. There was no immediate response from Cuba’s government. Securing banking oper- ations was among Cuba’s biggest demands as diplo- mats try to make good on the promises of Presidents Barack Obama and Raul Castro to restore embassies in Washington and Havana after a half-century interrup- tion. Without an account, the Cuban Interests Section in Washington has been forced to pay bills and salaries with cash, often resorting to hauling in money from Cuba to maintain operations. Another major hurdle to rap- prochement, the U.S. desig- nation of Cuba as a state sponsor of terrorism, expires May 29. Senior American and Cuban officials will gather again this week in Washington to canvass the remaining differences be- tween the former Cold War enemies. The Obama administra- tion is trying to secure guar- antees that its diplomats can travel wherever they want on the island and meet whom- ever they please, even if that includes dissidents and others the Cuban government accuses of trying to bring down its socialist system. Cayman Academy donates $2,000 to Cancer Society Students from Cayman Academy who raised $2,000 for charity have donated the money to the Cayman Islands Cancer Society. The funds, collected during the school’s Cancer Awareness and Health Week in February, were matched by the Cayman Islands Conference of Seventh-day Adventists, which runs the school. Jennifer Weber, opera- tions manager of the Cancer Society, said, “When a school calls us with a donation, it is usually $200 or $300 from a bake sale or a dress down day, so this donation from the Seventh-day Adventist school was quite significant.” She added that the dona- tion would go directly to the society’s financial aid pro- gram for cancer patients. “We have over 100 pa- tients on financial aid and try to assist them in what- ever way we can,” she said. “For some, it is in getting a plane ticket to go overseas for diagnosis or treatment, or for some it is help with rent. We treat each patient as an individual as each life is im- pacted in a different way.” During Cayman Academy’s Cancer Awareness and Health Week, classes delivered pre- sentations and mounted dis- plays in the auditorium to bring awareness of the dif- ferent cancers that affect chil- dren and teens. The activities also focused on how proper diet and exercise can reduce the risk of many cancers. There were two guest pre- senters: Sashoy Duncan, who spoke at a general assembly about healthy eating habits, and Shannon Seymour of the Wellness Center, who spoke to high school students about au- tism. Teachers Alicia Castillo- Timothy, Conroy Copeland and Hilreth Morgan and student Nickayla Graham also pre- sented on various topics, The student who col- lected the most funds during “Stride against Cancer 2015” was Year 8’s Zade Scott, who raised $165. The poetry competition winners were Neville Henry and Aviella Eugene of Year 9. More cocaine washes ashore Charles DunCan cduncan@pinnaclemedialtd.com An estimated 15 kilo- grams of cocaine washed ashore on Little Cayman on Monday, police say. The 15 individu- ally wrapped packages washed up on Point of Sand Beach on Guy Banks Road, according to police spokesman Adrian Seales. “The packages have been secured and moved to Grand Cayman,” Mr. Seales said. The drugs will be documented and destroyed. This is the third dis- covery of big cocaine shipments in and around Cayman since the begin- ning of April. Last month, fishermen found 23 kilos of cocaine adrift near 12 Mile Bank, and earlier in the month residents found a similar amount washed up on an East End beach. Police data shows drugs have been reported after washing ashore 26 times since the begin- ning of 2013. About 130 pounds of cocaine and 200 pounds of ganja have been turned in to Cayman police in that time. “We’re happy it did not hit the local streets,” Mr. Seales said. Sentencing set in cloned credit card case CarOl WInKer cwinker@pinnaclemedialtd.com Four people are scheduled for sentencing on Thursday morning in connection with thefts from local banks through the use of cloned credit cards. Roland Pop, Ianaca Vlismas and Florin Roata all admitted to dishonestly using the cards in automatic teller machines at local retail banks to withdraw cash between Dec. 10 and Dec. 17, 2014. They entered their guilty pleas in March. Mariana Oprinoiu pleaded not guilty, maintaining that she traveled with Roata be- cause they were on an “early honeymoon” and she did not know the other men. She elected to be tried by judge alone. On Monday, Justice Michael Mettyear delivered his judgment, finding Oprinoiu not guilty of conspiracy to de- fraud the banks, but guilty of money laundering. All four defendants are Romanian citizens who trav- eled here from Jamaica. All have been in custody since their arrest. Jennifer Weber, far left, and Victoria Anderson, fourth from left, from the Cayman Islands Cancer Society receive a donation check from Cayman Academy teachers and students.3 LOCAL NEWS Cayman Compass • Wednesday May 20, 2015 Construction on unfinished school could resume in December Bulk of $6.2 million budget allocation went to other projects James Whittaker jwhittaker@pinnaclemedialtd.com Officials are still doing administrative “ground- work” to restart the unfin- ished John Gray High School building project. Premier Alden McLaughlin in his 2014 budget address said $6.2 million had been allocated for capital projects in education, including for the completion of the mul- tipurpose hall at the half- built school. Education Minister Tara Rivers indicated this would be the first step in a phased completion of the building, which was left half built after funds ran out. A year later, no work has been done at the site and offi- cials now say the bulk of the $6.2 million allocation went to other projects. Christen Suckoo, acting chief officer in the Ministry of Education, said a steering committee had been set up to get the John Gray project back on track, with an aim to pick up construction in December this year. Mr. McLaughlin had sug- gested in his budget address for 2014/15, delivered a year ago, that work would be sub- stantially under way by now, highlighting an allocation of “$6.2 million for the Ministry of Education for the comple- tion of the multipurpose hall and ancillary infrastructure at the John Gray High School in George Town; and up- grades at other schools.” Mr. Suckoo acknowledged that to date, none of the $6.2 million allocation had been spent on John Gray. He said it had largely been used for other projects, including the procurement of new in- teractive whiteboards for primary schools. He said the Ministry of Education would use some of the cash before the end of the budget year for sur- veying work and mechan- ical, electrical, plumbing and fire surveys at the building site, on land adjoining the existing school. “Given that the project has laid dormant for some time, there are initial works re- quired before we can move to construction,” he added. He believes construction at the site will pick up before the end of the year. “At this point, there are no increased costs associated with the project being dor- mant,” he said. “However, in order to de- liver the project efficiently, we need to ensure that we under- stand the state of the build- ings and all of the related sys- tems, and any associated risks, prior to engaging the construc- tion phase of the project.” Mr. McLaughlin referenced the school construction in this year’s budget address on Friday, saying work on the hall should be completed in 2016. Mr. Suckoo said officials are currently going through the steps required by the Public Management and Finance Law and expect to “break ground” on construc- tion this year. “As previously indicated, we will be proceeding using a phased approach, concen- trating on the gym building first,” he said. Mr. Suckoo said he could not give cost estimates for the hall or for the completion of the school as they are subject to a competitive tender pro- cess and could change. As of March 2012, $54.4 million had been spent on the half-built school. At the time, then-Education Minister Rolston Anglin estimated a further $43 million would be required to finish the job. Ms. Rivers said in her budget speech last year that the existing John Gray High School was “one of the most dilapidated physical buildings that our students are having to endure on a daily basis.” The John Gray High School remains half built. - PHOTO: TANEOS RAMSAY $6 minimum wage sent to lawmakers Charles DunCan cduncan@pinnaclemedialtd.com The proposal for Cayman’s first minimum wage is now in the hands of the members of the Legislative Assembly. The premier, delivering his policy statement last week, said Cabinet had accepted the report and the $6 an hour minimum wage proposal, and called on the elected mem- bers to make the necessary legal changes. If approved, the new min- imum wage would go into ef- fect on March 1, 2016. The proposal makes an excep- tion for employees who re- ceive tips or room and board, essentially setting a $4.50 an hour minimum wage for people in the service industry and domestic workers. Premier Alden McLaughlin, speaking at the beginning of the new legis- lative session Friday, said he was committed to enacting a minimum wage. “This was a key plank in the Progressives’ manifesto and we look for- ward to seeing it move to completion,” he said. Enacting a minimum wage will require several legal changes, mainly to the Labour Law. The Minimum Wage Advisory Committee report, released in February, details changes to seven sections in the Labour Law, including setting the wage, requiring more record keeping by em- ployers, increasing fines for Labour Law violations, and expanding the definition of “workplace” to include house- holds employing domestic workers and make the law applicable to nonprofit and charitable organizations. The report also recom- mends a series of other changes to labor and immi- gration laws to strengthen the minimum wage, such as instituting whistle-blower protection to shield people who complain about Labour Law violations, and requiring every employer to make formal contracts with em- ployees and include those in work permit applications. Committee Chair Lemuel Hurlston, who led the year- long study on wages in Cayman, said he expects the minimum wage proposal to come into the debate as elected leaders go through the budget starting later this week or early next. “I don’t think this will be hugely politically controversial,” he said. Mr. Hurlston said the minimum wage would have a small impact on the govern- ment budget and, he added, “won’t substantially impact the economy.” The report estimates the new minimum wage regime would result in up to 600 job losses, mostly non-Cayma- nian domestic workers. The challenge for the com- mittee, Mr. Hurlston said, was “the question of arriving at a fair balance.” Committee members had to weigh eco- nomic impacts and pro- tecting workers to make sure they didn’t set the wage level too high or too low. Assuming the $6 an hour is passed, Mr. Hurlston said, continued assessment and monitoring will be essential to make sure the wage level stays relevant and keeps pace with inflation and the labor market. The report lays out processes for an annual re- view by government, and a full review by the Minimum Wage Advisory Committee every four years. Assuming a majority in the Legislative Assembly sup- ports the $6 an hour min- imum wage, they will have 10 months to get everything in order if they want to meet the premier’s March 1 dead- line next year. Mr. McLaughlin told legis- lators Friday, “The time in the interim will be used to not only prepare and educate the public, but also make legisla- tive and other changes that will be required.” Thief who smashed car windows jailed for 18 months New offenses activate old sentence CarOl WInKer cwinker@pinnaclemedialtd.com Theft from one car and damage to three other cars resulted in an 18 month jail sentence for Jermaine Myles-Barnes in Summary Court last week. All offenses took place at the Countryside Shopping Village on Aug. 14, 2014. Myles-Barnes, 29, pleaded guilty and re- ceived concurrent sen- tences totaling nine months. However, at the time of the offenses, he had been on a suspended sentence for handling stolen goods. Magistrate Grace Donalds there- fore activated a portion of that sentence to reach the final total. At the shopping center, the front side windows of all four cars were smashed. Glove compart- ments were opened and items strewn about. Jewelry that was stolen from a BMW was recov- ered from Barnes’s ve- hicle. He pleaded guilty to theft, and that damage to property charge was left on file. The other damage to property charges re- lated to a Nissan Sunny, a Toyota Mark 2 and a Honda Civic. The magistrate im- posed a term of nine months for the theft and six months for each charge of damage to property. In summarizing the facts, the Crown counsel noted that Myles-Barnes’s vehicle was seen on CCTV at the location. There was evidence of another person being involved, but that person remained at large. Defense attorney Fiona Robertson called her cli- ent’s actions “nuisance of- fenses” but accepted that they were “utterly irritating to the car owners.” She pre- sented a letter written by him expressing remorse and setting out his per- sonal circumstances. Ms. Robertson noted that Myles-Barnes had previously received a sen- tence of 18 months, sus- pended for two years, for handling stolen goods. He was nine months into the suspension period, working and making “good efforts” when he com- mitted the new offenses. She asked that he be given credit for that part. Myles-Barnes also pleaded guilty to pos- session of more than 10 ounces of ganja at his home. Police discovered it when they went to the premises with a search warrant in relation to an- other matter. The defendant pleaded guilty, saying that the drug was for his per- sonal use. A six-month sen- tence for this offense was also made concurrent. Defense attorney Fiona Robertson called her client’s actions “nuisance offenses” but accepted that they were “utterly irritating to the car owners.”The islands’ most-trusted news source 4 – EDITORIAL – Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. Printed and Published by: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town send us yOur VieWs Or neWs: P.O. Box 1365 Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com adVertise With us: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS daVid r. legge and Vicki l. legge EdITOR-In-CHIEf daVid r. legge A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will findtheirownway” WASHINGTON – That free trade is advantageous to both sides is the rarest of po- litical propositions – prov- able, indeed mathematically. David Ricardo did so in 1817. The Law of Comparative Advantage has held up nicely for 198 years. Nor is this abstract theory. We’ve lived it. The free-trade regime created after World War II precipitated the most astonishing advance of global welfare and prosperity the world has ever seen. And that regime was created, overseen, guaranteed and presided over by the United States. That era might be coming to a close, how- ever, as Democratic con- gressional opposition to free trade continues to grow. On Tuesday, every Democrat in the Senate (but one) voted to block trade promotion – aka fast-track – authority for President Obama, which would have given him the power to conclude the Trans-Pacific Partnership (TPP), a trade deal being hammered out with 11 other countries, including such key allies as Japan, Australia and Singapore. Fast-track authority al- lows an administration to ne- gotiate the details of a trade agreement and then come to Congress for a non-amend- able up-or-down vote. In var- ious forms, that has been granted to every president since Franklin Roosevelt. For good reason. If the complex, detailed horse trading that is required to nail down an agreement is carried out in the open – especially with multiple parties – the deal never gets done. Like all modern presi- dents, Obama wants a deal. But he has utterly failed to bring his party along. It’s not just because for six years he’s treated all of Congress with disdain and prefers in- sult to argument when con- fronted with opposition, this time from Democrats like Elizabeth Warren. It’s also because he’s expended prac- tically no political capital on the issue. He says it’s a top priority. Has he given even a single televised address? The trade deal itself will likely pass the Senate even- tually, there being eight or so Democrats (out of 46) who support the deal but wanted to extract certain guarantees before fast-tracking it. (They got the guarantees and on Thursday broke the filibuster onfast track.) The problem is the House. Very few House Democrats will vote yes. House passage will require Republican near-unanimity. And it’s not there. One group of GOP oppo- nents are traditional protec- tionists of the Pat Buchanan paleoconservative school of autarky. The others are con- servatives so reflexively anti- Obama that they oppose any- thing he proposes, especially anything that appears to give him more authority. Having strongly opposed Obama’s constitutional usur- pations on immigration, health care, criminal justice and environmental regula- tion, I’m deeply sympathetic to that concern. But in this case, there is no usurpation. There is no congressional for- feiture of power. Fast track has been the norm for 81 years. And the final say on any trade agreement rests entirely with Congress. As for the merits, the TPP is a boon for America. It reduces tariff barriers to vast Asian markets and strengthens protection for in- tellectual property, America’s forte. To be sure, any trade deal, while a net plus overall, produces winners and losers. But the TPP will be accom- panied by so-called Trade Adjustment Assistance, training and subsidies to help those negatively affected. Moreover, the overall gain is more than just eco- nomic. In our deadly serious competition with China for influence in the region, the TPP would anchor our rela- tions with Pacific Rim na- tions. If we walk away, they will inevitably gravitate to China’s orbit. The question is (as Paul Ryan and Ted Cruz succinctly put it in The Wall Street Journal): Who is going to write the rules for the global economy – America or China? And one final consideration. Watching America’s six- year retreat under Obama, the world wonders whether this is the product of one idiosyncratic presidency or of an inexorably declining America.Republicans have been telling the world that decline is not a condition but a choice, and that America’s standing will be restored when U.S. policy is entrusted to geopolitically serious people. Here is the GOP’s chance to show seriousness. The Democrats, inven- tors of the postwar free- trade regime, have now turned against it (and their own president). This is the Republicans’ chance to dem- onstrate that they can think large by advancing an im- portant strategic objective – giving substance to Obama’s as yet stillborn “pivot to Asia.” I wouldn’t mind seeing Obama sunk by his own ar- rogance in intraparty fratri- cide over trade. But the issue is bigger than Obama. In 20 months, he will be gone. Asia will not. And it will get away from us if Republicans don’t step up and step in where Obama and the Democrats have failed. Charles Krauthammer’s email address is letters@charleskrauthammer.com. © 2015, Washington Post Writers Group Last month, Health City Cayman Islands marked its first full year of accepting patients. That was an occasion deserving, perhaps, of a little bubbly. Last week, the East End medical facility announced it had gained accreditation from the Joint Commission Inter- national. This, too, is cause for celebration, and with something of a finer vintage. (A magnum of 1996 Cristal would do nicely.) JCI is the international arm of The Joint Commis- sion, the largest and oldest healthcare accrediting body in the United States. For patients, doctors and companies — in the U.S. or elsewhere — JCI’s gold seal of approval is, unequivocally, the gold standard for an overseas hospital. To put it one way, JCI accreditation will reassure Cayman’s potential medical tourists that the quality of healthcare being delivered at Health City is as good or better than they could expect to receive closer to home. To put it another way, without JCI accreditation, Health City’s future as a medical tourism destination would have been much more problematic. We at the Compass never doubted that the phy- sicians and healthcare professionals at Cayman’s “Shetty hospital” would grade out as anything less than world-class, by anybody’s standards; however, we are even further impressed by the speed at which Health City managed to achieve this recognition. But, just as a new medical school graduate must then plunge into an intensive residency program, the real work for Health City, now that it has accreditation, is about to start. According to JCI, Health City has ticked all the boxes when it comes to providing healthcare. Now comes a far tougher test: of the soundness of Health City’s business model as a viable healthcare provider. The key question is whether Health City can attract enough patients from around the Western Hemisphere — not just for the current 140-bed facility, but eventu- ally for the ultimate vision of “a 2,000-bed health city and a medical university that will become a beacon of medical education for the world,” as expressed by Health City founder Dr. Devi Shetty. That remains to be seen, but our existing optimism is bolstered by the testimony of Health City’s mar- keting director Shomari Scott, who said, “The phones are ringing with providers asking to partner with us.” Underlying our basis for belief in Health City are the people who comprise the potentially globe- changing venture: first and foremost, Dr. Shetty (and his Narayana Health group), whose life’s mission is to make quality healthcare available to all who need it, regardless of income; Health City partner Ascen- sion Health, which runs the largest Catholic and non- profit health system in the U.S.; the staff who work at Health City, led by head of medical services Dr. Chandy Abraham; project director Gene Thompson, who toils to ensure that Caymanians gain as much opportu- nity from Health City as possible; local businessman Harry Chandi, who introduced his friend Dr. Shetty to our beloved isles; and all the local enablers and facilita- tors of Health City, including government ministers and official liaisons. Congratulations, Health City, on an admirable accomplishment. We trust that your success story has only just begun. Gold standard care at Cayman’s Health City Wednesday May 20, 2015 • Cayman COmpass Save the President’s trade authority Charles Krauthammer This is the Republicans’ chance to demonstrate that they can think large by advancing an important strategic objective – giving substance to Obama’s as yet stillborn “pivot to Asia.”5 LOCAL NEWS Cayman Compass • Wednesday May 20, 2015 Experts warn of cultural tolerance of abuse James Whittaker jwhittaker@pinnaclemedialtd.com The Pan American Health Organization says its re- ports revealing high levels of sexual and physical violence against children in Caribbean territories, including in the Cayman Islands, demonstrate that work needs to be done across the region to protect and support victims. Doctors from PAHO are concerned that the issue of sexual abuse is “clouded in embarrassment” in the Caribbean and suggest there may also be a cultural toler- ance of physical abuse, mas- querading as discipline. The Cayman report, based on a series of surveys with 955 young people, aged 15-19, revealed that one in five girls had been sexually abused, while one in six children had been physically assaulted by an adult. PAHO says the results in the Cayman Islands, de- spite its relative afflu- ence, were consistent with what was reported in five other territories. Dr. Noreen Jack, PAHO representative for Jamaica, Cayman and Bermuda, said, “Physical and sexual abuse are related to other social and individual factors. They happen regardless of the af- fluence and development of the country.” She said the issue was a global public health crisis and claimed the PAHO re- ports provided some of the first real data to back up anecdotal evidence that there were “significant levels” of child abuse in the Caribbean region. While they say the issue is global, the doctors suggest there are some specific issues impacting the Caribbean. “We can mention things like accepting these things happen without public con- demnation of physical and sexual violence,” said Dr. Sonja Caffe, the organiza- tion’s regional advisor on sex- ually transmitted infections. “We need to show zero tolerance for violence; we have to empower victims of abuse instead of clouding it in embarrassment.” PAHO also points to a lack of assistance to women to report abuse and a lack of support to victims, as well as insufficient processes to identify at-risk young people. It says its reports, os- tensibly examining risk fac- tors for HIV and sexually transmitted diseases, were also designed to inform the public and policy makers of the scale of the problems of abuse in the Caribbean. Dr. Jack said, “It is not just about publication, the report is also designed to inform further work in the area. What are the next steps? What interventions are re- quired in terms of services? That is what these studies are for, to inform processes and further programs.” PAHO officials say they emailed the finished report, based on survey data col- lected in 2012, to the Cayman Islands government last summer. The final hard copy was received by govern- ment in January 2015. The Ministry of Health released it to the media and the public last week after the Cayman Compass obtained a copy. Alongside the report, the ministry issued a list of pol- icies it said had been imple- mented to help deal with the issues highlighted. These included the for- mation of a Mental Health Commission, a National Sports Strategy and a Red Cross child abuse preven- tion program in govern- ment high schools called “It’s Not Your Fault.” Education Minister Tara Rivers said staff in preschools were also receiving training on how to talk to young chil- dren about abuse, as well as their responsibilities to report suspicions of abuse. The Cayman report, based on a series of surveys with 955 young people, aged 15- 19, revealed that one in five girls had been sexually abused, while one in six children had been physically assaulted by an adult. Charles DunCan cduncan@pinnaclemedialtd.com A fishing boat apparently broke free of its moorings off Cayman Brac Monday and ran aground on the reef off the northern coast, according to police. The police service joint marine unit received a dis- tress call Monday afternoon, and officers boarded the vessel just before 7 p.m. The police report states the cap- tain has made arrangements with a salvage company on Grand Cayman to get the boat off the reef. “It’s resting on its keel and has no visible hull damage,” police spokesman Adrian Seales said. The British Virgin Islands-flagged boat, named Chiquitta, had five people on board, according to police, a man and woman from Mexico and three Honduran men. According to the report, they told police they were traveling from Cozumel, Mexico, and had stopped in Grand Cayman before going to the Brac. As of Tuesday afternoon, the boat was still stuck on the reef in the area of the old Buccaneer Inn, just west of Scott’s Dock. 55-foot cruiser runs aground on Brac reef A photo provided by the Royal Cayman Islands Police Service shows the boat that ran aground on a reef off the north side of the Brac.6 LOCAL NEWS Wednesday May 20, 2015 • Cayman Compass Friday, 5 June 2015 at 6:30pm Lobster Pot Restaurant Applications will be available at the event, and in accordance with the rules of international pageants, potential contestants should not have attained the age of 25 by1 Jan 2016 in order to participate in the Miss Cayman Islands Pageant. Please email Ariana.seales@gmail.com or 1caymangirl@gmail.com for more information Meet & Greet We are specialized in providing Comprehensive Insurance Packages for clients in the Cayman Islands and across the Caribbean. We arrange insurance for: Contract Works & Public Liability (CAR) Workmen’s Compensation/Employers Liability Professional Indemnity Marine Insurance Strata Plans and Other Commercial Properties Insurance Homeowners Insurance For more details on the above we can be contacted via email or Telephone The Insurance Broker For All Your Needs Unit # 10 Cayman Falls B I P.O. Box 11118 APO I Grand Cayman KY1-1008 I Cayman Islands Tel: 345-943-2475 I Fax: 345-943-2472 I Emails: alicia.hansraj@cipil.net I ricardo.bodington@cipil.net I info@cipil.net I Website: www.cipil.net Caribbean Insurance Practice (International) Ltd. in conjunction with RoyalStar Assurance Ltd. and Other insurance market provide you with competitive packages for all your insurance needs We are specialized in providing Comprehensive Insurance Packages for clients in the Cayman Islands and across the Caribbean. We arrange insurance for: Contract Works & Public Liability (CAR) Workmen’s Compensation/Employers Liability Professional Indemnity Marine Insurance Strata Plans and Other Commercial Properties Insurance Homeowners Insurance For more details on the above we can be contacted via email or Telephone The Insurance Broker For All Your Needs Unit # 10 Cayman Falls B I P.O. Box 11118 APO I Grand Cayman KY1-1008 I Cayman Islands Tel: 345-943-2475 I Fax: 345-943-2472 I Emails: alicia.hansraj@cipil.net I ricardo.bodington@cipil.net I info@cipil.net I Website: www.cipil.net Caribbean Insurance Practice (International) Ltd. in conjunction with RoyalStar Assurance Ltd. and Other insurance market provide you with competitive packages for all your insurance needs We are specialized in providing Comprehensive Insurance Packages for clients in the Cayman Islands and across the Caribbean. We arrange insurance for: Contract Works & Public Liability (CAR) Workmen’s Compensation/Employers Liability Professional Indemnity Marine Insurance Strata Plans and Other Commercial Properties Insurance Homeowners Insurance For more details on the above we can be contacted via email or Telephone The Insurance Broker For All Your Needs Unit # 10 Cayman Falls B I P.O. Box 11118 APO I Grand Cayman KY1-1008 I Cayman Islands Tel: 345-943-2475 I Fax: 345-943-2472 I Emails: alicia.hansraj@cipil.net I ricardo.bodington@cipil.net I info@cipil.net I Website: www.cipil.net Caribbean Insurance Practice (International) Ltd. in conjunction with RoyalStar Assurance Ltd. and Other insurance market provide you with competitive packages for all your insurance needs Mayfest a feast of color, dance and food Jewel levy jlevy@pinnaclemedialtd.com Filipino dancers, whole roast pigs, Guyana roti, Cayman mangoes, turtle stew, jerk chicken, plants, popcorn and jewelry – the Bodden Town Heritage Committee Mayfest event on Monday had it all. It drizzled and then the sun came out and people arrived in droves for the annual gath- ering that is growing in popularity each year. Filipinos, Nicaraguans and Indians, among others, came dressed in colorful cos- tumes and ready to dance, taking to the stage to entertain the crowd with traditional and modern performances. Children strolled the grounds sampling all the goodies. Kids dressed in colorful cos- tumes stood in line for snow cones as parents queued up to try local food sold by vendors from the diverse nationalities represented. “It was a wonderful day,” said Betty Wood, a Heritage Committee member. “It was fabu- lous and everyone enjoyed themselves. We had lots of things going on and the Filipinos did an excellent job. Everyone was in good spirits and happy and we got to see many people we don’t normally get to see that often.” A gift rack hoisted in the air and loaded with chips, sweets and other goodies had children jumping high to grab the freebies. Visitors feasted on fried fish, conch stew, food from Guyana, Jamaica, Cayman, the Philippines, Belize, Nicaragua and Brazil, among other places. “The Brazil beefsteak was the best I ever had in my life. All the food was good and the Filipinos put on a good show,” said Pedro Watler, a Heritage Committee member. John Lewis won the first prize of 22 yards of concrete stone. Sheldon Scott won a piglet and Roger Tatum won a $200 cleaning service. The Bodden Town Mayfest, held on Discovery Day, is an annual family-oriented outdoor event with music, arts and food. The organizing committee’s aim is to promote har- mony among Cayman’s diverse nationalities and give various communities an opportunity to socialize together. Filipino dancers were popular with the crowd. - Photos: Jewel levy Young Tyrece Whittaker points to the recyclable bags being sold by Emile Levy. Roast pig was a hot item on the menu.7 LOCAL NEWS Cayman Compass • Wednesday May 20, 2015 DART DEVELOPMENT PLAN PRESENTATIONS You are invited to attend a public presentation on the Dart group of companies and its upcoming real estate development plans. Regal Cinemas, Camana Bay SATURDAY 23 MAY 2015 TWO SESSIONS: 10:00 am – 11:00 am 11:30 am – 12:30 pm Seating is limited; please arrive early to ensure availability. Please note Market Street will be closed 23 May for Chalkfest. Additional parking available in the multi-storey parking garage behind Anytime Fitness. Sessions are open to the public; however, photography and videography will not be permitted. Dances from around the world performed throughout the day. Here, Filipino women take to the stage for a traditional dance. Mayfest Heritage Committee organizers Betty and Ormann Wood display local produce.Nicaraguans perform a national dance.The islands’ most-trusted news source 8 Wednesday May 20, 2015 • Cayman Compass We Buy Gold!We Buy Gold! Cash For Gold Silver, Coins and Broken Jewelry Cash Paid on the Spot! Call 927-8565 Cash For Gold • Shedden Road Cayman Islands govern- ment’s annual budget. A consultant’s report that looked at pending health- care costs over a 20-year period estimated Cayman will face $1.18 billion in li- abilities – at today’s dollar value – if the current healthcare coverage poli- cies are maintained. Other changes can be made in the nearer term to help stave off some of the healthcare costs, Mr. Archer said. Among the changes proposed are increasing the government’s manda- tory retirement age from 60 to 65; reducing the cur- rent “lifetime” healthcare benefits cap for civil ser- vants from the current $5 million; and considering a “graduated scale” of health benefits for retirees based on their years of service in government. The retirement age in- crease is expected to be ap- proved later this year, Mr. Archer said. Reducing the “lifetime” cap could also be done simply through a leg- islative change. Creating a graduated system of healthcare ben- efits based on time spent working in the civil service is likely to be more compli- cated, but Mr. Archer said he believes such a scheme could be developed without impacting current retirees. Making the case Cabinet requested that Deputy Governor Manderson present a busi- ness case for the co-pay- ment proposal and report back to elected members. Mr. Manderson released an administrative circular to all civil servants Friday about the changes. With regard to the “graduated scale” health- care benefits plan, the deputy governor said the idea would be to award “pro-rated benefits to per- sons who only spend a por- tion of their careers with the civil service.” The memo also dis- cussed the possibility of civil servants paying a por- tion of their own health- care costs. Mr. Manderson said any changes made would be fully discussed with the civil service, since the changes likely would require amendments to current contracts. One potential option often discussed among the civil service rank- and-file is the ability to use other healthcare pro- viders through the Cayman Islands National Insurance Company plans. Now, in- dividuals insured by CINICO are only covered if they use government-run healthcare facilities. Mr. Archer has said mul- tiple coverage options could be considered, but that the public healthcare system will still have to be prop- erly funded and main- tained. “We’ll have to look at the impact of [healthcare choice] on the cost of our funding the Health Services Authority,” he said. Long debate The issue of civil ser- vants paying for their own healthcare coverage has long been debated in parliament. Former Health Minister Anthony Eden said in 2009 that current benefits were “unsustainable” for govern- ment in the long term. However, Mr. Eden’s government colleagues – including current Premier Alden McLaughlin and Minister Kurt Tibbetts – seemed reluctant at the time to reduce civil service benefits, at least for current government workers. Mr. McLaughlin said at the time that he would not “personally support” any move to strip benefits from existing government em- ployees, but he said consid- eration must be given to of- fering lesser benefits to new civil servants. “They have been hired on the basis that healthcare is part of the overall package,” Mr. McLaughlin said during the 2009 Legislative Assembly debate. “Obviously, they would object to those benefits being changed.” Mr. Tibbetts, who was leader of government at the time, promised not to make any hasty decisions on the subject. “I want to ensure civil servants, their families and all our citizens that their voices on this matter will be heard clearly and completely prior to any decision being reached by Cabinet,” he said. No action to change civil ser- vant benefits has been made since that 2009 debate. Civil service healthcare payments put off six legally mandated prin- ciples of responsible finan- cial management set out in the territory’s Public Management and Finance Law, the U.K. will again be in charge of pre-approving Cayman’s next budget in 2016/17 – a situation govern- ment is keen to avoid. Even if the government budget situation receives the U.K.’s blessing, the finance minister cautioned that the government still would not be able to start borrowing huge sums ahead of the 2016/17 budget year. “We will only spend to the extent that we can afford to,” Mr. Archer said. “We do not plan to enter into any finan- cial arrangements to pay for recurring expenditure.” Budget numbers The central govern- ment spending plan for the 2015/16 year, which starts July 1, expects operating rev- enue of $661.2 million and expenses of $552.8 million, including the financing ex- pense of $27.6 million. That leaves government with a core “operating sur- plus” of $108.4 million. However, the performance of government’s statutory au- thorities and government- owned companies during the year is expected to re- sult in a net gain for gov- ernment finances of $12.9 million, though not all gov- ernment authorities are making money. Some, in- cluding the Turtle Farm and Cayman Airways, still require millions of dollars in assis- tance. However, the net per- formance of all 26 entities will result in an overall gain. The total operating surplus for the year, then, is due to be $121.3 million. The government’s net cash flows for the year are ex- pected to total $139.6 mil- lion, of which $50.3 mil- lion in capital (construction) projects will be paid, as well as $20 million for principal debt repayments. Where the money is going The government’s core operating expenses are in- creasing by about $16 million in the next budget, compared to the current fiscal year. Most of that money will go toward a 4 percent pay in- crease for civil servants ($7.5 million increase), additional funding for the Cayman Islands Monetary Authority ($3.8 million), additional ex- penses for retiree health- care to the Cayman Islands National Insurance Company ($1.8 million), more money for seamen’s and veterans’ benefits due to more people who are eligible ($900,000), funding for e-government initiatives ($700,000) and about $500,000 for salary “re- grades” – essentially addi- tional pay raises for govern- ment employees. The government’s capital projects budget of $50.3 mil- lion is divided among: ■■ The Ministry of Planning, $10.5 million: Most of which will go to pay for work on George Town re- vitalization ($5.3 mil- lion) and to cover ga- zetted road claims from landowners ($3 million) ■■ The Ministry of Tourism and District Administration, $8 million: About $4.2 million will go toward the cruise berthing project, and $3.5 million will go to construction projects in Cayman Brac ■■ The Ministry of Education was allocated about $5 million for the “phased construction” of John Gray High School ■■ The Ministry of Health received about $2.2 mil- lion for projects in- cluding the George Town Landfill remediation ■■ About $2 million was al- located to the Ministry of Home Affairs for un- identified “national se- curity” projects ■■ The Ministry of Community Affairs re- ceived $1.5 million for improvements to the Haig Bodden playing field and the Bodden Town Primary School. In addition, $19 mil- lion was allocated to statu- tory authorities and govern- ment companies, including $9 million for the Cayman Turtle Farm to pay off ex- pected operating losses and historical debts; $5.1 mil- lion to Cayman Airways for debt repayments; $2.4 mil- lion to the National Housing Development Trust for debt repayment requirements; and $1.5 million went to the Cayman Islands Development Bank for “recapitalization.” Mr. Archer CONTINUED FROM PAGE 1 Archer: Cayman’s financial ‘freedom’ still needs work CUC rate cut: How much will it save? Brent FUller bfuller@pinnaclemedialtd.com Combined rate cuts in diesel fuel imported by Caribbean Utilities Company will cost the Cayman Islands government nearly $17 mil- lion in tax revenue over an 18-month period. In the meantime, it is ex- pected to save residential fuel consumers about 8.6 percent on their monthly bills, de- pending on fuel prices at the time. As of January 2016, the Progressives-led govern- ment’s plan is to cut the 50 cents per gallon tax rate on diesel fuel imported by CUC to 25 cents per gallon. That is on top of a 25 cent per gallon decrease that was imple- mented in January this year. The rate cut, Premier Alden McLaughlin said, should further reduce con- sumers’ electricity bills and will have reduced the im- port rate on diesel imported by CUC from 75 cents per gallon in 2014 to 25 cents per gallon in 2016. However, the reduc- tion will also cost the Cayman Islands government significant revenue. Finance Minister Marco Archer said Friday that the initial rate cut, between January and June 2015 of the government budget year, would cost government about $4.2 million. Extending that rate cut into July-December 2015 would add another $4.2 mil- lion in lost tax revenue for a total loss of $8.4 million during calendar year 2015. Adding the new rate cut in January 2016 and ex- tending it through June 2016 would cost govern- ment a further $8.4 million compared to the initial duty rate, which, added to the ear- lier $8.4 million loss, totals $16.8 million in reduced rev- enue to government coffers since January 2015. Going forward, the annual loss to government will be $16.8 million per year, com- paring the 75 cents per gallon rate to the new 25 cents per gallon rate. The average CUC resi- dential customer would see a total 4.3 percent reduc- tion on monthly power bills, depending on the price of fuel, Minister Archer said, from the initial duty rate re- duction from 75 cents to 50 cents per gallon. If that rate reduction goes from 75 cents per gallon to 25 cents per gallon, cus- tomers should see around an 8.6 percent reduction on monthly bills. A customer whose power bill is $300 per month would save about $25 per month when the January 2016 rate cut takes effect. A cus- tomer who spends $600 per month would save about $51 per month. CONTINUED FROM PAGE 1 The average CUC residential customer is expected to see a further 4.3 percent reduction on monthly power bills once the new duty rate is introduced in January 2016. - PHOTO: TANEOS RAMSAYThe islands’ most-trusted news source 9 Business Investment to Nigeria down by a third Foreign investment to Nigeria from the U.S. fell by nearly a third, a ‘key driver’ of the decline in the first quarter of 2015 compared to the same period last year, the National Bureau of Statistics said. Cayman Compass • Wednesday May 20, 2015 Offshore deal activity down, Cayman retains lead MIChael KleIN mklein@pinnaclemedialtd.com Despite a significant drop in the volume of off- shore transactions, the av- erage size of mergers, ac- quisitions and initial public offerings reached the highest on record. Law and fiduciary firm Appleby’s Offshore-i re- port covering offshore deals in the first quarter noted that while the number of transactions across juris- dictions dropped signifi- cantly compared to the pre- vious quarter, the total deal value of US$68.3 bil- lion remained the same on the basis of three mega- deals, each worth in ex- cess of US$5 billion. Cayman remains the most popular offshore jurisdic- tion for offshore deals, with 132 corporate transactions, representing 25 percent of all deals. The British Virgin Islands trailed Cayman with 85 deals, followed by Bermuda with 84, and Hong Kong, where 80 deals were recorded. Mirroring the activity in other jurisdictions, Cayman saw lower deal volume but higher transaction values. “Cayman was again a major contributor to overall offshore deal activity in the first three months of this year, accounting for a quarter of all transactions and 20 of the 34 IPOs recorded,” said Simon Raftopoulos, a Cayman-based partner and member of Appleby’s corpo- rate finance and insurance teams. “Cayman also en- joyed something of a bounce- back in deal value, with a 160 percent jump over the previous quarter.” All transactions in- volving Cayman entities to- taled US$17.4 billion in the first three months of the year. Three deals exceeded US$1 billion, including the acquisition of Cayman- incorporated communica- tion equipment manufac- turer Highlight Holding by Bermuda-based Highlight China for US$4.7 billion. While the majority of the report focuses on interna- tional acquirers buying off- shore assets, Offshore-i also examined outbound deals in which an offshore ju- risdiction acted as an ac- quirer. With US$31.2 billion, Cayman recorded the most spending on overseas trans- actions. This contributed to a quarter in which offshore jurisdictions spent a total of US$84.7 billion, an increase of 32 percent over fourth quarter 2014. Overall, 537 first-quarter deals in 2015 represented a 24 percent decline from the previous quarter. However, the average deal value, which matched the previous quarter, is among the highest in the last decade. “At more than US$68 bil- lion for the first quarter of the year, cumulative deal value remains at the same high level as the preceding quarter, despite there being more than 150 fewer trans- actions,” said Cameron Adderley, partner and global head of corporate. “The result, clearly, is a bumper average deal size, which has been topped in only two quarters over in the past decade.” This quarter’s average deal size of $127 million was boosted by 14 deals worth more than $1 billion each, in- cluding three $5 billion-plus transactions and two addi- tional deals worth more than $4 billion each. Since 2004, there has been only one quarter that in- cluded three $5 billion deals. Low interest rates and cash on balance sheets have helped drive big deals, while mergers and acquisitions proved a quick way to add revenue at a time when ex- isting markets are mature or subdued, and opportunities for growth appear limited, the report said. There is also evidence that the rise of the mega- deal is a global phenomenon that may be driven by more targeted merger and acqui- sition decision-making post- crisis, with acquirers willing to make sizeable invest- ments but only after scru- pulous analysis of targets, Appleby said. Offshore mega-deals also meant that the offshore region as a whole ranked second worldwide in terms of average deal size in the first quarter, trailing only North America. The off- shore region ranked sixth in the world by deal volume in the first quarter and fourth in total transaction value. The financial industry and insurance sector contributed most of the offshore transac- tional activity as three insur- ance-related deals featured in the top 10 for the quarter. Mirroring the activity in other jurisdictions, Cayman saw lower deal volume but higher transaction values. Emerging markets drive hedge fund gains in April MIChael KleIN mklein@pinnaclemedialtd.com Hedge funds continued to produce positive returns for the fourth consecutive month of the year. The Eurekahedge Hedge Fund Index was up 0.99 percent in April, trailing equities such as its bench- mark MSCI World Index which gained 1.25 percent during the month. Buoyed by emerging market-focused funds, which gained 4.06 percent in April, hedge funds overall have re- turned 3.42 percent for the year. Eastern Europe and Russia focused hedge funds posted the strongest returns during the month, with the Eurekahedge Eastern Europe & Russia Hedge Fund Index up 9.09 percent on the back of a recovery in the Russian equity markets due to rising oil prices and a strength- ening ruble. A Eurekahedge report with data for April showed that Asian managers, ex- cluding Japan, returned 8.62 percent during the month and 13.41 percent year-to- date. Greater China mandates showed strong gains of 15.55 percent as the underlying CSI 300 equity index, lifted by the Shanghai-Hong Kong stock- connect, rose 17.85 percent. Data provider Eurekahedge noted that “de- spite weaker macroeconomic data, the expectation remains strong that [the People’s Bank of China] will bring down rates to meet its 7 percent GDP growth target, the first installment of which hap- pened earlier this month.” Japanese hedge funds, meanwhile, also posted rel- atively strong gains of 1.89 percent as the weaker yen continued to equities. Latin American managers were up 1.82 percent. European managers re- turned 0.69 percent and out- performed the underlying markets such as the MSCI Europe, which gained 0.25 percent during the month. North American managers, in turn, posted the lowest re- turns, up only 0.25 percent. European funds increased their asset base by US$10.5 billion, bringing their current AUM close to a record high of US$500 billion. Hedge funds continue to attract additional invest- ments with net capital in- flows to the industry since February, reaching US$30 bil- lion. North American man- agers lead in terms of net investor inflows, recording US$10.8 billion in new allo- cations, approximately one- third of the level seen for the same period last year. Long/short equity strate- gies lead with returns of 2.4 percent, bringing the year-to- date returns to 5.66 percent, the highest among all stra- tegic mandates. Macro and CTA/managed futures funds were the worst performers during the month, down 0.61 percent and 1.38 percent, respectively. Managers reported losses from their positions in FX, commodity and bond fu- tures. More specifically, the U.S. dollar decline of 4.15 per- cent against the euro con- tributed to losses for sys- tematic trading strategies. Short exposures to energy futures were hit by rising oil prices following a cut in production capacity. Sharp movements in German and Japanese bond yields also impacted performance. “It seems that the per- ceived delay in the U.S. in- terest rate hike [from June to possibly September] has upset some of the key con- victions of macro and CTA/ managed futures funds which left them on the wrong side of the markets in April,” Eurekahedge said. 100 Women in Hedge Funds raises money for LIFE About 100 members of 100 Women in Hedge Funds gathered on May 7 for ‘Bubbles and Bling,’ an evening of networking and shopping sponsored by Kirk Freeport and Kirk Supermarket. A portion of the sales proceeds was donated to LIFE Ltd. (Literacy is for Everyone), 100WHF’s chosen beneficiary for 2015. LIFE recently received a check for more than US$52,000 raised at 100WHF’s events in March. Irina Scrivens, Monette Windsor, Julie-Ann Allard and Michelle Morgan Lise Baril, Christina Bodden and Nadia HardieNext >