ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – Wednesday June 17, 2015 sports | page 18 splash of medals expected at island games Lauren Hew is among strongest swimmers High of 89 Low of 79 Moderate with wave heights of 3 to 5 feet. editorial | page 4 after 33 years, dr. Kumar ends his shift Midday melee in downtown George Town Man’s throat slashed after suspect rams his car Brent fuller bfuller@pinnaclemedialtd.com A West Bay man’s throat was slashed in a fight with the driver of another car that repeatedly rammed his vehicle in downtown George Town on Tuesday, numerous wit- nesses reported. The Cayman Compass has learned the victim in the attack, Blake Barrell, 31, had just left the courthouse and was driving away in a Daihatsu when another vehicle – an older model Jeep Cherokee – came up behind and began ram- ming his car. A Royal Cayman Islands Police Service press release stated that the victim’s injuries consisted of “life-threatening wounds to his neck.” The victim, later identified as Mr. Barrell, was taken to hospital where he was undergoing surgery at press time. The two vehicles ended up veering off Fort Street into the lawn of the Admiral Financial Center. The ramming incident occurred during the busy lunch hour and dozens of people saw the scene from the street or viewed it from nearby office win- dows overlooking the area. After the vehicles came to rest, one of the men got out and chased the other on foot around the back of the Admiral building. The two even- tually re-emerged on Fort Street and headed back toward the courthouse. Witnesses said the two ended up in a fight just outside the neigh- boring Appleby building on Fort Street and that one man slashed the other’s throat. Meanwhile, a police officer who happened upon the scene at the time is reported to have held the suspect in custody until other offi- cers arrived to assist. Mr. Barrell’s attorney, Laurence Aiolfi, confirmed that his client had been in court Tuesday when one of the charges against him was with- drawn. A court schedule for Tuesday indicated Mr. Barrell faced firearms and drugs possession charges. The firearm charge was withdrawn. It was not known at press time whether the suspect involved in the attack, a 38-year-old man, was also in court or had simply waited for Mr. Barrell outside of the court- house. He had not been charged as of press time. Police officers on the scene Tuesday indicated the ramming at- tack was no accident. Mr. Barrell was initially charged with being an accessory after the fact to a 2014 killing in West Bay. Solomon Webster, 24, was killed in the September 2014 shooting, for which Jose Guadalupe Sanchez was charged with murder. Sanchez was cleared of the murder charge during a re- cent trial after a judge determined the Crown had not proved its case against him. The initial charges alleged that Mr. Barrell, knowing or believing that Sanchez had murdered or un- lawfully killed Mr. Webster, assisted Sanchez by providing him with a telephone handset and telephone calls, with intent to impede his ap- prehension or prosecution. The accessory charges were later dropped against Mr. Barrell. Government won’t take overdue debts to court Brent fuller bfuller@pinnaclemedialtd.com The Cayman Islands government’s estimated unpaid hos- pital bills have risen from an estimated $30 million in 2010 to what’s expected to be $80 million by the end of the next budget year. The unpaid debts, all of which date back at least one year, increased to their current levels following a government de- cision to “scale down” collection efforts by the Treasury Department’s debt collection unit, Financial Secretary Ken Jefferson said last week. “Perhaps as far back as 2010, a decision was made by the then-government that … the unit was told not to pursue the collection of debts through the courts,” Mr. Jefferson told the Legislative Assembly’s Finance Committee. Mr. Jefferson said he didn’t wish to leave the committee with the impression that no efforts were being made to collect the past-due debts. “Since [2010], the unit has continued … to pursue debts that are due to government,” he said. “That pursuit can take the form of telephone calls to the debtors. That also includes Waste-to-energy study advised for landfill James WhittaKer jwhittaker@pinnaclemedialtd.com The possibility of using garbage fumes from the George Town Landfill to produce electricity should be inves- tigated, according to a consultant’s preliminary report on waste manage- ment in the Cayman Islands. A feasibility study to determine whether gas could be “mined” from the sprawling landfill site and used in a waste-to-energy plant is one of the key recommendations in the consul- tant’s study. The study suggests a “gas pumping trial” at the site to test power produc- tion capacity. It also recommends consultation on the cost of putting infrastructure in place to export the electricity created to the national grid. The consultants say the current site in George Town will ultimately PLEASE TURN TO PAGE 7 » A feasibility study to determine whether gas could be ‘mined’ from the George Town Landfill and used in a waste-to-energy plant is one of the key recommendations in a consultant’s study. - Photo: chris court PLEASE TURN TO PAGE 8 » Police officers were out in force following Tuesday’s broad daylight attack in downtown George Town. – Photo: brent Fuller2 LOCAL&REGIONAL Wednesday June 17, 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. y x *Additional charges will apply per 3D ticket requested. - WEDNESDAY - $8.00 JURASSIC WORLD 3D (PG13) 1:00 I 1:30 2D I 3:45 I 4:15 2D I 6:30 I 7:00 2D I 9:15 I 9:45 2D SAN ANDREAS 3D (PG13) 12:45 I 3:25 2D I 7:15 I 9:55 2D SPY (R) 1:00 I 3:55 I 7:10 I 9:55 ALOHA (PG13) 1:20 I 4:00 I 7:20 I 10:05 POLTERGEIST 3D (PG13) 7:30 2D I 10:00 2D TOMORROWLAND (PG) 1:15 I 4:20 Staff member caught up in shooting Bullet lodged in woman’s neck after George Town shooting on Saturday James Whittaker jwhittaker@pinnaclemedialtd.com One of the victims in Saturday’s triple shooting was a staff member who ar- rived to help close down the bar at an outdoor party in George Town. The woman has been released from hospital, though she still has a bullet lodged in her neck, fol- lowing the incident at a li- censed party on Sparky Drive. Two men were also injured in the shooting, one of them seriously. The female victim was one of two staff members from Papa Jack’s mobile li- quor licensing service on the scene to ensure the event promoters complied with a licensing condition to shut down the bar and sound system at 3 a.m. She was sitting in a van out- side the party and was hit by a stray bullet when the gunmen opened fire. Prentice Panton, who owns Papa Jack’s, said the event was a licensed party called Dutty Fridaze, run by an independent pro- moter, with the bar licensed through his business. More than 100 people were still present when the shooting took place, ac- cording to witnesses. No arrests had been made as of press time Tuesday. Two Papa Jack’s staff members were on site to en- sure the promoter complied with the liquor license, ac- cording to Mr. Panton. The female victim was sitting in the vehicle out- side an enclosed outdoor site, when the gunman opened fire. “The bullet came through the glass and hit her in the back of the neck,” said Mr. Panton, who spent much of the weekend at the hospital with the woman. “They released her, but they said it was safer to leave the bullet in.” He said the site off Sparky Drive is commonly used for weekend parties. Papa Jack’s provides a licensed bar ser- vice for such events. “They had security, they had a license. Everything was fully regulated. My staff were shutting the bar down when this happened.” The other staff member, who was at the scene with the victim, said he had been inside the venue talking to the deejay when he heard the shots. He returned to the ve- hicle to see his passenger had been shot. Targeted attack Royal Cayman Islands Police Detective Chief Inspector Malcolm Kay said, “We believe that one of the individuals was targeted. The gunman continued to fire as he tried to run away and two people were caught in the crossfire. “The female received a very serious injury. She was shot in the neck and is lucky to be alive. We could have easily been dealing with three murders.” He said the shooting hap- pened when large crowds were still likely to be around, inside and outside the venue. He urged anyone who wit- nessed the incident to come forward. Anyone with information can call police on 949-4222 or call Crime Stoppers anonymously on 800-8477 (TIPS). “We could have easily been dealing with three murders.” MalcolM Kay, RCIPS chief detective Magistrate refuses bail CarOL WiNker cwinker@pinnaclemedialtd.com Cory Godfrey Bowen ap- peared in Summary Court on Tuesday, when the charge of wounding or causing grievous bodily harm with intent was sent to Grand Court. Bowen, 29, was charged after an incident that oc- curred in the early hours of Saturday, June 13. Senior Crown Counsel Tricia Hutchinson said there was an exchange of words between Bowen and another man and a fight ensued during which the other man was stabbed in the head, neck and abdomen. The incident took place on Dogwood Street in Prospect, outside the resi- dence of a woman who was known to both men. Defense attorney Laurence Aiolfi told Magistrate Valdis Foldats that Bowen was acting in self-defense and the knife involved belonged to the complainant. The magistrate noted that the charge against Bowen is a Category A, which means it can be heard only in the higher court. Bowen was remanded in custody until June 19. Stabbing charge sent to Grand Court CIUDAD DEL ESTE, Paraguay (AP) – Verna Fragadas stands with her arms crossed in front of Friendship Bridge, which separates this gritty, bustling Paraguayan city from Brazil and nearby Argentina. For decades, she and her husband supported their five children by smuggling computers, televisions, shoes and other products into the neighboring coun- tries and selling them at stiff markups. Fragadas now passes her days chat- ting with other out-of-work smugglers gathered at the bridge, occasionally car- rying small contraband items into Brazil. “I used to be able to make $400 a day. Now, I’m not even making $20,” Fragas said. Set on the Parana River, across from Brazil and a stone’s throw from Argentina, Ciudad del Este long has been a transit point where Paraguayan smug- glers could buy pirated mer- chandise, some of it brought in by small boats during the night, then carry the goods across the border. For years, the city’s Wild West reputation landed it a spot on the list of “notorious markets” kept by the United States Trade Representative. But the government is cracking down on black market trading to spur le- gitimate growth and mod- ernize Paraguay’s economy. Already it is one of Latin America’s fastest growing economies, with a GDP that increased nearly 5 per- cent a year between 2003 and 2013, according to the World Bank. These days, suspected smugglers are searched by Paraguay’s border guards, who refuse to let them pass if they believe the elec- tronics, clothes and other goods they carry will be sold on the other side. The crackdown has in- tensified since President Horacio Cartes was elected in 2013. Under pres- sure from merchants who lead Paraguay’s emerging middle class, the govern- ment wants all vendors to pay taxes and halt sales of knockoff merchandise. “As a country, we can’t continue with the piracy and contraband,” said Felipe Acosta, whose Ciudad del Este shoe store sells genuine Nike, Puma, Reebok and other top brands for more than $100 a pair. GrowinG pains in paraGuay as economy modernizesThe islands’ most-trusted news source 3 Cayman Compass • Wednesday June 17, 2015 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” If enough people have a demand for a particular product, whether it is pros- titution, gambling, drugs and alcohol, or an anonymous, instantaneous and low- cost money transfer, it will be supplied. Poorly thought out regulation or prohibi- tion raises the cost of any product, which causes in- novative people to think of ways to get around the bans or regulations – while, at the same time, fostering crimi- nality and corruption. And both users and suppliers of the banned or overregulated product lose their respect for the law because they are deemed to be criminals. The big issue at the mo- ment is money transfer. Governments want to know both the source of everyone’s money and how it is spent in order to collect more taxes, regulate behavior, reduce certain types of criminality and increase political con- trol. When cash and coin were the primary means of money transfer, govern- ment’s ability to trace trans- actions was very limited. As the use of paper checks and then electronic transfers grew, the ability of govern- ment to observe where funds came from and where they went was greatly expanded. Governments then began to pass various types of “anti- money-laundering” laws and regulations with the claim that they needed these tools to combat drug dealers, tax evaders and various sorts of criminals. The U.S. federal government passed its first anti-money laundering law in 1986. Criminals and tax evaders obviously do not want the government to ob- serve their transactions. Honest people also under- stand that going back at least to the Magna Carta (which is 800 years old this week), there has been a long- standing tradition of the in- herent right to reasonable financial privacy that may not be abridged by the king (or state). British castles had a “keep” where the lord of the manor kept his trea- sure, which was sacrosanct. If those in government know everything about your in- come and expenditures, they are in a position to abuse it and cause great harm. Remember when the names of some of Mitt Romney’s donors were indirectly re- leased to the press by folks in the Internal Revenue Service? The IRS and other government agencies claim that all of the financial in- formation they collect is strictly confidential – which is a laughable claim in an age when Lois Lerner, Edward Snowden and all of those Chinese and Russian hackers flout the rules. Reasonable financial privacy is one of the cornerstones of being a free person. As the government has become more and more in- trusive in the financial af- fairs of individuals and businesses, the incentives for those who can develop ways to either legally or ille- gally get around the increas- ingly costly and abusive regulations has grown. The new Foreign Account Tax Compliance Act has had the predictable but unintended consequence of causing for- eign financial institutions to refuse to open accounts for Americans because the costs of the regulations and associated liabilities are so great. This has caused an enormous hardship for Americans living abroad. Traditionally, banks moved money from place to place, including foreign countries, by having “corresponding” banking relations with other banks, resulting in a global network that ties almost all of the world’s banks to- gether and, ultimately, with the Federal Reserve, which serves as the bank for the biggest banks. Without cor- responding relationships, banks have no ability to move money for their customers to and from other banks. As anti-money-laundering and tax regulations have grown, banks charge more for moving money to cover their increased compliance costs and liabilities. The anti- money-laundering regulations include “know your customer” – that is, know where the money came from in a cus- tomer’s account and where it goes. This has now morphed into “know your customer’s customer” and on and on. The liability for “not knowing” has become so great – multibillion-dollar fines levied on the big banks – that many bigger banks have dropped corresponding banking relationships, par- ticularly with foreign banks in smaller jurisdictions, such as the Caribbean islands, causing great hardship to these banks and their cus- tomers, many of whom are low-income people. All of these government- imposed regulatory costs and hardships have fueled the need and desire to free those who wish to transfer money quickly, less expensively, with greater privacy, and protect their savings from the interna- tional bank regulators and tax authorities. Bitcoin was the first major, serious shot over the bow of the financial regu- latory establishment, in that it enabled people to transfer value to any place on the globe without going through regu- lated financial institutions. Unregulated crypto-currencies are now on the rise with the advent of new products like Venmo, Rebit and others. As this new industry de- velops, it will be disruptive to many existing financial in- stitutions and their regula- tors, but with great benefits for those wishing to make instantaneous transactions at near-zero cost and with greater privacy. Ultimately, entrepreneurs will succeed in creating widely used nongov- ernment currencies, which will be superior to govern- ment monies in many ways, including providing financial privacy. The dollar, euro and the yen will become as quaint and useful as the floppy disc. Richard W. Rahn, a senior fellow at the Cato Institute and chairman of the Institute for Global Economic Growth, is on the Editorial Board of Cayman Financial Review. © 2015, The Washington Times Wednesday June 17, 2015 • Cayman COmpass We bid a respectful adieu to the Cayman Islands’ “top doc” Kiran Kumar, who has announced his retire- ment following 33 years of service as Cayman’s first, and to date only, medical officer of health. Originally from a small village in India, Dr. Kumar arrived in Cayman in 1982 via Jamaica, where he had worked as a lecturer for the University of the West Indies. As he readily notes, he was welcomed here by legendary local nurse Josie Solomon, whom he praises for building a strong foundation for public health in Cayman. Since that time, Dr. Kumar’s long tenure as head of public health has encompassed Cayman’s transi- tion into the “modern age” of medicine, a progres- sive development in which his role has been instru- mental. Under Dr. Kumar’s guidance, the government has established public health centers in every district, a Health Practice Law, a National Drug and Alcohol Treatment program, a national strategic plan for health, tobacco legislation and Cayman’s first National AIDS Program in 1989, among other initiatives. He has also dedicated his time to promoting awareness and prevention of cardiovascular disease, with Cayman’s approach being formally lauded by the World Health Organization in 1992. In addition to his “behind-the-scenes” work, Dr. Kumar has often found himself on the business end of journalists’ microphones, fielding questions about the “diseases du jour” threatening the health (or peace of mind) of Cayman’s population. A cursory search of news archives reveals Dr. Kumar answering questions and issuing cautions — usually punctuating those comments with reassurances and advice “not to panic” — about conditions as diverse as HIV, SARS, “Norwalk virus” (i.e. stomach flu or viral gastroen- teritis), avian influenza, malaria, dengue, polio, measles, chikungunya and Ebola. (One of our favorite Dr. Kumar moments has to be from October of last year, when in the midst of the Ebola panic that had gripped, and seemingly para- lyzed, the higher-thinking faculties of many leaders across the world, including in Cayman, Dr. Kumar calmly offered the sagest perspective we have heard on the absolute reality of a massive global Ebola outbreak, and more broadly the limits of humanity’s power over nature: “If this becomes a pandemic, and there are thousands of cases that are occurring, well, I think God will take care of it.”) When Dr. Kumar first stepped foot on Cayman’s shores, the country’s population had just broached 17,000 people (for perspective, the district of George Town today has more than 30,000 residents), and accordingly the public health system was a mere skeleton of what it has since developed into. Since Dr. Kumar took the public health helm, Grand Cayman’s private healthcare facility, the Chrissie Tomlinson Memorial Hospital, opened in the year 2000, and just last year Cayman’s healthcare became an international phenomenon with the establishment of Health City Cayman Islands in East End. Those two entities — as well as the litany of independent private sector health providers — complement, supplement and compete with Cayman’s public health system — to the ultimate benefit, and well-being, of Cayman’s healthcare con- sumers, that is, all of us. Through it all, Dr. Kumar has provided a steady hand and the occasional cold dose of practicality. As he departs from his post, we wish him great joy, pros- perity and, especially, good health. After 33 years, Dr. Kumar ends his shift Gov’t creates need for alternative currencies RichaRd W. RahnThe islands’ most-trusted news source 5 Cayman Compass • Wednesday June 17, 2015 Visit rbc.com/caribbean We’re incredibly honoured to be named 2015 Global Bank of the Year – the first bank in the world to receive this international recognition, two years in a row. We are very proud of this award because it reflects the dedication and passion of our employees—their commitment to our clients and to the communities we serve. This award is also about our clients, who put their trust in us to help them create the future they want. They inspire us to reach new heights every day. A really BIG thank you to our employees & clients A really BIG thank you to RBC Royal Bank wins Best Retail Bank In The World... again. - Retail Banker International It’s All About You6 LOCAL&REGIONAL Wednesday June 17, 2015 • Cayman Compass Brent Fuller bfuller@pinnaclemedialtd.com Finance Ministry offi- cials said last week that they hoped to have a permanent collector of customs in place by the end of June, following a lengthy recruitment process. “The most recent at- tempt to secure the collector of customs position is our sixth attempt,” said Financial Secretary Ken Jefferson, who was asked about the hiring process during the Legislative Assembly’s Finance Committee. Mr. Jefferson said four Caymanians were short- listed for the job and that final interviews were con- ducted last week. One of the four was a se- nior customs officer, another is a civil servant and the other two work in the private sector, Mr. Jefferson said. The Cayman Compass has learned one of the fi- nalists is former tourism minister, attorney Charles Clifford. Mr. Clifford de- clined to comment Tuesday when contacted regarding his interest in the position. Mr. Jefferson also did not respond to questions about who was on the short list for the collector’s job, which serves in both a key law en- forcement/border protection function and is one of govern- ment’s chief revenue collectors. The last full-time col- lector retired from the service in May 2012. Carlon Powery had served nearly 20 years at the head of Her Majesty’s Customs Service. After Mr. Powery’s depar- ture, a number of acting col- lectors took the helm, in- cluding a number of assistant collectors and a deputy chief immigration officer who was seconded to the post in 2013. Acting Collector Marlon Bodden, a former police of- ficer who joined customs in 2014, was serving in the post last week when the depart- ment appeared before the LA’s Finance Committee. West Bay MLA Bernie Bush wondered whether the recruitment difficulties could have been avoided with better succession plans. “We’ve had three years that we could have prepared [a person], now we have to wait three years and go through this,” Mr. Bush said. “I hope in the future, when these things come along … we can bring someone to understudy.” Acting Customs Collector Samantha Bennett returned to her former position at the Immigration Department in January after spending a little over a year heading Customs under a secondment posting. According to a government statement, Ms. Bennett partici- pated in the Finance Ministry’s fifth recruitment process for the job. The recruitment pro- cess was supposed to have ended in October 2014. WE’RE CHANGING THE WAY WE DO THINGS. WE’RE CHANGING THE W DO THINGS. Ministry says customs chief to be chosen this month “We’ve had three years that we could have prepared [a person], now we have to wait three years and go through this.” Bernie Bush, West Bay MLA Father jailed for wounding young son two times Carol Winker cwinker@pinnaclemedialtd.com A father found guilty of two counts of wounding and cruelty to a child was sen- tenced recently to 18 months’ imprisonment. The charges related to two separate incidents when the defendant’s son was between the ages of seven and nine. On the first occasion the man hit him on the head with a piece of wood. On the second occasion he hit him on the arm with a machete. In both incidents the boy was cut and the man sewed the cuts himself with needle and thread instead of taking him to a hospital for the treatment he required. These acts led to the charges for cruelty to a child – wilfully ill-treating him by suturing his head and arm without medical assistance. The matters came to the attention of authorities more than a year later, when the boy jumped from the roof of a house in order to escape from his father, who was shouting at him. The boy in- jured his foot, but made his way to a neighbor’s house and someone there called police. That incident led to a charge of using threatening and abusive behavior with intent to cause the boy to believe that immediate un- lawful violence would be used against him. Defense attorney Steve McField told the court that the man loved his son, was very contrite, and could still be a good father if the court would give him a chance. Having pleaded not guilty, he now accepted that what he did was not right. The two in- cidents had occurred out of frustration because the man wanted “a perfect boy.” Mr. McField pointed out that the man had no previous con- victions; he produced several references attesting to the de- fendant’s character and chari- table work in the community. Justice Michael Mettyear said the evidence in the case revealed a sad and, in some ways, tragic story. The man had married and settled down in Cayman. He subse- quently acknowledged the boy as his son from a pre- vious relationship, and his wife agreed that he should bring the boy into their home. “I have no reason the think that, at that early stage, you had any motive other than to provide for your son and do well by him,” Justice Mettyear told the defendant. “Indeed, he was provided with a bed- room and bathroom in a house he regarded as a man- sion. You educated, clothed and fed him. The problem was that you seemed to have had unrealistically high ex- pectations of him.” When the man found fault with the boy, his expectations led to frustration and impa- tience that turned to anger and violence, the judge con- tinued. The boy’s love and af- fection turned to apprehen- sion and fear. Justice Mettyear noted that he did not have any med- ical evidence as to the seri- ousness of the boy’s wounds. The father had thought su- turing was required, but he was untrained and it was not clear he was correct. Crown Counsel Alex Upton provided photographs of the boy’s head and arm during the trial. There was no sug- gestion that he had been left with any permanent injury. In all the circumstances, the judge categorized the injuries as significant but not serious. An aggravating factor both times was the use of a weapon. The judge said he had thought that the minimum sentence he could pass would be two years, but the fact that the man finally admitted his fault in the matter meant there was room for mercy. He ac- cepted the father’s contrition and said the change of heart gave him hope for any chance of reconciliation between the defendant and his son. The two sentences for wounding were 18 months each; six months for each charge of cruelty, and nine months for the count of threatening behavior. All are to be served concurrently. The man’s wife had been charged with one count of cruelty to a child, but the jury found her not guilty. The charges first came before the court in June, 2014. In all the circumstances, the judge categorized the injuries as significant but not serious. An aggravating factor both times was the use of a weapon. iMF approves $40 million for Jamaica (AP) — The International Monetary Fund has approved a roughly $40 million dis- bursement to Jamaica after concluding its eighth review of a loan program propping up the island. Jamaica is in the third year of a four-year $930 million loan package with the IMF. On Tuesday, the IMF said Jamaica’s performance “is on track and has remained strong” as structural reforms have advanced. It says lower oil prices have improved the import- dependent country’s finances and growth is projected to approach 2 percent. In recent decades, Jamaica has had one of the world’s slowest growing economies so even small gains are seen as major improvements. Earlier this year, the Washington-based Center for Economic and Policy Research said Jamaica was running “the most austere budget in the world.” Mexico officials keep wary eye on Pacific hurricane Officials kept a close watch on Hurricane Carlos on Tuesday as it spun off the shore of Mexico’s south- western coast, brushing by fishing villages, port cities and beach resorts. Civil Protection officials in the state of Michoacan warned of heavy rain and possible hail, and waves were forecast to reach nearly 15 feet. Farther to the north in Jalisco state, home to the re- sort city of Puerto Vallarta, education authorities an- nounced that schools would close in a half-dozen towns. Tuesday morning, Carlos was centered about 105 miles south of Manzanillo with top sustained winds of 75 mph, the U.S. National Hurricane Center said. The storm was moving west-northwest at about 5 mph. Carlos was forecast to weaken on Wednesday and become a tropical storm. Dominican Republic ready to resume deportations The head of the Dominican Republic’s immigration agency says the country is ready to resume deporting non-citizens without legal residency after putting the practice on hold for a year. Army Gen. Rubel Paulino says his agency will patrol areas with large immigrant communities on Thursday following the end of a period in which non-citizens could apply for legal status. Paulino says those who haven’t registered “will be repatriated.” That conflicts with statements by Interior Minister Ramon Fadul who said there would be no mass deportations. The Dominican Republic deported non-citizens for decades, mostly to neigh- boring Haiti. But it largely suspended deporta- tions for the past year to allow people to register. However, few of the esti- mated 500,000 Haitians in the country have completed the paperwork to qualify for legal residency. REGIONAL ROUNDUPThe islands’ most-trusted news source 7 Cayman Compass • Wednesday June 17, 2015 YOU DESERVE MORE THAN JUS T OK. need to be sealed, covered with topsoil and potentially turned into a park. They recommend a “ca- pacity study” to determine how much land will be left at the George Town site for landfill once that process has taken place. They also rec- ommend the removal of tires and stockpiled metal from the site. In an assessment of the initial options for the site, consultants Amec Foster Wheeler cautions that even after a new management policy is introduced, landfill space will be required. “Management of such wastes would need to be in a fully engineered and con- tained cell, and this land re- quirement needs to be bal- anced with demands for other waste treatment pro- cesses at the site,” it says. The consultants were asked not to consider any other sites beyond George Town for a landfill, though government has said that other waste management fa- cilities, including composting and recycling plants, could possibly be located elsewhere. The potential for waste- to-energy technology to con- vert landfill gases into elec- tricity has been discussed for some time in Cayman. The report calls for a full study alongside a cost-ben- efit analysis. “There is the potential to collect and recover the land- fill gas for combustion in a gas engine to produce elec- tricity and a feasibility study is recommended,” it states. It warns that the fact that the site is uncapped will make this process more dif- ficult, but concludes it is worth investigating. “There is the potential for revenues from landfill gas utilization to offset some of the capping and restoration costs, as well as reducing greenhouse gas emissions.” The consultants also raise the prospect of mining the landfill to provide fuel for a waste-to-energy plant, which typically requires large amounts of trash to run effectively. They also caution that the “quality” of some of the waste may not be suitable for such an operation and suggest the mining process itself could create a bad odor. “If landfill mining is po- tentially feasible, then this would greatly reduce the volume of waste within the site. The downside is that the likely low input rates into a waste-to-energy or similar plant would mean the mining would take place over many years with a consequential delay in final capping and restora- tion,” it states. Government released a pair of reports late last week for public consultation. The reports, one an Integrated Solid Waste Management System update, the other a draft National Solid Waste Management Policy con- sultation document, sum- marizes some of the work by consultants Amec Foster Wheeler and the options on the table for the island. The document is mostly broad policy am- bitions, including imple- menting programs to re- duce waste production and increase recycling. One clear recommen- dation in the report is that people should pay for disposal of the waste they produce. The document states, “Government is committed to engage and work with all sectors of our community on the 4Rs to reduce the waste we produce, promote waste reuse and recycle wher- ever this is pragmatic and to otherwise recover en- ergy from the waste that re- mains. By doing this, we will end our historic over-reli- ance on landfill and reme- diate the existing sites, im- prove the sustainability of waste management practices and work towards a waste conscious population that is empowered to take ac- tion and deliver strong and positive contributions.” The study suggests a “gas pumping trial” at the site to test power production capacity. CONTINUED FROM PAGE 1 Waste-to-energy study advised for landfill Knighthood for Cayman’s first Court of Appeal president Justice Edward Zacca recognized for services to justice in the Overseas Territories CAROL WINKER cwinker@pinnaclemedialtd.com Justice Edward Zacca, the first president of the Cayman Islands Court of Appeal, is to be known as Sir Edward following the announcement of Her Majesty Queen Elizabeth II’s Birthday Honours over the weekend. Justice Zacca was awarded the rank of Knight Commander in the Order of St. Michael and St. George for services to justice in the Overseas Territories. In ad- dition to Cayman, he has presided over the Court of Appeal in Jamaica, Turks and Caicos and Bermuda. Cayman’s high court came into being in 1984 and Justice Zacca pre- sided at every session until his forced retirement in August 2008. Before 1984, Cayman’s appeals were heard by Jamaica’s high court, of which he was also a member and then president. His association with this jurisdiction’s appeals there- fore covered 33 years. At a function marking his retirement, then-So- licitor General Cheryll Richards said that under the guidance of Justice Zacca, the foundations had been set for a body of ju- risprudence and prece- dents unique to the circum- stances of these islands on a wide range of legal issues, including the important area of commercial law, which would serve these is- lands in the years ahead. Justice Zacca made no secret of the fact that he was not retiring willingly. He explained that then- Governor Stuart Jack had set 75 as the retirement age for judges. Justice Zacca was 77 at the time. He ex- pressed fondness for these islands and said he would return as a visitor. In fact, his services were requested again in 2010. He was named to the Judicial and Legal Services Commission, which was newly formed under the 2009 Constitution. Justice Zacca was born in Jamaica in 1931. He was called to the Bar in 1954 and became a magistrate in 1960 and a judge in 1968. His ap- pointment to the Jamaican Court of Appeal came in 1975, followed by his presi- dency there in 1981. A report in the Jamaica Gleaner included the com- ment: “Sir Edward is said to have made an exceptional contribution in guiding Bermuda and the Cayman Islands in particular, with their large financial service industries whose growth and reputation have de- pended heavily on their in- ternationally respected courts and maintaining the confidence of the business and wider community in the legal institutions.” Sir Edward’s association with this jurisdiction’s appeals covered 33 years. Sir EdwardThe islands’ most-trusted news source 8 Wednesday June 17, 2015 • Cayman Compass writing letters to them to re- mind persons they are due to pay the government.” The government can, in certain cases, place a charge against a property for pay- ment of a past-due medical bill. However, Mr. Jefferson acknowledged that some of the past-due debts – dating back 10 years or more – are likely a lost cause and gov- ernment needs to do some- thing about them. “The government … fi- nancial statements do ac- tually reflect a considerable bad debt provision,” he said. “The auditor general has rec- ommended that government clean up its financial state- ments by removing, on one hand, the debt receivable and, on the other hand, removing the provision so that overall there’s no impact on the gov- ernment surplus or deficit for that particular year.” Last year, the Health Services Authority expected its unpaid bills dating back one year or longer would total just under $70 million as of June 30, 2015. According to the government’s current figures, the authority under- estimated the shortfall. The “provision for doubtful debt” in the health authority’s spending plan is expected to reach $72.4 mil- lion by June 30, including some $14 million in un- paid debts amassed over the past year. By June 30, 2016, that “bad debt” is budgeted to reach $80.5 million, ac- cording to the authority’s own estimates. If that comes to pass, the HSA’s unpaid receiv- ables will have nearly dou- bled in just three years, from an estimated $45.8 million in “doubtful debt” during the 2012/13 budget year. The health authori- ty’s chief executive officer, Lizzette Yearwood, warned the Legislative Assembly’s Public Accounts Committee in late March that the situa- tion with the bad debts was likely to persist in the near term. Ms. Yearwood told the committee that the public hospital system had been “more consistent in enforcing our payment policy,” particu- larly with elective surgeries. However, she noted that public hospitals still have a mandate to deliver care to those who can’t, or won’t, pay for it. “There’s still a culture in the public that a number of persons feel that health- care is free,” Ms. Yearwood said in March. Mr. Jefferson put most of the blame on unpaid med- ical bills for extensive over- seas medical treatment, which in some cases could total $500,000 or more for a single patient. The financial secretary noted that unpaid debts from such treatments alone total somewhere in the region of $12 million to $15 million. “Often in these situa- tions, it is said to be a matter of life and death … and a decision needed to have been taken on the spot [to provide the overseas treat- ment], Mr. Jefferson said. “There’s often a promise by a family member who is well … that they would re- turn and allow the charges etc. to be placed. We have sought promissory notes in the past. There’s a question as to whether those have any legal effect.” CONTINUED FROM PAGE 1 “The [debt collection] unit was told not to pursue the collection of debts through the courts.” Ken Jefferson, financial secretary Gov’t won’t take overdue debts to court Trump elbows into 2016 presidential race Real estate mogul, reality TV host seeks Republican nomination NEW YORK (AP) – The Donald is running for president – for real this time. Real-estate mogul and re- ality-television star Donald Trump, who has brazenly flirted with running for of- fice before but never fol- lowed through, announced Tuesday that he will seek the Republican nomination for president. Trump entered the race in a bombastic spec- tacle befitting a man whose businesses successes are matched by his penchant for self-promotion. “All of my life, I have heard, a truly successful person, a really successful person, and even a mod- estly successful person, cannot run for public office – just can’t happen,” Trump said. “Yet that’s the kind of mindset you need to make this country great again.” Trump, the 12th high-pro- file Republican to enter the 2016 race, announced his candidacy in a free-ranging 40-minute speech in which he boasted about his ability to fortify the border with Mexico to prevent “rapists” from en- tering the U.S. (“Nobody builds walls better than me”) and invited President Barack Obama to play golf at one of his courses. “Sadly, the American dream is dead,” Trump said. “But if I get elected president, I will bring it back bigger and better and stronger than ever before, and we will make America great again.” With his usual bluster, he mixed boasts about his wealth with promises to spark the economy (“I will be the greatest jobs president that God ever created”), ef- fortlessly defeat the Islamic State group and negotiate trade deals with China. He pulled no punches with his fellow Republicans, finishing a riff on Jeb Bush by saying “How the hell can you vote for this guy?” The speech drew im- mediate scorn online from Republicans who fear Trump will turn an otherwise serious primary contest into a circus. Trump, well known from his years in the public eye, is polling just well enough at the moment to land a spot in one of the early Republican debates, potentially pushing a more established candidate off the stage. “I just apologized to my toddler for bringing him up in a country where Donald Trump runs for Prez, gets better than 2% in the polls,” veteran Republican strategist Liz Mair tweeted. GOP operative Brendan Buck, who helped Mitt Romney’s presidential cam- paign, tweeted: “Who do I blame for Trump running for president?” The Democratic National Committee’s re- sponse dripped with sar- casm, saying Trump “adds some much-needed serious- ness that has previously been lacking from the GOP field.” About 100 supporters, most wearing Trump T-shirts handed out by the cam- paign, cheered when he and his wife Melania descended to the stage via an esca- lator, whisking them past The Trump Grille, The Trump Bar and a stand selling T-shirts with his catchphrase “You’re Fired.” The spectacle was or- chestrated in the Manhattan tower bearing his name. Trump has with- drawn from “The Celebrity Apprentice,” the TV show he could not continue once he announced as a presidential candidate. He has hired cam- paign staff in early states and will have to file the re- quired financial disclosure report required of declared presidential candidates. But on Tuesday, he held up just a one-page document that showed his net worth to be about $9 billion, money that he intimated proves he’s qualified to be president. “I’m using my own money. I’m not using lobby- ists. I’m not using donors,” Trump said. “I don’t care. I’m really rich.” Donald Trump is seeking the Republican nomination for president of the United States. - Photo: AP “Sadly, the American dream is dead. But if I get elected president, I will bring it back bigger and better and stronger than ever before …” DonalD Trump Caucasian ex-NAACP leader: ‘I identify as black’ NEW YORK (AP) — The NAACP chapter president who resigned after her par- ents said she is white said Tuesday that she started identifying as black around age 5, when she drew self- portraits with a brown crayon, and she “takes ex- ception” to the contention she tried to deceive people. Rachel Dolezal said on NBC’s “Today” show that some of the discussion about her has been “vi- ciously inhumane.” Asked by Matt Lauer if she is an “an African- American woman,” Dolezal said: “I identify as black.” Dolezal’s career as a civil rights activist in the Pacific Northwest crumbled in the past few days. She resigned Monday as president of the Spokane, Washington, branch of the NAACP, lost her position as a part-time African studies instructor at a local uni- versity, was fired as a free- lance newspaper columnist and is being investigated by the city Ethics Commission over whether she lied about her race on her application when she landed an ap- pointment to Spokane’s po- lice oversight board. The furor has touched off national debate over racial identity and di- vided the NAACP itself. The civil rights organiza- tion has said leadership jobs don’t require a person to be black. Kitara Johnson, an NAACP member who had organized a petition asking Dolezal to resign from the group, said she felt that Dolezal failed to answer many of the direct ques- tions in the interview. “They were deflections,” Johnson said. “’I think the entire interview gave some insight that there are truly some psychological issues at play.” Former Spokane NAACP James Wilburn agreed. “It’s a poke in the eye of other leaders who had been working in the trenches and doing things,” he said. Dolezal, a 37-year-old woman with a light brown complexion and dark curly hair, graduated from his- torically black Howard University and was mar- ried to a black man. For years, she publicly de- scribed herself as black or partly black. The uproar that led to her resignation began last week after Dolezal’s par- ents said their daughter is white with a trace of Native American heritage. They produced photos of her as a girl with fair skin and straight blond hair. “I really don’t see why they’re in such a rush to whitewash some of the work I have done, who I am, how I have identified,” she said Tuesday. Asked when she started “deceiving people,” she re- plied, “I do take exception to that.” Ms. DolezalThe islands’ most-trusted news source 9 US trade deal at impasse House Speaker John Boehner says he’s committed to passing a major trade deal as soon as possible, but he has not figured a way out of Congress’s logjam on legislation that’s a priority for President Obama. Business Cayman Compass • Wednesday June 17, 2015 G7 declares continued support for OECD tax initiatives MiChaEl KlEin mklein@pinnaclemedialtd.com Political leaders from the G7 nations reconfirmed their commitment to the multilateral exchange of tax information, as well as their support for the OECD action plan to prevent the erosion of tax revenues through the organization’s Base Erosion and Profit Shifting (BEPS) initiative. In a common declara- tion summarizing the re- sults of the G7 summit in Germany earlier this month, the leaders of the seven largest industrial nations committed to finalizing con- crete and feasible recom- mendations for the G20/ OECD BEPS Action Plan by the end of this year. The communiqué endorsed the establishment of a targeted monitoring system by the G20 and the OECD to en- sure the effective imple- mentation of the plan. Government leaders added that they “commit to strongly promoting” the au- tomatic exchange of tax in- formation. “We look forward to the rapid implementation of the new single global stan- dard for automatic exchange of information by the end of 2017 or 2018, including by all financial centers subject to completing necessary legisla- tive procedures,” the common statement said. The declaration noted that G7 governments rec- ognize the importance of beneficial ownership trans- parency for combating tax evasion, corruption and fi- nancial crime but only com- mitted to providing updates on the already existing na- tional action plans. Mandatory arbitration In a move that irked ac- tivist groups, G7 govern- ments said they will fur- ther improve international tax cooperation through the establishment of a binding mandatory arbitration to ensure that the risk of double taxation does not act as a barrier to cross-border trade and investment. “We support work done on binding arbitration as part of the BEPS project and we encourage others to join us in this important en- deavor,” they stated. In reaction, the Christian Aid organization commented that the G7’s backing of a compulsory binding arbitra- tion in tax disputes involving multinational companies is “deeply troubling.” “Not content with failing adequately to engage devel- oping countries in the pro- cess of international reform of the rules on taxing multi- national companies, it now seems that the G7 is keen to tell developing countries that they should also forfeit all power over how the new rules should be applied,” said Joseph Stead, Christian Aid’s senior adviser on Economic Justice. “Unless any new system of mandatory, binding ar- bitration is designed care- fully, with the full participa- tion of poor countries, this could be yet another way in which developed countries use their economic and po- litical power against the de- veloping world.” Any arbitration process would need to be simple, transparent and afford- able to work for poor countries, he added. Christian Aid main- tains that the BEPS project will not address the funda- mental problems with inter- national taxation and urged G7 leaders to instead follow the advice of the Independent Commission for the Reform of International Corporate Taxation, which was initiated by a coalition of civil society and labor organizations. Country-by-country reporting The OECD, meanwhile, re- leased model domestic leg- islation and competent au- thority agreements for the implementation of transfer pricing country-by-country reporting rules. The rules are part of ac- tion 13 of the BEPS Action Plan, which calls for a re- view of the existing transfer pricing documentation rules and the development of a template for country-by- country reporting of income, taxes and economic activity for tax administrations. OECD and G20 coun- tries agreed in February to a country-by-country reporting framework that would be used from 2016, and a related government-to-government exchange mechanism that would start in 2017. Under the model legis- lation, country-by-country reports must be filed annu- ally by the ultimate parent of a multinational com- pany group. The now released model competent authority agree- ments facilitate the au- tomatic exchange of the country-by-country reports among tax administrations through tax treaties, tax in- formation exchange agree- ments or through a multi- lateral agreement, such as the Multilateral Competent Authority Agreement on the Exchange of Country-by- Country Reports. The Christian Aid organization commented that the G7’s backing of a compulsory binding arbitration in tax disputes involving multinational companies is “deeply troubling.” Ex-AIG chief gets partial victory in bailout case WASHINGTON (AP) – A fed- eral judge handed a partial victory to the former CEO of American International Group, who claimed the gov- ernment’s bailout of the in- surance giant in the heat of the financial crisis was un- fairly punitive. Judge Thomas Wheeler ruled Monday to validate the allegation made in the law- suit by former AIG Chairman and CEO Maurice Greenberg. But the judge rejected Greenberg’s demand for some $40 billion in damages for himself and other AIG share- holders from the government. The suit alleged that the $85 billion bailout of the teetering insurance giant in September 2008 vio- lated the Constitution’s Fifth Amendment by taking con- trol of AIG without “just compensation.” The unusual case raised the issue of limits on the government’s power in re- sponding to financial ca- tastrophe. It brought the rare spectacle of back-to- back courtroom testimony in a trial last fall by three former leaders of the gov- ernment’s bailout – then- Federal Reserve Chairman Ben Bernanke, Treasury Secretary Henry Paulson and New York Fed President Timothy Geithner. The eight-week trial, without a jury, took place in the U.S. Court of Federal Claims. Greenberg’s lawsuit, filed in November 2011, had been deemed a long shot by many legal experts. Wheeler called the govern- ment’s conduct in its taking control of 80 percent of AIG’s stock an “illegal exaction” and criticized its “unduly harsh treatment of AIG in compar- ison to other institutions.” The Fed “possessed the authority in a time of crisis to make emergency loans to distressed entities such as AIG, but they did not have the legal right to become the owner of AIG,” Wheeler wrote. “There is no law per- mitting the Federal Reserve to take over a company and run its business in the commercial world [in ex- change] for a loan.” Officials asserted during the trial that the government imposed losses on share- holders of bailed-out compa- nies that were in proportion to the bad decisions made by their managers. That would appear to explain the big eq- uity stake the government took in AIG and the interest rate on the taxpayer-backed loan, which was set at about 12 percent annually. That was much higher than what other big finan- cial companies paid in the bailout. For example, there was a 3.5 percent rate on the government’s loan to Citigroup Inc., which received a $45 billion bailout. At the same time, Wheeler said in his ruling it is unde- niable that AIG would have collapsed and filed for bank- ruptcy if the government hadn’t stepped in with aid. That would have pushed to zero the value of the share- holders’ stock. By making the loan to AIG, the government “significantly enhanced” the value of the stock, he said. Therefore, while the take- over of 80 percent of the stock and the running of AIG’s busi- ness violated the law, “the government did not cause any economic loss to AIG’s share- holders,” Wheeler wrote. The government may ap- peal Wheeler’s decision, which would be weighed by a fed- eral appeals court. If it stands, it could have an impact on fu- ture government actions to- ward failing financial compa- nies in times of crisis. Justice Department spokeswoman Nicole Navas said the agency is reviewing the decision. Greenberg’s rep- resentatives didn’t have an immediate comment. By not awarding damages, the judge confirmed that AIG’s shareholders weren’t harmed by the government’s actions, the Obama adminis- tration said in a statement. “We disagree with the court’s conclusion regarding the Federal Reserve’s legal authority, and continue to believe that the govern- ment acted well within legal bounds,” it said. The Fed said its ac- tions in the AIG rescue were “legal, proper and effective.” The terms of the loan “were appropriately tough to pro- tect taxpayers from the risks,” the central bank said in a statement. New York-based AIG, which had operations around the globe, buckled after making huge bets on mort- gage securities that soured. Government officials were concerned that if AIG were allowed to fail it would send shock waves through the fi- nancial system, which was already reeling after Lehman Brothers collapsed. The gov- ernment initially stepped in with an $85 billion loan from the New York Fed. The aid eventually grew to nearly $185 billion. AIG has since returned to financial health and fully re- paid the bailout. Bernanke testified during the trial that he was initially reluctant to have the central bank rescue AIG. But he ul- timately came to believe the bailout loan to the company was needed to avert a shock to the financial system. The suit alleged that the $85 billion bailout of the teetering insurance giant in September 2008 violated the Constitution’s Fifth Amendment by taking control of AIG without “just compensation.” Mr. Greenberg Mr. SteadNext >