High of 91 Low of 80 Smooth to slight with wave heights less than 3 feet. ABCDE NATIONAL WEEKLY Worst Week Hillary Clinton 3 Politics Big crowds ‘Feel the Bern’ 45 Myths About coal 23 THE DANGEROUS SEARCH FOR EMERALDS After taking over a major mine in Colombia, a U.S. company has been met with violence PAGE 12 Health The great breakfast myth? 16 THE WEEK OF SUNDAY, AUGUST 16, 2015 . IN COLLABORATIO N WITH Editorial | pagE 4 The TurTle Farm: a $30,000-a-day naTional meal ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – monday augusT 17, 2015 SEVEN MILE BEACH WATERFRONT WALKERS ROAD TOWN CENTRE PLAZA Audit slams Nation Building expenses Mr. Bush: “[The report is] an almost completely fictional presentation.” BrenT Fuller bfuller@pinnaclemedialtd.com The complete lack of financial con- trols, management processes and oversight around the Cayman Islands’ former Nation Building Fund left the government at risk of fraud and abuse, and showed “how not to manage a government program,” Auditor General Alastair Swarbrick said Friday. Ignoring the implied threat of legal action from Cayman’s political opposition leader if the report was released, Mr. Swarbrick made the 26-page document public at a press con- ference Friday morning, three days before its scheduled release on Monday, Aug. 17. Mr. Swarbrick said the early release was effected after Opposition Leader McKeeva Bush dis- cussed aspects of the report in the Legislative Assembly on Thursday. The findings of the report, generally af- firmed and supported by Cayman’s civil service, led by Deputy Governor Franz Manderson, were reported to the Royal Cayman Islands Police Service, which for months had been looking into certain mat- ters connected with the funds. Mr. Swarbrick reported that $13.2 million was spent from the Nation Building Fund be- tween 2009 and 2013. The operation of the program was done “outside the government’s own governance framework,” the auditor gen- eral said. There was no formal application process for any of the disbursements from the fund, whether for assistance to church pro- grams, scholarships or other expenditures until 2012, when applications for fund schol- arships appeared, auditors found. Government says marriaGe is between one man, one woman New plane sparks hope of Brac revival Kelsey JuKam kjukam@pinnaclemedialtd.com The Cayman Islands government has passed a motion to maintain the definition of marriage as it is currently written in the law: a union between a man and a woman. “To me, this is one of the most important mo- tions for this House and the people of the Cayman Islands,” said Bodden Town MLA Anthony Eden. The motion, brought forward by Mr. Eden during a meeting of the Legislative Assembly last week, follows a landmark judgment by the European Court of Human Rights last month which could force the Cayman Islands to change its stance on same-sex unions. The Cayman Islands Constitution 2009 states that the government “shall respect the right of every unmarried man and woman of marriage- able age” to “marry a person of the opposite sex and found a family.” The Marriage Law (2010 re- vision) defines marriage as “the union between a man and a woman as husband and wife.” However, there is no specific prohibition against civil unions, which can allow couples rights similar, if not equal to, married couples. The ECHR found that Italy was in breach of the European Human Rights Convention for failing to offer adequate legal protection to same-sex cou- ples. In response to the ECHR ruling, the Cayman Islands Human Rights Commission called upon the government to enact legislation recognizing same-sex unions, and noted that without such leg- islation the country is in breach of the European Human Rights Convention and could be vulner- able to a successful challenge in the court. Such a change is unlikely to happen easily, James WhiTTaKer jwhittaker@pinnaclemedialtd.com Cayman Airways has added a new 34-seat turboprop plane to its fleet amid high hopes that it will help spark a tourism re- vival on Cayman Brac. The plane, a Saab 340/ Bplus model, will make its in- augural flight next month and will service the route between Grand Cayman and the Brac. The aircraft, decked out in the livery of the national air- line, touched down at Owen Roberts International Airport for the first time on Friday. Tourism Minister Moses Kirkconnell said the acqui- sition, initially on a lease agreement with an option to buy for around $2 million, would be a vital tool in revi- talizing the Brac economy. He said adding airlift into the island is key to in- creasing visitation and en- couraging development. “This is the dawning of a new development cycle and a new ease of comfort and travel to Cayman Brac,” he added. The 14-seat Twin Otter planes previously used on the route will still be used to fly into Little Cayman. A 30-seat Embraer EMB 120 Brasilia, leased along with its crew on a temporary arrangement with Turks and Caicos-based InterCaribbean Airways, has been used on the route as an interim mea- sure since October 2014. Fabian Whorms, CEO of Cayman Airways, said the new PLEASE TURN TO PAGE 9 » PLEASE TURN TO PAGE 9 » PLEASE TURN TO PAGE 8 » THE wASHIngTon poST The dangerous search for emeralds Officials including government ministers Wayne Panton, Deputy Premier Moses Kirkconnell, Osbourne Bodden and Premier Alden McLaughlin were at Owen Roberts International Airport on Friday for the arrival of Cayman Airways’ newest plane. - Photo: taneos ramsay2 LOCAL&REGIONAL Monday august 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. MAN FROM U.N.C.L.E (PG13) 1:00 I 4:10 I 7:00 I 9:40 MISSION IMPOSSIBLE (PG13) 12:55 | 3:50 | 6:50 | 9:45 FANTASTIC FOUR (PG13) 1:15 | 3:45 | 7:30 | 10:00 STRAIGHT OUTTA COMPTON (R) 12:50 I 4:00 I 7:15 I 9:10 ANT-MAN 3D (PG13) 12:45 | 3:40 2D | 6:45 | 9:30 2D MINIONS 3D (PG) 12:30 | 3:15 2D | 6:40 *Additional charges will apply per 3D ticket requested. - MONDAY - $8.00 Carol Winker cwinker@pinnaclemedialtd.com The trial of three men accused of robbing Blackbeard’s liquor store last December continued on Friday with the evi- dence of a certified forensic video analyst. Grant Fredericks was accepted as an expert wit- ness. He explained how he compared photographs of clothing and a vehicle taken by a scene of crime officer with images from closed circuit television at the store in Grand Harbour, plus images from what he referred to as “the national CCTV,” plus a camera at Kirk Home Centre. Andrew Lopez, Bron Webb and Randy Connor have pleaded not guilty to robbing Blackbeard’s shortly after 7:30 p.m. on Dec. 17, 2014, and having an unlicensed firearm at the time. The Crown’s case is that Lopez drove his moth- er’s black Ford Escape to the store with Webb, Connor and another man as passen- gers; the three men allegedly entered the store, robbed the cashiers and a customer, and left in the Ford Escape. The men and vehicle were found at Lopez’s residence in Prospect shortly after. Mr. Fredericks shared his findings, projecting photos and CCTV images on a screen for Justice Francis Belle and the 12-member jury to see. Unique features He first dealt with the ve- hicle. He compared photos of the known vehicle, which was in police custody, with images of the “questioned” vehicle – the one seen on private and government CCTV cameras. He started with the class of vehicle – make, model, color, right- or left-hand drive. If these matched, the ve- hicles might be the same one, he explained, but he then had to look for any unique features. The unique features he found included a dent above the passenger side front wheel well. A vehicle consistent with the Ford Escape is seen en- tering Grand Harbour. Then a camera inside Blackbeard’s captures the image of a ve- hicle outside. Three indi- viduals get out, the vehicle stays there till they come back and then it drives away. It has a visible dent above the wheel well and a hood- mounted side mirror, as the known vehicle had. Mr. Fredericks concluded, “In my opinion this is the same vehicle police have in their custody – the known vehicle.” He then compared photos of clothing with im- ages from the store’s CCTV. The clothing was either in a storage room at Lopez’s residence or being worn by a defendant when he was arrested. Clothing a match One item was a black jacket. Mr. Fredericks de- scribed it as a puffy jacket with four distinct stitch lines across the back. It also had a tear – its shape and location were unique. Questions had arisen be- cause the jacket worn by one of the robbers appeared to be green-blue on a store camera. Mr. Fredericks ex- plained how light and re- flections can affect color. The way a camera stores information can also affect color because it uses a com- pression system, he said. Sometimes an owner will set up a camera with an in- frared illuminator so that images can be recorded in the dark, he explained. The illuminator reflects light outside the spectrum hu- mans see with their eyes. Also, synthetic clothing re- flects differently. This store had two cam- eras. Mr. Fredericks told the court he asked police to take several items to the store at night so that lighting would be replicated, and then pho- tograph them in the position in which they were seen on the video. His opinion was that the questioned jacket was the known jacket. He compared a photo of dark pants recovered with dark pants seen in the CCTV. He pointed out various tears. Based on the unique damage and manufactur- er’s features, Mr. Fredericks formed the opinion that the known and questioned pants were the same. Questioned by lead counsel Bernard Tetlow on behalf of Lopez, Mr. Fredericks agreed he never saw a fourth person inside the vehicle when the robbery was taking place. However, he added, he did see that the front passenger door had been left open and he saw it being closed from the inside. When the door closes, no- body is standing outside the car, he observed. Forensic video analyst explains robbery CCTV Brent Fuller bfuller@pinnaclemedialtd.com A pregnant woman was thrown from a vehicle and a man was in critical con- dition after a late-night smash in George Town on Saturday. Royal Cayman Islands Police officers received the report of the crash min- utes before 11 p.m. Three vehicles col- lided along Crewe Road in the vicinity of the Rosedale Gardens com- plex, police said. Two men were trapped inside their vehicles and the pregnant woman was “thrown” from a vehicle, according to police. There was no immediate word on the condition of the woman’s unborn baby. At press time Sunday, the two men and the woman remained in hos- pital. The woman was in stable condition and one of the men was listed in critical condition. The other man who was in- jured was also listed in stable condition. Police accident recon- struction experts were on the scene early Sunday reviewing the crash site, and officers indicated there would be a full in- vestigation into how the collision occurred. No arrests had been made in connection with the crash at press time. Carol Winker cwinker@pinnaclemedialtd.com A woman arrested at a George Town residence on Aug. 11 has been remanded in cus- tody following an appearance in Summary Court on Aug. 13. Sarah Elizabeth Day, 42, appeared before Magistrate Angelyn Hernandez, who re- manded her in custody until Aug. 20. The defendant was not represented. A press release from po- lice indicated that officers had responded to a report of a burglary in progress on Andy Drive around 2:20 p.m. Entry was reportedly gained through a window. Day faces charges of tres- passing and burglary in con- nection with the incident. Trespassing is entering without permission. Burglary is en- tering as a trespasser with in- tent to commit an offense. A story on page 8 of Friday’s Compass about cash transfer companies said $110,000 in remittances went to Jamaica last year. The correct figure is $110 million. The Cayman Compass strives for accuracy and is committed to correcting errors that appear in the news- paper. Those interested in contacting the paper for that purpose can email the editor at newsdesk@pinnaclem- edialtd.com. A West Bay resident awoke Thursday to find two masked intruders in her bedroom on Town Hall Road, Royal Cayman Islands Police reported. Police officers said the woman, 50, was awoken by the movement of two men in the room. The suspects de- manded money, police said, and one of the men appeared to be carrying a handgun. There was no money on the property; the men took jewelry from the woman’s bedside table, police said. According to police, the suspects entered the home through a “partially insecure doorway” after attempting to break in through a window. The break-in, which oc- curred around 1:30 a.m., was not reported to police until 5:20 a.m. Detectives from West Bay CID ask anyone with information about this case to call 949-3999 or Crime Stoppers at 800-8477 (TIPS). The Grand Court jury report date has been changed for jurors not hearing the current robbery trial. All other jurors who are in the July 1 to Oct. 6 session are advised that the report date of Monday, Aug. 17, has been changed. They are now to report for jury duty on Thursday, Aug. 20, at 9:45 a.m. The 12 jurors sitting with Justice Francis Belle are to report as directed on Monday, Aug. 17. Please call the Jury Information line at 945- 5072 for the most up-to- date information. Pregnant woman, two men injured in GT wreck Woman in custody on burglary charge CORRECTION Home invasion reported in West Bay JuRy NOTICE Florida expects uptick in tourists From europe MIAMI BEACH, Fla. (AP) – Thousands of European tour- ists help fuel a $25 billion annual tourism-related eco- nomic influx to the Miami area. Experts say terror at- tacks in Tunisia and the Greek economic crisis are changing beach vacation plans for many Europeans and could have a big impact on Miami and the rest of Florida. “It comes up in our con- versations about our in- ternational business,” sad Rolando Aedo, vice presi- dent of The Greater Miami Convention and Visitors Bureau. “Miami, unlike any other tourist destination in the U.S., even New York and Los Angeles, has the highest percentage of international visitors. Half of our visitors are international so what happens around the world is crucial for us.” Three vehicles collided along Crewe Road in the vicinity of the Rosedale Gardens complex, police said.3 LOCAL NEWS Cayman Compass • Monday august 17, 2015 Pride Award Go online to vote for your favorite School. The top voted school wins grant towards educational means. Be sure to vote by Friday, August 28th. CI $2,000 1. Log on to any of their websites to cast your vote: www.x107.ky; www.kiss.ky; www.hot1041.ky; or www.cayrock.ky. 2. Click on the Caribbean Alliance School Pride link 3. Cast Your Vote Voting is open Aug 3rd - 28th at 12noon. Winning school will be announced Monday August 31st. Instructions: Caribbean Alliance Insurance Company Ltd recognizes the importance of our teachers, schools and the development tools for the advancement of our children. We are proud to announce our School Pride Award, the winning school (Elementary - High) will receive CI$2000 to be used for purchasing supplies to enhance school programs. DMS Broadcasting has partnered with us on this initiative. C M Y CM MY CY CMY K ABACUS_Slow Food_1-4 PAGE AD.pdf 1 8/14/15 9:33 AM LegisLative roundup Construction rules, financial services regulations, NRA funding approved Brent Fuller bfuller@pinnaclemedialtd.com The Cayman Islands Legislative Assembly has ap- proved several significant laws – essentially game- changers for anyone involved in the construction industry – and also seeking to give in- vestment firms a competitive edge in the European Union. Also during last week’s legislative meeting, a dedi- cated source of funds for road repairs was mandated for the Cayman Islands National Roads Authority. Following is an over- view of legislation awaiting Governor Helen Kilpatrick’s assent: Builders bill The Builders Law up- dates legislation from 2007 that was never brought into force following its passage in the Legislative Assembly. The primary purpose of the law is to ensure proper qualifications and expertise of construction firms. The bill and accompanying regula- tions will create registration categories, from general con- tractors to tradesmen such as plumbers, roofers and ma- sons, with a sliding scale of requirements and fees. General contractors – businesses qualified to en- gage in construction, and civil contractors – busi- nesses that build roads, docks, bridges and utilities infrastructure – must meet strict criteria for experience and qualifications. Smaller or less experienced busi- nesses can apply for a sep- arate category of “building contractor” for construction of commercial, industrial or residential buildings less than 25,000 square feet or three stories. Another cat- egory of “residential con- tractor” is for businesses that construct or renovate buildings comprising four homes or fewer. The law establishes a Builders Board responsible for maintaining a register of business entities and quali- fied individuals in the con- struction field. Businesses will be re- quired to prove they have the necessary number of qualified individuals on staff to qualify in the cat- egory for which they are applying to be registered. Individual contractors and tradesmen will be required to demonstrate they have the necessary qualifications before they can be licensed under the legislation. Financial services Two laws approved Wednesday will enable Cayman Islands-based funds and fund man- agers connected with the European Union to elect a regime of prudential regula- tion consistent with the EU Alternative Investment Fund Managers Directive. The Mutual Funds Law and the Securities Investment Business Law both aim to assist the Cayman Islands in qualifying for a so-called “third country passport” under the European directive. The passport allows Cayman funds to be marketed to pro- fessional investors across the EU, rather than through pri- vate placement in each EU member state individually. The European Securities and Markets Authority was to assess Cayman’s regula- tory regime and its super- visory cooperation with EU regulators to provide advice to the European Commission on which jurisdictions should be considered for a “third country passport.” The proposed amend- ments to the Mutual Funds Law introduce the con- cept of a “regulated EU con- nected fund,” which is man- aged from or marketed in a member state of the European Economic Area and elects to fall within the Cayman Islands Monetary Authority’s regulated EU con- nected fund regime. The bill amending the Securities Investment Business Law creates the “EU connected manager” designa- tion for individuals who fall within the existing scope of the law, who conduct man- agement, marketing or depos- itary activities as defined by the EU directive and who vol- untarily decide to fall within CIMA’s new EU connected manager regime. Roads funding The government authority that has responsibility for maintaining and improving local roads will now receive an annual fund of up to $10 million. The National Roads Authority (Amendment) Law establishes two revenue streams that would provide a maximum of $10 million each year to pay for the au- thority’s operating costs, “in particular, the construction, upgrading, rehabilitation and maintenance of public roads.” The revenues are pro- posed to be taken from fuel import duty charged and col- lected on gasoline and diesel, with the exception of du- ties charged to diesel fuel imported by the Caribbean Utilities Company. In addi- tion, fees collected for motor vehicle driver’s licenses will go toward the road mainte- nance fund, referred to in the bill as the “road fund.” The government made a temporary provision to fund the roads authority ahead of last year’s budget. Finance Minister Marco Archer said the $10 million from the taxes, which typically go into government’s general fund budget, would be given to the National Roads Authority specifically for road mainte- nance and construction. Mr. archerWASHINGTON – You probably never knew of the federal funding of museums com- memorating America’s long- gone whaling industry. The funding existed for nearly nine years, until fiscal 2011, because almost no one knew about it. A mohair subsidy continues six decades after it was deemed a military neces- sity in the context of the Cold War. The subsidy survives be- cause its beneficiaries are too clever to call attention to it by proclaiming it necessary, which of course it isn’t. To understand these two matters is to understand how American government functions. And why James Madison, whose flinty re- alism is often called pessi- mism, was too optimistic. Federal funding went to whaling museums in three states from which whalers went to sea (Massachusetts, Alaska and Hawaii) and in Mississippi, which was not a home of whalers but is the home of Republican Sen. Thad Cochran, an Appropriations Committee titan. The whaling program, which cost about $9 million in its last year, was admin- istered by the Department of Education. It objected to doing this, which is one reason the funding ended: Government changed be- cause part of it was an- noyed. Also, a congressman publicized the subsidy. The $9 million was a pid- dling smidgen of a fraction of the federal budget, as is the $5 million wool and mo- hair subsidy. It was smug- gled into the 1954 National Wool Act, which was sup- posed to stimulate wool pro- duction, lest we run short when next we need 12 mil- lion uniforms for a two- front world war. Mohair had nothing to do with this sup- posed military necessity, but mohair producers wanted a seat on the gravy train. Their subsidy be- came briefly notorious and briefly died (it was resusci- tated when no one was any longer paying attention) after Jonathan Rauch called at- tention to it in his 1994 book “Demosclerosis.” Rauch’s ne- ologism describes govern- ment that is resistant to change because it is solici- tous toward many minor but attentive factions. These clients thrive in ob- scurity because of the law that governs much of govern- ment, the law of dispersed costs and concentrated ben- efits. Taxpayers do not notice, unless someone like Rauch tells them, the costs of sub- sidizing whaling museums or mohair, but the subsidies mean much to those who run the museums or pro- duce the mohair. Similarly, consumers do not notice the cost of sugar import quotas added to the sugar they consume, quotas that sub- stantially enrich sugar pro- ducers. And so on and on. This is why minori- ties constantly manage to milk money from majorities, which is not how Madison thought things would work. Greg Weiner, an Assumption College political scientist, notes that in Federalist Paper 10 Madison confidently says minority factions will be de- feated by “the republican principle,” which enables the majority to trounce the mi- nority “by regular vote.” But what if, as usu- ally happens, there is in no meaningful sense a “reg- ular vote” on minority appe- tites? The whaling-program subsidy was born as a bar- nacle on the 2001 No Child Left Behind education bill. There was no majority-mi- nority conflict about it be- cause only the wee minority of whaling enthusiasts and a few solicitous legislators were paying attention. Madison counted on con- flict, but gargantuan govern- ment is, because of its jungle- like sprawl, mostly opaque. So there is what Weiner calls “dissipation of conflict.” And Weiner suggests that this, which enables minorities to feed off the inattentive ma- jority, is the result of what Madison thought would in- hibit abusive majorities – the size of what Madison called an “extensive” republic. His revolution in dem- ocratic theory was this: Hitherto, it had been thought that if democracy were at all feasible, it would be so only in small polities. Factions were considered inimical to healthy democracies, and small, homogenous societies would have fewer factions. So, Madison favored an extensive republic because it would have a saving multiplicity of factions. They would save us from tyrannical majorities because all majorities would be impermanent coalitions of minorities. For a century now, Weiner writes, the national govern- ment has been hyperactive in distributing economic advan- tages to attentive but incon- spicuous factions. This will not stop. Why? James Joyce said his readers should devote their entire lives to under- standing his fiction (not that a lifetime is long enough to fathom “Finnegans Wake”). If Americans devoted their lives to mastering the federal bud- get’s minutiae, gargantuan government might behave better. But what economists call the “information costs” of such mastery would be much higher than the costs of just paying the hundreds of bil- lions that the subsidies cost. There is a name for what this fact produces: demosclerosis. © 2015, Washington Post Writers Group The islands’ most-trusted news source 4 The Cayman Turtle Farm’s annual report has arrived. It contains bad news, and good news … sort of. The bad news is that the Turtle Farm continues to lose money – costing the country’s taxpayers nearly $30,000 per day to stay open during the 2013/14 budget year. The “good” news is that the number of turtle farm tenants increased by about 1,000 over a period of four years, from fewer than 7,000 turtles in mid-2010 to more than 8,000 in mid-2014. Now, we qualify our assessment of the growing captive turtle population because the “goodness” of the data points is, in our opinion, a matter of perspective. To most people in the Cayman Islands, the information can be equated to an increase in inventory – that is, there are roughly 1,000 more turtles that are destined someday to be served up as Cayman’s National Dish. To others, including, we venture to say, most of the rest of the world, the revelation that there are 8,000 turtles at the Turtle Farm, rather than 7,000, means that there are about 1,000 more turtles in captivity, with pre- dictable and unpalatable (if you’re a turtle) futures. While the Compass Editorial Board remains a staunch defender of Caymanians’ hereditary and cultural right to dine on turtle meat, we also remain highly critical of the government’s expending some $10.5 million per year to maintain the Turtle Farm in its current “Boatswain’s Beach” incarnation. Additionally, we’d like to remind our readers that the Turtle Farm – though it tends to attract the most atten- tion – is far from being the only phenomenon in Cayman where our treatment of animals is out-of-sync with what is generally considered acceptable in the First World … which, after all, is where we derive the vast majority of our visitors. First, consider Grand Cayman’s unknown number of free-roaming dogs, both strays and the owned but unpenned, that gather in menacing packs, root through rubbish containers, and ferociously attack chickens, iguanas (green and blue) – even the governor herself. They killed her beloved cat. We can’t, however, blame dogs for being dogs; but we most certainly can blame humans for being negligent, for not spaying, neutering or even keeping track of our pets, and for being content with an inadequate, piecemeal approach to animal control, with “rescued” animals sent off to the overcrowded, underfunded flood-prone shelter, or dispatched to the killing grounds at the Department of Agriculture. (And don’t forget our thriving population of feral cats that are up to similar mischief as our dogs, though they are as a species generally more demure about their activities.) Out in the sea, some fishermen apparently didn’t get the memo that the new National Conservation Law makes it illegal to catch sharks in Caymanian waters. Last week, a concerned member of the public shared a pho- tograph with the Department of Environment of a young nurse shark that had been captured and put into a cooler at West Bay Dock. The department’s Chief Enforcement Officer Mark Orr said officials are focusing on “educating people” as to the new law, before they begin enforcing it with fines, confiscations or jail time – a strategy we predict will result in disappointment. Although we in Cayman may have become accus- tomed to our turtle meat, stray dogs, untamed cats and shark dinners – not to mention our conch chowder, black coral jewelry, iguana road-kill, wandering chickens, caged parrots, captive dolphins and semi-domesticated stingrays – we must remember that the attitudes of many of our tourists, and newer residents, may not reflect our own. How we in Cayman treat our animals is a visible reflection of the value we place on life in general, including that of other human beings. In the words of Immanuel Kant: “If he is not to stifle his human feelings, he must practice kindness towards animals, for he who is cruel to animals becomes hard also in his dealings with men.” – EDITORIAL – The Turtle Farm: A $30,000-a-day national meal 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” Monday augusT 17, 2015 • Cayman COmpass The [mohair] subsidy survives because its beneficiaries are too clever to call attention to it by proclaiming it necessary, which of course it isn’t. Our government is encrusted with subsidies GEORGE F. WILL5 LOCAL NEWS Cayman Compass • Monday august 17, 2015 September 6th, 2015 M / F U12, 12-14, 15-19, 20-29, 30-39, 40-49, 50-59, 60+; Pram & Pet Register online: www.caymanactive.com/fidelityfunrun 7:30 a.m. on Walkers Rd opposite the former John Gray High School Divisions: September 13th, 2015 September 20th, 2015 FidelityHEALTH WALKTHIS WAY! GR AND C A YMAN 2015GR AND C A YMAN 2015 GR AND C A YMAN 2015GR AND C A YMAN 2015 Join us at the Fidelity fun run series YOU TALKED, VACATION CANCELLED WE LISTENED. IS STAYING OPEN! WILL BE CLOSING From August 31st Reopening October 9th Prosecutor seeks extradition of more FIFA defendants Remarks made during pretrial hearing for Jeffrey Webb NEW YORK (AP) – Lawyers for top football officials de- tained overseas in the FIFA bribery scandal are negoti- ating with U.S. authorities over coming to the United States to face racketeering and other charges, a prose- cutor said Friday. Assistant U.S. Attorney Evan Norris told a judge in federal court in Brooklyn that there are ongoing ex- tradition negotiations “with counsel of a number of other defendants” in a case that sent shock waves through the soccer world. Norris didn’t go into specifics and had no comment afterward. One such defendant, Nicaraguan national Julio Rocha, has sought to be re- turned from Switzerland to his home country, rather than to the U.S. Swiss justice ministry spokesman Folco Galli said Friday that although Rocha had consented to face justice in Nicaragua, no action will be taken until U.S. officials agree to set aside their own extradition request. A brief pretrial hearing was held Friday in Brooklyn for Cayman Islands resident Jeffrey Webb, another one of the seven FIFA officials detained in Switzerland on May 27. So far, Webb is the only FIFA official to agree to come to the U.S. He pleaded not guilty last month to 15 counts of racketeering, money laundering and bribery and was released on US$10 million bond. Webb was ordered to re- turn to court on Oct. 9. Webb, 50, once prom- ised reform when he was elected in 2012 to succeed Jack Warner as president of CONCACAF, FIFA’s regional governing body for soccer in North America, Central America and the Caribbean. After the U.S. indictments were announced in late May, Webb received a provi- sional ban and was replaced as FIFA vice president and CONCACAF president. The indictment accuses Webb of soliciting US$4 mil- lion in bribes in exchange for giving the commercial- ization rights to various CONCACAF region tourna- ments to sports marketing company Traffic USA. The in- dictment states Webb was also involved in the solic- itation of a US$110 mil- lion bribe payment for the rights to certain South and Central American football tournaments. A total of 14 men – nine soccer officials and five mar- keting executives – were named in the U.S. indict- Former FIFA vice president Jeffrey Webb, right, leaves federal court in Brooklyn, N.Y. on Friday with his attorney Edward O’Callaghan, after his pretrial hearing. - Photo: AP mango madness The Cayman Cabana Oceanside RestoBar hosted its first Mango Festival on Saturday with a farm-to-table breakfast, a lunch menu in which every dish featured mango, free samples of Guyanese curried mango and rice, and 10 mango-inspired cocktails. The festival also featured crafts vendors and farmers selling local produce, including a variety of mangoes. Pictured here flanking Cayman Cabana owner Luigi Moxam, center, are Jeff Ebanks and Jasmin Gravador of Willie’s Fresh Fruit and Juices. - Photo: AlAn MArkoff ment, including former FIFA vice president Warner, who is resisting extradition from Trinidad and Tobago. Prosecutors allege the defendants plotted to ar- range bribes of more than US$150 million – tied to the awarding of broad- casting and hosting rights for the World Cup and other tournaments – over a 24-year period. Cayman Compass journalist Brent Fuller contributed to this report. 6 LOCAL&REGIONAL Monday august 17, 2015 • Cayman Compass Public utilities legislation due in the fall Minister goes after ‘Big Oil’ Brent Fuller bfuller@pinnaclemedialtd.com Claiming Cayman Islands residents have endured un- competitive and inflated petrol prices for too long, Planning Minister Kurt Tibbetts warned gas and diesel distributors that they must turn over their opera- tional cost data to govern- ment or face fuel price con- trol legislation. “No longer can we turn a blind eye to what is taking place in the local fuel market,” Mr. Tibbetts said in the Legislative Assembly on Thursday. He said a Public Utilities Commission Bill, seeking to require petrol distributors to reveal what they pay for bulk fuel shipped to the Cayman Islands and their markup on fuel, will be presented to the Legislative Assembly at its next sitting, provisionally set for late September. Historically, fuel com- panies Esso and Chevron- Texaco, and more recently operators Sol Petroleum and Rubis have refused to re- lease such data, saying it is proprietary commercial information. Mr. Tibbetts said govern- ment regulators must have a clear idea of what the com- panies are charging local re- tailers for fuel before they can make any assumptions about “fair” local prices at the pump. In addition, Mr. Tibbetts said regulators must have that data to determine whether Cayman’s two oil distributors are actually in competition with one another. “If it is determined that the market is not competi- tive, as I suspect it will be, then the government will promote and ensure effective competition,” Mr. Tibbetts said. “If these measures fail to ignite price competition amongst the participants … then the government’s next step will be outright market price regulation.” Price control legislation for local retail gasoline and diesel fuel is something pe- troleum distributors have long warned the govern- ment against, stating that it could lead to fuel shortages in the market. In January, Alan Neesome of Sol Petroleum urged the government to reconsider taking such a step. “In a regulated market, the regulator [government] must guarantee a reason- able return to the regulated industry,” Mr. Neesome said. “Sol shares the govern- ment’s objective of making fuels available at compet- itive prices, and the cur- rent free market in Grand Cayman is undoubtedly ac- complishing this objective. “Pump pricing here overall [has] decreased sub- stantially, in line with inter- national pricing, whereas prices in other jurisdictions in our region, especially those with regulations, are in many cases higher when compared to the equivalent price per imperial gallon for the same product.” Mr. Tibbetts has previ- ously argued, and did so again on Thursday, that local gas prices seem to the gen- eral public to be operating – as the old saying goes – “up like a rocket, down like a feather.” In other words, Mr. Tibbetts said, the gen- eral public’s view is that oil prices tend to go up swiftly when a worldwide price in- crease is noted, but tend to fall very slowly when the re- verse is true. For instance, when U.S. fuel prices began a precipi- tous drop in June 2014 that lasted through the end of the year, it was mid-October before fuel prices in Grand Cayman saw a significant decline. When asked at the time, local retailers said the bulk fuel they were receiving from distributors was being priced at the same level it had been in June. More recently, regular unleaded self-serve gaso- line prices have gone up by an average of about 60 cents to 65 cents per gallon since mid-March, a Cayman Compass examination of re- tail prices shows. The average price at re- tail stations, which had dipped to $4.15 per gallon by March 18, was about $4.75 to $4.80 per gallon in early August, according to the latest figures provided by the Cayman Islands Petroleum Inspectorate. The U.S. retail petro- leum market has seen a marked increase in gasoline prices since January, but in late July and early August, prices at the pump started falling again. Fuel prices in the U.S. rose to an average of US$2.42 as of March 23. In mid-July, the U.S. national average for un- leaded gasoline was $2.77. As of Friday, that average had fallen to US$2.65 per gallon. Meanwhile, the av- erage price per barrel of Brent Crude, an interna- tional oil price benchmark, has dropped since mid-May, dipping to just below US$50 last week. Comparisons between U.S. and Cayman retail prices are largely inconsequential, fuel distributors have argued. “The USA is a macro market with totally different supply logistics, vast fuel re- sources, huge fuel storage ca- pacity, a network of pipelines from the refineries to the dis- tribution points, and trucking fleets which deliver fuel 24 hours per day, 365 days per year,” Mr. Neesome said. “The USA’s scale of operations pro- vide efficiencies in fuel dis- tribution that Cayman does not obtain as we have much higher unit infrastructural and operational costs, which result in higher prices to con- sumers than in the U.S.” Mr. Neesome added that Sol Petroleum usually re- ceives fuel shipments about every four weeks and that cargo may have loaded on the supply ship several weeks before arriving here. This delay creates a lag in pricing compared to current interna- tional prices, he said. “No longer can we turn a blind eye to what is taking place in the local fuel market.” Kurt tibbetts, planning minister Mr. Tibbetts Despite irregularities, Haiti elections deemed fair PORT-AU-PRINCE, Haiti (AP) – An international mission that monitored legislative elections in Haiti said last Monday that there were scat- tered problems with violence and other disruptions during first round, but not enough to disrupt the legitimacy of the overall vote. The Organization of American States had 28 ob- servers monitoring Sunday elections that saw Haitians choose lawmakers for the next Parliament in a contest that was delayed for nearly four years. They visited 171 of more than 1,500 voting centers across the country of 10 million people. At a news conference in Haiti’s capital, Mission chief Enrique Castillo said ob- servers found that delays and disorder at a number of voting centers were not “so generalized or so big as to be able to question the whole process.” In a preliminary re- port, Castillo’s team praised Haiti’s Provisional Electoral Council for trying to fix problems over the course of election day. Sunday’s first round sought to fill two-thirds of the 30-member Senate and the entire 119-member Chamber of Deputies in the nation still strug- gling to recover from a 2010 earthquake that dev- astated the capital and surrounding areas. Haiti’s last legislature was dissolved about eight months ago because the terms of lawmakers expired before new elections could be held due to a political showdown between Haiti’s executive and opposition. Pierre-Louis Opont, the head of the Provisional Electoral Council, said that 54 polling stations, roughly 5 percent of the total, were closed Sunday amid violence and other disruptions. He also disclosed that a council staffer stole some of the elec- tions material and vanished, but declined to provide more specifics other than the po- lice were looking for him. Many polling stations across the Caribbean country of 10 million people had to wait for ballots a few hours after voting was supposed to start at 6 a.m. A Haitian civil so- ciety group called the Citizens Observatory for Institutionalizing Democracy agreed that Sunday’s vote should stand despite in- stances of serious irregular- ities. They found that 9 per- cent of polling stations had violent incidents. Final election results were not expected for days and a significant amount of work will be needed to get the next Parliament up and running after it is installed. Roughly 5.8 million people were reg- istered to vote but there were no initial turnout estimates. The first round of Haiti’s presidential election and the second round of local elec- tions are set for Oct. 25. Pro-Bush suPer PAC sPending $10 Million-Plus on initiAl tV CAMPAign DES MOINES, Iowa (AP) – The powerfully funded super PAC backing Republican Jeb Bush will spend at least $10 mil- lion on television time in the earliest voting presidential primary states, the first salvo in a massive TV ad cam- paign to support the former Florida governor’s bid for the Republican nomination. Officials with Right to Rise USA say they will buy time in Iowa, New Hampshire and South Carolina TV markets and on cable television in the three states. Ads are sched- uled to begin in Iowa and New Hampshire on Sept. 15, in South Carolina a week later and then run continuously through the end of the year. The plan, shared by the group with The Associated Press prior to Monday’s buy, is the first evidence of Right to Rise USA’s major strategic spending of the roughly $100 million it had on hand last month. It’s also the first major move by the group, which was developed by Bush and longtime advisers including California ad maker Mike Murphy, to run alongside Bush’s own campaign organi- zation, which is bound by fed- eral fundraising limits. “We believe Jeb Bush has the strongest record of con- servative accomplishments in the race, and we plan to tell that story,” Paul Lindsay, com- munication director for Right to Rise USA, told the AP. The first ads will be pos- itive spots promoting Bush in a field that includes 16 other major GOP candidates. They will resemble videos on the group’s website, pro- moting Bush and his accom- plishments as Florida gov- ernor from 1999 to 2007. One such recent piece was taken from clips of Bush from the Aug. 6 Republican debate in Cleveland, Lindsay said. That does not mean the group’s ads won’t turn to crit- icizing Republican rivals once the first contests draw near. The group has already aired one online ad that points to Bush’s release of decades of tax returns and publica- tion of thousands of emails sent during his time as gov- ernor, to draw comparisons with Democratic front-runner Hillary Rodham Clinton, who recently released her private email server under pressure. To date, the group, based in southern California, has spent roughly $200,000 on on- line advertising. The new expenditure, which Lindsay described as an “eight-figure” buy, is significant because it’s the first big ex- pense for the group that Bush helped raise more than $103 million to finance, and which is expected to perform other campaign functions in support of the former governor. Under Federal Election Commission rules, Bush, having declared his candidacy on June 15, is now forbidden as a candidate from directly soliciting money for the group or advising how to spend it. However, Bush worked with Murphy and senior campaign aides Sally Bradshaw and David Kochel on a long-term strategy where the super PAC would complement the cam- paign, which is bound by fun- draising restrictions the super PACs are not. The idea of a parallel out- side group – it can raise un- limited sums from individ- uals, corporations and groups – is not new. Mitt Romney, the 2012 GOP nominee, attempted it later in his campaign. And other GOP candidates for the 2016 GOP nomination have formed super PACs and have begun buying advertising time in early states. However, none has com- bined the planning strategy with the sums of money Bush’s super PAC has been able to raise, making it a pioneering effort in the super PAC era of presidential campaigning. In June, the group an- nounced it had met its am- bitious goal of raising more than $100 million, taking full advantage of the nation’s evolving campaign finance laws to collect $103 million over the first six months of 2015. In June, the group had a balance of $98 million.7 LOCAL NEWS Cayman Compass • Monday august 17, 2015 DRIVE THRU OPEN LATE FRIDAYS AND SATURDAYS UNTIL 1AM AT SEVEN MILE BEACH Now serving you from 2 locations: Savannah and Seven Mile Beach High Quality Granite, Quartz, Glass Countertops at Affordable Prices 100’s of full size slabs to choose from Tiles Wall & Floor* Seamless shower enclosures kitchen & Bath Cabinets * Customers own Material fabricated & Installed 947-7767 email: info@stonepros.ky Visit our Showroom 985 Crewe Road (IMP Bldg) before the Cayman Contractors Store Auditors confirm port turnaround Brent Fuller bfuller@pinnaclemedialtd.com After spending a couple years in turbulent financial waters, the local port author- ity’s cash position has im- proved and the government- controlled agency is now making a substantial annual operating profit, Cayman Islands auditors said. Figures show the port turning a $1.9 million profit as of June 30, 2014 – the latest records available. The data were made public last week in the agency’s annual report. The port authority lead- ership expected “conserva- tively” to turn a $1.5 million profit in the government fi- nancial year that ended on June 30, 2015. “The increase in cargo vol- umes over the past two fiscal years has reversed the trajec- tory of declining performance at the port authority,” the statements read. The $1.9 million profit as of mid-2014, was an im- provement over the profit of about $375,000 the year be- fore, auditors said. However, auditors note that the port still has some financial problems to work through. Despite the op- erating profit recorded in 2014, the agency’s total li- abilities exceeded its assets by nearly $1 million. Auditors hope to see this deficit reduced within the next two years, with con- tinued improvements in both cruise passenger ar- rivals and cargo volumes. In 2013, Cayman had one of its weakest years in the past decade for cruise pas- senger arrivals, with fewer than 1.4 million visitors. In 2014, the number of cruise visitors rose to more than 1.6 million, and this year cruise arrivals have increased again. However, auditors also noted that a significant rev- enue source of the port, cruise passenger tender fees, remained uncollected during 2012/13 because of a dispute with the cruise lines. “The authority amended its tender fees in March 2010, along with other fees, but before the implementa- tion of those fees, it was re- alized that the charges to the tender company will only be passed on to the cruise lines,” auditors stated. “The fees conflicted with the Florida-Caribbean Cruise Association agreement and were never charged.” The loss of anticipated port revenue from the tender fees was estimated at more than $500,000 per year for the 2011/12 and 2012/13 gov- ernment budgets. In testi- mony before the Legislative Assembly’s Public Accounts Committee this spring, port officials noted that cargo shipments also dropped off by half between 2005 and 2013, while operational costs during that period stayed roughly the same. Port managers expected the issue identified with the tender/cruise passenger fees to remain until the port pays off its existing loans taken out for improvements to the Royal Watler cruise terminal. That was expected to occur in September 2017. Jewel levy jlevy@pinnaclemedialtd.com Shaun Tracey is deter- mined that Caymanian kids learn the game of chess. During a summer camp at the George Town Public Library on Thursday, the children and teens learned about chess pieces and how they are used. In addition to enjoying the new game, “Playing chess also helps them to concen- trate. It is the only thing that I have seen where you can walk into the library where the children are using the video screens and computers and they will voluntarily come away from it to sit and play a game of chess,” Mr. Tracey said. “Obviously, there is still a bit of chatter, which is also great.” Mr. Tracey, with the Cayman Islands Chess Association, will be intro- ducing the chess program in Cayman schools in September. “The game is a fun way for kids to develop critical thinking skills,” Mr. Tracey said while teaching chess class at the library with Carlo Lee. Mr. Tracey explained that in England there are suc- cessful chess schools, and how chess is now being taught in about 370 schools across the United Kingdom. “We are trying to bring something similar to Cayman and get chess into the schools,” he said. At the library, kids also learned what the goal of the game is and how to open, as well as a few chess tricks. Mr. Tracey said he will also teach them strategy, tactics and some openings. The kids showed interest and a willingness to learn the game. Kathryn Kleinworth said she enjoyed playing chess and that she learned it from her family. The Cayman Chess Club runs free chess events at 11 a.m. every Saturday at the George Town library. Young chess players learn the moves Youngsters enjoy playing chess at the George Town Public Library. - Photo: Jewel levyThe islands’ most-trusted news source 8 Money from the Nation Building Fund was spent on the following (among other things): Unfinished church projects, including the con- struction of buildings, a ve- hicle, a $3,000 loan for a pastor that remains unpaid, and a total of $30,000 on refurbishments and plan- ning fees for a gymnasium in West Bay that auditors could never find. The latter represented “an abuse of public funds,” according to auditors. Some cash from the Nation Building Fund went to pay for supplemental gov- ernment expenses that nor- mally would have to be ap- proved by the Legislative Assembly, auditors said. Those included $49,000 to pay for lawyers for the in- formation commissioner’s office and $45,000 to help pay for government’s CCTV camera project. “If you needed additional funding for your agency, you go back to Legislative Assembly,” Mr. Swarbrick said during the press con- ference on Friday. “They ba- sically circumvented those rules. If you can’t follow that, you’re … throwing the whole process out.” Two officials in the former premier’s office or ministry were alleged to have benefitted directly from certain disbursements from the fund for scholar- ships and training. In many cases, scholarship appli- cants were not assessed to determine whether they kept up their grades or even if they were completing their education that was funded by the government program, auditors said. “We were unable to deter- mine in every case that the money paid resulted in the education of a student,” au- ditors concluded. “We found instances where children of government officials, in- cluding one in the premier’s office, received support from the Nation Building [Fund]. Given the lack of scrutiny of applications, we believe this practice was inappropriate and provided an opportunity for possible corruption.” Government paid $130,000 to the Hope for Today foun- dation, a nonprofit that helps recovering addicts. However, there was no application for those funds, nothing stating how the funds the organi- zation was given was deter- mined, or how the funds it received were to be used. “This demonstrates a complete lack of respect for the use of public funds,” au- ditors wrote. Another $240,000 was paid over two years to Cayman Traditional Arts to provide teaching programs for schools on heritage ac- tivities such as Cayman cooking, hat making and cat- boat building. There was no documentation regarding this program from the schools, auditors found, nor any statements about why the program was needed. The report also found that Mr. Bush, the former pre- mier, and his chief of staff, Leonard Dilbert, approved certain individual payments, and that civil service man- agers insisted they did not play a role in the program ex- cept to “write the checks.” Moreover, in many cases there was no system of ver- ifying what had been spent for which endeavors, and that record keeping was so poor in some cases that auditors could not determine what the Nation Building Fund money had been spent on. “The reality is, trying to conduct this audit was chal- lenging with the lack of evi- dence to support the pay- ments,” Mr. Swarbrick said. “Checks were being sent out on the basis of just an email. There’s likely some value from the payments that were made, but there’s no way to assess that.” Bush defends program In the Legislative Assembly on Thursday, prior to the release of the audit, Mr. Bush alleged that Mr. Swarbrick was part of a wide- ranging conspiracy to drive the former premier from of- fice in 2011-2012. He further alleged that Mr. Swarbrick had deliberately not spoken to individuals who had over- sight of the Nation Building Fund program, including Mr. Dilbert and former min- istry chief financial officer Josephine Sambula. “[Mr. Swarbrick] has failed to interview the persons that he accuses, nor was the former [program] coordinator [or] myself as the former min- ister contacted,” Mr. Bush said. “The public would get [the audit] and I would not get an opportunity to speak to this House about it. When does a … supposed audit be- come a witch hunt?” During Friday’s press conference, Mr. Swarbrick clarified that he had spoken with Ms. Sambula but had not interviewed Mr. Dilbert, the premier’s former chief of staff, who had taken up that post only toward the end of the existence of the Nation Building Fund. The auditor general’s of- fice does not interview pol- iticians during the course of its audits on the opera- tions of government in order to avoid the perception that the reports are “being cleared” by politicians, Mr. Swarbrick said. Mr. Bush said it was “bla- tantly untrue” that scholar- ship recipients had suffered no consequences for failing grades or that he and Mr. Dilbert had made “all the de- cisions” in running the Nation Building Fund program. He said the decisions on the program’s funding levels were made at the start of each budget year in the Legislative Assembly and that ministers’ partici- pation in implementing gov- ernment programs is clearly allowed and required by the Cayman Islands Constitution Order, 2009. “[The report] fails to ac- knowledge government’s policy of greater assis- tance to churches,” Mr. Bush said, needs which he said were identified through government constituency work. “[The report is] an al- most completely fictional presentation.” During Mr. Bush’s “per- sonal explanation” statement in the House on Thursday, George Town MLAs Roy McTaggart and Winston Connolly both stated that the opposition leader was actu- ally seeking to make state- ments about the process and validity of the Nation Building Fund itself. “This isn’t an explana- tion,” Mr. Connolly said. Mr. McTaggart noted that Mr. Bush, as a member of the Legislative Assembly’s Public Accounts Committee, was making public evidence that would later be taken up by the committee and asked “whether it was appropriate for the opposition leader, who is a member of this com- mittee, to be making utter- ances regarding this report.” Speaker of the House Juliana O’Connor-Connolly said she had reviewed Mr. Bush’s statement beforehand and allowed him to continue. “This toxic report should be struck from the record or [the auditor general] should withdraw his report,” Mr. Bush said. “This is meant to damage myself and other civil ser- vants and other politicians,” Mr. Bush said. “He’s not far off … from being sued.” Earlier in the week, Mr. Bush questioned whether the auditor general had legally overstepped his bounds in issuing another report concerning govern- ment land management. The audit reviewed, among a number of other land deals, the National Roads Authority agreement be- tween the government and the Dart group of compa- nies, and the Health City Cayman Islands agreement. “The auditor’s reckless misuse of his position has se- riously damaged the reputa- tion of the Cayman Islands by calling into question any agreement that a foreign in- vestor who wishes to invest in the Cayman Islands may make with government,” Mr. Bush said in the Legislative Assembly on Wednesday. “I would argue that the auditor general has done what he ac- cused the Cayman Islands government of doing, by ex- ercising a role that he has no legal authority to exercise.” The audit, which was publicly released last month, stated that the Cayman Islands government acted un- lawfully and “without proper authority” in signing two of the territory’s largest-ever private sector development agreements. The original National Roads Authority agreement, which paved the way for construction of a Kimpton hotel and perma- nent closure of a section of West Bay Road along Seven Mile Beach, was negotiated by elected ministers “without the knowledge or assistance of civil servants” the report further stated. Mr. Bush’s dispute re- garding the land manage- ment audit is essentially that it was not a “financial audit” but rather that it delved into areas of legality and gover- nance concerning project de- cision-making and funding that heretofore had been the purview of the Cayman Islands courts. “I doubt the Cayman Islands Constitution ex- pected to confer that au- thority on the auditor gen- eral,” Mr. Bush said. Auditor’s response Making a rare personal response to Mr. Bush’s al- legations of impropriety by his office, Mr. Swarbrick said international standards of public sector auditing, known as ISSAI, clearly encompass both the Nation Building Fund and government land management audit within their remit. ISSAI 100 – the funda- mental principles of public sector auditing – identifies three separate kinds of au- dits: financial audits, perfor- mance audits and compli- ance audits. “Compliance audit focuses on whether a particular sub- ject matter is in compliance with authorities’ identified criteria,” the principles state. “These authorities may in- clude rules, laws and regula- tions, budgetary resolutions, policy, established codes, agreed terms or the general principles governing sound public sector financial man- agement and the conduct of public officials.” Monday august 17, 2015 • Cayman Compass BEACH ACCESS SPACE & STORAGE HEALTHY RETURNS AFFORDABLE LUXURY PET FRIENDLY HOWARD MCLAUGHLIN 326-2600 3BED + DEN, 2400SQFT, PRICES FROM US$885,000 FOR MORE INFO VISIT: WWW.BOGGYSANDS.COM STEFAN PRIOR 924-7758 MLS404731-MLS404737 Member of CIREBA “This demonstrates a complete lack of respect for the use of public funds.” AlAstAir swArBrick, auditor general Mr. BushMr. Swarbrick Audit slams Nation Building expenses CONTINUED FROM PAGE 1 Brent Fuller bfuller@pinnaclemedialtd.com Premier alden McLaughlin and deputy governor Franz Manderson issued a statement in support of the auditor gen- eral’s nation Building Fund re- port Friday. the statement indicated both men agreed to fully im- plement the report’s recom- mendations and to ensure fu- ture government programs are managed effectively. “this audit, which relates to expenditure during the united democratic Party administra- tion between 2009 and 2013, presents an opportunity for the elected government and the civil service to work together to strengthen the good governance framework over transfer pay- ments and to ensure that future programs can withstand scru- tiny,” Premier McLaughlin said. “Elected officials and civil servants should play sepa- rate and distinct roles in deliv- ering government programs. However, given the concerns raised by the auditor general, it is clear that these roles need to be more clearly de- fined and enforced.” Mr. Manderson said, “the civil service takes the con- cerns raised by the auditor general seriously and I have committed to take the nec- essary steps to ensure that civil servants comply with [a] new framework, which will mandate that public expen- diture transactions and pro- grams meet the four tests of propriety, regularity, value for money and feasibility.” the auditor general’s re- view of the nation Building Fund contained three rec- ommendations: First, that ro- bust management frame- works should be developed around all public projects; second, that responsibilities of elected ministers and civil service managers should be clearly defined; and third, that government should shore up policies around “transfer pay- ments,” such as those made via the nation Building Fund. While opining that nation building is a desirable objec- tive for government, deputy governor Manderson states in his reponse to the report that it must be managed correctly. “However well-intentioned such policy aims may be, where there is improper influ- ence or programs are ill-de- signed … then such aims are destined to failure,” the man- agement response to the audit noted. “this audit presents a real opportunity to improve the governance framework.” premier, deputy governor support auditor’s reportThe islands’ most-trusted news source 9 aircraft would be flown and crewed by CAL staff. He said the Embraer had always been intended as a tempo- rary measure. The Saab, built in the late 1990s, was primarily used by Delta and Northwest Airlines in the U.S. as well as a brief stint in Australia. Mr. Whorms sad it has an estimated 25 years of useful life remaining. “It has been through an extensive degree of testing, maintenance and refur- bishment. It is in pristine condition,” he said. Schedule changes as- sociated with the increase in plane size have been in place since late last year and have already resulted in a 20 percent increase in traffic to and from the Brac, Mr. Kirkconnell added. Philip Rankin, chairman of the CAL board of direc- tors, said the ideal scenario would be to purchase a second, similar plane that could be used as backup on the Brac route and in- crease the airline’s options for smaller regional flights to Jamaica and Cuba. as the government dem- onstrated with its show of overwhelming sup- port for Mr. Eden’s resolu- tion. Every member present during the Aug. 13 session voted in favor of the resolu- tion. Four members – Joey Hew, Ezzard Miller, Wayne Panton and Kurt Tibbetts – were absent. Mr. Eden’s presenta- tion on his motion, which he said was “based on Holy Bible evidence,” was not limited to a discussion of the definition of marriage. He also admonished homo- sexual behavior in general and warned people against “satanic confusion.” Bodden Town MLA Alva Suckoo, who seconded Mr. Eden’s motion, said that, while he did not wish to “launch an assault on ho- mosexuals,” in his Bible, homosexuality is a sin, and he “shouldn’t be expected to support legislation that would allow sin.” Mr. Suckoo said that be- cause the Cayman Islands are “culturally unique” its laws “must reflect the values that we think are important.” “I know there are those who will think we must be bigots and homophobes and probably worse,” Mr. Suckoo said. “But I as a rep- resentative cannot support a lifestyle or concept that I think clashes with our chosen value systems here and our religious values.” Finance Minister Marco Archer, who also spoke on the motion and voted in favor of it, said that while he thinks marriage should be between a man and a woman and that the law should reflect the values of the country’s citizens, some review of the law might be made to achieve equality. “If the desire is for equality with respect to the protection of their rights, with respect to the own- ership of property and the transfer of that property to their loved ones,” Mr. Archer said, “I believe it is possible for us to review our laws and see in what ways that can be done without considering or in- terfering or changing the definition of what God al- ways intended to be mar- riage between a man and a woman, and what our con- stitution and our marriage laws currently provide for.” Cayman Compass • Monday august 17, 2015 “This is the dawning of a new development cycle and a new ease of comfort and travel to Cayman Brac.” Moses KirKconnell, tourism minister “I as a representative cannot support a lifestyle or concept that I think clashes with our chosen value systems here and our religious values.” AlvA sucKoo, Bodden Town MLA Mr. Eden Government says marriage is between one man, one woman New plane sparks hope of Brac revival CONTINUED FROM PAGE 1 Exxon’s $40 billion find renews age-old feud GEORGETOWN, Guyana – For generations, Venezuela has formally laid claim to most of its tiny neighbor, Guyana. Many dismissed the case, given Venezuela’s oil wealth and Guyana’s penury. Hugo Chavez, long-standing pres- ident of Venezuela, even let it slide, referring to the Guyanese as his brothers. Then in May, Exxon Mobil revealed that under contract from Guyana it had found massive offshore oil and gas deposits. Chavez’s successor, Nicolas Maduro, demanded that the drilling stop because the area was Venezuela’s. He dismissed Guyana’s president as a tool of Big Oil, declared his statements “nauseating” and Guyana’s actions likely to “bring war to our border.” He withdrew his ambas- sador, and Guyana an- nounced the end to a long- time rice-for-oil deal. For Guyana – which pro- duces no oil and whose 800,000 inhabitants live with unpaved flooded roads and power outages – the esti- mated offshore find of 700 million barrels promises a revolution, a shift from neg- ligible food exporter to global energy dealer. The combined oil and natural- gas deposits appear to be worth $40 billion, at least 10 times the country’s gross domestic product. “We’ve gone through suf- fering for many decades and our time is due,” Raphael Trotman, minister of gov- ernance, said in an inter- view in his office on an unassuming road in the cap- ital, Georgetown. The dis- covery is “transformational,” he said. “For us, there is no going back.” Ordinary Guyanese, who rely on Venezuelan oil, are giddy with anticipation. Staring at a potential jackpot, they also are livid with Maduro, accusing him of trying to evade his economic and political woes by cov- eting what belongs to them. “Chavez never fought and now Maduro?” said Otis Adams, a 42-year-old heavy-machine operator in the destitute border town of Mabaruma. “He’s a nobody, trying to pass off the worry of his people from all that killing and suffering – he’s just being greedy.” Venezuela has the world’s highest inflation, chronic shortages of consumer ba- sics, including medicine and toilet paper, and a murder rate that surpasses Iraq’s. Parliamentary elections are in December, and Maduro’s socialist coalition may lose its majority for the first time in 16 years. “Why so suddenly?” asked Charlie Bees, about the renewed claim to large swathes of his country. “Maduro is losing votes!” ex- plained the 52-year-old cur- rency trader working near Georgetown’s port. It may seem to the Guyanese like a mere po- litical diversion, but their president, David Granger, says Venezuela is causing real trouble. “Investors have been in- timidated, development has been derailed, projects have been obstructed,” he said in a speech in Washington last month. “It is too much to bear for a country that has less than a million people.” Rather than halt its ex- ploration activities, Guyana is moving forward, Guyana’s foreign minister, Carl Greenidge, said in an inter- view. The government expects it will take five to seven years for the first production. “We call upon the inter- national community to help us develop within the inter- nationally recognized bor- ders, peacefully and without the burden of a neighbor whose actions serve to im- poverish us and whose claim is based on what hap- pened 200 years ago.” Edward Glab, who teaches at Florida International University in Miami and worked at Exxon for 25 years, said the find was clearly of major signifi- cance for Guyana, even with oil down to $50 a barrel. “You could have inves- tors trying to get ahead of the curve because they figure at some point there is going to be huge wealth in the country,” he said. “They might be able to take risks, counting on the fact that the country will be able to pay its bills.” Venezuela’s claim on Guyana’s land a century ago had a very different feel. It was a British colony until 1966; its citizens speak English and are descen- dants of African slaves, in- dentured Indian laborers and native peoples. In 1899, an international tribunal in Paris granted the disputed region, known as the Essequibo, to Guyana; Venezuela rejected the ruling. It amounts to two-thirds of Guyana which has been de- veloping it with occasional outbursts from Venezuela. To be sure, gaining pos- session of Essequibo has long been a matter of na- tional pride for Venezuelans, whose maps denote the area a “reclamation zone” drawn with dashed lines. And despite having the world’s largest oil reserves, Venezuela has struggled to increase production, with output falling. There is an additional issue: Exxon is trying to col- lect a $1.6 billion award from Venezuela granted by a World Bank tribunal after Chavez nationalized a number of its assets. So there is also no love lost between Exxon and the Maduro government. Last month, Maduro met with United Nations Secretary General Ban Ki Moon to ask for help. The Association of Caribbean States has sided with Guyana, as has Britain and the rest of the Commonwealth. Venezuela has been seeking backers for a negotiated set- tlement that could take a long time. Sadio Garavini di Turno, a former ambassador to Guyana and an advisor to the opposition, said Venezuela is not in a strong position, given international senti- ment. Moreover, he said, an international court seems un- likely to rule for Venezuela. “In the international com- munity in general, and there- fore in the international tri- bunals, there’s a profound antipathy towards changing national borders because of historical injustice,” he said. “Think of how many borders around the world are un- just and how many borders would have to be changed.” Guyana has “strong inter- national support, said Carlos Romero, professor of interna- tional relations at the Central University of Venezuela. While Venezuela wants me- diated negotiations, Guyana prefers a tribunal where it probably will find a sympa- thetic hearing. Maduro insists military action is out of the ques- tion. As a result, Romero said, “Maduro is against the wall.” © 2015, Bloomberg News Venezuela has the world’s highest inflation, chronic shortages of consumer basics, including medicine and toilet paper, and a murder rate that surpasses Iraq’s. CONTINUED FROM PAGE 1 Anti-government protests sweep BrAzil RIO DE JANEIRO (AP) – Brazilians took to the streets of cities and towns across the country on Sunday for an anti-government protest that’s seen as a barometer of popular discontent with the increasingly unpopular presi- dent, Dilma Rousseff. Called out mostly by ac- tivist groups via social media, Sunday’s protests assailed Rousseff, who is fighting for her political life amid a snow- balling corruption scandal that has embroiled politi- cians from her Workers’ Party, as well as a sputtering economy, spiraling currency and rising inflation. It was the third nationwide day of pro- tests against Rousseff’s gov- ernment this year, following large-scale demonstrations in March and April. Political analysts here said that turnout at Sunday’s dem- onstrations could determine the protest movement’s fu- ture. Massive crowds could ratchet up the pressure on the government while an anemic turnout would give Rousseff some breathing room. Thousands of people bran- dishing green and yellow Brazilian flags streamed onto Rio de Janeiro’s Copacabana Beach, and smaller demonstra- tions were under way in the Amazonian city of Belem and the central city of Belo Horizonte. In the capital, Brasilia, a march on a central avenue flanked by ministries and monuments ap- peared to have drawn several thousand participants. More than 200 demonstrations were expected around the country. The demonstrations were called largely by web-based activist groups with demands ranging from Rousseff’s im- peachment to a return to mili- tary dictatorship like the one that ruled the country from 1964-1985. But an end to cor- ruption appeared to be a top demand, amid the widening probe into corruption at the state-run Petrobras oil com- pany. Operation “Car Wash,” which began more than a year ago as an investigation into a bribes-for-contracts scheme at Petrobras, has exposed how widely corruption permeates Brazilian society, catching top members of the Workers’ and other political parties, as well as executives of powerful con- struction companies.Next >