ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – Monday January 4, 2016 High of 85 Low of 73 Smooth to slight with wave heights of less than 2 feet. ABCDE NATIONAL WEEKLY Politics Obama’s acts of faith 4 World Harboring great hopes 10 Money Are you ready for a buyout? 16 5 Myths About gluten 23 the wrong men for the job Soldiers entrusted with key roles in the Army’s campaign to protect sexual assault victims and punish offenders have themselves been accused of misconduct PAGE 12 THE WEEK OF SUNDAY, JANUARY 3, 2016. IN COLLABORATION WITH THE WASHINGTON POST The wrong men for the job Editorial | pagE 4 How to address uneMployMent (Hint: education) POPEYES 2014 APRIL TEST – NEW LOUISIANA RANCH TENDERS POP – DOUBLE WINDOW CLING MECHANICAL SIZE: 16-1/2” X 10-3/4” ACTUAL FINAL TRIM SIZE: 66 X 43” COLORS: 4/COLOR PROCESS FONTS: FUTURA BT, METRO, METROSCRIPT, TRAJAN PRO BD#: AFC-14-6856 DATE: 2.20.14 | 2.24.14 2.25.14 A LOUISIANA TWIST ON RANCH Premier Alden mclAughlin: Suckoo, Eden departures ‘unfortunate’ JaMes wHittaker jwhittaker@pinnaclemedialtd.com Premier Alden McLaughlin has described as “unfortunate” the defection of a second backbench legislator to the opposition benches. The premier declined to comment directly on Alva Suckoo’s Dec. 30 decision to leave the government or the debate surrounding legal rights for same-sex couples that prompted it. He did appear to address the issue briefly in his New Year’s speech, however, saying, “Discrimination in any form is wrong.” Both Mr. Suckoo and Anthony Eden – the latter resigned from the Progressives party in November - are opposed to any moves toward recognition of same sex partnerships in the Cayman Islands. “My concerns run much deeper than a simple debate about same-sex marriage,” Mr. Suckoo said in a statement announcing his resignation. “The very foundations upon which we built our country are now under attack, and I firmly believe that we, the people’s representatives, must now make a stand to protect those values, cultural beliefs and Christian principles that have served these islands for so long.” Mr. McLaughlin, who has indicated that government will make a partial move to recognize the rights of same-sex couples, said in his new year’s speech, “Despite the unfortunate departure of two of our members, your government remains strong and we will continue to work for the betterment of our people and our country. Unemployment ppm’s ‘Achilles’ heel’ JaMes wHittaker jwhittaker@pinnaclemedialtd.com Premier Alden McLaughlin has described Caymanian unemployment as the “Achilles’ heel” of his administration and called for a “sea change” in approach from the business community. In a new year’s message to the public, he said that the private sector needs to make more effort to take on Caymanians, and warned, “The time for excuses has passed.” Mr. McLaughlin cited the turnout for government’s temporary Christmas work program, in which some 700 people registered for temporary work cleaning up the community, as evidence of high numbers of unemployed Caymanians ready and willing to work. Focusing on the achievements of the government, he said it has restored Cayman’s public finances and investor confidence and created jobs. He said the economy is rebounding, and more employment opportunities are on the way through new hotel developments. But he acknowledged, “What is not happening to the degree that is necessary is employment of Caymanians.” He said a local unemployment rate of 8.3 percent is unacceptably high and his administration would push to bring this down. But he said there is little they could do without cooperation from the private sector. “The unemployment level of Caymanians is just too high in an economy that is expanding and where there is clear evidence of significant job creation. “Since this administration took office in May 2013, work permit numbers have increased from about 17,000 to 22,000 presently. Yet Caymanian unemployment cArePAy triAl: healthcare contract case in court Brent Fuller bfuller@pinnaclemedialtd.com A veritable who’s who of Cayman Islands government workers, elected officials and upper-echelon members of society either went before the Grand Court or had their names mentioned in the waning weeks of 2015 during the criminal trial of Canover Watson and Miriam Rodriguez. Watson, a former Young Caymanian Leadership Award recipient, is charged in five counts under the common law and the Anti-Corruption Law, alleging that he used his position as Health Services Authority board chairman to direct a multimillion-dollar healthcare contract to a company he and business associate Jeffrey Webb clandestinely controlled. Watson and Rodriguez are also charged with transferring criminal property, namely proceeds from the CarePay swipe-card contract, to Webb. Both defendants pleaded not guilty. Webb, facing sentencing in the U.S. on a separate criminal matter, is not on trial in Cayman, although he is charged in the case. The trial is slated to continue into 2016. Here we recap the first four weeks of the proceedings. PLEASE TURN TO PAGE 13 » PLEASE TURN TO PAGE 13 » TOP STORIES 2015 PLEASE TURN TO PAGE 5 » Cayman welcomes 2016 New Year’s Eve revelers were treated to an array of fireworks across Grand Cayman throughout Thursday night, up to and beyond midnight, including the annual spectacular display at Camana Bay, above. - photo: tAneos RAmsAy2 Monday January 4, 2016 • Cayman Compass LOCAL&REGIONAL 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. - MONDAY - $8.00 CONCUSSION (PG13) 1:10 I 4:10 I 7:00 I 9:45 POINT BREAK 3D (PG13) 1:20 2D I 4:30 I 7:20 2D I 10:05 DADDY’S HOME (PG13) 12:30 I 3:00 I 6:30 I 9:40 STAR WARS VII 3D (PG13) 12:40 I 1:00 2D I 3:40 I 4:00 2D 6:45 I 7:00 2D I 9:50 I 10:00 2D ALVIN & THE CHIPMUNKS ROAD CHIP (PG) 1:15 I 3:40 I 7:10 I 9:30 SISTERS (R) 1:30 I 4:15 I 7:15 I 10:00 Television shows dropped as copyright law looms James Whittaker jwhittaker@pinnaclemedialtd.com Television station Cayman 27 has announced signifi- cant, immediate changes to its prime time programming in an effort to comply with new copyright and intellec- tual property laws expected this year. Randy Merren, CEO of Hurley’s Media, which bought the channel from Logic last year, said the company would have its “house in order” by the time the new legislation is introduced. The current prime time schedule for the channel in- cludes programming from U.S. network CBS, including hit shows “Blue Bloods” and “The Good Wife.” Mr. Merren said Hurley’s Media inherited a broadcast arrangement with CBS from the previous owners, but that does not cover prime time shows between 7 p.m. and 11 p.m. In any case, that agree- ment expired on Dec. 31. New copyright legislation, mirroring the U.K.’s Copyright, Designs and Patents Act of 1988, is expected to be intro- duced this year. “With the new legisla- tion, the company must make changes to ensure that all of its content is properly li- censed,” Mr. Merren said. “We knew the copyright law was coming, and we will have our house in order by the time it becomes law. We know our audience will be surprised with the major changes in our prime time lineup, but we want viewers to understand the reason.” He said there would have to be “sweeping changes” to Island 24 and Cayman 27’s entertainment program- ming because much of what it currently airs is licensed by other cable channels for the region. The stations will now offer shows they can get li- censing agreements for. Mr. Merren said these would in- clude “family friendly televi- sion classics” during the day- time, including “I Love Lucy,” “Bonanza,” and “Cheers,” among others. Newer offerings, including “Madame Secretary,” “CSI Miami” and “Late Night with Steven Colbert,” will be avail- able in the evening hours. He said the local pro- gramming would be ex- panded with new talk shows, a live midday news report and the extension of the eve- ning newscast to 90 minutes. He added, “Cayman 27 has always been an impor- tant part of the entertain- ment landscape of our island. We will continue to expand our local news offerings and look to broaden our enter- tainment programing as op- portunities arise.” ‘Madam Secretary,’ starring Tea Leoni as Elizabeth McCord, is among the new CBS programs that will be aired by Hurley’s Media local stations. - Photo: the Washington Post Mexico mayor slain a day after taking office MEXICO CITY (AP) – Officials say they have killed two people and arrested three others linked to the slaying of a Mexico mayor who had taken office only a day ear- lier. The state’s governor said organized crime was behind the attack. Gunmen killed Mayor Gisela Mota Saturday at her house in Temixco, one of several cities around Cuernavaca that have been struggling with kidnap- pings and extortions by or- ganized crime gangs. Police quickly located a car of presumed assailants who opened fire on officers, the Morelos state govern- ment said in a statement. In a separate car, offi- cials said they found two guns, one of them a semiau- tomatic, and ski masks. Three people were de- tained – a 32-year-old woman, an 18-year-old and a minor. Morelos Attorney General Javier Perez Duron said the suspects have been tied to other crimes, but declined to provide more details. On his Twitter account, Morelos Gov. Graco Ramirez attributed Mota’s killing to or- ganized crime, without citing a particular cartel or gang. He later announced state of- ficials were establishing spe- cial security measures for all off Morelos’ mayors. One organization repre- senting mayors in the country, the Association of Local Authorities of Mexico, issued a statement saying nearly 100 mayors have been killed across Mexico over the past decade, “principally at the hands of organized crime.” Mota, who had been a federal congresswoman, had been sworn into office on New Year’s Day. Her center-left Democratic Revolution Party released a statement describing her as “a strong and brave woman who on taking office as mayor, declared that her fight against crime would be frontal and direct.” Temixco, with about 100,000 people, is a suburb of Cuernavaca, a city famed among tourists for its co- lonial center, gardens and jacaranda-decked streets. “The city of eternal spring” was long a favorite weekend getaway for people from nearby Mexico City. Drug and extortion gangs have plagued the state in re- cent years, driving away some tourists and residents. On its southwest border is the gang-plagued state of Guerrero, whose Pacific Coast resort of Acapulco has seen a sharp increase in murders. In this Jan. 1 photo, Gisela Mota waves during her swearing in ceremony as mayor of Temixco, Morelos State, Mexico. The Morelos state Public Security Commission says attackers invaded Mota’s house on Saturday morning, Jan. 2, and killed her. - Photo: aP New copyright legislation, mirroring the U.K.’s Copyright, Designs and Patents Act of 1988, is expected to be introduced this year. Morelos Gov. Graco Ramirez attributed Mota’s killing to organized crime, without citing a particular cartel or gang. Dakar rally sPectators injureD in argentina ROSARIO, Argentina (AP) – Several spectators were in- jured during the Dakar Rally on Saturday after a Mini Cooper plowed into the crowd before the start of the race in Argentina. The accident occurred at kilometer 6.6 of the prologue to the Dakar 2016, which starts between Buenos Aires and Rosario. Organizers suspended Saturday’s spe- cial stage. A Dakar statement said four spectators were injured and taken to local hospitals. However, it did not provide details on their injuries. Daniel Modesto, a doctor at the Santa Francisca de Arrecifes hospital, told Argentine station TN that 10 people were treated for injuries, including a preg- nant woman and four chil- dren. He said one child and one adult man were seri- ously injured. The child was airlifted to a larger hos- pital, while the man was transferred in an ambu- lance, he said. The vehicle that veered off the road was No. 360, belonging to Guo Meiling, the first Chinese woman to compete in Dakar. It was unclear she or other drivers were injured. us seeks extraDition of former honDuran VP TEGUCIGALPA, Honduras (AP) – The government of Honduras says it has re- ceived a request from the United States for the extradition of former vice president and busi- nessman Jaime Rosenthal, who is accused of money laundering. Foreign Minister Arturo Corrales says the re- quest should be sent to Honduras’ Supreme Court by Tuesday. Addressing a news con- ference Saturday, Corrales called the U.S. extradition request for Rosenthal “bad news for the country.” On Oct. 7, the U.S. Treasury Department an- nounced that Rosenthal, his son Yani Rosenthal and nephew Yankel Rosenthal along with the varied businesses of the Grupo Continental had been designated under the Kingpin Act. U.S. prosecutors accuse them of laundering money for Central American drug traffickers.The islands’ most-trusted news source 3 Cayman Compass • Monday January 4, 2016 discoverflow.ky Congratulations to Nicholas Thompson for winning a brand new Honda CR-V by playing the Text 2 Win challenge from Flow. We wish you and your family, and everyone in Cayman, joy and peace in the new year to come.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. Monday January 4, 2016 • Cayman COmpass In his New Year’s message to the Cayman Islands public, Premier Alden McLaughlin described rela- tively high unemployment among Caymanians as the “Achilles heel” of his administration. He said he had engaged local business representatives in order to lay out government’s expectations as to requirements for hiring and training local workers. Politically speaking, Premier McLaughlin’s obser- vation about his party’s potential vulnerability may have some truth to it. It cannot be denied that there are too many Caymanians who do not have jobs at all, or do not have the jobs they wish they could have. Come election time, voters who are unemployed – or otherwise financially disgruntled – have compelling reasons to cast ballots against the status quo, or an administration they feel may not have been “doing enough for them.” We would offer a different perspective. Premier McLaughlin’s government has consistently backed the interests of Caymanians in and out of the workforce – as did the previous government led by former Premier McKeeva Bush – and the Progressives government before that, and the government before that, and so forth. Our politicians’ commitment to the cause has never been in question. Rather, the problem with the Caymanian unemploy- ment problem, currently at 8.3 percent, is that it is not the direct result of anti-Caymanian intransigence on the part of local businesses; it is a symptom of an underlying condition among large segments of our society, characterized primarily by a lack of prepara- tion to compete in the private sector. Our description of unemployment as a “symptom” of a greater problem is not intended to belittle what is a very real issue with serious consequences to indi- viduals, families and the country. Think of it this way: You fall and break your leg. Symptoms include excruci- ating pain and the inability to walk. While it is desirable to alleviate those symptoms by way of pain medication and crutches, that does not constitute an adequate course of treatment. Those measures, by themselves, will only lead to long-term dependence and disability. In order for the broken leg to heal correctly, it must be “set” properly, immobilized in a cast and rehabilitated through physical therapy. Similarly, when Premier McLaughlin declares that local businesses must be “more willing to take on Caymanians who don’t meet precisely all of their employment requirements and train them” – that’s an attempt to treat the symptom, not the condition itself. A more effective approach to solving the stubborn problem of Caymanian unemployment has multiple prongs. The main two are “education” and “business climate.” Unlike the specific human resources deci- sions of particular employers, those fall well within the responsibility and remit of government. The trouble with education reform, again speaking politically, is that its positive or negative consequences on the economy, as a rule, can’t be seen for many years, and sometimes aren’t fully realized for a genera- tion. That is of little practical use for parties seeking to gain or retain power in a series of four-year election cycles. That, of course, does not mean it shouldn’t be done, and it lends a particular nobility to officials who steadfastly pursue and see through wholesale improvements to public education during their careers. It is the sterling stuff of which legacies are made. That being said, even the most dramatic and effec- tive education reform, while ensuring brighter futures for the young people who comprise our future work- force, is not particularly germane to the adults who make up our current workforce. The surest path to greater employment opportunities, in the short and long term, for those unemployed or underemployed individuals is to promote greater economic opportuni- ties for all companies and individuals in Cayman. That means lowering the cost of doing business (taxes, fees and duties) and reducing the burden of doing business (regulations, red tape and bureaucratic hurdles) as much as possible. If businesses in Cayman are enabled to hire more people, they will hire more Caymanians. If the Cay- manians seeking employment are better prepared for those jobs, then their efforts will increasingly be met with success. How to address unemployment (Hint: Education) Food fads: Make mine gluten-full WASHINGTON – When the federal government’s 1980 “Dietary Guidelines for Americans” warned about the baleful effects of satu- rated fats, public interest activists joined the fight and managed to persuade major food companies to switch to the shiny new alternative: trans fats. Thirty-five years later, the Food and Drug Administration finally de- termined that trans fats are not just useless but unsafe, and ordered them removed from all foods. Oops. So much for settled sci- ence. To tell the truth, I never paid much attention to the fat fights in the first place. From my days as a medical student (and pro- digious consumer of junk food), I’ve seen so many sol- emnly proclaimed “find- ings” come and go that I decided long ago to ignore – and outlive – them all. So far, I’m ahead. Never had an egg substitute in my life. I figured trans fats were just another fad waiting to be revoked and renounced. Moreover, if I was wrong, the green eggs and ham would take so long to kill me anyway that I was more likely to be hit by a bus first. Either way, win-win. Don’t get me wrong. I do not advocate this kind of jaunty fatalism for ev- eryone. This is a private af- fair. I do, however, preach skepticism. Remember that most venerable piece of re- ceived medical wisdom – 98.6 degrees as the average adult human temperature? In 1992, three researchers bothered to measure – and found that the conventional wisdom (based on an 1878 German study) was wrong. Normal is 98.2. After that – 114 years of error – one is inclined to embrace Woody Allen’s “Sleeper” theory that in 200 years we’ll discover that smoking is good for you, fruits are not. I still love peaches, but I eat them for the taste – and the mem- ories – not because they might add a month to my life (in the ICU when I’m 90). I do not mean to be cyn- ical, just realistic. Take fish oil. For at least 10 years the National Institutes of Health has strongly recommended omega-3 fatty acids and fish oil for the prevention of car- diovascular disease. I held out, trusting both my gastronomic prejudices (more turf than surf) and my faith that time ulti- mately undoes all of life’s vérités. I waited. My orneri- ness has not been fully vin- dicated – NIH still recom- mends dietary fish oil – but it does find omega-3 supple- ments to be useless. Exhibit A for medical skepticism, however, re- mains vitamin C. When Linus Pauling, Nobel lau- reate in chemistry (not nu- trition), began the vitamin- C megadose fad to fend off all manner of disease, the whole thing struck me as bizarre. Yes, you need some C to prevent scurvy if you’re seven months at sea with Capt. Cook and citrus is nowhere to be found. Otherwise, the megadose is a crock. Evolution is pretty clever. For 2 million years it made sure Homo erectus, neanderthalensis, sapiens, what have you, got his daily dose without having to visit a GNC store. Sure enough, that fashion came and went. But there are always new wind- mills to be tilted at. The latest is gluten. Now, if you suffer from celiac disease, you need a gluten-free diet. How many of us is that? Less than 1 percent. And yet super- market shelves are groaning with products proclaiming their gluten-freedom. Sales are going through the roof. Another crock. Turns out, according to a massive Australian study of 3,200 products, gluten-free is use- less. “The foods can be sig- nificantly more expensive and are very trendy to eat,” says Jason Wu, the prin- cipal investigator. “But we discovered a negligible dif- ference when looking at their overall nutrition.” Told you so. Why then am I not ag- itating to have this junk taken off the shelves? Because of my other obses- sion: placebos. For which I have an undying respect, acquired during my early years as a general-hospital psychiatrist. If you believe in the curative powers of something – often encour- aged by the authority of your physician – a sugar pill or a glass of plain water can produce remarkable symptom relief. I’ve seen it. I’ve done it. So I’d never mess with it. If a placebo can alle- viate your pain, that was better than opioids. If going gluten-free gives a spring to your step, why not? But please, let the civility go both ways. Let the virtuous Fitbit foodie, all omega-3’d and gluten-free, drop the self-congratulatory smug- ness. And I promise not to say it’s all in his head. Live and let eat. Charles Krauthammer’s email address is letters@charleskrauthammer.com. © 2016, The Washington Post Writers Group Charles Krauthammer mine gluten-full Krauthammer 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 find their own way”The islands’ most-trusted news source 5 Cayman Compass • Monday January 4, 2016 kpmg.ky © 2015 KPMG, a Cayman Islands partnership and a member firm. New Partner Appointment The Partners of KPMG welcome Andrew to the Partnership and congratulate him on his recent promotion. Andrew Schofield - Partner and Head of Banking, Audit Andrew serves as a Partner in the Alternative Investments practice. He has extensive experience in the Asset Management, Banking and Structured Finance sectors, and has the versatility to service a diverse range of clients. As Head of Banking, he acts as lead Partner for a number of local and international banking audit clients. I am delighted to welcome Andrew to the partnership. Andrew will bring experience, a strong drive and the innovation necessary to deliver the type of service and advice that our clients and industry participants need. Kevin Lloyd, Managing Partner of KPMG in the Cayman Islands. “ “ Week 1 After a seven-person jury and two alternates were selected to hear the case, the first week of testimony got under way on Nov. 23 with a four-and-a-half day opening speech by Deputy Director of Public Prosecutions Patrick Moran. Mr. Moran alleged that Watson, Webb and Watson’s former personal assistant Rodriguez used a company Watson and Webb set up to “defraud public bodies of large amounts of money” following the 2010 award of a public hospital contract. The alleged fraudulent activities took place between December 2010 and late 2013 and involved the transfer of large sums paid by the Health Services Authority and the Cayman Islands National Insurance Company to AIS Cayman Ltd., a company prosecutors alleged Watson controlled while serving as chairman of the HSA board of directors. It was further alleged that Watson and Webb worked together to create AIS Cayman Ltd. as the Caymanian-owned subsidiary that would receive profits from what became known as the hospital’s CarePay swipe-card system. AIS Cayman was created just a few months before the CarePay contract was awarded in December 2010, jurors were told. Sums said to be profits from the contract were paid in both large checks and in cash envelopes that prosecutors allege were handled by Rodriguez. Prosecutors said the cash envelopes “appeared were to be handed out to Jeff Webb.” In his two-hour opening speech, Watson’s attorney, Trevor Burke, QC, painted quite a different picture. He stated that a number of government officials involved in the award and implementation of the CarePay swipe-card contract, fearing they would be caught up in the corruption investigation, sought to blame Watson for what occurred. Mr. Burke said that even Crown prosecutors could not identify who “the others” in the CarePay investigation might be at this stage, although he said they appeared content to “get a lot of free kicks” at Webb, who wasn’t there to defend himself. Nonetheless, Mr. Burke stated that “every prosecution witness” jurors would hear from during what is expected to be a two-month trial “absolutely endorsed” Advanced Integrated Systems (AIS) of Jamaica and its owner, Douglas Halsall, for the implementation of the CarePay project. Former Health Minister Mark Scotland – who is not on the witness list – secured an additional $2 million in funding for the expansion of the swipe-card project to private sector insurers, attorneys said. “There was no more enthusiastic supporter of AIS than … the minister responsible,” Mr. Burke said. Week 2 Trial testimony opened with Cayman Islands Health Services Authority chief executive Lizzette Yearwood stating she was “shocked” by email communications from Watson that showed what she called a “direct conflict of interest” in the CarePay contract and another contract for a computerized hospital pharmaceutical tracking system. Ms. Yearwood, who agreed to the payment of the first US$686,000 for the swipe- card contract in December 2010, told jurors she could not remember if she had read the agreement before authorizing payment. However, upon reading it in court, she said she recalled having some concern about the manner of payment used for the contract. She said Watson sought to allay her worries about the CarePay contract payments at that time. Later in the week, presiding trial Judge Michael Mettyear asked Ms. Yearwood whether a contract existed within government for a US$2.4 million expansion of the CarePay swipe-card system to private sector insurers and healthcare providers. “I believed there was a contract, but I never had sight of it,” Ms. Yearwood replied. Judge Mettyear responded that the capital project, while not enormous in terms of government’s budget, was still substantial. “I just wanted you to have a chance,” Justice Mettyear said to Ms. Yearwood. “Why is it you dismissed the notion that [the money] could be given by the minister [of health] alone?” Ms. Yearwood replied that even in a ministerial-driven initiative, a written contract of “some sort” would be required, setting out the obligations of either party. “I’m not aware of the minister being able to enter into any sort of business arrangement without any sort of physical contract,” she said. Week 3 Greg Hoeksema, former medical director of the Cayman Islands Health Services Authority, testified on Dec. 8 that he was “not comfortable” with either the CarePay patient swipe-card contract or a subsequent contract for a pharmaceutical tracking system being awarded to the local operator of a Jamaican-St. Lucian company, but acknowledged he did not formally object to either deal. With regard to both contracts going to AIS Cayman Ltd., Dr. Hoeksema told jurors on Dec. 7 that he felt it was already a done deal. “I knew this was a battle that I could not win,” he said via a video-link teleconference from Washington state. “I could choose to die on this battlefield or I could choose to let it go and press on with the other issues of the day. This was not going to be stopped.” The jury also heard during the week that government minister Marco Archer raised questions about the CarePay contract and that the former IT director of the public hospital system noted his view that the initial five-year US$13 million CarePay contract amounted to “highway robbery.” Hospital IT chief Dale Sanders also alleged that there appeared to be corruption in the granting of the CarePay agreement. “I felt very strongly and actually quite sadly [in June 2011] that there was some form of corruption that existed between AIS and Mr. Watson and that it was time for me to leave,” Mr. Sanders said. Mr. Sanders made his allegations of “corruption” in July or August 2011 to Sister Islands MLA Moses Kirkconnell and his sister Nancy Kirkconnell-Ewing on a trip to Cayman Brac. It was stated that Mr. Kirkconnell and now-government minister Osbourne Bodden met with Mr. Sanders in mid-2013 regarding his allegations during a trip to Washington, D.C. Defense attorney Mr. Burke suggested that Mr. Sanders appeared to have been given a lucrative consulting contract with government following that 2013 meeting. Mr. Burke also questioned Mr. Sanders’s commitment to the implementation of the CarePay contract. Mr. Burke said Mr. Sanders had failed to attend a key meeting regarding the hospital contract bid recommendations in November 2010 because he was picking up his girlfriend at the airport, and later suggested that Mr. Sanders had attempted to sabotage the project. “That’s not true. I would never do such a thing,” Mr. Sanders said. Week 4 Testimony revealed that as late as September 2013 – two years after the HSA had spent the majority of the funds – the hospital authority was still trying to find a copy of the contract that purported to authorize government to spend up to US$2.4 million on the proposed expansion of the CarePay system. The jury heard that the Ministry of Health had “no contractual relationship” that would have allowed it to spend such sums to effect the “rollout” of the CarePay system to private sector healthcare providers in the Cayman Islands, even though an initial contract had been agreed with the government hospital to use the system. Despite those statements, installments of US$1.2 million and US$600,000 were paid to AIS Cayman Ltd. and its partner company, Health Adjudication Systems of St. Lucia, in the latter half of 2011 and in 2012, the jury was told. Those sums ostensibly went for the “rollout” of the system to private sector insurers. The third and final payment of US$600,000 was never made due to government financial difficulties at the time. Former ministry chief financial officer Carrol Cooper testified that there was “no way” the ministry could have legally made those payments. Later in the week, it was revealed that both Caymanian men who ostensibly ran the local branch of the company that was awarded a five-year, US$13 million contract to implement the CarePay system in December 2010 had close personal ties to Webb. The two people named as directors of AIS (Advanced Integrated Systems) Cayman Ltd., Joscelyn Morgan and Eldon Rankin, have been described by prosecutors as “sham” frontmen directors. Prosecutor Mr. Moran alleged that the two were placed in their positions by Webb and Watson so that Webb and Watson could “cover up” their personal involvement in the company. It was also revealed that Minister Archer, who also testified in the case, had a close personal relationship with Mr. Rankin. The trial is due to continue on Jan. 4. CarePay trial: Healthcare contract case in court CONTINUED FROM PAGE 16 DISTRICT DAY Monday January 4, 2016 • Cayman Compass District Days George Town What are your New Year’s resolutions? 50 years ago: Crowds greet santa’s air arrival The Dec. 29, 1965 issue of the Caymanian Weekly, a precursor of the Cayman Compass, reported on the ar- rival of a very important visitor: “To the cheering of children (and adults), the hooting of car horns, the strains of ‘Santa Claus is Coming to Town’ played by the Infernaires, and the ringing of the bell on the fire truck, Santa Claus was welcomed to Grand Cayman when he arrived by Cayman Brac Airways on Thursday, Dec. 23. “His Honour the Administrator and Mrs. Cumber were right ‘on spot’ to give him a very official welcome and later headed the procession. “With Santa to add beauty and fun to the scene, were the Christmas Spirit (Mary Hurlston) and a Clown (Graham Thompson), and the Devil (Ira Thompson) somehow seemed to have got himself a vantage point from which to survey the joyous scene on top of the fire truck – it appeared as though he thoroughly enjoyed ringing the bell! “Santa and his escort then took their places on the gaily decorated tractor which was awaiting him and with a grand procession of cars, decorated and undecorated, toured the town, throwing candies and balloons galore along the many children along the route.” Among the many other seasonal vis- itors and locals home to visit family in Grand Cayman for the holidays, the paper reported: “Arrivals in the island for Christmas included Mr. and Mrs. Benson Greenall who are guests at the West Indies Club and need no introduction. Benson and Mel must view with satisfaction the large advance in tourism which they so nobly pioneered. Many of us view with nostalgia those wonderful dinners and dances on New Year’s Night at Galleon Beach. “Also at West Indian Club are Mr. and Mrs. Digby Morton of London. They are no strangers here. Mr. Morton is the world famous couturier and Mrs. Morton is Editor of one of London’s popular weekly magazines.” New Year’s is known as a time for celebration, reflection, and of course for making resolutions. On a recent morning, these George Towners shared their hopes and plans for 2016: My resolutions are to slow down, to stop doing too many things, and to finish writing my book of life in the Cayman Islands.” Janilee Clifford I want to be a better person and work harder.” Janet mavarro “Be a Christian person 100 per- cent and be happy with ev- eryone.” Kim Range “Be happy with my family and finish my dream house.” mary mavarro I want to sell more goods.” Kiernan Barnes “I want to help out more.” Ethan Ebanks I want my produce business to pick up, and I want to reach my financial goals.” Doreen Levy To become a better fisherman.” Dr. Jan pultr To do more training, lose weight and spend more time with the family.” Dr. Florence Enescot Get my own house and own busi- ness. Put more ef- fort in my studies, and drop all neg- ative thinking.” Darcia Bennett7 DISTRICT DAY Cayman Compass • Monday January 4, 2016 District Days George Town Book donations embrace bilingualism Hundreds of students at some local schools have a large pile of new books to dive into once classes re- sume, thanks to a donation from a local service club. Three government pri- mary school libraries re- cently received a com- bined total of more than $2,600 worth of new chil- dren’s books through funds raised by the Rotary Club of Grand Cayman Sunrise’s Literacy Committee. The club, which meets weekly at the George Town Yacht Club, raised the money during its March 2015 Buy-A-Kid-A-Book fun- draiser. Sir John A. Cumber Primary School, George Town Primary School and Savannah Primary School each received more than 100 new books for their school libraries. Donations by the public at Rotary Sunrise Buy-A-Kid-A-Book outside supermarkets and stores during the month of March went toward the purchase of the books. This year, Rotary Sunrise’s Literacy Committee decided to focus on acquiring much- needed bilingual Spanish/ English reading books for the three primary schools with the greatest number of ESL (English as a Second Language) students. “Bilingual children per- form better in school when they have the opportu- nity to use their first lan- guage and develop literacy in that language,” said Renate Dowell, ESL spe- cialist at the Department of Education Services. “Reading bilingual books with children fosters stronger language skills, a wider range of vocabu- lary and greater background knowledge,” she said. The specialist books were sourced in the United States and shipped to Cayman for free by Hydes Shipping Corp., which ensured that all of the money donated by the public went toward the cost of the new books. Members of Rotary Sunrise were at George Town Primary School on Dec. 10 to present the new books to student mem- bers of the Rotary Sunrise EarlyAct Club. The young club members got a firsthand look at how holding a public fundraiser can benefit local schools and the wider community. Education Minister Tara Rivers attended the presen- tation of new books to staff and students at Sir John A. Cumber Primary School’s li- brary on Dec. 15, and to- gether with Principal Joseph Wallace, thanked Rotary Sunrise for their continuing support of literacy projects in the government schools. “It was wonderful to see both students and teachers alike getting excited about these new bilingual learning resources,” Rotary Sunrise Literacy Director Su Mander said during the presentation. The next Rotary Sunrise Buy- A-Kid-A-Book fundraiser will run throughout March. Rotary Sunrise representatives meet with student members of the Rotary Sunrise EarlyAct Club at George Town Primary School. New Year’s Eve family fun at Camana Bay With the weather coop- erating, there was a strong turnout at Camana Bay’s early evening kid-friendly New Year’s Eve celebration on the waterfront. The evening featured music from DJ Selecta Renegade and a fire- works show. All around the Crescent, kids were gob- bling ice cream, twirling their glow-in-the-dark toys, and exclaiming in delight as the evening sky was lit up in a dazzling pyrotechnic display. At the free event, some families set up picnics on the lawn, while others took the opportunity to have a meal together at one of the many restaurants overlooking the action. The DJ’s music mix was a big draw, with the dance floor packed with youngsters and the young at heart showing off their moves, making for a great warm-up for the adult “No Resolutions” party that kept the venue hopping into the wee hours. The kids hit the dance floor. The Whiteside family embraces tradition as well as the biggest pop culture phenomenon of the season by sporting both Hogmanay (Scottish word for the last day of the year) and ‘Star Wars’ gear. DJ Selecta Renegade set the festive mood for the young crowd on the dance floor. The Castelo-Kelly family organized a festive picnic for friends and family.8 LOCAL NEWS Monday January 4, 2016 • Cayman Compass A month-by-month roundup of Cayman’s 2015 news stories JANUARY Triplets born on New Year’s Day; centenarian keeps working Cayman welcomed three baby girls for the new year. Alexa, Jenna and Emma Thompson were born at 12:24 a.m. on Jan. 1 at South Miami Hospital to Mark and Sheena Thompson. The girls were named by their mom and big brother Jayden. A week later, Wellesley Howell turned 100 and cel- ebrated with family and friends after he put in a day’s work at his shoe repair shop on Shedden Road. Three shootings, two fatal On Jan. 3, Victor Oliver Yates, 22, was fatally shot in West Bay in the vicinity of the Super C Restaurant on Watercourse Road. On Jan. 5, another 22-year-old was wounded outside the Pop- a-Top Liquor Store on Powell Smith Road. Police and law- makers expressed concern that the second incident could mark the reappearance of tit- for-tat gang-related shootings. On Jan. 23, David Ruben Ebanks was fatally shot in the Birch Tree Hill area of West Bay. He had re- cently graduated from the Passport2Success program and was an automobile me- chanic apprentice. His father said David was in the wrong place at the wrong time. Law school holds equality lecture series The Student Society of the Truman Bodden Law School hosted a series of lectures over three weeks on the topic “Misogyny and homophobia: What is the Cayman Islands doing to promote gender and LGBT equality?” LGBT stands for lesbian, gay, bisexual and transgender. The public was invited to the series as a way for students to give back to the community by engaging people on “legal matters that matter to all.” Caymanian debuts as TV star Grace Gealey, who grew up in Bodden Town, made her debut this month in a leading role with the televi- sion drama series “Empire.” She learned about acting from high school teacher Nasaria Suckoo-Chollette and her local mentor was Henry Muttoo, artistic director at the Cayman National Cultural Foundation. Grand Court opens, case management review announced The Office of the Director of Prosecutions would review support systems involved of the preparation of crim- inal cases for court, Attorney General Samuel Bulgin an- nounced at the formal opening of Grand Court on Jan. 14. U.K. criminal Justice adviser Claire Wetton went on to assist in the review over a three-month period. American named to head Electoral Boundaries Commission Lisa R. Handley, a voting rights expert and political science professor, became the first American to chair a Cayman Islands Electoral Boundaries Commission. She was appointed by Governor Helen Kilpatrick as Cayman prepared for single-member constituen- cies. Serving with her are attorney Adriannie Webb, nominated by Premier Alden McLaughlin, and at- torney Steve McField, nom- inated by Leader of the Opposition McKeeva Bush. Cuban migrants More than 75 Cuban mi- grants passed through or landed in Cayman Brac during a one-week period. Most were believed to be heading to Honduras. Four Cubans who left the Brac area were later sighted off East End. Their vessel overturned in rough seas off South Sound. The four were rescued by surfers, but one died. FEBRUARY Tonie Chisholm is Miss Cayman The first Cayman Compass for February fea- tured Tonie Chisholm, one of 10 participants in a pag- eant that filled the Lions Centre. Ms. Chisholm, 26, won the title of Miss Cayman Islands 2015, succeeding Lindsay Japal. Camana Bay expansion Dart Realty unveiled plans for a $300 million expansion of Camana Bay, using land- scaped bridges and elevating land to connect the develop- ment to a five-star hotel on Seven Mile Beach. Another US$1 billion is expected to be invested in the next 10 to 15 years, with development in- cluding residences. Taste of Cayman The 27th annual Taste of Cayman food and wine fes- tival attracted several thou- sand people. Attendees were able to sample dishes from more than 30 restaurants while enjoying local and vis- iting entertainers. The event, organized by the Cayman Islands Tourism Association, also featured cooking dem- onstrations, two cocktail competitions and an ama- teur chef cook-off. Michael’s Genuine Food & Drink was voted Cayman’s favorite res- taurant for the third consecu- tive year. Caledonian goes into controllership The Cayman Islands Monetary Authority placed Caledonian Securities and Caledonian bank into con- trollership days after the U.S. Securities and Exchange commission filed a lawsuit against the bank and its bro- kerage on Feb. 6. An attempt to put the bank into volun- tary liquidation was rejected by the Grand Court. Cancer Registry Bill released A draft Cancer Registry law was released for public consultation. It would require health professionals to report cancer cases to the registry. The rationale is that more complete data could be used to better deploy resources to help fight the disease. The bill was initially scheduled for action by legis- lators in the summer session, but by year’s end it had not been placed on the agenda. MARCH Landfill catches fire again A sizeable surface fire was reported at the George Town landfill on March 1, at least the fifth major fire there since December 2013. It was brought under con- trol the same afternoon, but crews planed to monitor the site for several days. A new compactor and additional fire wells helped the firefighters. Cruise line pledges $100,000 Carnival Cruise Lines pledged $100,000 to support the restoration of a section of reef severely damaged by one of its ship anchors in 2014. The cruise line maintained it was mistakenly directed to anchor at the site by the Port Authority’s licensed pilot. The pledge was described as a gesture of goodwill to show how much Carnival values the marine environment. Political aide fired Kenneth Bryan, political assistant to Premier Alden McLaughlin, was fired after a closed-door meeting with the premier and Cabinet Secretary Samuel Rose. Mr. Bryan was suspended in December after being charged with assaulting po- lice and disorderly con- duct outside a night club in October. His trial com- menced in August, was ad- journed until November and then again to February 2016. Frank Cornwall Jr. replaced Mr. Bryan as political aide to the premier. Airport expansion plans queried Plans to more than double the size of Owen Roberts International Airport ter- minal were queried after airport authorities said boarding bridges, also known as jetways, were too expen- sive. The new construction, at US$55 million, would still require passengers to dis- embark via stairs and then walk to the terminal. Jetways would have added $20 mil- lion to the cost of the redevel- opment, airport and tourism bosses said. FATCA portal launched The Cayman Islands Department for International Tax Cooperation has launched an Automatic Exchange of Information portal that allows Cayman’s financial institutions to reg- ister and report customer data under the U.S. Foreign Account Tax Compliance Act. Farmer of the Year announced Hamlin Stephenson re- ceived the trophy for “Farmer of the Year” during an awards ceremony at the Stacey Watler Agricultural Pavilion. He was also named “Crop Farmer of the Year.” Paul Bodden and William Chisholm tied for “Livestock Farmer of the Year.” Costs ordered in election challenge Chief Justice Anthony Smellie ordered West Bay’s Gordon Hewitt to reimburse MLA Tara Rivers for costs she incurred responding to his challenge of her election in 2013. Costs were described as “quite significant,” but neither the amount nor the time frame for payment was specified. Mr. Hewitt had challenged Ms. Rivers’s qualifications for election. He is the husband of Velma Powery-Hewitt, who finished fifth in the race for four seats. Healthcare not free The Health Services Authority was expected to have nearly $70 million in unpaid bills from ser- vices rendered to patients, PLEASE TURN TO PAGE 9 » Caymanian actress Grace Gealey came to international attention in 2015 with her role in ‘Empire.’ Tonie Chisholm is crowned Miss Cayman Islands 2015. - Photo: taneos Ramsay More than 30 local restaurants, including those at the Westin resort, whose staff members are pictured, offered samples of their fare at 2015’s Taste of Cayman. - Photo: stePhen ClaRke9 LOCAL NEWS Cayman Compass • Monday January 4, 2016 FIND YOUR DREAM CAR AT AN AFFORDABLE PRICE OVER 10,000 CARS IN STOCK Tel : +81 42 440 3440 | Email : top@beforward.jp www.beforward.jp Shipped to Georgetown Cayman Islands Chief Executive Officer Lizzette Yearwood told the Public Accounts Committee. However, public hospitals have a mandate to deliver care to those who cannot, or will not, pay for it, she noted. APRIL CNB bank robbers sentenced Four men found guilty after a retrial were sentenced for their roles in the June 2012 robbery of the Cayman National Bank branch at Buckingham Square. David Tamasa and Andre Burton received 14 years; George Mignott received 12 years; Rennie Cole, nine years. Justice Ingrid Mangatal said deterring other would-be robbers had to be a signifi- cant factor. The vast majority of the $502,436 stolen was never recovered. The Court of Appeal had ordered a re- trial after ruling that there had been an error in the first trial concerning the defen- dants’ right to remain silent and how a jury should be in- structed on that point. A fifth defendant, Ryan Edwards, did not win his ap- peal and remained subject to his sentence of 13 years. UCCI board of governors gets new members Lemuel Hurlston, a former senior civil servant, was ap- pointed chairman of the board of governors for the University College of the Cayman Islands. Cabinet chose Mr. Hurlston to re- place Sheree Ebanks, who resigned. Board member Andrea Bryan was appointed deputy chairman to re- place Linford Pierson, who also resigned. Local attorney Stephen Watler was ap- pointed member. $6 minimum hourly wage recommended The findings of a re- port by the Minimum Wage Advisory Committee were an- nounced by Premier Alden McLaughlin, with $6 per hour being the recommended minimum wage. The report makes exceptions for live- in domestic helpers and ser- vice industry workers who receive tips. Any minimum wage will require changes to several laws. The committee also called for a review of the $3,000 per month household in- come threshold for tempo- rary public assistance. That rate puts welfare recipi- ents at a level earning $9.62 an hour, which chairman Lemuel Hurlston called “too generous.” Private members’ motion alleges conspiracy Leader of the Opposition McKeeva Bush filed a pri- vate members’ motion in the Legislative Assembly asking for an independent review of the involvement of high- ranking officials in an al- leged conspiracy to remove him as premier in 2012. The officials included then-Gov- ernor Duncan Taylor, Police Commissioner David Baines, and Alden McLaughlin, who is now premier but was then Leader of the Opposition. Mr. McLaughlin subsequently ad- vised that the motion had been filed too late for consid- eration in the April meeting. Tempura case drags on After hearing submis- sions in Grand Court, Justice Timothy Owen agreed that hundreds of pages of re- cords related to the ill-fated Operation Tempura police corruption investigation should be withheld from public release. The ruling marked the culmination of a three- year process to decide whether a 2010 complaint by Tempura’s former senior investigating officer, Martin Bridger, and the Cayman Islands governor’s office’s subsequent evaluation of it should be made public. Justice Owen decided that an ongoing criminal investigation targeting Mr. Bridger allowed the gov- ernor’s office to withhold those records from release, essentially declaring the governor’s office victorious in its appeal against an ear- lier order from the informa- tion commissioner’s office that sought the release of those records. The records relate to a 2010 complaint ini- tially filed by the Tempura probe’s former legal adviser, Martin Polaine, which was carried forward later by Mr. Bridger. The complaint, which alleges misconduct by certain Cayman Islands judicial and legal figures involved in the Tempura probe, was dismissed by then-Cayman Islands Governor Duncan Taylor. Former Commissioner of Police Stuart Kernohan withdrew his lawsuit against Mr. Bridger. Mr. Kernohan was fired as commissioner following a criminal probe led by Mr. Bridger, but he was never charged and was eventually exonerated. Meanwhile, Mr. Bridger confirmed that he has never been interviewed in connec- tion with a criminal probe that is apparently going for- ward against him. Drugs a frequent find on local beaches Several million dollars worth of cocaine and ganja have washed up on Cayman shores over the past two-and- a-half years, police revealed. In total, 60 kilos of cocaine and 90 kilos of ganja had been found since January 2013. Authorities said traf- fickers using the Caribbean as a transit route from Central and South America to the U.S. were thought to be responsible for the drugs. Detectives said they could have been ditched by traf- fickers attempting to flee the U.S. Coast Guard. MLA warns of revolution and bloodshed North Side MLA Ezzard Miller warned of coming revolution and bloodshed in the streets if Cayman does not change immigra- tion policies that impact employment of Caymanians. He was speaking in support of a private members’ mo- tion that asked for the gov- ernment to mandate that all business staffing plans be made public. Several political and business leaders con- demned the remarks. Opposition Leader McKeeva Bush noted that Cayman’s tourism and financial ser- vices sectors are both highly dependent on tran- quility and stability, which he said “we must never allow to be compromised or called into question.” Government ignores internal audits The majority of recom- mendations made by the Cayman Islands’ own audi- tors during a five-year pe- riod were not implemented, a report obtained through the Freedom of Information law revealed. Between May 2007 and July 2012, the government Internal Audit Unit pro- duced 55 reports with a total of 327 recommenda- tions. According to a follow- up review, 78 recommen- dations (about 24 percent) were fully implemented. A total of 166 recommenda- tions (51 percent) had no progress indicated. The re- maining 83 were either “au- tomatically closed” because of age or were considered “no longer relevant.” MAY Austin Harris’s guilty plea Austin Harris, Rooster 101 “Cayman Crosstalk’s” former radio host, escaped criminal prosecution after pleading guilty to assault and property damage in Summary Court. Harris claimed to be under the influence of al- cohol at a gathering at which he was seen by witnesses seizing a woman by the throat before being pulled away by an intervener. Harris claimed he had no recollec- tion of the incident. The Office of the Director of Public Prosecutions pro- ceeded with its case, though the victim wanted to avoid litigation after having given her statement to police. Magistrate Angelyn Hernandez discharged Harris with no conviction recorded, saying “Everyone deserves a chance.” MLA wants to prohibit handouts George Town MLA Winston Connolly candidly expressed his concerns re- garding the custom of cash exchange for votes and loy- alty, between voters and pol- iticians. The legislator pro- posed that there be a registry through which politicians would be able to administer their donations. Implementing such a A month-by-month roundup of Cayman’s 2015 news stories CONTINUED FROM PAGE 8 PLEASE TURN TO PAGE 10 » George Mignott, seen in an image from CCTV recorded during the robbery of Cayman National Bank, was sentenced to 12 years in prison for his role in the crime. Cocaine was found on an East End beach in April. Several other packages of drugs washed up on local beaches throughout the year.Next >