No clear solutions for global economic inequality THIS ISSUE: Asia’s economic climb scant threat to Caribbean tourism >>PAGE 6 MARKETS Financial markets and global economy - Are they in sync? >>PAGE 2 ECONOMY ‘We are facing a secular economic breakdown’ >>PAGE 4 GLOBAL ECONOMY Hong Kong feels squeeze of a slowing China and rising rates >>PAGE 12 F E BRUA RY 2 0 16 • W WW . C A Y J OU R N A L . COM 16 0 Digicel launches ad blocker in Cayman with little fanfare No clear solutions for global economic inequality CHARLES DUNCAN Digicel has been rolling out a new network-level ad blocker across the Caribbean over the past couple of months to stop online advertise-ments from going over its network. The company launched the service in Cayman in December to little fanfare, but it has not been without its critics in other markets. Late last year the Eastern Caribbean Telecommunications Authority, the tel-ecom regulator for fi ve states in the region, told Digicel that the ad blocker violates net neutrality rules and would be illegal. Net neutrality is the concept that all data is equal and Internet service providers cannot give priority to certain types of data over others. For example, with neutrality, a company such as Netfl ix could not pay for special access to a “fast lane” over the net-work, nor could other sites and services be singled out and blocked or slowed down.The regulator wrote in early Novem-ber, “The implementation of this technol-ogy by Digicel will hinder the growth, us- age and deployment of broadband.” The law for the authority governing Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines is clear on the subject of net neutrality, but that clarity does not extend to all Caribbean states.The ad blocker software has already been implemented in Jamaica, Cayman and other countries. Responding by email to questions about net neutrality, Antonia Graham, head of public relations for the Digicel Group, said, “All data is not equal, i.e a celebrity gossip tweet is not the same as the online broad-cast of a distance learning seminar.” She continued, “Available capacity on any broadband network is a limited and costly resource. Prioritisation allows operators to optimise the use of their networks, reduce costs and tailor pric- ing according to customers’ demand for capacity – benefi ting the customer and improving the customer experience.” In an earlier interview, Ms. Graham said the ad blocking software will stop online advertising from using up custom-ers’ data allowances. Big companies like Google and Facebook can pay Digicel KELSEY JUKAM While world economic growth is on the rise, inequality has worsened. Accord-ing to a recent Oxfam report, 62 billion- aires now own as much as the poorest half of the world’s population. Inequality, as it affects developed and emerging markets, often resulting in unemployment, poverty, political instability and confl ict, has become one of the key agenda items on the global policy stage. The issue is also a topic of discussion in the Cay- man Islands, where many have begun to describe a widening gap between the rich and the poor. It was recently the focus of Fidelity Bank’s 2016 Cayman Economic Outlook conference. The 13th annual conference, “Think: Inequality Addressing the Global Imbalance,” at The Ritz-Carl- ton, Grand Cayman, brought a panel of international speakers and local leaders to discuss the ramifi cations of inequality on global and local markets. While the morning began with fairly bull-ish perspectives on the global economy, keynote speaker Dambisa Moyo warned the audience that her outlook on the global macroeconomic environ- ment and, specifi cally, income inequality, would be “pretty negative and pretty bearish.” Though income inequality between countries has improved over the last several years, she said, the same cannot be said for income inequality with- in countries, especially developed countries. Ms. Moyo, a global economist and author who analyzes the macroeconomy and international af- fairs, and who was named one of Time magazine’s “100 Most Infl uential People in the World”in 2009, Moderator Jeremy Hurst, author Rasmus Ankersen, Minister Tara Rivers, Paul Byles, economist Dambisa Moyo and Health City marketing director Shomari Scott, during a panel disucssion at the Cayman Economic Outlook session, ‘Think: Inequality.’ – PHOTO: DAVID WOLFE PHOTOGRAPHY PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 » the cayman islands journal estaBlished 1965 www.caymancompass.com – 50 CENTS – Wednesday February 3, 2016 Moderate with wave heights of 3 to 5 feet. High of 86 Low of 76 Editorial | pagE 4 early elections: cayman deserves clarity and certainty dramatic spike in foreclosures James Whittaker jwhittaker@pinnaclemedialtd.com The number of people losing their homes to foreclosures in the Cayman Islands has al- most quadrupled in the last five years. There were 116 forced sales in 2015 ac- cording to data from the Cayman Islands Real Estate Brokers Association’s multi-listing system. That compares with just 30 in 2011. Realtors say the dramatic jump suggests a more aggressive approach from banks to dealing with bad debts in the past two years. It has also been attributed to a time-lag in cause and effect from the global financial crisis, with banks waiting, in some cases for several years, to foreclose on properties where the mortgage is not being paid. Kim Lund of RE/MAX said the company is handling an increasing number of forced sales, which he said is surprising given the general improvement in the economy. “You would think these sales would fall off, as people should be able to pay their mort- gages in a stronger economy. This would seem to indicate that the banks are becoming more aggressive with getting properties sold, where mortgages are still not performing.” The flip side of that, he said, is that buyers have more disposable income and are less risk averse. “As the economy strengthens, there are more purchasers willing to invest in fore- closure properties to improve these proper- ties for rental income or capital apprecia- tion. Purchasers feel this investment will pay off over the next several years, due to the im- proving economy.” Michael Day, president of CIREBA, said the circumstances vary in every case. In some instances owners were collecting rent and not paying the bank and there was very little sympathy for the buyer. In other cases owners had fallen on hard times and could no longer afford to pay the mortgage. “There are some very sad cases. I would much rather see people work something out if they can rather than have the property listed.” Mr. Day believes the banks do try to work with homeowners where possible, and sug- gested the increase in forced sales likely CarePay Trial Judge: ConspiraCy forms ‘Crux’ of Watson proseCution Jury likely to get case Wednesday brent Fuller bfuller@pinnaclemedialtd.com Two months of testimony in a prosecu- tion that called more than two dozen wit- nesses can be boiled down to a concept that a Cayman Islands Grand Court justice called “dead easy,” jurors in the criminal trial of Canover Watson heard Tuesday. “[Conspiracy] is simply an agreement to commit a criminal offense,” Justice Michael Mettyear said during his summing up of the case, which started testimony on Nov. 23, 2015. “The crux of this case is that this was a conspiracy between these two men, [Jeffrey] Webb and Watson.” Two of the six criminal counts in the indict- ment filed against Watson allege that he, Webb and unnamed “others” conspired to defraud the Cayman Islands government, bilking it out of what amounted to millions of dollars over the CarePay public hospital swipe-card contract. It was a scheme that prosecutors allege Watson directed as former chairman of the Health Services Authority board of directors. For the first two counts of the indictment, Justice Mettyear said that the Crown had to prove there was such a conspiracy involving dishonest acts and that Watson was involved. The alleged conspiracy does not have to involve a formal agreement, the judge cautioned jurors, merely a “nod and a wink.” ritz-Carlton named region’s best James Whittaker jwhittaker@pinnaclemedialtd.com The Ritz-Carlton, Grand Cayman, has been named the Caribbean’s top hotel by the U.S. News & World Report. The luxury hotel on Seven Mile Beach was ranked No. 1, ahead of the Jamaica Inn in Ocho Rios and the Dorado Beach, an- other Ritz-Carlton resort, in Puerto Rico. The rankings are based on reputation among professional travel experts, guest re- views and hotel class ratings, according to the organization’s website. “We are extremely honored to receive such an elite and distinct award,” said Marc Langevin, general manager of The Ritz- Carlton, Grand Cayman. He said the hotel is more than just a luxury destination on one of the world’s most beautiful beaches and prides itself on the level of service offered. “Our ladies and gentlemen are com- mitted to providing service excellence to our guests, and this is the primary reason the resort continues to be recognized for its accomplishments.” The Washington, D.C.- based U.S. News & World Report specializes in consumer advice, rankings and analysis. The organization ranked more than 2,500 hotels across the USA, Caribbean, Mexico and Canada – with the top 10 per- cent among the luxury segment analyzed and selected as winners. It has published a list of 287 hotels designated as the best in the Caribbean according to its ranking system, with Cayman’s Ritz-Carlton at the top. Last year the same organization, desig- nated Grand Cayman’s Seven Mile Beach as the world’s top beach travel destination. Little Cayman Beach Resort also tops Regionally, too, there was good news for another Cayman resort. The Little Cayman Beach Resort was named by the Caribbean Journal as the best dive resort in the Caribbean. “A place for serious divers who want to explore one of the world’s top dive sites, a bucket-list diving destination – the island of Little Cayman,” the magazine says of the resort. The ritz-Carlton, Grand Cayman has been named the No. 1 hotel in the Caribbean by U.S. News & World report. PLEASE TURN TO PAGE 9 » PLEASE TURN TO PAGE 8 »2 LOCAL&REGIONAL Wednesday February 3, 2016 • Cayman Compass SATURDAY NIGHT: For your viewing pleasure, minors under the age of 18 will not be admitted to any film starting after 6pm, unless accompanied by their parent. © y x *Additional charges will apply per 3D ticket requested. - WEDNESDAY - Daily Matinees Every Day $8.00 Seniors, Mon-Fri Before 6pm Cayman Cinema@cbcinema6cbcinema6 640-FILM (640-3456) KUNG FU PANDA 3 3D (PG) 12:20 I 2:40 2D I 5:00 I 7:20 2D I 9:40 THE 5TH WAVE (PG13) 1:10 I 4:00 I 7:30 I 10:10 RIDE ALONG 2 (PG13) 1:00 I 3:30 I 7:10 I 9:40 THE FINEST HOURS 3D (PG13) 1:20 I 4:10 2D I 7:00 I 9:55 2D 13 HOURS - SECRET SOLDIERS OF BENGHAZI (R) 1:15 I 4:30 I 8:00 NORM OF THE NORTH (PG) 12:50 I 3:10 STAR WARS VII (PG13) 6:45 I 9:50 More details emerge on rescue at sea Charles DunCan cduncan@pinnaclemedialtd.com A radio call from a sail- boat led to the rescue of 15 Cuban migrants 4 miles off South West Point, George Town, according to police. The migrants, four women and 11 men, were part of a group of 64 people trav- eling on two boats that had stopped on Cayman Brac and Grand Cayman over the weekend. Police say a sailboat trav- eling to Panama saw the makeshift wooden boat flying a white flag while people bailed water from the vessel, and alerted the Port Authority. The police marine unit reached the sinking boat within 25 min- utes and the migrants aban- doned the boat. Officers took them to shore to join the rest of the group in detention on Grand Cayman. Police marine commander Inspector Leo Anglin said in a press release, “We believe that the coordination of first responders with the public in this instance helped avert a water tragedy.” David Bridgeman saw the boat in East End. He said it got stuck on the reef and was towed to the dock at Morritt’s resort “where they made some repairs to the rudder and tried to repair a leak.” Speaking with the migrants through an interpreter, Mr. Bridgeman said they planned to sail to Honduras. “I couldn’t see how their boat was going to make it to Honduras,” he said. Cuban migrants regu- larly sail south from Cuba in hopes of landing in Honduras to travel by land north to the United States. The number of Cuban migrants taking the risky voyages either north to Florida or south to Central America is increasing as Cubans worry about im- proving relations with the U.S. and the potential end of the “wet-foot dry-foot” policy that gives them a fast track to a U.S. green card. Wesley Howell, deputy chief officer for security and public safety with the Ministry of Home Affairs, said all of the migrants will be repatriated to Cuba. “While we note the pub- lic’s desire to aid the onward journey of the migrants by sea for humanitarian reasons, we urge the public not to as- sist these dangerous journeys and to be mindful that the migrants face the risk of hor- rible death at sea because of the state of their vessels and lack of safety equipment,” Mr. Howell wrote in an email. In 2014 the U.N. estimated 73 casualties/missing mi- grants in the Caribbean area. According to Mr. Howell, last year set the 10-year re- cord for Cuban arrivals in the Cayman Islands, with 226 migrants making landfall. Red Cross honors volunteers The Cayman Islands Red Cross hosted 130 volunteers at its appreciation night on Jan. 16. The annual event not only highlights the accomplishments of the organization through its volunteers, but also sets the tone for the year ahead, said Director Jondo Obi. Also attending were the Governor and Patron of the Red Cross, Helen Kilpatrick, and Deputy Governor Franz Manderson. Pictured, from left, are Red Cross staff Samantha White-Smith, who was named Volunteer of the Year; Remedios Imperial, Kristy Van Den Broek, Deputy Director Carolina Ferreira, Denise Miller, Patty-Sue McTaggart Duval and Jondo Obi. Bail denied on ganja charges CarOl WInKer cwinker@pinnaclemedialtd.com Magistrate Valdis Foldats denied bail on Tuesday after hearing details of ganja charges against Jermaine Jerome Barnes, 29, of a George Town address. Barnes faces two charges of possessing ganja with in- tent to supply and one of cul- tivating ganja, in addition to a separate charge of pos- sessing criminal property. Crown counsel Eleanor Fargin said officers attended Barnes’s residence last week with a search warrant and saw him sitting in a vehicle nearby. They approached the car and identified themselves. On the passenger side they saw a bag with eight pack- ages in it. Barnes told the officers someone had asked him to keep the bag until someone came to collect it. Officers then conducted a search at Barnes’s residence, where they found two jars of ganja in the kitchen and more ganja in a small plastic bag. In the backyard there were ganja plants and seeds. Officers also found his passport and an electronic ticket that suggested a flight to Great Britain at 7:15 p.m. that same day. Further, they found US$741; that money is the subject of the charge of possessing criminal property. Barnes admitted smoking ganja and putting some cig- arette papers into one of the packages found in the car. He repeated his ac- count of having the bag to pass on to someone, but he did not name any person. Ms. Fargin said she did not yet have the weight of the illegal drugs, but she handed up photographs, which she said showed that the amount was significant. She pointed out that Barnes was to have returned to court for a part-heard matter – trial for possession and consumption of ganja – later this month, but the plane ticket showed a return date of July 27. Defense attorney Prathna Bodden explained that Barnes had intended to go away for two weeks. He was not sure of his exact re- turn date and had been told that the fee for changing would be nominal. Barnes maintained that the ganja in his home was for personal use, she told the court. He and his files had been brought to the court- house on Monday, she noted, but there was an alarming incident and it ended up with Barnes being taken to hospital. “It is suspected that he had a minor heart at- tack,” Ms. Bodden advised, adding that it may have been brought on by anxiety. The defendant is now on medica- tion, she said. The magistrate expressed concern, in part because of Barnes’s previous ganja con- victions. He denied bail, but told Barnes he could take his bail application to Grand Court. All charges were adjourned until the part-heard matter, which is set for Feb. 17. The police marine unit reached the sinking vessel within 25 minutes, and the migrants abandoned the boat. The 15 migrants stopped in East End before heading back out to sea. - Photos: DaviD BriDgemanThe islands’ most-trusted news source 3 Cayman Compass • Wednesday February 3, 2016 SUPERCHARGED ALTERNATIVE INVESTMENTS: FEBRUARY 4-5, 2016 • THE RITZ-CARLTON GRAND CAYMAN, CAYMAN ISLANDS • CAYMANSUMMIT.COM FEBRUARY 4-5, 2016 • THE RITZ-CARLTON GRAND CAYMAN, CAYMAN ISLANDS • CAYMANSUMMIT.COM PANTONE 130 PANTONE 179 PANTONE 425 Platinum Executive Platinum Gold Silver LAST CHANCE TO REGISTER & MEET OUR SUPERCHARGED INDUSTRY SPEAKERS! 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CEO and CIO, Morgan Creek Capital Management, LLC. Zimmerman, BruceChief Executive Officer & Chief Investment Officer, University of Texas Investment Management Co.The islands’ most-trusted news source 4 – EDITORIAL – Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. Printed and Published by: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town send us yOur VieWs Or neWs: P.O. Box 1365 Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com adVertise With us: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS daVid r. legge and Vicki l. legge EdITOR-In-CHIEf daVid r. legge A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will findtheirownway” Wednesday February 3, 2016 • Cayman COmpass Election time in the Cayman Islands is rapidly approaching. Just when it will arrive … that’s something we’re not so sure about. And it’s a major problem. The reduction-by-defections of the ruling majority in the Legislative Assembly — now standing at 10 members to eight — has pushed this government to the very edge of viability. The loss of just one more member could spell doom for the Progressives-led government. All of the above has engendered much speculation about political upheavals within parties, the possibility of the early dissolution of Parliament and the prospect of new elections in 2016 … perhaps as early as the first half of the year. On the marl road, chins are wagging about ulterior motives, ministerial danglings and the influence of the impending transition from multimember districts to “one man, one vote.” There are more calculations occurring behind closed doors on this issue than there are within the audit departments of Cayman’s Big Four accounting firms. In sum, there has been plenty of noise. What there hasn’t been is what the people of Cayman deserve: clarity and certainty. We don’t have an opinion on the particular timing of a hypothetical election, be it winter, spring, summer or fall. However, if we are about to have an off-cycle election, we as a people deserve and need to know. While it is a perfectly legitimate option, an early election is, well, “early.” In other words, it compresses the schedule for campaigning and moves up the dead- lines for candidate registration, and, far more impor- tantly, for voter registration. At the beginning of the year, 18,271 people were registered to cast ballots in Cayman, according to the Official Register of Voters kept by the Elections Office. A few weeks ago, Supervisor of Elections Wesley Howell said there are an estimated 5,000 Caymanians who are eligible to register to vote, but haven’t. What that means to us, in the context of an early election, is that poor communication on the part of officials, in the form of a lack of forewarning, could result in the disenfranchisement of perhaps the single- largest bloc of voters in Cayman (amounting to 21 percent of the eligible voting population). Three individuals in this country are in a position to offer some clarity as to the potential for or timing of an early election. They are Premier Alden McLaughlin, Opposition Leader McKeeva Bush and Governor Helen Kilpatrick. To them, we pose the following direct questions, which merit direct answers: • Premier McLaughlin, do you support an early election, or not? • Mr. Bush, do you support an early election, or not? • Governor Kilpatrick, if this government falls short of a ruling majority, are you willing to call an early election, or not? … To all three, if so — then when, exactly? Early elections: Cayman deserves clarity and certainty Double standards and distrust of officialdom A major reason for the growing distrust of govern- ment is the double standard whereby government offi- cials and employees often suffer no consequences from incompetence, misbehavior and even criminal violations of the law. In the common law, there is a general prin- ciple that if a person is dam- aged by the actions of others through negligence or illegal behavior, he or she has a right to redress. Private companies and their officers and employees are subject to criminal prose- cution and civil suits for dis- semination of false informa- tion about their company and products, or for selling un- safe products. One sees the endless hawking by ambu- lance-chasing lawyers trying to obtain private plaintiffs to sue drug companies and those involved in accidents. Many of the actions of these lawyers may be unseemly but they do tend to help protect the public. The actions of govern- ment officials and employees are often far more dam- aging than those in the pri- vate sector, but they are protected by “sovereign im- munity” and civil service pro- tections. Sovereign immu- nity is a “legal doctrine by which the sovereign or state cannot commit a legal wrong and is immune from civil suit or criminal prosecution.” It comes from the ancient con- cept that the “king can do no wrong.” Governments can consent to being sued, and there are many excep- tions to “sovereign immunity.” Typically, if a government employee driving a govern- ment vehicle on official busi- ness is at fault in a traffic ac- cident, the government or its insurance company will pay damages, and the employee would not be protected from a manslaughter conviction in the case of a fatality. However, all too often gov- ernments use sovereign immu- nity or civil service protections to shield those in government from the consequences of their own actions, which have done real harm to others, even for political reasons. My Cato colleague, Chris Edwards, who is an expert on government personnel practices, reported: “Recent data show that just 0.5 per- cent of federal workers a year get fired for any reason, in- cluding poor performance or misconduct. That rate is just one-sixth of the private sector firing rate.” Those of you who have ever managed a work force know that if you cannot get rid of poor performers, they tend to undermine both the effectiveness of the orga- nization and morale. Currently, there is the ex- ample of overwhelming in- competence, negligence and perhaps worse by local, state and federal officials in the case of the citizens of Flint, Michigan, being sold water with dangerous levels of lead by the government- owned water company. As of this writing, no class-action lawsuits have been filed be- cause a number of law firms have stated they are not sure they can overcome the sov- ereign immunity provisions. Fortunately, Michigan law provides the ability to sue the sovereign in certain cases and, thus, other lawyers are hopeful that the courts will allow suits. If the water com- pany were private, as in many places, there would have al- ready been suits in which the company and its officials would be held at least civ- illy, if not criminally, liable. If governments are going to run activities that can be owned and operated by pri- vate companies, there is no justification for giving a pass to misbehavior by the gov- ernment managers and em- ployees when private man- agers and employees would be prosecuted for doing the same thing. Remember last August when the Environmental Protection Agency (EPA) caused a major spill of con- taminated water into a river in Colorado that flows through Navajo Indian lands and where many Navajo are dependent on the river? Betsy Woodruff of the Daily Beast reported on a huge spike in suicides at Navajo Nation in recent months that many believe were caused by the damage, stress and incom- petent actions of the EPA. If a private company had done such a thing, you can bet the company and its officers would have paid major fines and perhaps some of its offi- cers would be facing jail time. Who has been fired from the EPA because of the river spill and Flint water disaster? The double standard is most evident in the Obama “Justice” Department. Laws were clearly violated in both the “Fast and Furious” gun scandal and in the Internal Revenue Service’s targeting of conservative groups scandal. Yet no one has been pros- ecuted, sent to jail or even fired. Hillary Clinton purport- edly violated at least some laws and regulations re- garding what we now know to be top secret information (as revealed this past week by the State Department) on her server. If the FBI and Justice Department give her a pass, as they did with others in the IRS and “Fast and Furious” cases, it will be apparent to all that officials in these agen- cies are corrupt to the core. Corruption in government destroys both civil society and economic growth. Part of the longer-term solution is for the legislative bodies to greatly limit the availability of sovereign immunity pro- tections of government offi- cials, and to privatize all of those operations now done by government that could be done by the private sector – e.g., Veterans Affairs hos- pitals and medical services. Governments can do an ef- fective job in holding pri- vate parties to account and allowing private redress for wrongs. Several thousand years of experience show that those in government rarely do a good job in holding themselves accountable. Richard W. Rahn, a senior fellow at the Cato Institute and chairman of the Institute for Global Economic Growth, is on the Editorial Board of Cayman Financial Review. © 2016, The Washington Times RichaRd W. Rahn RichaRd W. Rahn5 LOCAL NEWS Cayman Compass • Wednesday February 3, 2016 Show details: Gates Open at 7:30am General Admission $10.00 Children ages 2-11 $5.00 Under 2 free Expanded Parking agricultural show Spend the day at the biggest One-Day Family Fun Day The 49th Annual Agricultural Show, Agricultural Grounds, Lower Valley NEW to the Show Fruit & Vegetable Carving Competition Hats of Yesterday & Today Fashion Show Competitions & Dancing Demonstrations Carnival Games Stay tuned for additional surprises Returning Favorites Cooking Competition Pony Rides, Petting Zoo, Arena & Rodeo Activities Interactive Children’s Play Area Educational and Current Events Exhibits Livestock Displays Baby Competition District Displays Exhibits Agro Industrial Area Food Court with delicious Cayman Delicacies Raffle Tickets are on sale for $25.00, allows general admission to the Show Grand Prize CI$20,000.00 1st Prize: Appliance Package, Compliments A.L. Thompsons 2nd Prize: Tickets for Two to New York, Compliments of Cayman Airways 3rd Prize: IPhone 6, Compliments of FLOW Website: Caymanagriculture.org l Facebook: caymanagriculture l Twitter: @cayman ag. Society Purchase your Tickets from: Rembley Reid 924 3369, Audley Williams 327 8176, Funky Tangs, Meringue Town, Society Members Thanks to our Sponsors MEDIA LTD. HURLEY’S Planting the Seeds to Better Health Cayman Delicacies Kiteboarders raise thousands for Cancer Society Kelsey JuKam kjukam@pinnaclemedialtd.com A small team of ambitious and charitable kiteboarders who plan to ride the wind from Little Cayman to Grand Cayman as part of the first Maples Kiting for Cancer event have raised $100,000 for the Cayman Islands Cancer Society. The kiteboarders are mon- itoring the weather and plan to set off on their 100-mile journey as soon as wind con- ditions are right, sometime in the next couple of weeks. It’s a trek that could take as long as 10 hours, and while such a trip has never been at- tempted, event organizer Amy Strzalko is confident the team will be successful. Ms. Strzalko said that after two or three hours of kiteboarding in the open water, boarders are sure to be exhausted and scared, but then, she said, they’ll “start getting emotional” about why they’re doing it. “You just start thinking how much money we’ve raised and why we’re doing it, and then it just makes you go,” Ms. Strzalko said. “I think the reasons we’re doing it, that will drive everyone.” Ms. Strzalko, a profes- sional kiteboarder who works as a photographer when she is not in the water, came up with the idea last year to have a kiteboarding event to raise money for charity, and she knew im- mediately which charity she would like to support. “Everyone that’s doing it, we’ve all been touched or affected by cancer in some way,” Ms. Strzalko said. “I’ve had a couple friends that I’ve lost in the past couple of years, so that was my first thought, straight away.” All of the money raised by the event will go directly to the Cayman Islands Cancer Society, and will stay on is- land, helping struggling local families pay medical bills and other expenses associ- ated with cancer treatments. The cancer society is cur- rently financially supporting 130 patients, according to the organization’s operations manager, Jennifer Weber. Ms. Weber said she is im- pressed that the kiteboarders were able to raise such a large amount of money. “I’m not often speechless, but that is just something that leaves us amazed and stammering for words to de- scribe how grateful we are,” Ms. Weber said. Ms. Strzalko said she was also “astonished” by the support the cause has received. Eleven corpo- rate sponsors have pledged support: Cayman National Bank, Butterfield, Appleby, EFG Bank, LDM Global, Bliss, Uniregistry, Carey Olsen, PwC, CUC, and title sponsor Maples, which alone donated $15,000. The team hopes a celebra- tory event following the ride will raise at least another $10,000 for the cancer so- ciety. The celebration dinner, to be held at Morgan’s Harbour, will include a bar- becue, raffle and live auc- tion. Several local artists, including Guy Harvey, have painted kiteboards to be auctioned at the event. When the winds are ready, contributing sponsor Cayman Airways will fly the team members to Little Cayman, where they will set off from South Hole Sound. Compass Marine is assisting with the team’s boats – there will be five support boats in total, to help guide the kite- boarders and assist in case of any emergencies. “I think we can do the dis- tance,” Ms. Strzalko said. “I think the most challenging part as a team is making sure that every single person is safe, which is what we’re re- ally working on.” It’s not a race, Ms. Strzalko said, “it’s an abso- lute team effort.” “We’re starting as a team and finishing as a team,” she said. In addition to Ms. Strzalko, the team includes Derek Serpell, Jon Dobbin, Tristan Relly, Carlos Barosso, Hope LeVin, Cora Schwendtke, Damo Davis, Jeremy Walton and Andre Slabbert. Half of the team mem- bers will complete the entire 100 miles individually, with no breaks, while the others will complete the distance relay-style. Ms. Strzalko, who has been kiteboarding for six years, hopes the event will also help raise the profile of the sport in the Cayman Islands and encourage more people here to try it, espe- cially since the islands are frequently recognized as one of the nicest places in the world to kiteboard. She encourages everyone to give it a shot, and said it’s a great sport for people of all ages and athletic ability. “If you do kiteboarding and yoga, then that’s all you need to do to stay fit,” Ms. Strzalko said. “But if you want to go kiteboarding, it’s not like going to the gym, you actually want to do it and it’s super addictive. It’s a real release from every- thing else in your life when you’re doing it.” Maples Kiting for Cancer team members Amy Strzalko, Andre Slabbert, Derek Serpell, Cora schwendtke, Jon Dobbin and Tristan Relly.Wednesday February 3, 2016 • Cayman Compass 6 DISTRICT DAYS District Days Sister Islands In the Feb. 2, 1966 edition of the Caymanian Weekly, a pre- cursor of the Cayman Compass, Cayman Brac correspondent Lilian Ritch wrote: “Congratulation to Mr. Burnstein Banks of N.B.C. and the Rock, Cayman Brac, on ob- taining his 2nd Engineer’s Licence, (Liberian). He is cur- rently on the SS Ore Saturn. He is the second son of Mr. Guy Banks of the District Commissioner’s Office, and Mrs. Vinolia Banks. “We welcome home Miss Mona Banks, Postal Clerk who has just returned from spending 6 weeks of her leave in Kingston with Capt. and Mrs. Glenn Tibbetts. Mona thinks Kingston is a beautiful city and has a lovely climate. “Mr. and Mrs. Burleigh Scott of Mobile, Ala. flew in on Wed. for a 2 week visit with rela- tives. Mrs. Scott (Helen) is from a large family of sisters, most of whom are here. Mr. Scott is visiting with his mother, Mrs. Dinah Scott and sisters, Mrs. Helga Tibbetts, Post Mistress, and Mrs. Morris Foster of West End. He sails on SS ‘Texaco Wisconsin’ of Texaco Inc. of Port Arthur, Texas. He has been away 8 1/2 years, his wife 6 1/2 years. “Welcome to Mr. Henry Cleland of British Honduras who has joined the staff of Barclay’s Bank here. We are glad to see Captain Moody Ryan of Tampa here for an indefinite vacation. Capt. Moody is from Stake Bay. “Describing himself as a local boy who used to assist the Collector of Customs, old man Henry Rutty 50 odd years ago, he is happy getting around and renewing old acquaintances, and is keenly interested in all the affairs of the island, espe- cially fishing. He brought down ‘Sandbar’ and the ‘Dotty B II’ some years ago.” 50 years ago: Career advancement and homecomings Community mourns loss of Brac artist Jewel levy jlevy@pinnaclemedialtd.com As a thatch artisan who partic- ipated in various cultural events in Cayman Brac, Vinola Ebanks will be remembered for her spirit of dancing and the preservation of Caymanian cultural heritage. Ms. Ebanks, 86 passed away under tragic circumstances on the morning of Wednesday, Jan. 27 after losing control of her car on Stake Bay Road. Well known as one of the few remaining people in the Brac making various items from the leaves of thatch palms, Ms. Ebanks created her magic for many years and took every opportunity time could afford her to showcase her works of art. Ms. Ebanks learned the art of thatch work as a child, as well as making rope for sale overseas. On Heritage Days on the Brac geared at preserving the past and protecting the future, Ms. Ebanks could be seen plaiting, thatching and displaying her works. In 1994, Ms. Ebanks re- ceived an Ambassador of Tourism award from the Cayman Islands Government in recognition for her work in the tourism in- dustry, having worked for many years in hotels on the Brac and Little Cayman. For the preservation of Caymanian cultural heritage in keeping the thatch tradition alive, Ms. Ebanks was awarded the Cayman National Cultural Foundation 2013 Certificate of Creativity. Daughter Betty Devere, 63, said, “Mama loved to dance. She was the first one to get on the dance floor and the last one to get off – all her children are just like her with that,” adding that her mother loved calypso and soca music. Born as Ethel Vinola Ebanks in West Bay in 1929, Ms. Ebanks moved to Cayman Brac in 1946 and married Brac resident Charles Alson Ebanks in 1947. He passed away in October 2008. In the 1960’s, Ms. Ebanks worked at the Buccaneer Inn, the Brac Reef Hotel and in Little Cayman. She gave that up to be- come a full-time housewife and mother to nine children – Barbara, Bonnie, Betty, Brent, Blarey, Brenda, Bridget, Beverly and Belinda. Ms. Ebanks picked her chil- dren’s names from an encounter with a swarm of bees. “Mama told me the story of when she was small and they would make thatch rope. One day in the bush she stepped in a bee patch and that was why she gave all of us the letter ‘B’ as our first name,” said Ms. Devere. “When I asked mama if that was really true, she would simply say ‘That’s my story and I am sticking with it.’” In her spare time Ms. Ebanks loved working on her straw baskets. “Just last Saturday we went hunting whelks on the iron- shore,” said Ms. Devere. “Mama loved to go whelk hunting and she also loved her plants, and would spend hours puttering away in the garden.” Left to mourn are Ms. Ebanks’ nine children, 28 grandchil- dren, 23 great-grandchildren and one great-great-grandchild, sister Patsy Ebanks and brother Claude Ebanks. Ms. Ebanks created her magic for many years and took every opportunity time could afford her to showcase her works of art. Vinola ebanks with thatch works outside the Heritage House. Vinola ebanks will be remembered for her efforts to preserve Caymanian heritage.Cayman Compass • Wednesday February 3, 2016 DISTRICT DAYS 7 District Days Sister Islands Sock Hop raises funds for land conservation Guests sipping soda floats and twirling hula hoops in poodle skirts made for a lively open air party last weekend on Cayman Brac. The National Trust Cayman Brac com- mittee’s winter fundraiser was held on Saturday Jan. 23 at Brac Public Beach, raising just under $4,600 for the group’s Lands Acquisition Fund. Proceeds are used to purchase sensitive land areas for the Brac’s native plants and animals. Trust sanctuaries exist in perpetuity, acting as safe havens, allowing wildlife to live protected and unmolested. “Such preserves also allow anyone to hike through sites untouched by development, and a chance to visit God’s original handi- work on this enchanted isle,” said event or- ganizer Kathleen Bodden-Harris. Sponsored by Cayman National Bank, event donors also included Trust lifetime member Moses Kirkconnell and other indi- vidual members including Doris Black and Bonnie and Gene Edwards, along with sev- eral anonymous donors. “Even the cash winner of the Split the Cash Raffle, who won $500 from the $1,000 prize, returned an additional dona- tion of $100 towards the benefit,” said Ms. Bodden-Harris. She said auction contributors included Kirk Marine, Brac Scuba Shack, Wyndham Reef Resort, Island Time in the Brac, Chef Debbie from Little Cayman and others. “Whether you donated food, money, bought tickets for the event, volunteered services, talents or time, your contribu- tions played a role in the success and the Cayman Brac District Committee of the National Trust wishes to thank all who played a role for their generosity,” added Ms. Bodden-Harris. Mark Knowlton, from the Brac’s Century 21 office acted as auctioneer and later served up musical entertainment as DJ. Ms. Bodden-Harris reported that tickets to the event, which included food, drinks and an authentic ice cream soda bar manned by soda jerks Wallace Platts and Hugh O’Gara sold out within less than three weeks. “Participants and guests clamored for more, requesting this to become an annual event,” said Ms. Bodden-Harris, who was very pleased with the positive response. Unfortunately, the aftermath of the party was marred by vandalism. Ms. Bodden-Harris said the organizers worked hard after the party to clean the grounds and leave the site pristine, col- lecting trash to be taken away by volunteers the next morning. “The following morning, the pickup committee was greeted with a scene of broken beer bottles, pop tops and fire- work debris scattered everywhere,” said Ms. Bodden-Harris. “Our National Trust events are fun-filled community building affairs. None of our members wish to have our good name and works tarnished by these lawless pranksters,” she continued. “Despite the disrespectful interlopers, the evening offered another successful opportu- nity to champion the future of the natural beauty this little island has to offer. Our ac- tivities, events and sanctuaries are there to be enjoyed by any and all who love it.” Next year’s event is planned for Saturday, Jan. 21 at the Public Beach. Wallace Platts volunteeres as a soda jerk, serving up authentic floats to guests. - Photo: Kathleen Bodden-harris Pattie Sowell and Doris Black are fully decked out. Trust sets sights on Cayman Brac’s parrot habitat The recent launch of the National Trust for the Cayman Islands’ Land Reserve Fund cam- paign will focus on conservation of dry forest land. The Trust is looking at ac- quiring important habitat that can build upon land already pro- tected by the Trust, including the Brac Parrot Reserve. Land owned by the Trust is declared inalien- able by law, meaning it cannot be developed in future thus pre- serving it for habitat and conser- vation purposes. The Trust’s environmental pro- grams manager Paul Watler says the Brac reserve currently com- prises 300 acres of rough and rocky terrain. Hard to access by humans, it is home to pristine and ancient forest comprised of di- verse native trees and plants, and numerous bird species unique to the Brac, including the Brac Parrot (Amazona leucocephala hes- terna) a subspecies of the Cuban Amazon parrot that is only found on Cayman Brac. Only about 425 parrots make up the total population, with be- tween 20 and 60 breeding pairs. Parrot habitat on the Brac is under threat from land development and is susceptible to destruction by forces of nature, and as such in- creasing the size of the reserve will provide the parrots and other species inhabiting it additional breeding and nesting sites that will be protected. Mr. Watler noted that con- serving the old-growth forest areas the birds call home is essential to support their continued survival in the wild. “We are hoping to raise funds through the Land Reserve Fund campaign that will allow us to purchase an available parcel next to the existing reserve that will add approximately another 100 acres, which will increase its overall size significantly,” said Mr. Watler. In addition to donations to the Land Reserve Fund, the Trust is working on a funding partnership with an interested international conservation group to further in- crease the amount of parrot hab- itat that it can purchase and pro- tect under the National Trust Law. A boardwalk through part of the current reserve. Marion Howard, left, greets guests with Kathleen Bodden-Harris.The islands’ most-trusted news source 8 Wednesday February 3, 2016 • Cayman Compass In the first count, the Crown had to prove that the CarePay system’s local contractor, AIS (Advanced Integrated Systems) Cayman Ltd., had been formed in a way to disguise the involve- ment of Watson and Webb, and that the two had “ad- justed” the cost proposal for the contract upward in late 2010. The charge also alleges they provided bogus records to Fidelity Bank to set up the AIS Cayman account. If the prosecution proves any of those three elements, the judge said, jurors must find Watson guilty. If it does not prove any of the three, then jurors must find him not guilty, the judge said. The standard of proof re- quired is the same for count 2 of the indictment, the judge said, only that count re- lates to the US$2.4 million proposed expansion of the CarePay system to private sector healthcare providers. In that instance, court testi- mony showed US$1.8 million was paid for the expansion which never happened. Conflict of interest The third count in the in- dictment against Watson is one of which jurors were advised to “be careful” by Justice Mettyear. This allegation is that Watson failed to disclose that he had a personal interest, or that the company he and Webb owned, The W Group, had an interest in the deci- sion of the Health Services Authority board to award the CarePay contract to AIS Cayman and its Jamaican partners. However, the “con- flict” that must be proved is a very specific legal defini- tion, the judge said, not what jurors themselves might per- ceive to be a conflict. Watson’s attorneys argued that he did not disclose any personal interest in the AIS/ CarePay contract because he didn’t have any. Prosecutors allege that he did. “We know that he received an awful lot of money that came from AIS, but it is the defense case that it was either repayment of loans or that it was money he was being paid back,” Justice Mettyear said. Fraud Count 4 of the criminal indictment alleges fraud on the government by Watson as a result of the conspiracy to defraud entered into by him- self, Webb and others. Justice Mettyear pointed out that initially Watson was accused of taking about US$348,000 in what amounted to kickbacks from the CarePay scheme he al- legedly directed. Later in the trial, as more evidence emerged from USB por- table drives for computers found at Watson’s former place of employment, that amount rose to more than US$417,000. Whatever the true figure, Justice Mettyear said it does not matter. What must be proved in this count is that Watson received the pay- ments as a “reward” for his assistance procuring the five- year, US$13 million CarePay deal for AIS Cayman and its Jamaican partners. “If you’re sure it was a reward, he’s guilty,” Justice Mettyear advised. “If you’re not sure, he’s not.” Money laundering Count 5 of the criminal in- dictment, money laundering, alleges five instances where the alleged proceeds of crime transferred from the govern- ment to the AIS account and then onward. If those trans- fers involved what jurors be- lieve was fraudulently ob- tained CarePay funds and if they believe Watson knew they were fraudulently ob- tained at the time, they should find him guilty on this count, the judge said. However, if they believe Watson did not know the funds were derived from crim- inal acts or if they determine those acts were not criminal in the first place, he should be found not guilty, Justice Mettyear said. Breach of trust The final count concerns whether jurors believe Watson committed a breach of trust in connection with his duties as a public officer, the chairman of the HSA board. To prove this charge, jurors must find that Watson’s con- duct marked a “serious depar- ture” from what would have been expected from someone in his position, and that he used his public office other than for the public good. The breach of trust was committed, the Crown al- leges, in relation to the following acts: ■■ That Watson failed to dis- close he and Webb were assisting AIS Cayman and its Jamaican partners in the bid for the hospital swipe-card contract. ■■ That Watson failed to dis- close he and Webb were controllers and benefi- ciaries of AIS Cayman. ■■ That Watson failed to dis- close he and Webb were shareholders and benefi- ciaries of The W Group. ■■ That Watson failed to dis- close that he, Webb and others intended to set up a pharmacy in Cayman that would also benefit from the CarePay contract. ■■ That Watson failed to dis- close a share holding in a British Virgin Islands company, AIS Consulting Ltd., which was intended to benefit from the ex- pansion of the CarePay contract to the private sector healthcare pro- viders and insurers. ■■ That Watson failed to disclose his director- ship in another com- pany, CRW Holdings, which was doing business with AIS Cayman Ltd. If the jury is sure Watson did any of the six acts alleged above and that those acts go far beyond what would nor- mally be expected of someone in his position, then the judge said he should be found guilty. Only one of the six acts must be determined to be a “serious departure” for this charge to be accepted, the judge said. Mix and match Justice Mettyear indicated that it is possible jurors could end up finding Watson guilty on some counts of the indict- ment and not guilty on others. Similarly, he could be found guilty on all six charges, or not guilty on all six, but the judge said the charges do not necessarily depend on one another in all cases. He urged the six women and one man on the panel to consider each count based on the evidence they heard during the trial. “Don’t just lump them all together,” he said. “You can mix and match and you should do that based on the view of the evidence.” Justice Mettyear said he expects to finish his sum- ming up of the evidence on Wednesday and that the jury would begin deliberations later that day. Brent Fuller bfuller@pinnaclemedialtd.com FIFA, world football’s gov- erning body, announced this week that it has put funding on hold “until further notice” for two of its confederations in the Americas – including one in the Caribbean and Central America. Statements released in the international press late Monday noted FIFA’s con- firmation that contributions toward CONCACAF, FIFA’s North and Central American and Caribbean region, and CONMEBOL, its South American region, had been held “in light of current pro- ceedings involving individ- uals related to CONMEBOL and CONCACAF.” Reuters news service reported that CONCACAF sources indicated the agency had not received US$10 million in FIFA payments, some of which was related to FIFA’s financial assis- tance program. Some funds from the global financial assistance program are re- ceived by Caribbean national football organizations, in- cluding the Cayman Islands. However, it was not known by press time Tuesday whether the Cayman Islands Football Association would be directly affected by the funding cut. CIFA’s funding from local government has already been cut in light of a number of fi- nancial issues that arose last year, including the arrest of the organization’s former president, Jeffrey Webb, on U.S. federal racketeering and bribery charges. CONCACAF responded to the FIFA statement Monday by indicating it was working to resolve the issue “in a timely manner” by updating its administrative and com- pliance reporting procedures. The past three CONCACAF presidents, Jack Warner, Webb and Alfredo Hawit were indicted in con- nection with the burgeoning U.S. probe into world foot- ball. Webb pleaded guilty in November to seven counts in the U.S. indictment. Hawit was arrested in December, along with CONMEBOL President Juan Angel Napout, in Switzerland. Both men are accused of taking part in a sweeping US$200 million scheme that American pros- ecutors said involved bribes paid by sports marketing companies to high-ranking FIFA officials in exchange for lucrative contracts for the commercial rights to football tournaments. On Monday, a U.S. judge agreed to Hawit’s release on bond pending trial. Charles DunCan cduncan@pinnaclemedialtd.com Cayman’s public health of- ficials expect the Zika virus to be in the country in the coming months and are preparing the Mosquito Research and Control Unit and the islands’ healthcare workers to deal with the new virus. Recently, Jamaica de- tected its first case of the mos- quito-borne Zika virus, which is linked to severe birth de- fects for children of infected mothers. On Monday the World Health Organization declared the virus a public health emer- gency and called for an inter- national response. Speaking at a press confer- ence Tuesday, Premier Alden McLaughlin said, “In all likeli- hood the virus will find its way here in the coming months.” Cayman’s leading public health official Dr. Samuel Williams-Rodriguez said, “We are aware of confirmed cases in the United States and Jamaica with relevant travel history. With the proximity and transient visiting popula- tion from the U.S. and Jamaica to Cayman, all health services providers have been asked to remain on alert in identi- fying any symptoms presented by patients.” WHO Director General Dr. Margaret Chan said Monday, “A coordinated international response is needed to im- prove surveillance, the detec- tion of infections, congenital malformations, and neurolog- ical complications, to inten- sify the control of mosquito populations, and to expedite the development of diagnostic tests and vaccines to pro- tect people at risk, especially during pregnancy.” The virus is spread by the same mosquitoes responsible for spreading chikungunya and dengue, the Aedes aegypti. The WHO Emergency Committee stopped short of recommending travel or trade restrictions, though many countries, including the United States and United Kingdom, have warned women who are pregnant or who may become pregnant against trav- eling to countries where Zika has become common. The Pan American Health Organization notes that about one in four people who con- tract Zika show symptoms. PAHO notes that the symp- toms are similar to chikun- gunya and dengue: “The most common symptoms of Zika virus infection are mild fever and exanthema (skin rash), usually accompanied by con- junctivitis, muscle or joint pain, and general malaise that be- gins 2-7 days after the bite of an infected mosquito.” The symptoms typically last from two days to a week, according to PAHO. The main threat from Zika is to pregnant mothers. The virus has been linked in South and Central America to thou- sands of cases of microcephaly, a condition that causes babies to be born with small heads and underdeveloped brains. The Guardian news- paper quoted a stark warning from Jeremy Farrar, head of the health-focused NGO the Wellcome Trust: “In many ways the Zika outbreak is worse than the Ebola epidemic of 2014-15.” Mr. Farrar said, “Most virus carriers are symptomless. It is a silent infection in a group of highly vulnerable individ- uals – pregnant women – that is associated with a horrible outcome for their babies.” According to the World Health Organization, health officials first identified the virus in Uganda’s Zika forest in 1947. The virus stayed in Africa for the most part, with sporadic outbreak in Asia. There was a major ep- idemic reported on an is- land in Micronesia in 2007, when almost three-quarters of the population was in- fected, according to the World Health Organization. The first confirmed Zika case in the Americas was on March 3, 2014, in Chile. By May 2015, Brazilian public health authorities identified the virus transmitting locally in the northeast of that country, the WHO notes. Now the Pan American Health Organization reports local transmis- sion of the virus in 27 coun- tries in the Americas. In the Caribbean, local Zika cases, those not brought in by someone who visited another country, have been found in Jamaica, Haiti, the Dominican Republic, Puerto Rico, the U.S. Virgin Islands, Saint Martin, Guadeloupe, Martinique, Barbados and Curacao. Local Zika cases have also been found in every Central American country except Belize. CONTINUED FROM PAGE 1 CarePay Trial Judge: Conspiracy forms ‘crux’ of Watson prosecution CONCACAF ‘CONtributiONs’ FrOm FiFA ON hOld Cayman prepares for Zika The Zika virus is spread by the same mosquitoes responsible for spreading chikungunya and dengue, the aedes aegypti.The islands’ most-trusted news source 9 Cayman Compass • Wednesday February 3, 2016 †Conditions apply. Subject to credit approval. Offers subject to change without notice. Customers earn 7,000 AAdvantage Miles as follows. You earn a welcome bonus of 3,000 AAdvantage Miles on your first purchase of any amount. Thereafter, you earn an additional 2,000 AAdvantage Miles after you have spent a cumulative amount of USD$ 800 on your new Scotiabank / AAdvantage MasterCard® credit, plus you earn a further 2,000 AAdvantage Miles when you add one or more supplemental cards to your account during the first 3 cycles from the account open date. 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American Airlines®, AAdvantage® and Million Miler are trademarks of American Airlines, Inc. ®MasterCard is a registered trademark of MasterCard International Incorporated. /ScotiabankKY Go to cayman.scotiabank.com/bonusrewards to see how your rewards can add up. Reward yourself in two easy ways Choose one or both! Welcome Bonus offers end March 15, 2016. Apply today and get FREE† additional cards! †† Cash Back Scotiabank / AAdvantage® MasterCard® Get a Welcome Bonus of up to 7,000 AAdvantage® miles† Scotiabank Gold® MasterCard® Get a Welcome Bonus of US$40† Cash Back Scotiabank Gold® MasterCard® Travel Rewards Scotiabank / AAdvantage® MasterCard®Scotiabank / AAdvantage® MasterCard® Discover what’s possible represents a “flushing out” of properties that have been in danger of foreclosure for some time. “It is sad, but you have to look at it from the bank’s perspective as well. If the mortgage is unpaid for a significant amount of time, at some point they have to deal with it.” He said it is a misconcep- tion that forced sales were put on the market at bargain rates for a quick sale. He said the realtor has no part in set- ting the price, which is deter- mined by two independent valuation experts. Tara Nielsen, who runs Acts of Random Kindness, a charity that provides sup- port and financial assistance to people going through hard times, said she has no- ticed a significant increase in the number of calls and emails asking for assistance with mortgage payments and arrears. She believes the increase in foreclosures is partly a “trickle-down effect” from the 2008 financial crisis, with many people struggling to get by for several years be- fore eventually being forced to give up their mortgages. Ms. Nielsen believes people now are struggling more than she has seen over the past decade since ARK was established. “For those that have kept their homes but are desper- ately struggling to make the mortgage, they generally live without power and water for a long period until they have to give up completely.” The Cayman Islands Bankers’ Association did not respond to questions from the Cayman Compass this week. Association President Mark McIntyre previously expressed frustration at what he de- scribed as “noise in the market- place that banks are somehow behaving inappropriately” re- garding foreclosures. The association revealed in 2015 that it had signifi- cantly expanded its banking code to outline how banks deal with customers in finan- cial difficulty. According to the code, banks are committed to commencing legal proceed- ings for the repossession of a property only when the lender has made every rea- sonable effort to agree to an alternative arrangement with the customer whose loan or mortgage is in arrears. Mr. McIntyre told the Compass at the time, “If people are in financial prob- lems, please talk to your bank. The bank is not in the real estate business. We don’t want to sell property. Our preference is to renegotiate the terms.” New rules for hobbyist drone operators Kelsey JuKam kjukam@pinnaclemedialtd.com The Civil Aviation Authority of the Cayman Islands has is- sued new restrictions pro- hibiting users of small un- manned aircraft, commonly known as drones, from flying the vehicles near airports and the prison. Drone operators will not be permitted to fly within a 3-nautical-mile zone from the perimeter of airports in the Cayman Islands unless they receive special permis- sion from the director of Civil Aviation and the consent of air traffic control. Alastair Robertson, director of Air Navigation Services Regulation for the CAA, said permission is unlikely to be granted to members of the general public to operate drones within the airport zone. Individuals who violate the new rules will face prosecu- tion and, if convicted, could be fined up to $6,000 or impris- oned for up to two years. In Grand Cayman, the new restricted area for drones in- cludes all of George Town and extends north all the way to the The Great House on Seven Mile Beach and east as far as the Countryside Shopping Village in Savannah. The restriction also applies to a 3-nautical-mile radius from the perimeters of Charles Kirkconnell International Airport in Cayman Brac and the Edward Bodden Airfield in Little Cayman. The restriction is aimed at mitigating the risk of a collision between manned and unmanned aircraft. According to the Civil Aviation Authority, recent re- ports suggest there has been a significant increase in the use of drones, particularly in the vicinity of Owen Roberts International Airport. Mr. Robertson said that in addition to seeing more drones near the airport, there have been more reports from Customs about indi- viduals bringing drones into the country. “We get a lot of inquiries from members of the general public and also visitors to the island about what our stance is on drones, and in that sense we can also gauge the increase [in the number of drones being used in Cayman],” Mr. Robertson said. The aviation authority said in a press release that as a consequence, “The risk of an incident or accident caused by the impact of an SUA [Small Unmanned Aircraft] with a conventional aircraft or its ingestion by a jet engine in- creases proportionally.” While there have been no such incidents in Cayman Islands airspace to date, an in- creasing number of such inci- dents have been reported else- where, including a number of near misses in the United States and in Europe. Technological advances have made drones a more af- fordable commodity, and sales have increased internation- ally. As a result of their avail- ability, the aviation authority said, the devices are now being operated as toys rather than as aircraft, “often without due regard to the possible conse- quences of flying them in the very confined environment of an island community reliant upon its aviation links for both survival and development.” “Many of these drones are in the hands of children,” Mr. Robertson said. “They’re bought for presents and you have no idea the level of pa- rental control that’s placed upon them. And even adults have acted irresponsibly with drones.” Adam Cockerill, co-founder of a local small unmanned air- craft vehicle company, AirVu, said the new restriction does not affect licensed operators, who can still operate within the 3-nautical-mile zone pro- vided they have permission from air traffic control. Unlike many drone hob- byists, Mr. Cockerill said, li- censed operators “put a lot of time, money and resources” into gaining a license, having the appropriate insurance and ensuring that their operators are trained professionals.” He said he is glad the avi- ation authority is enacting this new restriction, and that it is important to have some rules about “where you can and cannot fly” unmanned aerial vehicles. “From a licensed oper- ator perspective, all we’ve ever wanted was a level playing field with other licensed oper- ators, so we want to see rules and restrictions enforced,” Mr. Cockerill said. “It’s the hob- byists that really need to pay attention to this, and we’re glad to see that the Cayman Aviation Authority is enforcing this to prevent accidents and increase safety.” Mr. Cockerill said if a hob- byist did cause an accident, such an event could “cast a bad shadow” on the commer- cial industry. In addition to the prohib- ited zones around airports, drone operators are also pro- hibited from flying within a 1-nautical-mile zone from the perimeter of Northward Prison without permission from the aviation authority and the prison director. The prison restriction has been established to enhance the security of the facility. In the United States and Canada, there have been re- ports of individuals using drones to drop drugs and weapons into prison yards. “We’ve not seen any spe- cific drops or anything by drones, but we’ve heard that drones are around and obvi- ously, we need to be mindful that they could be used for things like that,” said Director of Prisons Neil Lavis. Dramatic spike in foreclosures Forced sales over past Five years ■■ 2011 .......................... 30 ■■ 2012 ........................... 33 ■■ 2013 ........................... 55 ■■ 2014 ........................... 72 ■■ 2015 ......................... 116 CONTINUED FROM PAGE 1 “We get a lot of inquiries from members of the general public and also visitors to the island about what our stance is on drones …” AlAstAir robertson, director of Air Navigation Services Regulation, Civil Aviation Authority New restrictions in the Cayman Islands prohibit flying drones near airports and the prison.Next >