Main cover title goes here the cayman islands journal Loans, gifts and graft: CIFA and CONCACAF’s Panama connections Editorial | pagE 4 ‘Public AssistAnce’: the greAt government giveAwAy ProgrAm? estaBlished 1965 www.caymancompass.com – 50 CENTS – wednesdAy mArch 2, 2016 #203 Alissta Towers, 85 North Sound Road, Grand Cayman KY1-1109, T: + 1 (345) 949-9744 E: Aleisha.Lalor@caribbeanalliance.com www.caribbeanalliance.com THIS ISSUE: SPECIAL REPORT Real estate market review 2016 >>PAGE 13 CREDIT The interest rate’s disappearing act - Who could have imagined it? >>PAGE 2 TECHNOLOGY Former hacker shows off new tricks of the trade - Cyberattacks on the rise >>PAGE 4 LITIGATION Caledonian’s trading activity revealed - Skype messages track penny stock frauds >>PAGE 6 PAGE 13 SPECIAL REPORT March 2016 REAL ESTATE REAL ESTATE REAL ESTATE MARKET REVIEW MARKET REVIEW MARKET REVIEW MARKET REVIEW MARKET REVIEW MARKET REVIEW M A R CH 2 016 • WW W .CA Y JOU R NAL . COM 161 Loans, gifts and graft: CIFA and CONCACAF’s Panama connections MICHAEL KLEIN A Panamanian company set up by Canover Watson that was allegedly used to receive a $1.1 million bribe payment from Traffi c Sports to Jeffrey Webb is the same entity that had a controversial $600,000 loan agreement with the Cay- man Islands Football Association, documents reveal. Forward Sports International Management Inc. granted a $600,000 unsecured loan to CIFA, ac- cording to the loan agreement dated Dec. 31, 2013. The agreement, which was signed by Bruce Blake on behalf of CIFA and nominee company secretary Irina Abrego de Espinosa on behalf of Forward Sports International, included a seven- year repayment plan at an interest rate of 1 percent above U.S. prime, or 4.25 percent. In 2015 the loan was controversially re-desig- nated by the Cayman Islands Football Associa- tion as a “gift” from Forward Sports. As a result, CIFA’s audit fi rm Rankin Berkower refused to sign off on the football association’s fi nancial accounts and reported the case to police. Pakistan-based Forward Sports is one of the largest manufacturers of footballs in the world and maker of the Brazuca, the football used in the 2014 World Cup Finals. Shakeel Khawaja, who at the time was a global sales manager for Forward Sports (pvt) Ltd., Sialkot, Pakistan, told The Cayman Islands Journal that Watson had helped set up a com- pany in Panama under the Forward name with the objective of using the entity as a distribution company for Forward Sports products in Central America and the Caribbean. However, Khawaja says he was not aware un- til late 2014 that in addition to Forward Sports Inc., Watson had created a related entity, Forward Sports International Management. Khawaja claims he never made a payment to CIFA and was not aware of such a payment. He also says he never had sig- nature authority over the company’s bank accounts. Emails from Watson to Asiaciti Trust, the FRANK BENTAYOU The spread of the Zika virus, a grow- ing medical threat through much of the Americas, demands “urgent action” from regional governments to help control the potential economic damage an epidemic could cause, according to the World Bank and other institutions. The international fi nancial group aimed at decreasing poverty and urging economic growth among poorer popula-tions has predicted that even with an im- mediate coordinated effort, costs likely will hit US$3.5 billion in the Caribbean and Latin America this year in prevention and medical-care expenses. Beyond that, visitor-dependent econ-omies could lose billions more in tourist revenue as North Americans and Eu- ropeans shy away from what they may perceive as a danger zone. Without a well coordinated response to nip any epidemic in the bud, World Bank President Jim Yong Kim said, the economic damage could smack the re-gion with far greater costs. In fact, the World Bank computed that countries where the cases of the virus have been confi rmed or where it is expected to spread could suffer a $63.9 billion drop in international tourism as travelers recon-sider visiting places with high Zika risk.The $3.5 billion fi gure represents less than 0.1 percent of the region’s Gross Do- mestic Product. But the higher fi gure to- tals almost a full 1 percent of GDP, if the World Bank fi gures are accurate. A tour-ism shortfall of $11 billion is estimated as the share of lost visitor revenue the Carib-bean region alone might suffer. World Bank commitment Whatever the extent of any future health crisis, Kim said in February, “The World Bank stands ready to sup-port the countries affected.” The institution has committed US$150 million to help countries combat the burgeoning mosquito-borne virus that has been linked to skin rashes and infl uenza-like symptoms including fever and joint pain, perhaps weeks of illness for those infected, and, most dreadful, possibly grave birth defects among chil-dren of women who become infected during early pregnancy. Chief among the defects thought to be a consequence to the newborns of infected mothers is microcephaly (a fatal or severely crippling malformation of the baby’s head) as well as other neurological disorders, including Guillain-Barre syndrome.The U.S. Centers for Disease Con- trol and Prevention currently has medi- cal teams in Brazil, where the possible link between birth defects and Zika surfaced, examining the evidence. For now there is no vaccine against Zika, nor any treatment. Plus, infections fre-quently go undetected since the anti-body test is far from perfect.The World Health Organization, which has been researching the consequences of The $600,000 loan agreement between Forward Sports and the Cayman Islands Football Association was ostensibly concluded to assist with the construction of the National Training Center. PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 9 » Zika virus spawns economic dangers through the Americas High of 84 Low of 75 Smooth to slight with wave heights of 1 to 3 feet. Deputy Governor warnS of employee ‘exitS’ ‘inadequate performance’ continues in civil service royals to visit Cayman this weekend Cayman Airways reshuffles schedule to limit delays brent Fuller bfuller@pinnaclemedialtd.com Despite public warnings issued a year ago, Cayman Islands Deputy Governor Franz Manderson said poor performance in government “continues by some staff.” “Beginning next month [referring to March], the Portfolio the Civil Service will roll out its plan to enable the civil service to deal more effectively with staff who have failed to per- form their duties to a satisfactory level,” Mr. Manderson wrote in a memo to all civil ser- vants Monday. “I expect our managers and su- pervisors to be fair but firm in dealing with inadequate performance and I expect inade- quate performers to make the necessary im- provements or to exit the service.” Mr. Manderson raised some hackles among government staff last year when he warned of “separations” for civil servants who did not meet goals stated in their perfor- mance agreements signed with department managers, but vowed in the memo issued Monday to follow through with his promises. “Inadequate performance continues by some staff,” the Feb. 29 memo read. “I have, therefore, made dealing with poor performers my top priority for the year.” Poor performance, as well as adequate performance and exceptional performance, is Prince Edward, Earl of Wessex, and his wife Sophie, the Countess of Wessex, will visit the Cayman Islands this weekend. On Sunday they will visit the Central Caribbean Marine Institute on Little Cayman, where the prince has been a patron since 2003. On Monday, the royal couple will be in Grand Cayman to attend sep- arate lun- cheons. While the Earl joins participants in the Duke of Edinburgh Award scheme at Government House, the Countess will visit the National Gallery for a brief address to the 100 Women in Hedge Funds. She will then rejoin the Earl for the presentation of the Duke of Edinburgh Gold Award to Lashonda Powell. The royal couple will leave the island Monday afternoon. The prince’s last visit to Cayman was in February 2009, when he vis- ited Cayman Brac to inspect the damage the island suffered in November 2008’s Hurricane Paloma. He also visited in 2007, 2004 and 2003. Brac-Holguin flight dropped after three months JAmes whittAker jwhittaker@pinnaclemedialtd.com Cayman Airways has canceled its flight from Cayman Brac to the eastern Cuban city of Holguin, just three months after the route was launched. The switch is part of a reshuffle of the airline’s Cuba routes in an effort to improve “schedule reliability” following issues with delays and flight cancellations. Twice-weekly overnight flights from Grand Cayman to Havana have been dropped. As a result, says Cayman Airways CEO Fabian Whorms, the Holguin service, which launched Nov. 28 last year, will be replaced with a Brac-Havana flight. “To partially offset the reduced ca- pacity on the Havana route, the airline took the decision to suspend its Saturday service from Cayman Brac to Holguin and instead use that aircraft to operate Saturday service between Cayman Brac and Havana,” he said. It is hoped that dropping the overnight flights between Owen Roberts International Airport and Havana will help ease delays. Cayman Airways operates a busy schedule with just four jets, and issues with delays Cayman airways has canceled its Cayman Brac-Holguin route, which it launched in november last year. PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 » prince edward2 LOCAL&REGIONAL Wednesday March 2, 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) TRIPLE 9 (R) 1:10 I 4:10 I 7:15 I 10:00 PRIDE AND PREJUDICE AND ZOMBIES (PG13) 1:20 I 4:20 I 7:20 I 9:50 ZOOLANDER 2 (PG13) 12:50 I 3:15 I 7:30 I 10:00 GODS OF EGYPT 3D (PG13) 12:40 I 3:30 2D I 7:00 I 9:50 2D KUNG FU PANDA 3 3D (PG) 12:20 I 2:40 2D I 5:00 I 7:20 2D I 9:40 DEADPOOL (R) 1:00 I 4:00 I 7:10 I 9:40 HAVANA (AP) – The Rolling Stones announced Tuesday that they will play a free concert in Havana on March 25, becoming the biggest act to play Cuba since its 1959 revolution. The Stones will play in Havana’s Ciudad Deportiva three days after President Barack Obama visits Havana. The concert is expected to draw a massive audience in a country where the govern- ment once persecuted young people for listening to rock music, then seen as a tool of Western capitalism. “We have performed in many special places during our long career but this show in Havana is going to be a landmark event for us, and, we hope, for all our friends in Cuba too,” the band said. Along with easing many restrictions on foreign music, art and literature, the Cuban government has increasingly allowed large gatherings not organized by the government in recent years. The Stones concert will almost certainly be one of the largest since Cuba began easing its limits on some non-official gather- ings in the 1990s. On the same week as the visits by Obama and The Rolling Stones, the Tampa Bay Rays are also expected to play the first Major League Baseball exhibition game in Cuba since 1999, part of an extraordinary string of events in a country that spent the Cold War isolated from the United States and its allies. Cuban fans have been buzzing about a possible concert by “Los Rollings” since lead singer Mick Jagger visited Havana in October. The Havana “Concert for Amity” will cap the Stones’ America Latina Ole tour through seven Latin American cities. The band said it will donate instruments and mu- sical equipment from spon- sors to Cuban musicians during their visit. The biggest musical per- formance in Cuba to date was held in 2009, when the Colombian singer Juanes drew more than a mil- lion people to a show titled “Peace without Frontiers” in Havana’s Revolution Plaza. That concert angered Cuban-American exiles in the U.S. and its organizers wran- gled with the Cuban gov- ernment over performances by Cuban artists critical of the government. The Stones concert is ex- pected to take place in a more relaxed political envi- ronment, coming more than a year after Obama and Cuban President Raul Castro an- nounced that they were de- claring detente and moving to normalize relations. The band said it will donate instruments and musical equipment from sponsors to Cuban musicians during their visit. Rolling Stones to play in Havana The Rolling Stones will play a free concert in Havana on March 25, becoming the biggest act to play Cuba since its 1959 revolution. – Photo: AP The Cayman Islands Tourism Association is calling for nomina- tions for members to its board of directors. The elections will take place at the associ- ation’s AGM on April 20. Nominations are due by 4 p.m. March 15. There are 10 seats open for election. Three board members who received the highest number of votes in the last election will serve their second term in 2016/17, including Marc Langevin as hotel director, Gaetan Babin as condo di- rector, and Julie Allan as restaurant director. All CITA members are invited to at- tend, and active members or a proxy are eligible to vote. For more information, contact info@cita.ky or 949-8522. Nomination forms are available online at http://www.cita.ky/agm2016. tourism AssociAtion boArd to hold election Cheryl Strayed, author of the New York Times best- selling memoir “Wild,” will be the keynote speaker at the second annual Power of the Purse luncheon on March 17. The event, hosted by Scotiabank, benefits the Cayman Islands Crisis Centre. When she was 26, Ms. Strayed embarked alone on an 1,100-mile journey along the Pacific Crest Trail, from the Mojave Desert to the Oregon- Washington border. The journey was a way for the au- thor to confront the emotional pain of two life-shattering events: her mother’s death from lung cancer and the end of her first marriage. Ms. Strayed describes that empowering trip in “Wild,” which was made into an Oscar-nominated movie in 2014 by producer and actress Reese Witherspoon, who had the lead role. The movie re- ceived more than 63 nomina- tions for various film awards, including Oscar and Golden Globe nominations for Ms. Witherspoon for best actress. Ms. Strayed is the author of three other books and co-hosts with Steve Almond the advice podcast “Dear Sugar Radio.” The luncheon at The Ritz- Carlton, Grand Cayman takes place in March in honor of International Women’s Month, to raise awareness about diversity and inclusion, to provide a networking op- portunity, and to bring inspi- rational women speakers to the Cayman Islands. Those who attend the event will enjoy complimen- tary wine, canapés, lunch and a special dessert buffet, and will have the opportunity to participate in a silent auc- tion featuring new and gently used designer handbags. At last year’s luncheon, more than 450 people were in the audience to hear key- note speaker Erin Brockovich. The event raised more than US$28,000 for the Cayman Islands Crisis Centre. Donations sought Organizers are seeking donations of handbags for the auction. Donations can be dropped off at Scotiabank, 6 Cardinall Ave., 4th floor, or Fountainhead, Bayshore Mall, 2nd floor, any time before March 15. Individuals interested in buying tickets or sponsoring the event should contact Sarah Tatum at sarahtatum90@ gmail.com or call 945-8188. The author will speak at the Power of the Purse luncheon on March 17 at The Ritz-Carlton, Grand Cayman. ‘Wild’ author to speak at fundraiser ‘Wild’ author Cheryl Strayed. – Photo: Joni KAbAnA3 LOCAL NEWS Cayman Compass • Wednesday March 2, 2016 IF YOU ARE A YOUNG CAYMANIAN AGED 18 TO 30 WITH A GREAT IDEA FOR A NEW BUSINESS, THEN 2016 IS THE YEAR YOU CAN MAKE THIS HAPPEN! FIRST PRIZE PACKAGE WORTH CI$35,000 • Free incorporation of a Cayman Company by Sinclair Corporate Services Ltd • Free package of all corporate services for FIVE years to December 2021 from Sinclair Corporate Services Ltd • 20 hours of free business legal advice from Sinclairs • Cl$1,ooo cash as seed capital for the new business • 6 months of Business Coaching support from Shirlaws valued at Cl$1o,ooo SECOND PRIZE • Free incorporation of a Cayman Company by Sinclair Corporate Services Ltd • Free package of all corporate services for 2016 from Sinclair Corporate Services Ltd • 10 hours free business legal advice from Sinclairsof • Cl$500 cash as seed capital for the new business The Young Entrepreneur of the Year Award is a competition open to all young Caymanians I Caymanian Status holders aged 18 to 30. For application forms or further information please email info@sinclairs.com.ky or call 743 2626 DEADLINE FOR APPLICATIONS: 4 M A R C H 2 0 1 6 AWARD CEREMONY AND ANNOUNCEMENT OF WINNERS WILL BE HELD AT THE WESTIN HOTEL AT 6:00 PM ON WEDNESDAY MARCH 16TH 2016 YOUNG ENTREPRENEUR of the YEAR Cayman Islands SINCLAIRS The Sinclair Group is proud to announce SINCLAIRS SINCLAIRS.COM.KY Government struggles with delays Brent Fuller bfuller@pinnaclemedialtd.com With the Cayman Islands government’s 2016/17 budget approval process looming, lawmakers re- mained uncertain whether the Legislative Assembly would meet again prior to the annual May-June opening session and finance committee review. Premier Alden McLaughlin said Monday that while government is only constitutionally re- quired to hold one assembly meeting each year, it was his hope to get another meeting together before the budget process begins. However, the premier acknowledged current circumstances were causing some delays. “The government simply isn’t ready for a Legislative Assembly meeting right now,” Mr. McLaughlin said. “There are important bills which are being worked on and are not yet ready for presentation. The defection of three members has also delayed some of govern- ment’s work.” With a bare minimum nine-member government bench, the Progressives-led government is also strug- gling somewhat with timing. “Given the reduced num- bers, I have to ensure that every member of the gov- ernment is present for each day’s sitting of the House,” he said. “Ministers’ travel also has to be taken into consideration.” Asked Monday whether he would still seek to call for an early election during 2016, Premier McLaughlin was non-committal. Governor Helen Kilpatrick has confirmed that it would be up to her and the pre- mier to decide on an early election, if the premier were to seek such an option. In any case, the general election – whenever it oc- curs – will be held under a new voting system with 19 single-member constitu- encies. Where voters in the larger districts had been ac- customed to voting up to four or even six times for their favored candidates, in the next election all voters will be able to cast just one ballot. The Cayman Islands Elections Office is em- barking on an island- wide education campaign in preparation for the up- coming election changes, which Elections Supervisor Wesley Howell expects will take about a year to imple- ment. Mr. Howell said a year-round voter registra- tion is open and the elec- tions office would hold a number of public voter registration drives, the first of which occurred at the Agriculture Show last month. However, if a sudden election or by-election is called, this would not pro- vide any additional time for voter registration, the elec- tions office noted. “Thus, only persons al- ready on the official list of electors [voters list] will be able to vote,” a state- ment from the office read. “The elections office is … encouraging persons to register now.” As of the latest check, in January, voter registra- tion numbers in Cayman had declined since the May 2013 general election. As of Jan. 1, 2016, the number of registered voters stood at 18,271. That’s down from 18,323 in January 2015 and 18,466 in January 2014. Elections Law changes Mr. Howell said in January that time require- ments to properly hold a general election under the new single-member district voting system would not be met if the elections are to be held in the coming months. “The new single-member constituencies and revised boundaries will require significant public awareness and education so that voters are clear on where they will be voting and how to vote in the polls,” Mr. Howell said. Extra time will be needed, he said, to train re- turning officers who manage the elections process and to verify voters’ addresses and other such routine details. In addition, with the Legislative Assembly un- certain on when it will be meeting, it’s not clear when legislators will ap- prove certain technical amendments to Cayman’s Elections Law to bring it into line with 19 single- member districts, giving ef- fect to the 2015 recommen- dations of the Electoral Boundary Commission. The revised Elections Law is expected to be con- sidered by Cabinet this month. Lawmakers antici- pate approving the changes in the House before July. Government is uncertain when the next Legislative Assembly meeting will be held.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. Wednesday MarCh 2, 2016 • Cayman COmpass In May 2015, the Office of the Auditor General pub- lished a scathing report on public assistance programs in the Cayman Islands, finding that government was doling out more than $50 million per year in welfare benefits with little oversight and no criteria. More than nine months later, nearly nothing has been done to address the problems auditors identified. Officials, in fact, don’t know what they’re going to do. According to Chief Officer Dorine Whittaker, they do, however, have a plan, which is … get this … to make a plan. First, a brief aside. In our opinion, the Public Accounts Committee is largely worthless in terms of exercising meaningful authority, assisting the enforcement of laws and ensuring that repercussions are felt for mismanage- ment or wrongdoing. Its meetings often offer little more than a public platform for lawmakers to practice politics. That being said, the PAC meetings do serve the inter- ests of one segment of Cayman society in particular: that is, the news media. (Thanks!) If there’s anything reporters love more than an easily digestible news item, it’s the opportunity for “one-stop shopping” to accumulate several stories at the same time. In that respect, the PAC meetings, to journalists on deadline, are the equivalent of Wal-Mart on Black Friday. Last week, the PAC reviewed eight separate reports from the Auditor General, ranging from land manage- ment practices, to IT security, to the Nation Building Fund. Most of the ground the committee explored was news- worthy, but none of those areas carried a price tag rivaling the eye-popping $50 million per year for public assistance programs. Few parts of government do. To put Cayman’s welfare spending into context, the $50 million constitutes about 10 percent of core govern- ment’s spending. It’s more than the government spends on primary education services and secondary education services, combined ($45 million). It’s roughly twice the amount of government subsidies to Cayman Airways, and approximates to five Turtle Farms. According to the Auditor General, a full 10 percent of core government’s spending budget is flowing out into the populace, pretty much indiscriminately, for whom and for what purposes officials aren’t entirely clear. But rest assured, says Chief Officer Whittaker, they’ll soon have a plan — in the form of a business case by yet-to-be-hired consultants that may be ready by the end of 2016. Now, we are on the record as being supportive of the idea and institution of rational, well-targeted social assis- tance programs, which Cayman’s is not. As we wrote in an editorial last July, when the Auditor General’s report was released to the general public: “The problem with social services in Cayman isn’t the amount of money being spent, necessarily, but how that money is being spent … Rather than a properly managed public welfare system, Cayman has a patchwork of programs that, in part, act as an institutional disincentive to gainful employment by the able in mind and body, and foster a culture of government dependence … Every dollar that is given to someone who does not really need it, is a dollar that could have been given to someone who does.” In addition to the unchecked and unmonitored public welfare benefits, consider the Treasury’s propping up of Cayman Brac’s economy through subsidies and line-item spending, as well as the long-standing tradition of law- makers (and aspirants) handing out cash and goodies to individual supporters — which George Town MLA Winston Connolly described as “shut-up money.” Then there’s the country’s biggest social assistance program of them all: the salaries, benefits and pensions paid to the nearly 6,000 employees in the public sector — far too many of them for a country the minuscule size of Cayman. Those costs, just for the 3,500 people in central government, amount to more than $250 million in the current fiscal year. Especially disconcerting is that government appears as baffled as we are about who is receiving these funds, what were the criteria for qualification, and what are the pro- jected future costs of these programs. Expenditures of this magnitude — without strict accountability — could send the Cayman Islands to the proverbial poorhouse, raising the following question: To whom will we apply for “public assistance” when our own funds run out? ‘Public Assistance’: The great government giveaway program? Overseas but still American Therese raphael In November 1968 a young Rhodes Scholar by the name of Bill Clinton was “mad as hell,” as he told a friend back in Arkansas in a letter penned from Oxford University. Clinton’s absentee ballot hadn’t arrived in time for him to cast his vote for the Democratic nominee, Hubert Humphrey, who lost to Richard Nixon that year. Democrats and Republicans had only begun to make some feeble attempts to encourage overseas voters at the time. But the registration process was burdensome and the rules confusing. Nearly a half-century later, we are witnessing the rise of Expat Man and Expat Woman. The laws have changed to make over- seas voting easier and efforts such as Vote from Abroad have helped inform voters and facilitate registration. The Democratic and Republican parties have woken up to the fact that, according to the State Department, 7.6 million Americans live outside the territorial limits of the U.S.; by population, equivalent to the 13th American state. Expat Man cannot be wooed with the same stump lines that appeal to voters back home. In some ways, he will find more common ground across the political aisle than with party confed- erates in the U.S. Both parties are vying for his vote and his fund-raising dollar. But nei- ther has quite grasped how to appeal to the expat voter. Expat Man is well-ed- ucated; 95.3 percent hold a bachelor’s degree and 56 percent a master’s degree, according to research by Kent University’s Amanda Klekowski von Koppenfels, whose research is cited in a report on overseas voters out last week by the Rothermere American Institute at Oxford. American citizens living abroad can mostly be found working in IT (or communica- tions), professional/scientific or technical jobs, education or finance. They have relo- cated for romance, employ- ment or education and many might describe themselves as “accidental migrants.” I’m one of them; a short stint abroad morphed into more than two decades away from home and new roots in Britain. Conversations with party activists confirm my own im- pression that three issues are foremost in the mind of this voter. The first is taxes, and especially the F-word for ex- pats. That would be FATCA, the reviled Foreign Account Tax Compliance Act, which imposes such burdensome re- porting requirements on for- eign financial institutions that they have turned American account-holders away. FATCA and tax rules generally have been fingered in the growing number of Americans abroad who renounce their citizen- ship. In a 2015 survey, 86 per- cent of respondents felt the law needs to be reworked. Both parties’ representatives abroad agree on that, though there are differences on how they propose to accomplish it. Second, Expat Man cares about America’s standing in the world. Americans abroad have woken up to the limits of American power and the com- plexities of the problems the U.S. and its allies face. They tend to believe, with Theodore Roosevelt: “Speak softly and carry a big stick; you will go far.” Trump’s Make America Great Again trope makes a lot of Americans abroad cringe. Republican commen- tator Stacy Hilliard, a Texan who has been a party activist in the U.K., notes that Expat Man is looking for “the ability to attend a dinner party without being put in a corner and attacked.” The third issue on Expat Man’s radar is economic lead- ership. Americans overseas have seen the benefits of glo- balization, often work in in- ternational settings and are likely to support of free trade agreements. They may also have U.S. bank accounts and send money home to family or kids attending American colleges. They are sensitive to anything that increases un- certainty or volatility in the global economy and look for economic leadership. Though it is undersized (and voter turnout generally even lower than domestic turnout), the vote potential of Expat Man no longer draws dismissive sniggers. Delayed overseas ballots helped give the 2000 election to George W. Bush (an event that Democrats Abroad says led to a tripling in registrations). Voting from abroad also arguably affected other close election contests, including a 2009 New York Congressional race that gave a narrow victory to Democrat Scott Murphy and the 2008 Senate race in Minnesota in which a Republican incum- bent, Norm Coleman, was de- feated by a wafer-slim margin by Democratic challenger Al Franken. For both parties, the main value of Expat Man is his wallet. Outside of North America, the U.K., with around 224,000 Americans ac- cording to a State Department estimate that is probably too low, has the largest number of American expats, and prob- ably the most generous. As the steady parade of candidates and their surrogates testifies, London is on the fund-raising map along with New York and Los Angeles. The Rothermere Institute paper cites figures showing that expat Americans do- nated around US$6 million to presidential candidates in the 2008 election cycle, a particu- larly active election for fund- raising. Expat donors are hard work, however. “You have to court these donors more than you do at home because they really have to buy into the candidate as well as the policy; and that’s something I’ve seen candidates misjudge time and again,” says Hilliard. All the impassioned pleas to the party faithful, the stump speeches and at- tack ads back home can leave Expat Man feeling a bit flat. Like Bill Clinton of old, they may be “mad as hell,” but to- day’s overseas Americans are looking for more than just a ballot; they want a say. Therese Raphael is a Bloomberg View editor in London, writing about European politics and economics. © 2016, Bloomberg View 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”5 LOCAL NEWS Cayman Compass • Wednesday March 2, 2016 Officers from the Joint Marine Unit, including po- lice, customs and immigra- tion started a four-week training course Monday to brush up on various sea patrol, assistance and ar- rest techniques. The course is provided by members of the Caribbean Military Maritime Training Centre and is designed to strengthen border security efforts through tactical op- erations. The course is deliv- ered to law enforcement per- sonnel across the Caribbean. “Our colleagues have much to share with us [re- garding] maritime tactics for effective patrol and in- terdiction of drugs and firearms, as well as prac- tical strategies for strength- ening our border patrol,” Royal Cayman Islands Police Inspector Leo Anglin said. The interdiction tactics are taught to comply with both local maritime laws and international seafaring rules, Mr. Anglin said. Local law enforcement gets marine training CAROL WINKER cwinker@pinnaclemedialtd.com The mother of Nichelle Anna-Kay Thomas, whose body was found in a Bodden Town house two years ago with multiple chop wounds, told a coroner’s jury this week that photographs of her daughter’s body were circu- lated on the Internet. Photos of the body of Ms. Thomas’s boyfriend, Devon Roy Campbell, found hanging from a tree nearby, were also on social media, Ms. Thomas’s mother, Carol Lola French, said. The bodies were discov- ered on Sunday morning, Feb. 9, 2014, at the home of Ms. Thomas’s employer in Bodden Town. In a statement read Monday by Queen’s Coroner Eileen Nervik, Ms. French, who lives in Jamaica, said she learned of her 21-year- old daughter’s death when a family member received a phone text that she had been killed in Grand Cayman. People started saying Ms. Thomas had been killed and the man hanged himself. “I was hearing she had been chopped to pieces … people started telling me about pic- tures on Facebook … I was hearing about pictures before I got official notice from the police,” she said. She said someone showed her a picture, thinking it would help her, but it was the most painful experience she ever had. “I just started screaming. I couldn’t believe my baby was dead.” She added, “I keep happy pictures of her around the house, but that picture [the one she was shown] is one I will never forget.” Ms. French said she heard that people were selling the picture for $200. “She was a strong, pretty girl and now people only know her for what Tony [Mr. Campbell] did,” she said. She also saw a picture of Mr. Campbell’s body in a tree. Images on the Internet last forever, she pointed out, adding that someday she would have to explain to the couple’s baby what hap- pened to her mother and fa- ther. “I don’t want her to think badly of her parents,” she said. She said she wanted compensation from the person who took the pic- tures and compensation for the baby: “The images will scar her future.” She told the jury she first met Mr. Campbell, who was 39 when he died, when her daughter brought him home to tell her she was pregnant. She said she asked him to let her daughter get on with her life. “Tony was a big man and Pouchie [Ms. Thomas’s nick- name] had not left her child- hood,” she said. After the baby was born in 2011, she kept the baby for a while and Mr. Campbell sent her money for the baby’s care. She asked Mr. Campbell to send Ms. Thomas home because she was still a child and needed to get on with her life. Threats to kill Ms. Thomas’s sister, Carole Green, in her state- ment told the court that Mr. Campbell had threatened to kill her sister if she left him and then kill himself. Ms. Green said her sister was 17 and still in high school in Jamaica when she met Mr. Campbell, who was the brother of a school friend. When Ms. Thomas turned 18, she left the family home and rented an apartment and bought furniture with money she got from Mr. Campbell. Ms. Green said the family was very upset and then even more upset when they learned that Mr. Campbell was mar- ried to a woman they knew. Mr. Campbell worked in Cayman and Ms. Thomas visited him there. She went back and forth several times. She got permits to work in Cayman. Ms. Green said they spoke frequently by phone and her sister told her that Mr. Campbell would not let her go anywhere without him. Ms. Green said he was beating Ms. Thomas and abusing her all the time. When Ms. Thomas was in Jamaica, Mr. Campbell would phone from Cayman to check up on her. He told Ms. Green that if Ms. Thomas left him, he will kill her and then kill himself. Ms. Thomas bor- rowed money to go home to Jamaica in June 2013 but returned to Cayman in September. “I could not believe she would allow Tony to talk her into going back,” Ms. Green said. By February 2014, Ms. Thomas was planning to return to Jamaica. She did not have any money be- cause Mr. Campbell had borrowed it. An uncle sent her $150 and she told her sister she was working on the Sunday she died to make the rest of the cost of the plane ticket. Photos of bodies circulated online, mother tells juryWednesday March 2, 2016 • Cayman Compass 6 DISTRICT DAYS District Days Sister Islands In the March 2, 1966 edition of the Caymanian Weekly, a precursor of the Cayman Compass, contrib- utor Florence Blum wrote: “As one New York Times writer said, ‘Cayman, once a pirates’ hideout, now shelters fugitives, from telephones and other forms of progress.’ “I have echoed his phrase over for 7 years. I have been coming to Little Cayman with the Harper Brothers every winter for 7 years and we thoroughly enjoy the climate, the hos- pitality of the island folks and, of course, it is a refuge and retreat from our busi- ness appointments and the daily work which plagues us the entire year. “After first finding these lovely tropical islands that time has forgotten, we fell in love with them and 7 years ago we purchased property on Little Cayman where we had a small cot- tage built. We shipped over the necessary furnishings to ensure our comfort, and a 16 ft. aluminum boat with 2 motors to give us ade- quate transportation and safety while fishing the sea and the coral reef for the many wonderful fish that abound in these waters. “Bone fish are so plen- tiful that it is a daily habit to battle several each day just to keep our hand in, as they feed right past our front door. “We are the only in- habitants on the entire 12 miles of the North Shore of Little Cayman; so we feel completely alone and re- laxed from the hum-drum life of the busy world. We never feel too lonely, for the fishing boats from the Brac occasionally stop in with our mail and supplies, or just drop in for a drink or a chat while eating some of our homemade bread. “A month or more on Little Cayman gives us a perfect relaxed vacation that sends us back home ready for another year’s grind, and full of desire to return again next year.” 50 years ago: ‘3 cheers for Little Cayman’ Children’s book gets Cayman spin in special CCMI edition The Central Caribbean Marine Institute’s efforts to build knowledge of coral reef conservation and science among local children is get- ting an unique boost. As the special Central Caribbean Marine Institute edition of “A Parrotfish’s Tale” was sent to the printers on Monday, 1,000 copies of the book will soon be making their way to the CCMI’s Little Cayman Research Centre, where they will be distributed to young- sters participating in its education programs. The book’s author, Christina Maas, is a ma- rine ecologist, story writer and artist based in Niedersachsen, Germany, who has worked all over the world studying, researching and exploring marine habi- tats. The books tell the story of a parrotfish encountering different creatures on a reef. While the story is based in the Pacific, “The special CCMI Edition includes edu- cational material designed to promote discussion of the ecological issues covered in the book in the context of the Caribbean, with special emphasis on the Cayman Islands region,” Ms. Maas states on her Facebook page. The story is designed for young readers, setting out in a simple and colorfully illus- trated way the different and important roles played by the animals inhabiting a reef. “I wrote ‘A Parrotfish’s Tale’ for my daughter Annabel,” Ms. Maas writes on her website. “I wanted to give her a taste of the vibrant under- water communities I was so inspired by. I wanted Annabel, from a very young age, to also adapt an ecolog- ical way of thinking; under- standing, for example, that each animal on a coral reef has a special role and relies on the other to survive.” Ms. Maas says the de- cision to publish the book came from discovering a niche needing to be filled. “Although I acknowledge that the publication of sci- entific research in journals is very important, now having a child, I am surprised at how few of the important mes- sages from current marine research are provided in sim- pler format to young people,” she states. “My goal is to change that.” The partnership between the author and the Institute was facilitated by Ellen Cuylaerts who chairs CCMI’s annual “Festival of the Seas” fundraising gala. “At the gala, the books were auctioned in sets of 100, with each person who pur- chased a set having that set customized with their name,” explained the Institute’s de- velopment and outreach co- ordinator Brittany Slade. All proceeds from the sales, aside from printing costs, will go toward the Institute’s education efforts. Ms. Slade says the adapted ending in the CCMI edition is designed to get the primary students who will be reading the book thinking. It will include questions that will ask the students, for example, to ex- plain why they would choose to be a certain reef creature, and what they would do as that creature. “The books will be given to each of the elementary school students participating in CCMI’s 3-day Caribbean Ecology Course, until they run out,” she said. “They truly provide a great integration of locally relevant content to kids here in Cayman.” ‘A Parrotfish’s Tale’ offers a kid-friendly explanation of a coral reef ecosystem. Simone Scott was among several Cayman Brackers honored at last week’s Cayfest National Arts and Culture awards. Held on Thursday, Feb. 25 at the Harquail Theatre, the gala event celebrated leaders in music, rec- ognizing those who attain a level of merit in their artistic discipline, contribute to the arts, culture and heritage of the Cayman Islands and support the work of the Cayman National Cultural Foundation. “The evening was filled with ex- citement as some of the biggest names in arts and culture were being recognized. It was definitely worthy of the red carpet,” Ms. Scott said, adding that a highlight for her was watching Grammy-winning cello artist Dana Leong perform. Ms. Scott, an artist and the National Gallery’s Sister Islands of- ficer, received the Chairman’s Award for outstanding long-term sup- port of the foundation’s work. Islyn Ebanks received a Heritage Silver Cross and the late Arlin Tatum re- ceived a Heritage Gold Cross for their contributions to music. At the event, Brac author and storyteller Burnard Tibbetts was presented with a set of the Cayman National Cultural Foundation’s “Foundation Journal,” the latest edi- tion of which focuses on the Sister Islands and features his history of the Brac, as well as photos and art by Ms. Scott. Ms. Scott said she considered it a great honor for her to receive and accept her award at the event. “It is an award that highlights my commitment to volunteering or working with CNCF, since just after high school graduation way back when, mostly when it involved the arts and culture for the betterment of the Brac community,” she said. These included Cayfest exhibits from the time they were hosted at the Brac District Administration building, as well as a Cayman National Cultural Foundation summer camp in Grand Cayman, and, much more recently, con- tributing her photography for the Foundation Journal that was launched at the awards night. “I’m a firm believer of volun- teering for non-profit organizations such as CNCF and National Trust,” she said. A truly prolific volunteer with a passion for Cayman’s heritage, her involvement spans farther as well. “It has also been such a pleasure as well working with the National Gallery on its board shortly after it was formed, and now as their Sister Islands rep/artist, and working with Cayman Traditional Arts pre- serving our heritage and culture,” she said. Culture honors for Sister Islanders Simone Scott on the red carpet at the National Arts and Culture Awards. – Photo: Jewel levyCayman Compass • Wednesday March 2, 2016 7 DISTRICT DAYS District Days Sister Islands Agriculture show draws big crowds Fine weather and a strong turnout made for an action-packed and successful Brac Agriculture show last weekend. More than 1,300 people passed through the gates on Saturday, Feb. 27, including a number of cruise ship passengers taking ad- vantage of a special excursion. There was something for everyone and fun for the whole family at the popular cul- tural event, now in its 13th year. Visitors took in a showcase of local produce and mouth- watering dishes, alongside animal displays, exhibits, sales booths, competitions, a cake walk game, and demonstrations by customs, police, schools and health and fire services. The day also featured live entertain- ment from three bands, a host of awards and presentations and a grand prize draw of US$2,000, which was won by Susan Walton. Chevala Burke, District Administration marketing and communications manager, said the day kicked off with a traditional Caymanian breakfast and official opening ceremonies this year featuring a special guest, a calf named Foxy. “This year, we also had a special segment recognizing the Sister Islands Heroes Day honorees in farming, who had a chance to be recognized by Premier Alden McLaughlin, Deputy Premier Moses Kirkconnell and Agriculture Minister Kurt Tibbetts,” said Ms. Burke. “It was very nice, particularly for those who were not able to make it over to Grand Cayman for the Heroes Day ceremony held earlier this year.” Festival Queen Haylie Tibbetts made an ap- pearance, as did the Lions Club of Cayman Brac Little Miss and Little Master winners. This year’s Agriculture King was Dwayne McFarlane, who entered his livestock, while Theresa Mena was crowned Agriculture Queen for her numerous entries in animal, produce, pies and preserves categories. Young farmers were honored at the event, with primary school students Ronaldhino Vassel and Alana Knight awarded Agriculture Prince and Princess, respectively, in recogni- tion of their involvement in grow box proj- ects. Christiano Ritch was awarded the Little Prince honor while Antioneil McDonald was the Little Princess winner, both also for their grow box efforts. There was something for everyone and fun for the whole family at the popular cultural event, now in its 13th year. Davondra Bodden with her prize winning chickens. Premier Alden McLaughlin was on hand to address the visitors. Annelee Ebanks hard at work on a thatch creation. The horticultural displays included these beautiful orchids. Jyzelah McCoy enjoyed feeding the cows some hay. - Photos: Ed BEatyThe islands’ most-trusted news source 8 considered on a case-by-case basis for each civil servant. Mr. Manderson said all of the roughly 3,600 central government employees in the civil service now have what are known as “performance agreements” with their rel- evant supervisors. That in- cludes chief officer-level se- nior managers who are supervised directly by the deputy governor. The agreements set per- formance targets and are reviewed annually by man- agers who provide feedback to the employee. “This … is leading to im- proved accountability,” Mr. Manderson said. If a civil service worker does not perform up to par, based on his or her specific performance agreement, the staff member can be written up, reassigned, suspended without pay or even termi- nated – if the non-perfor- mance rises to the level of gross misconduct, according to Public Service Management Law regulations. Cayman Islands Civil Service Association President James Watler said, from the employee represen- tative group’s perspective, as long as civil servants know what is expected of them, they can achieve it. “We don’t mind being held accountable [for per- formance]; we don’t have a problem with that,” Mr. Watler said. “As long as we know what we need to do and get on with it.” Mr. Watler said he has seen and reviewed the deputy governor’s Monday memo and said he gener- ally thought it was a “step in the right direction,” as long as non-performance issues were addressed fairly across the service. Pay raises As part of the upcoming 2016/17 government budget process, Mr. Manderson also informed civil servants that certain pay adjustments would be provided for to deal with the ongoing issue of “pay stagnation” in the civil service. Stagnant pay has affected Caymanian workers dispro- portionately in recent years, according to public finance reviews, with individuals who entered the civil ser- vice several years ago – who had not been given a signifi- cant increase in pay – lagging behind new hires who were often doing the same jobs but receiving a higher salary. Certain pay stagna- tion “awards” were provided during the current budget for public school teachers and police officers. In addi- tion, certain pay raises based on job performance evalua- tions were given to customs and immigration officers, Mr. Manderson said. “The government has made provisions to extend pay stagnation remedies for other sections of the civil ser- vice,” Mr. Manderson said. The details of those pay in- creases would form part of the upcoming budget, and Mr. Manderson noted Premier Alden McLaughlin had already agreed to pro- vide the funds. “Issues such as pay stag- nation continue to be a top priority, recognizing that we must be mindful to show fiscal [restraint] so that the fi- nancial relief [to government employees] can prove sus- tainable,” he said. Wednesday March 2, 2016 • Cayman Compass In loving memory of our darling Jeanne Diane Watler-Miller Feb-04-63 - March 02-94 Your life was a blessing Your memory a treasure You are loved beyond words And missed beyond measure. Sadly missed by all the family When misconduct occurs … Brent Fuller bfuller@pinnaclemedialtd.com The government’s Public Service Management Law sets out in great de- tail the steps that must be taken be- fore disciplining an employee for ei- ther inadequate performance, minor misconduct or gross misconduct. The process applies to all civil ser- vants with the exception of chief of- ficers [heads of ministries and port- folios], who are governed under a slightly different arrangement. Minor misconduct/ inadequate performance In the case of minor misconduct or inadequate performance, the ap- pointing officer [the employee respon- sible for hiring], must take the fol- lowing steps: ■■ Collect evidence regarding the staff members’ alleged miscon- duct or performance difficulties ■■ Advise the staff member of con- cerns and provide the staffer with a copy of the evidence ■■ Provide a warning that states corrective action must be taken and, if it is not taken, that dis- ciplinary action could follow ■■ Provide a reasonable amount of time [one month] for the staff member to take the correc- tive action, after which the staff member must be reassessed. If the issues are not addressed, the appointing officer can issue a repri- mand letter, reassign the staffer, sus- pend the worker at no pay or half pay, or other disciplinary actions. Under the Public Service Management Law regulations, dismissal is not typically a disciplinary action taken in the case of minor misconduct. Gross misconduct In the case of gross misconduct, the appointing officer has to collect evidence of the misconduct and advise the staff member in writing of the al- legations against him or her. In addition, the appointing officer has to provide an opportunity for em- ployees to explain themselves. If the person is dismissed as a re- sult of his or her actions, the man- ager must notify the staff member and arrange for the firing to take place immediately. Criminal activity In the case of gross misconduct in- volving allegations of criminal activity, a similar process is followed, except that the person must be suspended with full pay while the criminal al- legation is investigated. Otherwise, a civil service employee accused of gross misconduct in a non-criminal situa- tion would usually stay on the job. If the employee is convicted of a criminal offense that would be con- sidered gross misconduct, the ap- pointing officer “may” dismiss that person at the earliest opportunity, ac- cording to the law. ‘Inadequate performance’ continues in civil service Cayman Airways reshuffles schedule to limit delays often arise when one or more of those jets is out of service. A total of 54 flights, out of 509 that operated be- tween Dec. 18 and Jan. 18, were rescheduled or de- layed by more than two hours because of the im- pact of jets being out of ser- vice, the Cayman Compass reported in January. In a statement this week, CAL said the changes to the Cuba flights would improve its overall operational reliability and save overnight costs in Havana, which have increased significantly recently. Mr. Whorms said the decision to suspend the Holguin flight had not been taken lightly, but was nec- essary for the airline’s overall operational needs. He said the route is still in the developmental stage but has shown signs of being a success. The last flight to Holguin departs March 26, with the Havana Service expected to begin April 2. “Cayman Airways intro- duced additional frequency to Cuba on Saturdays in November 2015 to test the city of Holguin as a new gateway, on the premise that many of CAL’s pas- sengers traveling to and from Cuba have origin and destination points in the eastern provinces of Cuba,” said Mr. Whorms. “This new service on Saturdays was a good fit as it took advantage of the Charles Kirkconnell International Airport in Cayman Brac now being able to be utilized as an in transit point, thereby not placing any additional burden on the Owen Roberts International Airport at its busiest time of the week. “At the same time, the new service allowed Cayman Brac to have non- stop service to and from Miami on a Saturday at a time of day which would enhance the tourism air- lift available to and from Cayman Brac. The change in service from Holguin to Havana still maintains the principle of using Cayman Brac to ease conges- tion at the Owen Roberts International Airport and allows Cayman Airways to meet its passenger needs.” CONTINUED FROM PAGE 1 CONTINUED FROM PAGE 1 Miss Cayman helps launch fitness program Miss Cayman Islands Monyque Brooks joined with Deputy Governor Franz Manderson and other civil servants on Monday to launch an eight-week fitness program, “Off the Couch.” The initiative, orga- nized by the civil service GAB Walk Run Club, aims to get people in shape for the Deputy Governor’s 5K Challenge in April and is suitable for all fitness levels of walkers and runners. The GAB club meets every Monday at the staff entrance to the Government Administration Building on Elgin Avenue. In addition to members of the civil service, walkers and runners from the private sector and the public are in- vited to join Off the Couch. “I am delighted to be with the GAB Walk Run Club for the Off the Couch program and encourage as many people as possible to join us and get fit for the DG’s 5K Challenge,” said Ms. Brooks, who works in the Department of Tourism. This year’s 5K Challenge is supporting Cayman Heart Fund’s appeal to buy a new ambulance. The total target is $150,000 and the aim is to raise $50,000 through the 5K event. The 5K Challenge will be held on April 17 on Cayman Brac and on April 24 on Grand Cayman. From left, Nancy Barnard, Franz Manderson, Monyque Brooks and Jennifer Ahearn stretch as they get ready to run Monday evening. In addition to members of the civil service, walkers and runners from the private sector and the public are invited to join Off the Couch. Mr. Watler9 LOCAL&REGIONAL Cayman Compass • Wednesday March 2, 2016 Discover the benefi ts of a world class boarding school experience for your child Please join Bishop’s College School, Lakefi eld College School, St. Andrew’s College and Appleby College at the Marriott Grand Cayman for this informative event showcasing four of Canada’s great boarding schools. For more information and to R.S.V.P. please visit or call: www.boardingleaders.ca or 1.705.652.3324 ext.392 THURSDAY, MARCH 3, 2016 5:30-8:30 pm Marriott Grand Cayman, 389 West Bay Road, Grand Cayman Boarding School Information Night Boarding School Admissions Information Night No strategy for welfare payments Reform plan expected by year’s end James Whittaker jwhittaker@pinnaclemedialtd.com The senior official re- sponsible for welfare in the Cayman Islands has ac- knowledged there is no co- ordinated strategy for how public money is spent on the island’s most needy. Dorine Whittaker, chief officer in the Ministry of Community Affairs, said it had accepted the findings of a damning Auditor General’s report, which pointed to a lack of oversight and account- ability for the $50 million spent annually on providing assistance to those in need. She said the report was being used as a springboard for reform, with the aim of producing a “business case” for a new social assistance plan by the end of the year. Under questioning from members of the Public Accounts Committee last week, Ms. Whittaker acknowledged, at various stages in a three-hour hearing, that she was unable to say, with 100 percent cer- tainty, that everyone receiving ex-gratia seamen’s benefit had been to sea, that everyone get- ting veterans’ payouts were genuine ex-servicemen or that schoolchildren receiving free lunches were not getting sim- ilar assistance from charities. She said the Needs Assessment Unit, which has 24 staff including 12 front- line assessment officers, needed more personnel. She acknowledged that there were gaps in the system, including potential duplication with charities, like Feed our Future. “Once the Needs Assessment Unit comes up for air, they need to start looking at school lunches to make sure we are not duplicating and giving the same set of families lunches and uniforms,” she said. Public Accounts Committee chairman Ezzard Miller also raised concerns about vet- erans’ benefits, citing a letter form the president of the Veterans Association indi- cating that only four people in the Cayman Islands should be qualifying for the payment, compared with 162 people that were getting it. Ms. Whittaker acknowl- edged that she was not aware how all the people claiming vet- erans’ benefits had originally qualified. She said there was a list that had been compiled be- fore her time in the ministry, but she was not sure how the credentials of the war veterans were verified at the time. “No new persons [have] been added since 1997. We started with quite a number, [and] it has dwindled to 162 because you can’t add any persons to that list,” she said. She added that despite new guidelines for the separate seamen’s ex-gratia benefit, in- dicating new applicants had to be endorsed by the Seafarers Association to receive the pay- ment, anyone who qualified under the old system had been grandfathered in and would continue to receive the $550 monthly stipend. She accepted it was pos- sible that some of those people were not seamen and had simply got two friends to swear an affidavit that they went to sea in order to cheat the system. “There’s no way when they sign that affidavit we can say 100 percent they are a seaman. We are relying basi- cally on them going before a JP and swearing it,” she said. She said new criteria would prevent that in fu- ture but old recipients would not be kicked off unless they were proven to be fraudu- lently receiving the money. Just over 900 people currently receive the $550 monthly pay- ment, costing the government around $6 million annually. Ms. Whittaker said the au- ditor’s report had highlighted the need for a social assis- tance strategy as there was no way of knowing whether current programs were reaching the target audience. She said the auditor’s rec- ommendations would shape a request for proposals to find a private sector consul- tant to help produce a busi- ness case for welfare reform by the end of the year. In his introduction to Friday afternoon’s hearing, acting auditor general Garnet Harrison summed up the conclusions of the audit re- port, saying, “This report indi- cates that government has not taken the necessary steps over the years to ensure it is pro- viding assistance in the right amount to the right people at the right time, and thus ulti- mately failing the people they are supposed to be serving.” General says terrorists in ‘daily’ refuGee flow to europe WASHINGTON (AP) – Terrorists, criminals and foreign fighters are part of the daily refugee flow into Europe, the top NATO com- mander in Europe told law- makers, “masking the move- ment” of these dangerous elements and heightening the potential for an attack. In testimony Tuesday before the Senate Armed Services Committee, U.S. Air Force Gen. Philip Breedlove said the Islamic State ex- tremist group is “spreading like a cancer” within this mix, “taking advantage of paths of least resistance, threat- ening European nations” and the United States. In response to a question about whether the Islamic State will continue to infil- trate refugee flows, Breedlove said, “I think that they are doing that today.” Those fears fueled leg- islation that would crack down on Syrian and Iraqi refugees seeking to enter the United States. A House- passed bill would require new FBI background checks and individual sign-offs from three high-ranking federal officials before any refugee from Syria or Iraq could enter the country. The legislation cleared the House in November in the af- termath of the Paris attacks. It received 289 votes, a veto- proof margin that included 47 Democrats – despite President Barack Obama’s opposition. But in January, Senate Democrats blocked the legislation, saying it reflected Republican presidential can- didate Donald Trump’s call to bar Muslims from coming to the United States. Breedlove said Russia’s actions in Syria have “wildly exacerbated the problem.” Russia has done little to counter the Islamic State but instead has bolstered Syrian President Bashar Assad.Next >