SPORT | PAGE 17 CARIFTA MEDALISTS REFLECT ON SUCCESS High of 91 Low of 80 Slight with wave heights of 1 to 3 feet. EDITORIAL | PAGE 4 THE PANAMA PAPERS: DODGING THE BULLET, ABSORBING THE SHRAPNEL ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – TUESDAY APRIL 5, 2016 180682-A_PRINT-Ad-Strip-ScholarsPage 1 2/24/16 9:53:40 AM PANAMA PAPERS Leak puts pressure on offshore centers MICHAEL KLEIN mklein@pinnaclemedialtd.com References to the Cayman Islands in the “Panama Papers” were conspicuous by their absence but pressure on all offshore financial centers is likely to increase after the anony- mous leak of more than 11 million documents belonging to a Panamanian law firm con- tinued its fallout on Monday. More than 109 media organizations in 76 countries, which analyzed the data, re- ported the firm Mossack Fonseca had helped clients launder money, dodge sanctions and evade taxes. The papers allegedly show that 140 politi- cians from more than 50 countries, including 72 current and former heads of state, mem- bers of FIFA and professional athletes had links to the law firm. The documents contain information on off- shore companies, created by Mossack Fonseca, with links to the families of Egypt’s former president Hosni Mubarak, former Libyan leader Muammar Gaddafi and Syria’s presi- dent Bashar al-Assad. Active political leaders named in the leak include Argentinian Presi- dent Mauricio Macri, Iceland’s Prime Minister Sigmundur Davíð Gunnlaugsson and Ukrai- nian President Petro Poroshenko. All denied any wrongdoing. Tim Ridley, the former chairman of the Cayman Islands Monetary Authority, said as a result of the leaked documents, “pressure will increase for greater transparency gener- ally, and not just in offshore financial centers.” Anthony Travers, senior partner at law firm Travers Thorp Alberga, said the “left wing press” in the United Kingdom and “cer- tain left leaning politicians” have predictably seized on the disclosures to call for further action against all offshore financial centers, including the Cayman Islands, even though AL LA KEBAB RESTAURANT ROBBED, STAFFER ASSAULTED TAD STONER tstoner@pinnaclemedialtd.com Robbers assaulted one man and escaped with an unspecified amount of cash in a Sunday-night armed robbery of the Al La Kebab outdoor restaurant at Lawrence Boule- vard’s Marquee Plaza. Two masked assailants approached the eatery, demanding cash from the five staffers, then turned on customers waiting in line at the order window. In a statement issued Monday, police said officers received a report at 8:20 p.m. that two men with covered faces had robbed the food stand. “Both men were armed with guns, and an employee of the food stand was hit with a gun during the incident,” according to police. The employee was treated and released, a police spokesman said. “The culprits also demanded a wallet from a patron before running down Lawrence Bou- levard in the direction of Camana Bay, firing one shot in the air,” according to the statement. Restaurant owner Alan Silverman, who has operated the restaurant for 16 years, said one of the robbers had hit the staffer, a trainee, in the head with the barrel of a gun, although he was relatively unhurt. He said at least one, possibly two, shots were fired during the incident. The five staff on duty – two in the rear of the restaurant, two at the service window and one trainee – immediately called police, who arrived quickly, but were too late to appre- hend either of the attackers. Mr. Silverman expressed dismay, saying Restoration completed of reef damaged by Paul Allen’s yacht KELSEY JUKAM kjukam@pinnaclemedialtd.com The Department of Environment and Paul Allen’s company Vulcan, Inc., on Friday announced the completion of a joint resto- ration project aimed at helping to speed the recovery of coral in West Bay damaged by Mr. Allen’s yacht in January. A part of the reef in the West Bay Re- plenishment Zone was damaged when Mr. Allen’s mega-yacht, Tatoosh, dropped an- chor in the area. The damaged area covered 13,000 square feet of reef, equivalent to an Olympic-size swimming pool. While the Department of Environment and Vulcan initially clashed over the size and scale of the restoration job, the two par- ties agreed in February to the joint emer- gency restoration plan, and began work tri- aging the affected coral and stabilizing the reef structure. Members of the Polaris Applied Sciences A member of the Polaris Applied Sciences team works during the emergency restoration effort. – PHOTO COURTESY OF POLARIS APPLIED SCIENCES PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 »2 LOCAL&REGIONAL TUESDAY APRIL 5, 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. - TUESDAY - MY BIG FAT GREEK WEDDING 2 (PG13) 1:15 I 4:30 I 6:50 I 9:55 BATMAN V SUPERMAN DAWN OF JUSTICE 3D (PG13) 12:30 I 1:00 2D I 3:45 I 5:30 2D 7:00 I 9:30 2D ZOOTOPIA 3D (PG13) 12:45 I 3:30 2D I 6:45 I 9:20 2D LONDON HAS FALLEN (R) 1:20 I 4:00 I 7:20 I 9:40 MIRACLES FROM HEAVEN (PG) 1:30 I 4:15 I 7:10 I 10:00 Daily Matinees Every Day $8.00 Seniors, Mon-Fri Before 6pm Cayman Cinema@cbcinema6cbcinema6 640-FILM (640-3456) Paradise Vapors www.paradisevapors.ky info@paradisevapors.com.ky 938-VAPE(8273) Open 10am - 7pm Still Smoking Cigarettes?!? Kick the Habit Today!!! The first E-liquid Manufacturer in The Cayman Islands. We have the lowest prices on E-liquids & Vaping Equipment. Stop by our shop today!! Located at Glazier House on Eastern Ave., next to Mandy’s (In front of Cayman Glass in the vicinity of Uncle Bills / Saxon) Public urged to back ambulance fundraiser Former Cayman 27 re- porter Kevin Watler re- cently recovered from open heart surgery. Now, he is urging people to support ef- forts to raise funds to buy a new ambulance for the Cayman Islands. Mr. Watler is a member of the Cayman Heart Fund which is fundraising for the ambulance. The Heart Fund has al- ready raised $50,000 to go to- ward the purchase of the ve- hicle which will replace one of the Health Services Au- thority’s aging ambulances. The upcoming Deputy Gov- ernor’s 5K Challenge aims to raise the same amount, to help the charity get closer to its target of $150,000. The goal is to purchase the ambulance, which will be a new back-up vehicle for the Health Services Authority, by Christmas. “Many of us will end up using an ambulance at some point in our lives,” Mr. Watler said in a press re- lease. “So, if we all work to- gether and buy one, it will save many lives.” Mr. Watler’s personal health journey has under- scored for him the impor- tance of having such an am- bulance available on island. In 2013, when he was 26 years old, Mr. Watler was di- agnosed with hypertrophic cardiomyopathy after suf- fering chest pains and pal- pitations. This complex heart disease is the most common cause of sudden cardiac death in people under the age of 20 and affects approx- imately one in 500 people in the United States. In April 2013, Mr. Watler had an operation to implant a small electronic device into his chest to help prevent sudden death from cardiac arrest due to abnormally fast heart rhythms. Later, as his chest pains and palpitations continued, it was recommended that he have a surgical proce- dure called septal myectomy, which involves removing a portion of the septum of the heart that can obstruct the flow of blood to the aorta. Mr. Watler successfully underwent that surgery last year in Ohio, and was back to work as a communica- tions specialist in Florida in three months. Mr. Watler worked at Cayman 27 for seven years. Although he is now based in the United States, he continues to support the Cayman Heart Fund, which he joined when he be- came sick, and manages the charity’s website and social media. The 2016 Deputy Gov- ernor’s 5K Challenge takes place in Cayman Brac on Sunday, April 17 and in Grand Cayman on Sunday, April 24, at 6:30 a.m. on both dates. The walk/run is suit- able for people of all ages and fitness levels. Registration for the chal- lenge will be held in Grand Cayman at the Government Administration Building on April 7, 8, 14 and 15 from 10 a.m. to 3 p.m. and on April 21 and 22 from 9 a.m. to 4 p.m. In Cayman Brac, regis- tration will be in the Dis- trict Administration Building on April 7, 8, 14 and 15 from 8:30 a.m. to 5 p.m. Entry fees are $20 for ages 14 and older, and $10 for children 13 and younger. Limited edition 2016 DG’s 5K Challenge T-shirts are avail- able at registration on a first- come, first-served basis. Registration forms are also available in the lobbies of the District Administration Building in Cayman Brac and the Government Administration Building in Grand Cayman, via email on DG5K@gov.ky, or can be downloaded at www.odg.gov.ky/DG5K. Home affairs staff begins fraud training Accounting and man- agement staff from the Ministry of Home Affairs will attend fraud preven- tion and detection training over the next two weeks. Twenty-nine staff mem- bers from across the min- istry who are responsible for managing public funds will attend the training until April 15, to learn to perform comprehensive fraud risk assessments and to detect a wide variety of internal fraud and corrup- tion, according to a govern- ment statement. The training will cover purchasing and acquisition fraud, payroll fraud, check fraud, reporting fraud, the abuse of company assets and more. The staff members will also learn how to ef- fectively investigate sus- picions of internal fraud or abuse, to support recovery of loss. The curriculum will cover advanced inter- viewing techniques, pos- sible termination or dis- ciplinary proceedings and potential prosecution. The Ministry of Finance organized the training and Vinton Chinsee, chief finan- cial officer for the Ministry of Home Affairs, made ar- rangements with Florida- based company Certified Tech trainers in January. “We believe it is critical to equip our staff with the latest techniques to manage fraud,” Mr. Chinsee said in the press release. “While we cannot completely elimi- nate the risk, I anticipate this training will help to strengthen our corporate governance framework and thus mitigate the risk of or- ganizational fraud.” Man stabbed, customers assaulted in fight A man was stabbed in the chest during a fight out- side a restaurant in George Town in the early hours of Sunday morning. A few hours earlier, around 9 p.m. on Saturday, police had received a report of a fight among a small group of men in the parking lot of Funky Tang’s on Shedden Road. Later, just after midnight, police received information that some of the men were at a restaurant on Dr. Roy’s Drive. When they got there, officers found another fight in progress among five men. Two of the men received minor injuries during the fight and were treated at hospital and released; a third man was stabbed in the chest and remained in the hospital Monday after- noon in stable condition, po- lice said. During the fight, two other patrons of the restaurant were also as- saulted, police said. Police are asking anyone with information about this incident to call George Town CID at 949-4222. Anonymous tips can be also be provided via the Miami-based call center of Crime Stoppers at 800-8477(TIPS). NAU STUDENTS SPEND SPRING BREAK IN CUBA FLAGSTAFF, Ariz. (AP) – Stu- dents from Northern Ar- izona University spent spring break in Cuba, marking the university’s first study abroad trip to the country. The Arizona Daily Sun reports that nine design students went to Havana days before President Barack Obama to study Cuba’s architecture. Students stayed in Cuba for seven days and earned a one class credit as part of a special topics class. NAU has never before sent students to Cuba, despite educational ac- tivities being on the list of acceptable reasons to travel to the country for years. Recently those travel restrictions were loosened. Kevin Watler Marine scientists bemoan SeaWorld’s decision to stop breeding orcas ORLANDO, Fla. (AP) – There’s one last orca birth to come at SeaWorld, and it will prob- ably be the last chance for re- search biologist Dawn Noren to study up close how female killer whales pass toxins to their calves through their milk. While SeaWorld’s decision last month to end its orca breeding program delighted animal rights activists, it dis- appointed many marine sci- entists, who say they will gradually lose vital oppor- tunities to learn things that could help killer whales in the wild. Noren got to observe only one mother-and-calf pair at a SeaWorld park before the end of the breeding program was announced. “It’s really difficult to pub- lish with one. I really was hoping for a couple more, but that is what it is,” said Noren, who works at the National Marine Fisheries Service’s Northwest Fisheries Science Center in Seattle. SeaWorld’s 29 orcas at its parks in Orlando, San Diego and San Antonio could re- main on display for decades to come and will continue to be available for study by outside scientists, as they generally have been for many years. The whales are 1 to 51 years old. But as SeaWorld’s orca population dwindles, re- searchers will lose chances to collect health data and make other observations, such as drawing blood, measuring their heart rates and lung capacity, and documenting their diets and their growth. As the animals age, scientists say, research will be limited to geriatric orcas. No other marine park or aquarium in the world has SeaWorld’s experience in maintaining or breeding orcas in captivity.3 LOCAL NEWS CAYMAN COMPASS • TUESDAY APRIL 5, 2016 We offer full service on all Japanese, U.S. Spec, and European models including Mercedes, BMW, and Audi. We are also the Authorized Service Center for all the electric and JAC Motors vehicles that we now sell including the Tesla. Our goal is to provide the community with a level of customer satisfaction that exceeds your expectation at every opportunity for a very competitive price and service with a smile. The New Cayman Automotive Service Center Is Now Open For Business! The NewThe NewThe New Cayman Automotive Service Center Is Now Open Cayman Automotive Service Center Is Now Open Cayman Automotive Service Center For Business! Is Now Open For Business! Is Now Open Please call Dody Phillips at 947-0900 for appointments and directions. Universal Warehouse Park 69 Barnes Drive, GT Committee formed to develop culture and heritage policy A Cabinet-appointed steering committee of public and private stakeholders is helping to development Cay- man’s first National Culture and Heritage Policy and Stra- tegic Plan. The policy will provide a framework for the govern- ment to address the con- servation and promotion of Cayman’s heritage and cul- ture, as well as education on these subjects, according to a press release from gov- ernment. It is expected that the policy will be in place by early 2017. The document will draw on existing strategies and policies that deal with cul- ture and heritage, including the Cayman Islands Consti- tution, Vision 2008, and other national, regional and inter- national policies. The steering committee, comprised of representatives from cultural groups such as the Cayman Catboat Club, the National Archive, Cayman National Cultural Founda- tion, the National Trust, Na- tional Museum and National Gallery, recently met for the first time. Premier Alden McLaughlin, who is also minister for cul- ture, welcomed the team. “I am pleased with the in- terest and enthusiasm of this committee,” Mr. McLaughlin is quoted in the release as saying to the committee. “Government enthusiasti- cally awaits the results of your undertakings, which are vital to conserving our heri- tage and further developing our culture.” The steering committee members will formulate a strategic plan to roll out a policy over a 10-year period from 2016 to 2026. “The Culture and Heri- tage Policy will assist when making decisions, such as re- source allocation, for things such as educational and so- cial programs,” committee chairwoman and Ministry of Culture Chief Officer Jennifer Ahearn said. “By having the steering committee in place and aiming for a broader public consultation, planned for later this year, we will ensure that the policy is re- sponsive to the needs of the people of these islands.” The steering committee will focus on issues such as land-based heritage, mari- time heritage, subcultures, literary arts, visual arts and crafts, performing arts, festi- vals and leisure, tourism and creative industries. Premier Alden McLaughlin addressed the first meeting of the Culture and Heritage Steering Committee. Young leadership nominations open Nominations are officially open for the 16th annual Young Caymanian Leader- ship Awards. The awards recognize leadership, moral character, achievement and commu- nity involvement for Cayma- nians between the ages of 20 and 35. According to the YCLA or- ganizers, “of primary impor- tance is a strong commitment to mentoring young people.” Last year, a record 39 people were nominated for the award. Tara Godfrey with the YCLA said the nomination deadline will be in June, though the selection com- mittee has not picked a final date yet. She said the award ceremony will be in November and a date will be announced in the coming weeks. “In today’s world, more than ever, our young people need role models, people not much older than themselves, with whom they can identify, and by whom they can feel inspired,” said Jonathan Tib- betts, YCLA board member and chairman of the nomina- tions committee. “The YCLA shines a spot- light on these great role models, who give gener- ously of their time to touch the lives of so many young people in need of answers and positive direction. “We look forward to re- ceiving the nominations for this year’s award, and we thank the community in advance for helping us to identify the candidates. Together we are building a stronger community,” Mr. Tibbetts said. Kellie McGee won last year’s Young Caymanian Leadership Award, in No- vember. She has spent her time addressing some 7,000 students in Cayman since November, according to the Young Caymanian Leader- ship Foundation. More details on the awards and nomination forms are available online at www.ycla.ky or by sending an email to tara@ycla.ky. The 2015 YCLA finalists, from left, Stephen Watler, Taylor Burrowes- Nixon, Kellie McGee, Rebekah Jefferson and Robbie Cribb. Nominations for the 2016 awards are now open. – PHOTO: MAGGIE JACKSON Free health screenings for World Health Day This year’s focus is on diabetes Members of the public can avail themselves of free health screenings this week as part of the Cayman Is- lands Health Services Au- thority’s observation of World Health Day. This year, as World Health Day on April 7 fo- cuses on diabetes, the Health Services Authority is offering free blood sugar and blood pressure screenings. The screenings will be available every day this week, until Friday, April 8, at all District Health Centres, George Town General Prac- tice, Faith Hospital Cayman Brac, and Little Cayman be- tween the hours of 9 a.m. and 1 p.m. No appointment is necessary. On Saturday, April 9, the screenings will be available from 10 a.m. to 2 p.m. at various supermar- kets in Grand Cayman. Acting Medical Officer of Health Dr. Samuel Williams- Rodriguez said the free health screenings are a part of the continued initiatives of the Public Health De- partment to emphasize the benefits of healthy life- styles and early detection issues such as diabetes and hypertension. People visiting the health clinics for the screenings should indicate to the registration clerks that they would like to reg- ister for free blood glucose and blood sugar screening. The results are available right away and counseling and referral will be of- fered as deemed necessary, health officials said. For further information, contact Therese Prehay at the Public Health Department on 244-2632. The results are available right away and counseling and referral will be offered as deemed necessary, health officials said.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. Many nations in Western Europe can no longer af- ford their big welfare states. Countries such as Greece, Spain, and Italy already have needed bailouts, while it’s just a matter of time before several other European na- tions face a fiscal day of reck- oning. But the problem isn’t confined to Europe. Coun- tries such as the United States and Japan also have serious long-run problems because of changing demo- graphics and poorly designed entitlement programs. Unfortunately, rather than fix their own fiscal problems, many of these na- tions are working through international bureaucracies such as the G-20 and the Or- ganization for Economic Co- operation and Development to rewrite the rules and tra- ditions of global commerce in an attempt to extract more tax revenue. This is why there’s been a major attack against so- called tax havens as part of a coordinated campaign to undermine fiscal sov- ereignty and restrict the human right of financial pri- vacy. Apparently small juris- dictions are not allowed to follow the same strategy of low taxes and small govern- ment that enabled nations such as the United States to become rich. One of the more bizarre chapters in this story is the way the pro-welfare state crowd is now trying to de- monize financial service providers such as law firms that are hired to fill out pa- perwork by investors and entrepreneurs who are set- ting up trusts, companies, and other entities. Consider, for instance, the plight of Mossack Fon- seca, a professional services firm based in Panama. The BBC and other agenda-driven journalistic outlets have sought to impugn the repu- tation of this firm, which has been in business for nearly 40 years and has never once in its history been charged or even formally investigated in connection with a single case of criminal wrongdoing. But this collection of legal practi- tioners and egghead trust ad- visors is suddenly being por- trayed as an international crime syndicate that’s cor- rupting Western civilization one business incorporation at a time. The controversy, in large part, derives from a basic and arguably willful misun- derstanding of what firms like Mossack Fonseca do – and don’t do – for their cli- ents. In basic terms, these firms help people create new businesses and trusts. These legal entities are created in jurisdictions all around the world, and companies like Mossack Fonseca are legally obligated to conduct exten- sive due-diligence to ensure that the “beneficial owner” of these entities – the end-cli- ents – is operating in a legal way, and that any funds de- posited in these new compa- nies have been legally earned. Banks conduct a similar due- diligence process on their own clients, and law firms typically work closely with them on their shared ac- counts to ensure full compli- ance with applicable laws. But unlike banks, these law firms don’t take posses- sion of their clients’ money. So the notion that they are in- volved in “money laundering” is laughable. Once incorpora- tion papers are filed, the law firms don’t direct in any way the operation of the busi- nesses. When problems do arise and various categories of “red flags” are triggered, these firms must immediately contact local oversight and enforcement agencies under the law, and convey to them every bit of data and infor- mation they’ve gathered, even information that’s otherwise protected. In other words: to blame these law firms for the misdeeds of the infinitesi- mally small number of people who game the system would be like blaming a car com- pany for an owner driving his sedan off a cliff. Firms like Mossack Fon- seca are merely just the latest stand-ins and proxies for a much wider campaign being waged by left-wing govern- ments and their various al- lies and interest groups. This campaign is built around ag- gressive attacks on anyone who, for any reason, seeks to legally protect their hard- earned assets from confisca- tory tax policies. What makes this issue so frustrating is there’s ac- tually a pro-growth way to end this controversy. High- tax governments should re- form their own tax regimes with an eye on competing for capital and luring new busi- nesses to their shores in an increasingly globalized and interconnected world. That’s basically what happened in the 1980s, starting with the Reagan and Thatcher tax rate reductions, and it trig- gered a lengthy period of global prosperity. Unfortunately, a cabal of governments in recent times has decided not to compete on that terrain at all – in- stead simply seeking to ma- lign and destroy any entity, individual or jurisdiction that exists that deprives them of tax revenue to which politi- cians greedily believe they are entitled. As usual, the media out- lets running these perennial “exposés,” usually at the bid- ding of OECD bureaucrats (who ironically get tax-free salaries) and government of- ficials from high-tax nations, are barking up the wrong copse of trees. It may be the case that foreign-based law firms like Mossack Fonseca are easy and salacious targets, not- withstanding the mundanity of the work they do and the critical role they play in helping the global economy operate efficiently. But the narrative being advanced by international media out- lets suggesting that these firms are breaking the law, or helping others do the same, is belied by the fact that none of them have actu- ally been charged with any crime. Unfortunately, stories about law firms that follow the law don’t typically sell many newspapers. Daniel J. Mitchell, a senior fellow at the Cato Institute and chairman of the Center for Freedom and Prosperity, is on the Editorial Board of the Cayman Financial Review. TUESDAY APRIL 5, 2016 • CAYMAN COMPASS As the saying goes, you are judged by the company you keep — and, in the case of public figures being named in “The Panama Papers” exposé, by the com- panies you tried to hide. It’s being billed as the largest leak in the history of whistleblowing, comprising 2.6 terabytes of data and containing nearly 40 years of records from major Panama law firm Mossack Fonseca. It includes 4.8 million emails, 3 million database files and 2.1 million PDFs concerning more than 210,000 offshore compa- nies in 21 jurisdictions. Figuring prominently are places such as Hong Kong, the U.K., Switzerland, the U.S., Panama (of course), British Virgin Islands, Seychelles and Luxem- bourg. Sitting here in the Cayman Islands, perhaps the most conspicuous aspect of the immense trove of data is the practical absence of the Cayman Islands. It hardly matters. For readers in the U.S., the U.K., Europe and most places across the globe, “the Caymans” is synony- mous with BVI, Panama, Switzerland and, in general, “tax haven.” Indeed, several news stories on The Panama Papers are already referencing Cayman as a prime example of a secretive offshore center, even though our territory plays no or little part in the sub- stance of those stories. The Panama Papers and similar investigations are engendered and directed by those who have the fol- lowing in their sights: • Individuals who have offshore companies (and who, in their view, should not be using them); • The international financial system as a whole (which facilitates, enables or fails to remedy unpop- ular or even unsavory behavior); and, • The class of small jurisdictions, such as Cayman (which, in the minds of many people, including regulators, “shouldn’t” be domiciling sophisticated financial sectors). Nevertheless, Cayman cannot lay claim to being the “world’s fifth-largest financial center” without being prepared to embrace all that that mantle entails, including criticisms that are valid or otherwise. In regard to The Panama Papers, it appears that this is a hugely important story, with significant revelations of wrongdoing and compelling key points, including that the worldwide system of offshore finance is prone to real, widespread abuse from unethical actors. That being said, as we happen to make our home in an offshore financial jurisdiction (and use com- mercial banks that are “local” to us but “offshore” to foreigners), we can’t help but be sensitive to the thought that the “bad guys” in The Panama Papers story — the law firm Mossack Fonseca and its clients — can also be seen as victims of a colossal breach of confidential information. One man’s “whistleblowing” is another man’s “theft.” Regardless, the whistle has been blown and the headlines have hit the fan. Keeping in mind that the most massive acts of fraud, corruption and wrong- doing occur in the largest jurisdictions, such as New York and London — the onus is on Cayman (and other small offshore territories) to undertake a calculated, sustained and orchestrated response. There are times when silence will not do. A key question: Who is in charge of our response? Cayman will be heavily impacted by fallout from The Panama Papers and any future bombshells. They provide the fuel that powers the engines of anti–tax haven activists, politicians and organizations. If Cayman, as an international finance center, truly is among the squeakiest of clean, then we cannot cower or take cover while the entire financial sector is under fire. We in Cayman know, for example, that Panama and Seychelles may be comparatively “dirty” — but most people see no difference, and as an upstanding member of the financial community, Cayman has an obligation to speak up, loudly, in favor of best practices and against the worst. However, before we hold ourselves up as a model of immaculacy, a degree of self-assessment may be required. Think of our active, starring role in the FIFA scandal, which continues to unfold and which inciden- tally has resurfaced in The Panama Papers. Also think, what if, when the next leak occurs, it doesn’t come from a Panamanian law firm that has few direct connections to Cayman … What if it springs from one of our own? The Panama Papers: Dodging the bullet, absorbing the shrapnel International tax police find new culprit: law firms DANIEL J. MITCHELL new culprit: law firms DANIEL J. MITCHELL 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” The Panama City-based law firm Mossack Fonseca has been the subject of a leak of a massive trove of documents, which have been dubbed ‘The Panama Papers,’ containing the offshore financial dealings of people, including public figures, around the world. - PHOTO: AP5 HEALTH NEWS 5 CAYMAN COMPASS • TUESDAY APRIL 5, 2016 Screen Printing Digital Printing Athletic Printing Sublimation Print Embroidery Tee Shirts & Sports Shirts Screenprint & Embroidery Tel: 949-3852 171 Eastern Ave. E-mail: LNG@candw.ky www.aceprint.ky Health Services launches survey The Cayman Islands Health Services Authority is running a survey to gauge patients’ experiences using its services and the level of care they are receiving. According to the Au- thority, in the survey, car- ried out in partnership with global research firm National Research Corporation, pa- tients are being randomly se- lected and presented over the telephone with survey ques- tions based on the range of care received at Health Ser- vices Authority facilities. Original efforts to carry out the survey by email were unsuccessful as few people responded, ac- cording to the HSA. The survey questions con- centrate on eight elements: respect for patient values; preferences and needs; coor- dination and integration of care; information and educa- tion; physical comfort; emo- tional support; involvement of family and friends; transi- tion and continuity; and ac- cess to care. In a press release issued on Friday, the Health Services Authority noted that patients are being contacted by tele- phone by the company from a Utah 385 area code in the U.S. “Initially, the surveys were administered to patients by email, however, due to min- imal responses and limita- tions relating to email, this method has not been as useful as expected,” the press release stated. “It is antici- pated that with the use of telephone surveys, the HSA will be able to reach a wider cross section of patients and thus obtain better and more valuable feedback regarding patient satisfaction.” The Health Services Authority is inviting any members of the public who have any concerns relating to the survey or wish to obtain further information to email info@hsa.ky.The Health Services Authority is carrying out a survey of its patients. – PHOTO: TANEOS RAMSAY Pectoralis minor muscle: A major source of problems JEMAL KHAN The pectoralis (pec) minor muscle is the often forgotten little brother of the pectoralis major muscle. Like many little brothers, it can cause problems far beyond its size. The pec minor is a small thick muscle found under- neath the pec major near the shoulder. Unlike his big brother, the pec minor does not attach to the arms, rather it attaches from the mid front rib cage to the front of the shoulder blade. The pec minor’s job in life is not to move the arms, but to provide stabiliza- tion for the shoulder blade and assists with pulling the shoulder blade forward. When you pull yourself out of the pool using your arms, you are activating your pec minor muscle to stabilize the shoulder. This ability to both rotate and pull the shoulder blade means the pec minor is a major player with posture – both good and bad posture. The typical bad posture of hunching with the shoul- ders rolled forward is per- petuated thanks to the pec minor. Sitting in this posture for prolonged periods day after day leads to the pec minor shortening into this position causing the muscle to be tight and hyper-re- sponsive. Ultimately, when someone does attempt to hold their shoulders back in the correct position, a tug-of- war is created between the postural muscles in the back and the tight pec muscle in the front. This abnormal position of the shoulder has a spillover effect on other shoulder mus- cles. The muscles on the back and top of the shoulders, the levator scapulae and tra- pezius muscles, now have to work harder to support shoulder movements. Even- tually this results in chroni- cally tight neck and shoulder muscles with multiple trigger points (“knots”). Individuals who sit for prolonged periods will be particularly at risk for de- veloping this presentation. Often, desk workers will mis- take “stress” in their upper shoulder for these fatigued tight muscles. There are many possible causes of a tight pec minor muscle. Bad posture is cer- tainly at the top of the list for most people. However, direct trauma to the chest, stress, prolonged use of crutches, or a heavy backpack carried over the shoulder will also do the trick. A tight pec minor muscle can affect the movement pat- terns of the shoulder joint and cause shoulder injuries. Probably the most common side effect of a shortened minor muscle is loss of space in the subacromial arch. The subacromial arch is the space in the shoulder under the joint between the collar bone and the shoulder blade. In this space there is an important rotator cuff tendon and bursa which can be compressed with arm movements, particularly overhead movements. The pec minor has one more little dastardly little trick up its sleeve – it can cause pain and altered sensa- tion into the arms. It achieves this directly through vessel compression (both nerve and blood) and indirectly through formation of trigger points. A tight pec minor can compress the nerves and blood vessels that travel from the torso into the arms. This is one possible cause of a condition called Thoracic Outlet Syndrome. In this pre- sentation, compressed nerves cause pain into the nerves. It is a situation similar to how compressed nerves in the low back can cause sci- atica in the legs. Although less common, it is also possible to compress the blood vessels that travel from the shoulder to the arm. The pec minor is also prone to forming painful trigger points. These trigger points also have the ability to cause pain in the arms. When activated, the trigger point of the pec minor can radiate pain in the front of the shoulder and across the chest. The radiating pain can even extend all the way down the arm to the pinky, ring and middle fingers. Of course, most people experiencing chest pain with pain radiating down their arm to the hand think “heart attack” not “pec minor.” When we have these types of heart attack symptoms not due to an underlying heart problem, it is often termed “pseudo-angina.” For the average person it can be very difficult to differentiate between pseudo-angina and an actual cardiac infarc- tion. Due to the potential fatality associated with a heart attack, it is important to quickly receive a proper diagnosis from a cardiac doctor before dismissing chest pain as due to a mus- cular condition. Surprisingly, some indi- viduals who have had a car- diac event continue to have chest wall pain and arm symptoms due to activation of the pec trigger points. Happily, like all trouble- some little brothers, the pec minor responds to a little attention and TLC. Treat- ments such as chiropractic adjustments to the thoracic spine, deep tissue release, ball rolling, dry-needling and stretching can make a noticeable improvement in a short period of time. Of course treatment needs to be partnered with actual postural changes. The pec minor is a little brother that does not like to be ignored. Ignore him and you run the risk of de- veloping chest pain, arm pain, rotator cuff tendon- itis, shoulder bursitis, trigger point formation, neck/upper shoulder stiffness, and loss of mobility in the shoulder. Your chiropractor will de- sign a treatment program for you that will address your unique presentation. Dr. Jemal Khan is a chiropractor based in the Cayman Islands. TIME to ALIGN DR. JEMAL KHAN The typical bad posture of hunching, with the shoulders rolled forward, for prolonged periods leads to the pec minor shortening and causes the muscle to be tight and hyper-responsive.TUESDAY APRIL 5, 2016 • CAYMAN COMPASS 6 DISTRICT DAYS District Days West Bay 50 YEARS AGO: Woman’s Guild plans Sunday School fundraiser In the April 6, 1966 edi- tion of the Caymanian Weekly, a precursor of the Cayman Compass, West Bay correspondent Leila Yates wrote: “A quiet wedding was solemnized in the City Hall, Brooklyn, New York on March 9 when Mr. Jacob Manderson took as his bride Ms. Helen Bodden of West Bay. Witnesses were Mr. H. Lawson and Miss Lucille Ebanks, niece of the bridegroom. “Mr. and Mrs. Ed. Parch- ment are the happy par- ents of their first child, a son born on March 31 – name, Mark Edrin; weight, 5 1/2 pounds. “Messrs. Orren and Den- niston Ebanks returned on March 31. They worked for N.B.C. on S.S. ‘Ore Venus.’ “Mr. Ashton DeOsca and family left on the 2nd for Brooklyn, N.Y. where they will reside. He has obtained a visa for permanent resi- dence and works at a plas- tics factory. Mr. Ceto Rivers arrived home on the 2nd from N.B.C. “Mrs. Katie Swaby and her daughter Iris left on the 3rd for Jamaica. Mrs. Swaby will remain in Ja- maica with her daughter Mrs. Linnett Collins. Iris will stay in Jamaica for a few weeks then go on to New York where she has worked for a long time. “Dr. H.D. Collins, M.D., paid a brief visit to the is- land arriving on the March 31 and leaving on [April] 3rd. He visited Cayman Brac while here and likes the islands very much. He is Mrs. Swaby’s son-in-law. “Mr. Peter Henning passed away at his home on the 31st at the age of 81 years. He had been in failing health for a long time. His funeral ser- vice was conducted in the United Church by his nephew Mr. Lee Ebanks. Left to mourn are his wife Viola, of Cayman Brac, 2 daughters and 4 sons in the U.S., 1 sister Annie in Cayman, and 10 grandchil- dren. His body was interred in the West Bay cemetery. “Mr. Vernon Ebanks of N.W. Point returned on the 3rd from S.S. ‘Ore Conway’ of N.B.C. “The Woman’s Guild will hold their annual con- ference on Easter Monday in the United Presbyte- rian Church. In the after- noon, they will have a cake sale at Mt. Pleasant to raise funds for the building of the Sunday School in that area. “Mrs. Harley Jackson has been holding a Sunday school for many years in her home, teaching the smaller children who cannot walk out to West Bay.” Artist still fascinated by islands’ charm JEWEL LEVY jlevy@pinnaclemedialtd.com Maureen Andersen has shared her love for painting with islanders for almost four decades, and at age 87, her passion for art is as fervent as ever. Ms. Andersen’s little studio in West Bay, called “Galleria Marianne,” is filled with her work: oil and wa- tercolor paintings that, she hopes, someday someone will purchase. Colorful paintings fea- turing traditional Cayma- nian houses, people, Seven Mile Beach, flowers, abstracts and much more line Ms. An- dersen’s front porch. Some of the pieces of artwork are yel- lowing with time and some of the frames are splintering, but she is optimistic that they will someday make a pretty picture in someone’s office or home. “From the time I was 12, I loved to paint,” Ms. Andersen said. Born in Derby, England, Ms. Andersen began her formal art training at the Slade School of Fine Art in London and received her art teachers diploma from the Art Institute of Education, also in London. She made her way to Cayman to be a school teacher in 1976. “I had been to Cayman and the Sister Islands before that and found they were all lovely in a different way,” she said. She developed a love of Cayman’s flora and vistas, and since her arrival in Cayman, she has been busy painting scenes and abstracts of the is- land in oils and watercolors. She taught at John Gray High School and was head of the art department at the middle school. She also taught at Cayman Brac High School before retiring in 1991 at age 60. Since that time she has painted and drawn the land- scapes of faraway places, but her main love is for the Brac. Her little gallery is right beside her house, and visitors are offered an enthusiastic welcome. Her paintings can also be found in the perma- nent collection of the Na- tional Gallery of the Cayman Islands. One is a painting of Miss Lassie’s House, another of a seagrape tree, and an- other of a yellow house. “I do natural painting and love abstracts … it’s a sort of mix-up,” Ms. Andersen said. “People who meet me and talk about art know abstract is a bit of turning and going … you can do something in ab- stract that you cannot do in plain art. Pointing to one painting on the floor, she says, “That’s a painting of Bath, Eng- land. I got it from a book, I must admit … “Bath in England is the most delicately elegant place in the world, and there is a bridge over the river and its got little houses on it and that is very unusual,” she said. Turning her attention to a painting of a beau- tiful woman, Ms. Andersen said “That’s Svetlana … This lady came to me in 2009 for me to paint her portrait but she never came back for the painting … It is one of my fa- vorite pieces, but I will sell it for a small price.” Ms. Andersen sits on her porch with her paintings. - PHOTOS: JEWEL LEVY Maureen Andersen holds a painting of ‘Svetlana,’ which she painted in 2009. The Galleria Marianne on Pleasant Drive was once a busy studio for Ms. Andersen.The islands’ most-trusted news source 7 Community CALENDAR ■ COMMUNITY CALENDAR is published TUESDAYS and THURSDAYS. It is available to charitable or nonprofit organizations. Items should be submitted at least three working days before publication. Information must include name of sender, signature and contact number. ■ Items may be faxed to 949-2662, brought to the Cayman Compass office on Shedden Rd. or emailed to cwinker@pinnaclemedialtd.com at least three days in advance of publication. CAYMAN COMPASS • TUESDAY APRIL 5, 2016 TUESDAY, APRIL 5 HEALTH SCREENING: In observation of World Health Day, the Health Services Authority is offering free health screenings (blood sugar and blood pressure) at all the District Health Centres, George Town General Practice, Faith Hospital, Cayman Brac and Little Cayman during the period April 4-8 from 9 a.m. and 1 p.m. and on Saturday, April 9, from 10 a.m. and 2 p.m. at various supermarkets in Grand Cayman. No appointment necessary. THURSDAY, APRIL 7 NORTH SIDE DISTRICT COUNCIL: All North Side residents are invited to attend this meeting at 8 p.m. in the Civic Centre. The following matters will be addressed – Budget for North Side; Policing in North Side; the Commissioner of Police. MLA Ezzard Miller will provide an update on legislative matters. ‘JOSEPH … DREAMCOAT’: Cayman Drama Society presents “Joseph and His Amazing Technicolor Dreamcoat” starting tonight at the Prospect Playhouse. 7:30 p.m. Doors open 6:30 p.m. Adults $30. Students $20. Show continues tomorrow and Saturday, then April 14-17 and 21-24. Matinees April 17 and 24, 5 p.m. Email boxoffice@cds.ky. FRIDAY, APRIL 8 NATIVE SONS: Local artists display 20 years of their work. Free admission. National Gallery on the Esterley Tibbetts Highway. SATURDAY, APRIL 9 GUARDIANS ALIVE: 5/10K Walk and Run. Everyone is invited to take part in this free 5K or 10K walk/ run to test personal performance alongside the island’s compassionate, experienced athletes known as Guardians. Both distances start at Cayman International School. No race day registration. For details and to register, visit www.caymanactive.com/ guardians. CAR BOOT SALE: 9-11 a.m. Cayman International School parking lot. Organized by the Parent Teacher Association. MONDAY, APRIL 11 CHAMBER COURSE: Communicating Effectively, by Terry Carson. Today and Tuesday, April 12. 9 a.m. to 4:30 p.m. at the Chamber of Commerce office in Governors Square. Members $225 Future Members $300. Register online at www.caymanchamber.ky. PAJAMA PARTY: Early Childhood Association celebrates the Week of the Young Child with a family friendly pajama party. 6-8 p.m. Gardenia Court, Camana Bay. The week aims to focus public attention on the needs of children and their families and to recognize local community programs and services. This event is free and open to the public. For more information, contact caymanislandseca@gmail.com. WEDNESDAY, APRIL 13 BOOKENDS CLUB: 6:30-7:30 p.m. Books & Books. All are invited to join a discussion of “American Pastoral” by Philip Roth. The Bookends Club gathers on the second Wednesday of every month and new members are always welcome. STUDENTS’ FILM MAKING: The Cayman National Cultural Foundation has extended its registration deadline until today for students wishing to enter their short films in the Young Image Makers competition. The Foundation is allowing students more time over the Easter holidays to work on their films. Anyone interested can submit films to CNCF offices behind Harquail Theatre by 5 p.m. Registration forms can be downloaded at www.artscayman.org/ young-image-makers. For more details, email info@artscayman.org. SATURDAY, APRIL 16 SLOW FOOD DAY: Market and chef demonstrations 10 a.m. till noon, The Paseo and Bon Vivant at Camana Bay. Locally minded chefs will partner with local growers to transform ingredients straight from the farms into delicious fresh dishes. Guests can watch the chefs at work and taste their creations, then shop for seasonal fruits and vegetables. This event is free and open to the public. EARTH DAY CLEANUP: Participation by Chamber of Commerce is 7–10 a.m. Seeking volunteers. Resources will be provided while supplies last. Register at www.caymanchamber.ky. CERAMICS – RAKU: Class with Alan Darvil, 10:45 a.m. to 4:45 p.m. at the Susan A. Olde Art Studio, National Gallery Education Centre/Gardens. Cost is $150, materials included. Traditional and contemporary techniques using horsehair and other combustible materials to fire pieces of bisqueware (provided). No pottery experience necessary. To register, email education@ nationalgallery.org.ky or call 945-8111. TUESDAY, APRIL 19 SEAFARERS ASSOCIATION: The Cayman Islands Seafarers Association advises all members that there will be a General Meeting at 7 p.m. in the Seafarers Hall, 11 Victory Ave. Prospect. THURSDAY, APRIL 21 CHAMBER COURSE: Immigration, Work Permits (BVPs, TWPs and RERCs), by Nick Joseph. 9 a.m. – 11 a.m. at the Chamber of Commerce office in Governors Square. Members $175. Future Members $225. Register online at www.caymanchamber.ky. TUESDAY, APRIL 26 CHAMBER COURSE: Time Management & Productivity, by Catherine Tyson. 9 a.m. – 4:30 p.m. at the Chamber of Commerce office in Governors Square. Members $150. Future Members $225. Register online at www.caymanchamber.ky. THURSDAY, APRIL 28 FREE SME WORKSHOP: Unlock your Retail Potential – Tips & Tricks for Success, by Savage Consulting. 5:30 p.m. – 7:30 p.m. at the Chamber of Commerce office in Governors Square. Register online at www.caymanchamber.ky. CHAMBER COURSE: Intellectual Property Basics – Copyright, Trademarks & Patents, by Sophie Davies. 9 a.m. – 11 a.m. at the Chamber of Commerce office in Governors Square. Members $175. Future Members $225. Register online at www.caymanchamber.ky. SATURDAY, APRIL 30 LOCAL SCHOLARSHIPS: The Ministry of Education, Employment and Gender Affairs reminds everyone that applications for the local scholarship program must be received electronically by midnight April 30. Those wishing to apply should visit the website at www.education. gov.ky/scholarships. The Secretariat can be contacted at scholarships@ gov.ky or phone 244-2482. GENERAL INTEREST PRESCHOOL FUNDING: The Ministry of Education is accepting applications from parents of children who qualify for the Early Childhood Assistance Program, which provides early childhood center funding for Caymanian children between 3 years old and Reception age as of Sept. 1 and who meet financial criteria. Application forms and information can be downloaded from www. education.gov.ky/portal/ page/portal/mehhome/ education/earlyeducation. They may also be collected from the Government Administration Building, Department of Education Services or early childhood centers. Deadline is April 29. JUNIOR ACHIEVEMENT: is recruiting volunteers for several programs. Contact JA Cayman at jacaymanislands@gmail.com or 949-4306. FREE HIV TESTING: The Public Health Department advises the public of extended hours for free HIV screenings offered at the Cayman Islands Red Cross on Huldah Avenue, George Town. The free testing is available from 9 a.m. to 1 p.m. every Tuesday. NARRATIVE ART: Classes with a qualified art instructor at Watler House Studio, Pedro St. James, 7–9 p.m. Artists of all levels will explore the theory of narrative art discovering ways to tell stories. Sessions continue Tuesdays through April. Discounted rate for 10 sessions. Drop-in fee is $25 or $35 for non-members. Contact visualartcayman@yahoo. com or 546-9422. CERAMIC OPEN STUDIO: Visual Arts Society offers Ceramic Open Studio to adults who want to work independently in an inspiring atmosphere: 9 a.m. to noon at the Watler House Studio, Pedro St. James. Drop-in fee is $15 members/$25 non-members. Continues Wednesdays through April 27. Clay, materials, glazes and firing facilities available. For more information, visualartcayman@yahoo.com. VISUAL ARTS SCHOLARSHIPS: Deutsche Bank (Cayman) Ltd. and the National Gallery will award a four-year scholarship for a student who wishes to pursue an undergraduate degree in the Visual Arts field. Scholarship is worth US$20,000 per year. Application forms, information sheets and additional opportunities for students can also be found on the NGCI website www.nationalgallery. org.ky. Applications can be submitted directly to the NGCI Education Department at education@ nationalgallery.org.ky. ADULT ART COURSES: New art courses at the National Gallery include drawing and painting, followed by batik and hatting. See www.nationalgallery.org.ky/ news/ngci2016adultcourses. HUMANE SOCIETY BOOK LOFT: North Sound Road. Open Monday 12:30-4 p.m.; Tuesday through Friday 9 a.m. to 4 p.m., Saturday 9 a.m. to 5 p.m., Thursday 5:30-7:30 p.m. Volunteers needed for front desk a few hours per week. Contact humanesocietybookloft@ candw.ky or 946-8053. Donations of books, games, CDs, stationery, DVDs, cards, etc., in good condition always needed. CONSUMER PROTECTION: The Law Reform Commission invites comment on the discussion paper, “Consumer Protection – Entrenching Consumer Supremacy in Cayman Islands Legislation.” The paper can be viewed on www.lrc.gov.ky. Submissions should be emailed to cilrc@ gov.ky or sent by post or hand to the Director of the Law Reform Commission, 4th Floor, Government Administration Building, Portfolio of Legal Affairs, 133 Elgin Ave., George Town, Grand Cayman, P.O. Box 136, Grand Cayman, KY1-9000. Deadline is April 29. PAINTING OPEN STUDIO: For adults who want to work independently. 12:30-4 p.m. Mondays until March 21. Watler House Studio at Pedro Castle. $10 for members of Visual Arts Society, $15 for non-members. Materials, instructions not included. Contact visualartcayman@yahoo.com. ARTISANS MARKET: Camana Bay Artisans Market every Wednesday. Visual Arts Society artists display arts, crafts, paintings, prints, hand-crafted jewelry and ceramics for sale between noon and 8 p.m. near KARoo restaurant. For more information on displaying your work, email info@visualartcayman.com. REEF RESTORATION: Certified divers are invited to work on the Cayman Magic Reef restoration in George Town. A schedule of work dates and times is posted on Facebook under Cayman Magic Reef Recovery. Dates and times are listed under Events, for volunteers to check and sign up. SPECIAL OLYMPICS: Volunteers are needed. Tuesdays at the Truman Bodden Complex at 5:30 p.m. for track/field, football and bocce. No experience necessary, just a smile and patience. Wednesdays at Lions Pool 10:15–11 a.m. You do not have to swim, just be able to walk in water chest-deep. Thursdays at First Baptist Church for basketball, 5:30–7 p.m. Saturdays, volunteers needed for Adult Special Olympic swim conditioning at CIS pool 9:30–10:30 a.m. Deck support and in-water swimming assistance needed. For more information, contact Penny McDowall at 516-2578 or pjmcdowall@gmail.com. LOST DOGS: The Department of Agriculture and veterinary students of St. Matthew’s University provide an online list of dogs housed at the Department of Agriculture Animal Rescue Shelter in Lower Valley. Anyone missing a dog can check www.smustudents.webs.com. RED CROSS THRIFT SHOP: Tuesday through Friday, 9 a.m. to 2 p.m. and 5–7 p.m. Saturday, 7:30 a.m. to 1:30 p.m. at Red Cross headquarters. Book bargain every Thursday and Friday, a bagful for $5. MUSEUM TOURS: The National Museum provides guided tours for students and school groups free of cost. Students will gain an understanding of Cayman’s geological formation, flora and fauna, seafaring and rope-making heritage, political history and more. Contact the museum to book a tour in advance at 949-8368 or email info@museum.ky. For more Community Calendar events, visit www.caymancompass.com/events.The islands’ most-trusted news source 8 TUESDAY APRIL 5, 2016 • CAYMAN COMPASS Cayman has not been named in the documents. An anonymous source ini- tially handed the papers to German newspaper Südde- utsche Zeitung, which then shared them with the Inter- national Consortium of Inves- tigative Journalists and other media organizations around the world. Süddeutsche Zeitung re- ported that the documents show a close associate of Russian President Vladimir Putin, Sergei Rodulgin, is al- legedly at the center of a net- work of offshore companies involved in a suspected bil- lion-dollar money laundering ring. On paper, Mr. Rodulgin, a concert cellist and long-time friend of Mr. Putin, person- ally made hundreds of mil- lions in profits from two off- shore companies he officially owned. But, according to the German newspaper, a leaked document notes the company is a corporate screen estab- lished principally to protect the identity and confidenti- ality of its ultimate benefi- cial owner. A spokesman for the Kremlin dismissed the re- ports as insinuation and spec- ulation seeking to destabilize Mr. Putin. Mossack Fonseca called the data leak “a crime” and said it had operated “beyond reproach” for 40 years and had never been charged with crim- inal wrong-doing. The law firm said it pro- vides company incorpora- tion and related administra- tive services that are widely available, commonly used worldwide and subject to strict due diligence. “It is legal and common for companies to establish com- mercial entities in different ju- risdictions for a variety of le- gitimate reasons, including conducting cross-border mergers and acquisitions, bankruptcies, estate plan- ning, personal safety, restruc- turing and pooling of invest- ment capital from different jurisdictions in neutral legal and tax regimes that does not benefit or disadvantage any one investor.” The law firm added that “allegations that we provide structures supposedly de- signed to hide the identity of the real owners, are com- pletely unsupported and false. “We do not provide ben- eficiary services to deceive banks. It is difficult, not to say impossible, not to pro- vide banks with the identity of final beneficiaries and the or- igin of funds.” Dan Mitchell, a senior fellow at the CATO Institute and a member of the Pinnacle Media’s Cayman Financial Review editorial board, said firms like Mossack Fonseca are merely the latest stand-ins and proxies for a wider cam- paign against offshore centers. Media reports about the data leak are based on a “willful misunderstanding of what firms like Mossack Fon- seca do – and don’t do – for their clients,” he said. Like banks, offshore law firms conduct extensive due diligence on their clients, but, unlike banks, law firms do not take possession of their cli- ents’ money, Mr. Mitchell said. “So the notion that they are in- volved in ‘money laundering’ is laughable.” In the U.K., where six peers, three members of parlia- ment and numerous political party donors were reportedly named in the Panama Papers, even the business interests of Prime Minister David Camer- on’s late father were put under the spotlight by the leak. Ian Cameron was a director of investment fund Blairmore Holdings Inc. in the Bahamas. Blairmore is now based in Ire- land after it transferred all its assets in 2012. Mr. Cameron has been a vocal advocate of corporate transparency initiatives, and his government brought in new legislation which, from June this year, forces British companies to disclose their owners and who benefits from their activities. The British prime min- ister has demanded that the U.K.’s crown dependencies and overseas territories establish similar registers of beneficial ownership and encouraged other countries to follow suit. Now Mr. Cameron “is under pressure over his failure to fully remove the cloak of se- crecy from Britain’s offshore financial centers and his own father’s role in promoting tax avoidance,” The Financial Times wrote on Monday. Downing Street said it was a “private matter” whether the Cameron family still had funds in offshore investments but the prime minister’s of- ficial spokesman said, “We want to see the overseas ter- ritories and crown dependen- cies play their part and that is why we will continue to push them to do so and [ … ] the Prime Minister has made clear that should they fail to do so, he rules absolutely nothing out.” Mr. Ridley said the unau- thorized release of the Panama Papers inevitably re-energizes the broad brush of criticism of all offshore financial centers. “Cayman’s hard-earned good reputation for its high quality regulatory regime and offshore business puts it in a different category, light-years away from Panama. We must stress this at every opportu- nity,” he said. Mr. Travers said the Cayman Islands financial ser- vices industry now pays the price for the failure of its public relations campaigns. “The Cayman Islands simply has not distinguished legiti- mate offshore financial centers with their transparency re- gimes from those jurisdictions which have maintained bank secrecy and continue to prac- tice covert activity,” he said. The offshore leaks are now used to support arguments in favor of a public register of beneficial owners, he added. “But these arguments,” he said, “have no credibility in relation to the Cayman Is- lands financial services in- dustry which already pro- vides complete transparency to tax authorities and law en- forcement and the more so given the introduction now of FATCA and the Common Reporting Standard. “It is regrettably predi- cable that unless and until our public relations initiatives es- tablish in the eyes of the world press that the Cayman Islands operates as a transparent off- shore financial center and not as a covert tax haven based on bank secrecy, that ill-informed perceptions and very possibly, ill-advised initiatives based upon them will prevail,” Mr. Travers said. Paul Byles, president of First Regents Bank in Cayman, said, “Ironically, this incident will be used by the propo- nents of central registries [of beneficial ownership], but it also demonstrates the danger and ease of exposing us to fishing expeditions with such a system.” While jurisdictions like Cayman continue to cooperate on cross-border information exchange initiatives, he said, “we should take ultra-care to maintain full control over any systems to ensure that legiti- mate financial privacy is not breached while assisting in the fight against tax evasion.” Mr. Ridley expressed sim- ilar concerns about the ability to protect privacy, especially when the information is cen- tralized. “Panama and other disclosures underscore the very real risk that any elec- tronic central register of ben- eficial ownership, whether maintained by the government or the service providers, will get hacked. There is a strong argument for going back to paper and pen,” he said. The Cayman Compass contacted Cayman Finance and the Ministry of Finan- cial Services for comment but did not receive a response by press time. he was not concerned for the monetary losses, but for the safety of both em- ployees and patrons, and a mounting local reputation for crime. “There’s a lot of anger and frustration. I worry what Cayman is coming to. We’re a family restaurant, but one of my guys was hit with a gun … he’s a new guy; he came here to work, and I was hoping to keep him,” Mr. Silverman said. He blamed the attack on “the same guys” who staged a similar Sunday evening attack on March 21 at West Bay’s Al Fresco restaurant, when three masked as- sailants invaded the wa- terfront eatery just after 9 p.m. While two of the rob- bers accosted customers on the outdoor terrace, a third emptied the cash register indoors. One patron scuffled with the attackers, who took wallets and other belongings. During the struggle one of the robbers struck the patron in the head, while the other fired a shot in the air. Police said all three fled in a silver car. “At first, he thought he got bumped on the shoulder,” Mr. Silverman said describing the assault on the trainee. “Then he turned and had a gun barrel pointed in his face.” The plaza, he said, had been “fairly lively” on Sunday night, with several bars and restaurants open. “This could have happened to any of them and any of the people there could have been held up.” Next, he said, Al La Kebab would regroup, of- fering counseling to staff and get back to busi- ness, while reinforcing se- curity measures. “I just want to apolo- gize to anyone who’s been affected by this,” Mr. Sil- verman said. Marquee Plaza owner and landlord Joe Im- parato acknowledged that security cameras had not been working and few guards were on duty Sunday evening. “No, there weren’t any [cameras]. They had not been replaced,” he said. “They were knocked out by Hurricane Ivan, and we re- alized they were not doing us any good. They weren’t keeping anyone out, weren’t keeping out the riff-raff.” The Al La Kebab rob- bery would inspire a review and possible replacement: “We’ll have to give it some thought,” Mr. Imparato said. team, contracted by Vulcan to implement the plan, spent 300 hours over the course of 24 days working to rebuild and restabilize the impacted area. During this time, the team reattached approximately 1,600 organisms, including 429 hard corals measuring over 20 centimeters in di- ameter, 966 hard corals less than 20 centimeters in di- ameter, and 208 soft corals and sponges, according to a joint statement released by Vulcan and the Cayman Islands Government. The restoration required more than 30 tons of ce- ment and sand, along with eight tons of rubble. The work was completed on March 28, under the oversight of Harold Hudson, an expert in restoration of coral habitats, who for- merly worked for the U.S. National Oceanic and At- mospheric Administration. Mr. Hudson advised and assisted the Polaris team throughout the project. “The reef remediation by Polaris was an experience- based approach to help minimize the damage and improve the likelihood of coral recovery in the area,” Mr. Hudson said in the re- lease. “The swift imple- mentation of this plan pro- vides the greatest chance for recovery of the affected area and I commend both Vulcan and the DoE for their efforts to help ensure its rapid completion.” The Department of En- vironment also hired a coral restoration expert, William Precht, to assist with project oversight. Mr. Precht, of Dial Cordy and Associates, Inc. in Miami, will undertake the long- term monitoring of the re- stored site to evaluate the efficacy of the restoration effort performed by Polaris. The department and Mr. Precht have inspected the site and are “satis- fied” that the project was performed to the agreed specifications, according to the joint statement. In order to complete the plan, workers had to triage the affected corals, uprighting, uncovering, se- curing and moving viable corals to safe locations while the reef structure was stabilized. Then, larger rubble ac- cumulations had to be re- moved or stabilized, to pre- vent continued and future damage. Some rubble was incorporated to help rec- reate and retain the original reef structure. While recreating the lost reef structure, workers tried to reduce any un- natural appearance of scraping or scarring. When the triage and reef structure restoration was completed workers then began the process of res- cuing and reattaching living coral and other living or- ganisms in order to reduce the time it will take for the site and its ecosystem to be fully restored. The statement continued: “Both the DoE and Vulcan have worked hard to ensure that the implementation of the plan reflects the best in- ternational standards for restoration of coral habitats and are pleased by the com- pletion of the work and the joint partnership that made it possible.” Al La Kebab restaurant robbed, staffer assaulted CONTINUED FROM PAGE 1 Restoration completed of reef damaged by Allen’s yacht CONTINUED FROM PAGE 1 An image taken during the emergency restoration effort. – PHOTO: COURTESY OF POLARIS APPLIED SCIENCES Panama Papers: Leak puts pressure on offshore centers CONTINUED FROM PAGE 1The islands’ most-trusted news source 9 CAYMAN COMPASS • TUESDAY APRIL 5, 2016 Croatia: Police probe theft from HQ Croatian police are investigating the reported theft of 280,000 euros and two kilograms of gold — all snatched from their headquarters. A report says the thieves got in by the fire stairs and police found an overturned, empty safe in the morning. Kayak SALE! Kayaks In Stock Stalker Pro kayak – KYD$ 775.00 (including deluxe seat and paddle) Stingray 95 single kayak – KYD$ 550.00 (including deluxe seat and paddle) Call : 516-1924 or Email: sales@sandbarkayaks.com www.sandbarkayaks.com Trove of data on offshore accounts prompts probe, questions BERLIN (AP) – The release of a vast trove of documents and data on offshore financial dealings of wealthy, famous and powerful people around the world is raising questions over the widespread use of such tactics to avoid taxes and skirt financial oversight. Reports by an interna- tional coalition of media out- lets on an investigation with the Washington-based Inter- national Consortium of Inves- tigative Journalists brought to light details of offshore as- sets and services of politicians, businesses and celebrities, based on a cache of 11.5 mil- lion records. Among the countries with past or present political fig- ures named in the reports are Iceland, Ukraine, Paki- stan, Saudi Arabia, Russia and Argentina. Vladimir Putin’s spokesman claimed that the Russian president was the “main target” of the investigation, which he suggested was the result of “Putinophobia” and aimed at smearing the country in a parliamentary election year. The ICIJ has links to the U.S. government, Dmitry Peskov suggested. “I don’t consider it possible to go into the details” of allega- tions that Putin’s friends ran an offshore scheme, Peskov told reporters, “mainly be- cause there is nothing con- crete and nothing new about Putin, and a lack of details.” He added that Sergei Rodulgin, a St. Petersburg-based cellist allegedly involved in the off- shore schemes, was a friend of Putin’s but that the president “has very many friends.” Peskov, who had last week foreshadowed the disclosure of the documents by warning of an upcoming “informa- tion attack” on Putin, said Monday he expected more re- ports to follow. In Russia, where the inves- tigation was published by in- dependent newspaper Novaya Gazeta, the scandal faced an effective coverage ban. Russian television on Monday morning made no mention of it. In Australia, the tax agency said Monday it was investi- gating more than 800 wealthy people for possible tax evasion linked to their alleged dealings with Mossack Fonseca, the Panamanian law firm with in- ternational offices that provide offshore financial services. The Australian Tax Office said in a statement that it had linked more than 120 of those people to an offshore services provider in Hong Kong, but did not name the company. In New Zealand, Prime Minister John Key rejected ICIJ’s characterization of his country as among 21 tax ha- vens used by Mossack Fonseca. “Tax havens are where there is nondisclosure of in- formation,” Key said. “New Zealand has full disclosure of information.” Ramon Fonseca, a co- founder of Mossack Fonseca – one of the world’s largest creators of shell compa- nies – confirmed to Panama’s Channel 2 television network that documents investigated by the ICIJ were authentic and had been obtained illegally by hackers. But he said most people named in the reports were not his firm’s direct clients but were accounts set up by intermediaries. He said the firm did not engage in any wrongdoing. Businessmen, criminals, celebrities and sports stars – the ICIJ said the documents involve 214,488 companies and 14,153 clients of Mos- sack Fonseca. The nonprofit group said it would release the full list of companies and people linked to them early next month. The Munich-based German newspaper Süddeutsche Zei- tung said it was offered the data more than a year ago through an encrypted channel by an anonymous source. The source sought unspecified se- curity measures but no com- pensation, said Bastian Ober- mayer, a reporter for the paper. The documents provided to Suddeutsche Zeitung, amounting to about 2.6 tera- bytes of data, included emails, financial spreadsheets, pass- ports and corporate records detailing how powerful figures used banks, law firms and off- shore shell companies to hide their assets. The data dated from 1977 through the end of 2015, it said. The newspaper and its partners verified the authen- ticity of the data by com- paring it to public registers, witness testimony and court rulings, he told the AP. A pre- vious cache of Mossack Fon- seca documents obtained by German authorities was also used to verify the new mate- rial, Obermayer added. “It allows a never-before- seen view inside the offshore world – providing a day-to-day, decade-by-decade look at how dark money flows through the global financial system, breeding crime and stripping national treasuries of tax rev- enues,” the ICIJ said. Panamanian President Juan Carlos Varela issued a statement saying his govern- ment had “zero tolerance” for illicit financial activities and would cooperate “vigorously” with any judicial investigation arising from the leak of the law firm’s documents. The Guardian newspaper, which participated in the in- vestigation, published a video on its website late Sunday of an interview with Iceland’s Prime Minister Sigmundur David Gunnlaugsson. During the interview with Sweden’s SVT television, the prime min- ister is asked about a company called Wintris. He responds by insisting that its affairs are above board and calling the question “completely inap- propriate,” before breaking off the interview. The office of Argentine President Mauricio Macri confirmed a report by La Na- cion newspaper that a busi- ness group owned by Mac- ri’s family had set up Fleg Trading Ltd. in the Bahamas. But it said Macri himself had no shares in Fleg and never received income from it. Mexico’s tax office said it would check on any Mex- ican resident or company mentioned in reports on the leaked documents. According to the ICIJ’s website, banks including HSBC, UBS, Credit Suisse, Deutsche Bank have worked with Mossack Fonseca to create offshore accounts. “The allegations are histor- ical, in some cases dating back 20 years, predating our signif- icant, well-publicized reforms implemented over the last few years,” HSBC spokesman Rob Sherman said in an email. UBS said it “conducts its business in full compliance with applicable law and regu- lations. We have no interest in funds that are not taxed or de- rive from unlawful activities.” Credit Suisse and Deutsche Bank did not imme- diately respond to a request for comment. The facade of the Arango Orillac Building, home of the Mossack Fonseca law firm in Panama City, Panama, which is the source of a vast trove of documents detailing the offshore financial dealings of the rich and famous. – PHOTO: AP The Panama Papers prove awkward for Beijing The Panama Papers, a massive report that claims to document shady busi- ness dealings by a who’s who of the global elite, landed in China on a national hol- iday, presenting the author- ities with an interesting, probably vexing, question: How to scrub the web of the juicy-but-as-yet-unconfirmed charges against politically connected Chinese? The findings – the result of a year-long collaboration between a German news- paper, Süddeutsche Zeitung, the International Consor- tium of Investigative Journal- ists and more than 100 media outlets – sets out to expose “a cast of characters who use offshore companies to facili- tate bribery, arms deals, tax evasion and drug trafficking.” That includes, by ICIJ’s count, dirt on 140 political figures, including 12 current or former heads of state. It also names the family mem- bers of eight current or former members of China’s politburo, according to The Guardian’s tally. One of the people men- tioned in the report is Deng Jiagui, the brother-in-law of China’s current president, Xi Jinping. Another is Li Xiaolin, the tycoon daughter of China’s former premier, Li Peng. It lists Hong Kong as a source of key “active interme- diaries” in the secretive work. Reporting on the 11.5 mil- lion tax documents – some of them leaked – is being published in batches, and a full account may be days or weeks away. The initial reporting hints that a number of Chinese na- tionals with high-level gov- ernment ties have links to Mossack Fonseca, the Pana- manian law firm at the center of the leak. Mossack Fonesca has denied all accusations of illegal activity. The Wash- ington Post has not seen ev- idence of illegal activity by the Chinese nationals named. Although there are legal uses for shell companies, the charges are sure to rile Beijing. China’s ruling Com- munist Party does not like to discuss the wealth of its leaders, or their families, es- pecially as it wages an ag- gressive, if selective, anti-cor- ruption campaign. In 2012, investigations by The New York Times and Bloomberg News revealed the wealth and business deal- ings of family members of former Premier Wen Jiabao and President Xi Jinping, re- spectively. The reports were blocked in China and re- sulted in both companies being denied some journalist visas for several years. In 2014, a report jointly published by the ICIJ and the Center for Public Integ- rity found 22,000 alleged tax haven clients from Hong Kong and China. That inves- tigation found offshore ac- counts linked to more than a dozen of China’s richest people, including members of the National People’s Con- gress and executives from state-owned firms caught up in corruption probes. The 2014 report made specific mention of relatives of Wen and Xi. Two red letter names mentioned in the Panama Papers – Xi’s brother- in-law Deng, and former Pre- mier Li Peng’s daughter, Li Xiaolin – were named in their findings as well. Asked about the story at a Foreign Ministry press conference that year, a Chi- nese government spokes- person called the investiga- tion “hardly convincing.” The report was subsequently blocked. The Chinese press did not play up the story. © 2016, The Washington PostNext >