ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – WEDNESDAY APRIL 6, 2016 High of 91 Low of 80 Slight with wave heights of 1 to 3 feet. THIS ISSUE: SPECIAL REPORT The Green Report >>PAGE 13INVESTMENT CoCo bonds all the rage - The upside of contingent convertible bonds >>PAGE 2 COMMODITIES Lessons from a 100-year history - Commodities: Myth vs. reality >>PAGE 3 GAMBLING Fantasy sports gambling changes the game - Industry drives US to review laws >>PAGE 6 PAGE 13 SPECIAL REPORT April 2016 A P RI L 20 1 6 • W W W .C A Y JOU RNA L.CO M 16 2 Eric Bush: Cayman’s man in London BRENT FULLER Over the next three years, Cay- man Islands residents are going to be hearing a lot more about what’s going on in the United Kingdom.Eric Bush, 40, offi cially takes over as di-rector of the Cayman Islands London Of-fi ce on July 1, but in recent months he has already been traveling back and forth be- tween the Mother Country and home, for- mulating a strategy to improve the visibility and usefulness of the four-person offi ce.The move, which has been described in local media reports as a “demotion” for the chief offi cer of Premier Alden McLaughlin’s ministry, is one Bush says he made voluntarily, partly for family reasons and partly for the opportunity of Cayman’s senior diplomatic posting.“Some say I’m having a mid-life cri-sis,” he jokes. “I need to remind people of how cru-cial [the London offi ce] is,” Bush says on a more serious note. “There hasn’t been that engagement with the offi ce in the last couple of years. My intention is to drasti- cally improve that.” The offi ce spent several years awash in controversy following a U.K. media scandal involving former director Lord Blencathra.Lord Blencathra, formerly David Maclean of Scotland, faced censure in the House of Lords over drawing a salary from the Cay-man offi ce while serving as a peer. He also was targeted for some criticism in Cayman due to the fact that he is not Caymanian. Following Lord Blencathra’s departure from the position in March 2014, an offi ce staffer who openly feuded with the Scottish lord temporarily took over operations, lead-ing to further uncertainty in the position. Two attempts to advertise the job locally came up empty until Bush threw his hat in the ring.Bush, who has never lived in Europe, acknowledges he will not have the same direct contacts and access during his three-year contract that Lord Blencathra spent a career in Whitehall developing. However, he believes the London post is not simply a lobbying job and should not be viewed solely as a resource for govern-ment in various interactions with the U.K. and the European Union either, although he says that is an important role. “We can create better opportunities New London office chief Eric Bush and his wife, Laetitia, who works at Walkers, will be a ‘package deal’ when it comes to Cayman’s London office efforts, Bush says. Working group tackles benefi cial ownership proposal CHARLES DUNCAN The political debate over a benefi cial own-ership registry for Cayman Islands compa-nies is far from over. But in the meantime a new working group, led by the Ministry of Finan- cial Services and Cayman Finance, is working on the technical side of a new centralized system to ac- cess benefi cial ownership information in Cayman.The working group “will also be tasked with considering the technical aspects of the system. Once the technical specifi cations have been es- tablished, a tender can then be produced,” Angela Piercy, spokeswoman with the Ministry of Finan-cial Services, said in an email. “Comprising representatives from Government, Cayman Finance and other industry associations, this group has been working to ensure that Cayman’s re- gime will continue to meet internationally accepted standards,” she said in a separate statement.The centralized system is the result of negotia- tions with the United Kingdom, which has been pressuring the Cayman Islands to create a bene- fi cial ownership registry to make it easier for law enforcement and tax authorities to fi nd out who owns companies in the country.The working group recently received an ex- planation from Brac Informatics, a local IT com- pany, describing how the system would be tech- nologically possible. The proposal, announced by Financial Services Minister Wayne Panton late last year, would not create a central register kept by government. In- stead, the idea behind the system is to have a cen- tral way for government to access the data kept with fi nancial services companies. Speaking with reporters in December, Mr. Panton said the system would allow government to go into service provid- ers’ databases without their knowledge to access data on ownership when the government gets re- quests from foreign governments.“We will be able to reach out and interrogate information from the corporate service provid- ers,” Mr. Panton said. Jude Scott, CEO for Cayman Finance, said in a recent written statement, “The proposed cen- tralised access technology concept would be non- PLEASE TURN TO PAGE 9 » PLEASE TURN TO PAGE 8 » THE CAYMAN ISLANDS JOURNAL Working group tackles beneficial ownership proposal EDITORIAL | PAGE 4 GOV. KILPATRICK: THREE CHEERS FOR ONE MORE YEAR #203 Alissta Towers, 85 North Sound Road, Grand Cayman KY1-1109, T: + 1 (345) 949-9744 E: Aleisha.Lalor@caribbeanalliance.com www.caribbeanalliance.com No prison cells left at Northward BRENT FULLER bfuller@pinnaclemedialtd.com A “steady rise” in Cayman’s adult male prison population has led to an overcrowding situation at Northward Prison in Bodden Town, according to prison officials. The prison population, including all adult male convicted and remand prisoners, stood at 213 last Friday and dipped slightly to 211 as of Tuesday. “This is higher than normal occupancy,” Prisons Director Neil Lavis said. “In my opinion, the numbers [of prisoners] have been steadily rising for some time with no apparent spikes.” According to a 2012 report from the prison service, the certified national accommodation at Northward was 179 prisoners. On Tuesday, prison officials identified their “safest holding capacity” at Northward at 208 prisoners. Prison information manager Raquel Sol- omon clarified that, with renovations under way to available cells, the “safe” occupancy rate has increased over the years. “However, I believe we are currently at our limit with no further cells to occupy,” she said. Prisons Director Lavis told the Cayman Compass that the average prisoner roll for the government’s 2014/15 budget year was about 188 inmates, including Northward adult men’s prison, Fairbanks women’s prison and juvenile detention facilities. On Tuesday, that number stood at 224, in- cluding the 211 prisoners at Northward and 13 women at the Fairbanks detention facility in George Town. There were no juvenile pris- oners in custody as of Tuesday, the prisons boss confirmed. “Obviously, having higher than capacity numbers of prisoners is not desirable or safe,” Mr. Lavis said. “We have opened a dialogue LAWMAKERS TO DEBATE REMOVAL OF HOSPITAL IMMUNITY CLAUSE JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Government will consider a bill to amend the Health Services Authority Law to repeal a controversial clause giving blanket immunity from lawsuits to its staff. Proposed amendments to the law were made public Monday and will be debated in the Legislative Assembly later this month. The clause has been used on several occa- sions by the Health Services Authority to pre- vent lawsuits in medical malpractice cases, according to court documents. The legislation change comes after a land- mark case brought the issue into the spotlight. Norene Ebanks, whose child suffered serious birth defects from what she alleges was the negligent management of her labor and de- livery, had attempted to sue for compensation. However, Justice Richard Williams ruled in February that the Health Services Authority was within its rights to use the clause to pre- vent lawsuits against its staff. The judge said he was uncomfortable with the immunity but the wording was “clear and unambiguous.” Following the ruling, several politicians, including Gilbert McLean, who was health minister when the original legislation was passed, claimed it was never their intention for the law to be used to prevent compensa- tion claims against negligent doctors. He said it was intended to protect board directors. The clause currently states, “Neither the au- thority nor any director or employee of the au- thority shall be liable in damages for anything done or omitted in the discharge of their re- spective functions or duties unless it is shown that the act or omission was in bad faith.” SPRINT KING USAIN BOLT TO HEADLINE CAYMAN INVITATIONAL JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com The fastest man in history, Usain Bolt, will be competing at the Cayman Invitational track meet in May, organizers announced Tuesday. Bolt, the current Olympic and world cham- pion in the 100m, will be the headline attrac- tion at the meet at Truman Bodden Sports Complex as he begins preparations for the 2016 Olympics in Rio later this year. The 29-year-old sprint king, current holder of both the 100m and 200m world records, is aiming to make history once again in Brazil as the first man to win three consecutive Olympic golds in the 100 meters. The Cayman meet, in its fifth year, will also feature U.S. athlete Allyson Felix, who won 200m gold at the London Olympics. The meet will also welcome 2012 Olympic 100m silver medalist Carmelita Jeter of the U.S. and rising star sprinters Machel Cedenio of Trinidad and Zharnel Hughes of Anguilla. The event will be televised for the first time on ESPN. Meet director Cydonie Mothersill said it was an honor to have Bolt compete in Cayman in what could be his final season. “I am sure Rio is going to be his last Olym- pics, so I don’t think we will have this oppor- tunity again. It may be the last chance to get to see him up close and personal.” Bolt said in a statement, “It will be my first international competition in 2016 and my second time running in Cayman. I always enjoy competing in the Caribbean and look forward to seeing my fans in Cayman again.” PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 » Usain Bolt competing in the 2013 Cayman Invitational. The Jamaican sprinter is set to return for this year’s event, organizers announced Tuesday. – PHOTO: STEPHEN CLARKE2 LOCAL&REGIONAL WEDNESDAY APRIL 6, 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 - 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) The National Gallery of the Cayman Islands has ac- quired two new artworks by local artists. The paintings by Maureen Andersen and Bendel Hydes were donated by Atlantic Star Ltd. and will grow the gal- lery’s Permanent Collection, which currently has more than 200 works of art. Ms. Andersen’s acrylic “Yellow House” (2000) depicts a small house on the sea- front, surrounded by local vegetation, in a secluded part of Grand Cayman. Ms. Andersen, originally from England, has exhibited many of her paintings in gal- leries across London, and is heavily inspired by impres- sionist movements, such as the works of Monet and van Gogh. Upon arrival on Grand Cayman in 1976, she became inspired by the is- land’s panorama. “Through her familiar use of rapid brush strokes and vivacious color, Yellow House captures the authenticity and rhythms of daily life on the island,” the gallery noted in a press release on the artwork donations. Mr. Hydes’s acrylic on canvas, “Untitled,” (2004), de- picts the subject of paint it- self. “Upon viewing this piece, you are invited to observe the layers of forms on the surface of the image,” gallery director Natalie Urquhart said. After receiving formal training in both the U.K. and U.S. in the 1970s, Mr. Hydes honed his individuality as a conceptual painter. In “Untitled,” “he delves into a sensory world of sight, sound and touch, con- structing visual metaphors which enhance physical and conceptual possibilities,” Ms. Urquhart said. She added, “The art- works which have been do- nated by Atlantic Star Ltd. are truly significant exam- ples of the artists’ work and it is wonderful to know that they will be accessible to the public long into the future.” Both works are now on view in the upper gallery. “The [Permanent] Collec- tion lies at the very core of the National Gallery mis- sion to promote and preserve the art and heritage of the Cayman Islands,” said Ms. Urquhart. “It is an incredible artistic and educational re- source for our country.” Gary Lindsay from At- lantic Star Ltd. said the company was pleased to donate the unique works of Caymanian art to the National Gallery. “It is important for these artists to be valued for their highly creative and indi- vidual talents,” he said. “We also understand how ben- eficial donations are to a growing National Collection, especially those works which capture the essence of Cay- manian culture and heritage.” Many of the works in the collection have been donated by artists, patrons and corpo- rate organizations. Admission to the National Gallery is free of charge and galleries are open Monday to Saturday 10 a.m. to 5 p.m. Artworks donated to gallery To mark the international “Week of the Young Child” starting this weekend, the Cayman Islands Early Child- hood Association is hosting a conference Saturday fol- lowed by a full week of ac- tivities focused on preschool- age learning. The conference on Sat- urday will focus on project- based learning, led by U.S. education expert and author Judy Harris Helm. In her books, Ms. Helm discusses how to use projects to help preschoolchildren learn more effectively. Reina Jefferson, presi- dent of the Cayman Islands Early Childhood Associa- tion, said Ms. Helm will also help start pilot programs on project-based learning in five or six preschools in Cayman while she is here. Ms. Helm, who runs the education consultant service Best Practices Inc., was last in Cayman as the keynote speaker for the weeklong celebration in 2014. “She spoke for an hour last time she was here and we wanted to invite her down again,” Ms. Jefferson said. The fourth annual Early Childhood Care and Educa- tion Professional Develop- ment Conference runs from 8:30 a.m. to 4 p.m. Saturday at Mary Miller Hall. The week formally starts with a Sunday church ser- vice at 4 p.m. at the First As- sembly of God. Monday at 6 p.m. will be the association’s annual pajama party at Camana Bay. Tuesday will be gov- ernment’s appreciation day for staff at the Early Child- hood Care and Education Centres and a reception by the governor. Wednesday morning guests will read to children at Read-to-Tots Day. On Thursday, preschoolers get- ting ready to transition to new schools will get to visit government and private “big schools.” On Friday, the pre- schools will host a Fun Day and, on Saturday, to round up the week, the association will host a brunch to cele- brate its 19th anniversary. CAYMAN CELEBRATES ‘WEEK OF THE YOUNG CHILD’ 5 FACE PRISON IN $100M ID THEFT-TAX FRAUD OPERATION FORT LAUDERDALE, Fla. (AP) – Five people convicted of operating an estimated $100 million tax refund fraud operation that stands as one of the nation’s largest are facing prison sentences in South Florida federal court. The ring was centered in an unassuming house in the suburb of Miramar. Internal Revenue Service investigators say at least 10 laptop computers were used between July 2011 and May 2013 to steal tens of millions of dollars in fraudulent refunds using stolen identities. Gary Lindsay of Atlantic Star and Natalie Urquhart, Cayman Islands National Gallery director, beside Bendel Hydes’s ‘Untitled.’ ‘Yellow House’ by Maureen Andersen Mexico names LA consul general as ambassador to US MEXICO CITY (AP) – Mexico nominated a new ambas- sador to the United States on Tuesday, a little over a half- year after his predecessor took up what is likely the country’s most important overseas diplomatic post. The new top envoy to Washington will be Carlos Manuel Sada Solana, who is currently consul general in Los Angeles, the Foreign Relations Department said in a statement. It added that Sada has worked previously at the embassy in Washington as a liaison to Congress and as consul general in New York, Chicago, San Antonio and Toronto. The current ambassador, Miguel Basanez, was con- firmed by Mexico’s Senate in September 2015. The For- eign Relations Department did not say why Mexico was nominating a new envoy just seven months later. Mexican authorities will send Sada’s name to Washington for approval, and he must still be con- firmed by the Senate. The United States is Mexico’s biggest trade partner and home to more than 11 million Mexican- born people. Mexico has also been the target of U.S. campaign rhetoric from some candi- dates such as Donald Trump, who says that as president he would wall off the entire border and force Mexico to pay for it. The U.S. has been without an ambassador to Mexico since last July. President Obama’s nom- ination of Assistant Secre- tary of State for Western Hemisphere Affairs Ro- berta Jacobson to fill the position has been held up in the Senate by former presi- dential candidate Marco Rubio, who objected to her role in negotiating the res- toration of diplomatic ties between the United States and Cuba.3 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY APRIL 6, 2016 OTHER BANKS up to $533 per month RBC ROYAL BANK approx. $435 per month Same car, same price. 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Subject to normal lending criteria. The cost of borrowing will be made available upon application. Campaign ends May 31st, 2016. ®/TM Trademark(s) of Royal Bank of Canada. Used under licence. NO PAY ME NT S FO R 60 DAY S! 6 FREE car payment s* 1st year’s insurance* Weekly prizes* WIN It’s All About You Elderly theft case trial gets under way CAROL WINKER cwinker@pinnaclemedialtd.com Trial began in Grand Court this week for Mi- chelle Bouchard, who is ac- cused of stealing money from an elderly man over a two-year period. Lead prosecutor Simon Russell Flint, QC, told jurors on Tuesday afternoon that this case was about greed and an obsession with money. The offending alleged began in 2010 when the defendant was 50. The man from whom she is accused of stealing, James B. Handford, was 82. Mr. Russell Flint said they met in 2007 when Mr. Hand- ford bought a condominium on Seven Mile Beach and hired Bouchard as an interior decorator. Bouchard, a Cana- dian national, subsequently did not have her work permit renewed and asked if she could stay in a spare room in the condo until she got on her feet. The relationship was one of friendship, but Mr. Hand- ford hoped they would take their relationship to the next level. At one point, he asked her if she wanted to get engaged. Mr. Russell Flint said the relationship did not become intimate, but Bouchard ob- tained by deception a four- carat diamond ring valued at US$201,235 in June, 2012. The alleged deception was that she had authority to use funds from a credit card in Mr. Handford’s name. Another charge against her is forgery of a credit card au- thorization form purporting to be written and signed by Mr. Handford. Mr. Russell Flint was still explaining the case to the jury at press time. The in- dictment includes 13 counts of theft. One amount al- leged is $639,376.23 be- tween January 2011 and September 2012; another is US$723,905.17 between May and October 2012. Jurors were chosen on Monday after Crown counsel Toyin Salako asked a series of questions designed to sep- arate out anyone who might know witnesses who will be giving evidence during the trial, which is scheduled to last two to three weeks. Also separated from the jury pool were potential jurors who worked at or were closely re- lated to anyone who worked at various businesses, or at- tended the Truman Bodden Law School. Justice Paul Worsley, QC, who is presiding, told poten- tial jurors that the trial con- cerned an allegation of dis- honesty that involved quite a few closely typed documents; if they thought they would have difficulty reading a lot of such documents, they were told to advise the court mar- shal accordingly. Approximately 42 people were stood down before the court clerk began drawing numbers to empanel a jury. The case for the prosecu- tion is being presented by Mr. Russell Flint, assisted by Ms. Salako. The defendant is repre- sented by Peter Carter, QC, who is instructed by attorney Lee Halliday-Davis. THREE BVI POLICE OFFICERS CHARGED IN BAINES-LED PROBE BRENT FULLER bfuller@pinnaclemedialtd.com A corruption investiga- tion in the British Virgin Is- lands led by Royal Cayman Islands Police Commis- sioner David Baines put three BVI-based officers in court Tuesday. According to a statement from Mr. Baines, the three of- ficers were arrested Monday in the BVI and charged with “various criminal offenses.” All three men were sus- pended from the Royal Virgin Islands Police Force last year in connection with an investigation dubbed “Op- eration Lucan.” Mr. Baines said the oper- ation was considered a na- tional security council probe and was initiated after “alle- gations of serious police cor- ruption” were made. The three officers ap- peared in court in the BVI Tuesday. The allega- tion against them, gener- ally, is that they stole drugs and money from crim- inal suspects they arrested or detained. The three men, identified as Pamphill Prevost, Simon Power and Shawn Henry, are facing 19 charges altogether. These charges include three counts of conspiracy to pervert the course of jus- tice, nine counts of theft, four counts of possessing or using the proceeds of crim- inal conduct, two counts of drug possession with in- tent to supply, and one count of transferring proceeds of criminal conduct. Queen’s Counsel Christo- pher Sallon, a special Crown prosecutor brought in from the United Kingdom, alleged that the crimes occurred be- tween Jan. 1, 2012, and July 31, 2014. Mr. Baines’s appointment as the “gold commander” of the Operation Lucan inves- tigation was announced in early 2015. Initially, four BVI officers were suspended in connection with the probe, but just three appeared in court Tuesday. Cayman Islands Governor Helen Kilpatrick’s office, who responded to questions in early 2015 about the BVI posting, said Mr. Baines’s role was to provide “strategic oversight and direction” in the corruption investigation. The governor’s office in- dicated Mr. Baines had trav- eled to the BVI in connection with the assignment, but was able to fulfill his role in the investigation largely from the Cayman Islands. According to a statement from the governor’s office in February 2015: “This over- sight role will not impact on the commissioner’s role/ duty/responsibilities in re- spect of the RCIPS. Commis- sioner Baines visited the BVI … to be personally briefed by the senior investigating officer and to meet with the governor, BVI director of public prosecutions and BVI commissioner of police.” BVI Beacon reporter Katie King contributed to this story. Police Commissioner David Baines Michelle BouchardThe 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. LEONID BERSHIDSKY Ramon Fonseca, a founding partner of Mossack Fonseca, the Panamanian off- shore incorporator that has suffered the biggest leak of privileged information in his- tory, has told the Financial Times that the investigations stemming from the leak are an attack on the basic human right to privacy. The investigative journal- ists themselves see their ef- fort as strike against corrup- tion and money-laundering. So what purpose do the Panama Papers investiga- tions really serve? To me, they highlight the gaping disconnect between the world of global money and that of traditional na- tion states. This is a gap that has begged for years to be ad- dressed without destroying either concept, and the debate about the acceptability of off- shore operations reignited by the Panama affair should serve that useful purpose. The Boston Consulting Group estimated the global wealth management market at US$40 trillion in 2001; last year, it put global pri- vate financial wealth at US$155.7 trillion. A surpris- ingly small share of these as- sets is booked in offshore fi- nance centers: According to the BCG’s Global Wealth 2015 report, the most popular of these centers account for US$9.7 trillion in assets. That, however, is still an enormous amount of money. The Panama Papers have ex- posed only a tiny bit of the industry, a fraction of the US$1.3 trillion parked in Panama and the Caribbean, Mossack Fonseca’s main area of operation. All that money is sub- ject to less taxation than the countries where these for- tunes are made would like to impose. In principle, there is nothing wrong with that: Ev- eryone is entitled to create a legal tax structure to mini- mize those payouts. If gov- ernments cannot stop other governments from setting up light fiscal regimes – by di- plomacy, sanctions or other means – money will natu- rally flow to the tax havens. And some of these havens are in the world’s biggest and ec- onomically most powerful countries, such as the U.S., the U.K. and China, so it’s hard to imagine who might stop them. Scaling back the off- shore industry would mean creating artificial borders in a globalized financial world. The Panama Papers have revealed the offshore com- panies of soccer star Li- onel Messi, action film hero Jackie Chan and art house film director Pedro Almod- ovar and lots of other high- earning individuals. It’s likely these people did nothing wrong and their tax structures were perfectly legal (though Messi is under indictment in Spain for tax dodging). They are being dragged into the scandal un- fairly. They are, after all, pri- vate citizens, under no legal or ethical obligation to pay the highest taxes possible or to reveal more than a govern- ment should know about their business. It’s natural for them to seek greener financial pas- tures – provided they don’t break the laws of the lands where they earn their money. Politicians and politically connected individuals are a different matter. They em- body the nation states they serve. Take Ukrainian Presi- dent Petro Poroshenko: As a wealthy businessman, he had every right to set up an offshore structure as he prepared to sell his confec- tionery company, Roshen. But as his country’s leader, he’s supposed to set a patri- otic example. And he’s not supposed to be focusing on deal structures when his country’s army is suf- fering heavy losses, as the Ukrainian army was in 2014 when Poroshenko became a Mossack Fonseca client. Or take the Russians from Vladimir Putin’s inner circle. Most of them are busi- nessmen, not politicians, but they have publicly pro- claimed loyalty to Putin’s pa- triotic platform of imperial re- vival and gotten rich thanks to the president. Their off- shore activities cast a shadow over Putin, even if they are not conducted for his finan- cial benefit. If the president’s friends don’t believe in the Russian system, it’s unlikely that he believes in it himself – and probable that he’s setting up one system for his cronies and another, tougher one, for other Russian citizens. Politicians, officials and other “politically exposed per- sons,” or PEPs, shouldn’t be using the offshore industry. It’s not even a matter of keeping their hands clean of corrup- tion: These people are sup- posed to fix their own coun- tries so that citizens don’t have to go offshore for tax benefits or better legal protections. The difficulty, of course, lies in determining who is a PEP and who isn’t. Sergei Roldugin, one of Putin’s closest friends, was asked on a Mossack Fonseca question- naire whether he was one – and got away with just saying no. Offshore incorporators should bear legal responsi- bility for fact-checking such claims; Roldugin meets the Financial Action Task Force’s definition of a PEP because of the close social relation- ship he maintains with Putin. Mossack Fonseca could have determined that in just a few minutes using Google. It should be obligatory for anyone defined as a PEP to have to apply to an inter- national body, such as FATF, for clearance before opening an offshore account. Failure to file such an application should be illegal a priori, re- gardless of what the PEP in- tends to do with the offshore firm. And such a stricture wouldn’t violate ordinary cit- izens’ right to privacy. Keeping public servants and politically connected indi- viduals out of the offshore in- dustry is more important than blanket measures against tax avoidance, money laundering and other sins of which the industry is accused. If those havens aren’t available, they may be more mindful of their countries’ failings, and more inclined to put them right. Eventually, that should turn offshores into a non-issue. © 2016, Bloomberg VIew WEDNESDAY APRIL 6, 2016 • CAYMAN COMPASS It comes as welcome news that Cayman Islands Governor Helen Kilpatrick has decided to extend her time in office another year, until September 2017. Governor Kilpatrick — who is the first woman (and more importantly the first chartered accountant) to hold the position of governor in Cayman — has conducted herself admirably during her time here and has become a well-known and well-liked public figure in the islands. We and many others are pleased that she will remain a member of our community for a bit longer. The additional 12 months may prove to be the most challenging of her tenure, but also potentially the most rewarding. We needn’t remind our readers that the country’s next election will occur during that time frame, and Cayman’s campaign season is “high tide” for political passions, emotions and sometimes anger. It is useful and reassuring for these transitions of power to occur under the steadying influence of a veteran executive. The duties of Cayman’s governor, like any foreign service officer, are binary. One part is largely ceremo- nial, for example the regular receptions at Government House, speeches, appearances at events, bestowing of honors, photo opportunities, etc. — all of the activi- ties that play out in public, which get Governor Kilpat- rick’s face in this newspaper, and which, to the ordinary citizen, she is best known for. The second part is more practical, more substan- tial and oftentimes far more serious. This involves closed-door discussions, high-level meetings, phone calls overseas, paperwork-shuffling and the handing down of final determinations. Many of these things the citizenry never learns about, except through their eventual impacts on government. These roles are separate and distinct but can be thought of as being two sides of the same crown. They do, however, require different skillsets and mindsets. In the performance of her ceremonial duties, Governor Kilpatrick as a rule must be a “people pleaser,” ever-ready to smile, shake hands and share a friendly word with whomever she greets. On the other side, when she is discharging her practical duties, Governor Kilpatrick must be the opposite. She needs to be tough, no-nonsense and yet conciliatory … but only to a point. She must be com- fortable being the person in authority charged, when necessary, with delivering “the bad news.” Aside from the election, the extra year should give Governor Kilpatrick the opportunity to address with renewed vigor some of the most important issues facing our country that fall under her remit. Under the heading of law enforcement, Governor Kilpatrick is responsible for the Royal Cayman Islands Police Service, which will soon be without a full-time police commissioner, once David Baines leaves at the end of May. As most of our readers are well aware, Commissioner Baines’s early departure comes after a (to employ the governor’s words) “recent barrage of unfair criticism and defamatory comments” from some segments of the population. Until a new police commissioner is appointed, Deputy Police Commissioner Anthony Ennis will take charge of the police service, joining the growing ranks of Cayman’s “acting” leaders, which include the acting auditor general (since October 2015), the acting com- plaints commissioner (since December 2014) and the acting information commissioner (since December 2013) — important watchdog posts under the aegis of Governor Kilpatrick which have gone vacant during her tenure but remain unfilled. Also concerning is the state of Cayman’s constitu- tionally and legislatively created commissions, which have been plagued variously by vacancies and lack of supporting legislation, and several of which are barely functioning or not at all. Then there are the outside threats to Cayman’s viability as an economic entity, the most recent being “The Panama Papers” investigations that, while not directly relating to Cayman, will result in even greater pressures being placed on offshore financial jurisdic- tions, including Cayman. Over her final year-and-a-half, the best that Governor Kilpatrick can do for Cayman is to adopt, and strictly adhere to, a three-word mantra explicitly prescribed in the Cayman Islands Constitution, that is: “promote good governance.” Gov. Kilpatrick: Three cheers for one more year The risky mix of politics and offshore finance5 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY APRIL 6, 2016 2007 2008 2009 2010 2011 2012 2013 2014 4.3% -0.2% 1.3% 1.2% -2.7% 1.5% 2.4% -6.3% -0.3% 1.8% 2.5% 1.6% 2.2% 1.5% 2.4% -2.8% Cayman USA Thinking of joining the Cayman Islands Tourism Association (CITA)? Now is the perfect time. Our new membership year begins April 1st 2016. Join now for your opportunity to engage with industry stakeholders and receive added support and promotions for your business. As a member you will be invited to our Annual General Meeting (AGM) on April 20th, where you can vote for new board members. For more information about membership benefits please check out www.cita.ky or call 949 8522 CITA actively promotes the continuing improvement and development of Cayman's tourism ndustry through the exchange of information, government relations, training and education, marketing, and events. CITA provides i leadership, guidance and appropriate services for the benefit of its members and so contributes to a viable and sustainable tourism industry. Prisoners face victims of their crimes in forgiveness project A group of Northward Prison inmates have come face to face with the victims of their crimes in a project that aims to make prisoners more aware of the impact of their criminal actions. The eight-week program, called the Sycamore Tree Project, was introduced by prison director Neil Lavis, who had seen what he de- scribed as the “powerful ef- fect” of the program in his former posting in Wales. On Sunday, April 3, seven inmates who had completed the program celebrated with fellow inmates, staff and family members in atten- dance at a ceremony that marked the culmination of the project. Organizers said the pro- gram “unites offenders with victims of crime to open dia- logue, promote understanding, forgiveness and restoration.” Speaking to a packed prison chapel, Mr. Lavis ap- plauded the participants for having the courage to “face their past and do the hard work of acknowledging the impact of their actions on themselves and others,” according to a press re- lease issued by Her Maj- esty’s Cayman Islands Prison Service. Ten inmates started the program and nine completed it (two were released prior to the night’s service). Several of the inmates who took part in the Syca- more Tree project gave tes- timonies during the service, speaking of the benefits of attending the program and encouraging other inmates to attend the next series planned for May 2016. Prison Chaplain Cathy Gomez said she was over- joyed by the work the inmates did and how much each one grew during the process. According to the release, she “highlighted that the pro- gram focused on the fact that everyone is an offender having all done something to hurt another person. Con- versely, she stated that we are all victims as well, having all been hurt by another. “It is this common ground where healing and restoration can begin. Each participant was encouraged to not only seek to ask forgiveness, forgive others but also forgive them- selves for past mistakes.” The program was con- ducted at Northward prison on a weekly basis by Ms. Gomez and staff volunteers Officer Irvin Long and Super- visor Julia King. “The program was a great success,” Ms. Gomez said, “and I look forward to more and more of the in- mates taking advantage of future offerings.” Organizers said the program “unites offenders with victims of crime to open dialogue, promote understanding, forgiveness and restoration.” Sycamore Tree Project graduates with Prison Chaplain Cathy Gomez and Prison Service Director Neil Lavis.WEDNESDAY APRIL 6, 2016 • CAYMAN COMPASS 6 DISTRICT DAYS District Days Sister Islands A busy Earth Month ahead for Cayman Brac Earth Month activi- ties kicked off on Cayman Brac with a cleanup at Public Beach. Kathleen Bodden-Harris, who is spearheading the is- land’s projects for the month, noted that a handful of vol- unteers, including some from Harmony Learning Center, showed up on Saturday, April 2, to do their part. “I want to thank everyone for their participation,” said Ms. Bodden-Harris. “It was a wonderful opportunity for the Harmony Learning Centre to show how well they can participate in such positive community events.” Ms. Bodden-Harris said the kickoff project was or- ganized at Public Beach be- cause it is an area frequented by both locals and visitors. “As well, its a favored site for turtle nesting,” she added. “We wanted to clean up the area before the ‘moms’ start coming in to find a pris- tine spot to leave their eggs.” Ms. Bodden-Harris noted the timing of the Public Beach cleanup coincided with the end of the hol- iday break, when the public beach is a popular spot for get-togethers. She said that the volun- teers found plenty of garbage in the area around the beach facilities, including cigarette butts, party decorations, soiled diapers, condoms, food and juice containers and packaging, cans, glass, plastic bags and bottles. “It was a pure eyesore and embarrassment,” said Ms. Bodden-Harris. “Most of it was within tossing distance of a trash bin that barely had any con- tents in it, even after a long holiday weekend. That speaks volumes of the lack of respect for our own island.” On the Brac’s beaches and coastal waters, Ms. Bodden-Harris said other recent events have been compounding the existing problem of garbage floating to the island’s shores from international waters. For ex- ample, local fishing tour- naments have led to an in- crease of discarded fishing line, boxes and containers of bait, and items like beer cans, soda bottles, and remains of ice bags washing up on Brac shores. Ms. Bodden-Harris minced no words in admon- ishing local litterbugs, noting that trash in public places is a community issue. “It’s a privilege, not a per- sonal right, that the govern- ment has provided us with a lovely facility and site to enjoy our lovely island,” she said. “Please stop polluting our public recreational areas, both marine and land.” Next on the Earth Month activities agenda was an un- derwater clean-up planned for April 5 at Scott’s dock, fol- lowed by a mangrove lecture scheduled for Saturday, April 9, at UCCI at 6 p.m. Weather permitting, on Tuesday, April 12, at 4 p.m. the Scuba Shack and Reef Divers will hold a joint li- onfish cull, and a recycle party is planned for Sat- urday, April 16, at the Cap- tain’s Table restaurant, with more events planned in fol- lowing weeks. For more information on Earth Month events on Cayman Brac, call 916-3960. Helping clean up the Brac Public Beach last Saturday were, from left, Edna Platts, Paula Malone, Charlie and his father Leo St. Pierre, Barbara Redman-White and Harmony Learning Centre facilitator Jocelyn St. Pierre. Paula Malone lends a helping hand to clear rubbish from the back of the restroom building at the Brac Public Beach. - PHOTOS: KATHLEEN BODDEN-HARRIS 50 YEARS AGO: Celebrating a long life In the April 6, 1966 edition of the Caymanian Weekly, a precursor of the Cayman Compass, Cayman Brac corre- spondent Lilian Ritch wrote: “Mr. and Mrs. Wallington Watson of Spot Sand, Creek became the happy parents of a daughter on Friday, March 25 (9 pounds). “The Church of God (Full) Gospel Hall Convention came to a close on Saturday evening, 26th, when Elder F.E. Arch took ‘the Sanctification of the Holy Spirit’ as his subject. Many young people of the district responded to the altar call. Elder Arch thanked the local congregation for their great hospitality to himself and the visiting delegation among whom we were glad to see again old friends, Mr. Tidyman Ebanks and Mrs. Anezia Ebanks. Sister Willene Byars, a gospel singer from the United States, singing and accompanying herself on the guitar, was an attractive feature of the convention. “Mr. and Mrs. D.H. Foster held the in- terest of a small audience with an account of their impressions as part of the Cayma- nian delegation to Jamaica on the occasion of the Royal visit. One hearer said it almost made you feel you were there. “Good sailing to tour seamen re- cently returned to N.B.C. ships – Cleve- land Dilbert and James Connolly to the ‘Ore Venus,’ Clemins Dilbert and Clinton Lewis to the ‘Ore Transport,’ Don Tatum, John McGowan and Cyril Parchman to the S.S. ‘Phoenix.’ “Welcome home to Roosevelt Bodden off N.B.C. ‘Ore Transport.’ He is son of Mrs. Iva Bodden of the Point. “The Cayman Brac Power and Light Co. Ltd. enter this week on a new stage of ser- vice when work commences on running the lines up along the south coast to meet the needs of four homes. “Mrs. Laura McLaughlin, the oldest resident of Spot Bay, attained her 92nd birthday on Sunday, March 27. Though she is in failing health, she was able to cut her cake assisted by the Rev. Ran- dall Douglas, the pastor of her church, Bethel Baptist of Spot Bay. She had the joy of having with her many of her chil- dren, grand and great grandchildren. She is cared for by her daughter Mrs. Celestia Reid and granddaughter Estella, Mrs. Cas- well Robinson. Another daughter, Virginia, Mrs. Aston Williams and her sons Wilfred and Duell from Kingston, Jamaica have come on a short visit.” Celebrating a long life COMING UP IN THE SISTER ISLANDS Along with a busy Earth Month calendar, a number of community events are coming up over the next week: On Thursday, April 7, the Cayman Brac Heritage House mini craft market will be taking place from 4-6 p.m. at the Cayman Brac Beach Resort. On Saturday, April 9, the Sister Islands Swim Club CNB 800m Sea Swim sets off from Carib Sands dock, west of Tiara Beach on Cayman Brac. Registration starts at 2 p.m. and the race starts at 3 p.m. Registration is $10. For more information, call 927-0807 or 925-0830. On Monday, April 11, the Little Cayman National Trust Committee meeting will be held at the LC National Trust Center at 4 p.m. On Tuesday, April 12, the Cayman Brac Committee for the National Trust meeting will be taking place at 7:30 p.m. at the District Administration conference room. On the Brac on Wednesday, April 13, the driver’s license written exam will be held from 2:30-4:30 p.m. at the District Adminis- tration Conference Room. The Little Cayman Vehicle Licensing visit will be taking place from 9 a.m. to 2:30 p.m. at the Little Cayman District Office. To view the Sister Islands calendar of events online, visit www.districtadmin.gov.ky.7 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY APRIL 6, 2016 LEGISLATIVE BILLS Major legislative changes proposed BRENT FULLER bfuller@pinnaclemedialtd.com A raft of significant leg- islation – dealing with ev- erything from the protec- tion of personal records, to public officials’ disclo- sure requirements, to pri- vate sector pensions rules – will be addressed in the Legislative Assembly at its April 25 meeting. The list of bills was made public by the Cayman Islands government Monday, within the 21-day legal time line re- quired for a hearing at the Legislative Assembly. The changes include amendments to a controver- sial section of the Health Ser- vices Authority Law which has recently been interpreted by the local courts to mean public hospital patients al- leging malpractice by au- thority staff members could not successfully sue the gov- ernment unless they proved “bad faith” on behalf of those staffers. Another bill mooted by parliament seeks to remove all “public officials” from the membership of the Cayman Islands Anti-Corruption Commission. As it currently stands, that legislation, if passed, would remove the police commissioner, auditor general and complaints com- missioner from that body, which investigates allega- tions of corruption against public officials in Cayman. Other legislative issues in- volving the retirement age, personal data, politicians and civil servants’ interests dis- closure and public education could come before the legis- lature within the next month. Retirement age Amendments to the Na- tional Pensions Law, which have been sought since 2014, will, if approved, raise the retirement age for private sector workers from 60 to 65, except in specific cases. The legislation will create a “normal age of pension en- titlement” which means 65 years of age unless a Cabinet order allows an individual to opt for the earlier retirement age of 60 years. The proposal also seeks to increase a worker’s max- imum pensionable earn- ings from $60,000 a year to $87,000 a year. As it stands now, an employee and their employer make matching contributions of 5 percent of the first $60,000 of salary to the workers’ retirement fund. However, if the new legisla- tion passes, the threshold for contributions will increase to $87,000 per year. The bill would also re- quire public registration for pension plan providers and prescribes more substan- tial penalties for the viola- tion of the National Pensions Law, which can reach up to $100,000 in fines and up to five years imprisonment upon conviction for a third offense. Public standards Although a version of the legislation passed in early 2014, the Standards in Public Life Law was never put into effect, largely be- cause of concerns from gov- ernment-appointed board members who indicated pri- vately that they would not serve on those boards if they had to disclose their busi- ness interests. The public standards bill requires a much more spe- cific disclosure of income, property and other interests from elected officials and se- nior civil servants and those of close family members, providing penalties for not doing so. However, in the rewritten legislation, it appears ap- pointed board members’ close relations, defined as “immediate family members,” will not bear the same disclo- sure requirements. The legislation does not require a board member of a statutory authority, public authority, government-owned company or who is a member of a constitutionally created commission to disclose any interests, income, assets or li- abilities of immediate family or “any other connected person” unless there is a pos- sible or perceived conflict. According to the bill: “Where this is so, the person has to declare only such in- terests, income, assets or li- abilities in relation to the person in public life and any member of the imme- diate family and such prop- erty held on behalf of a con- nected person as well as such property held by a connected person on behalf of the person in public life where there is a possible or per- ceived conflict.” Data protection The government will at- tempt, for the third time, to pass legislation aimed at the protection of personal data held by both private and public sector entities. The bill, known as the Data Protection Bill, has never made it to the Legisla- tive Assembly in its two pre- vious iterations, largely due to local business sector con- cerns that it would add op- erating costs in order to comply. Similar legislation took effect in the European Union in the mid-1990s. The legislation requires that private individuals must be able to access informa- tion about themselves and further states those records must be handled lawfully by any organization which re- tains that data. The bill also outlines what is considered “personal data” and “sensi- tive personal data” regarding any individual that must not be disclosed, purposefully or accidentally, except in specific circumstances. Sensitive personal data in- cludes information relating to racial or ethnic origins, po- litical opinions, religious be- liefs, membership in a trade union, health-related data, sexual preferences and infor- mation related to the com- mission of an offense. The proposed legislation has obvious ramifications for journalists and artists, which are afforded some limited protection under the bill in that they are exempted from some of its requirements. Education Bill In 2009, the former Pro- gressives-led government passed a sweeping educa- tion reform bill in the waning hours of its parliamentary term, but successive govern- ments did not put that law into full effect. Now, some seven years later, a redrafted Educa- tion Bill seeks to replace that legislation, allowing, among other things, the em- powerment of the education minister to establish a school curriculum. The bill would also allow Cabinet to alter the mandatory school age, which currently stands at age 17 in Cayman. The bill also seeks the reg- istration of each “early child- hood center” with the govern- ment and allows the minister to close such institutions if it is determined there are im- mediate health and safety is- sues there. The bill also outlaws cor- poral punishment and “acts which are inhumane or de- grading” to any student. Magistrates’ pay For the first time, court magistrates will be placed in their own government pay scales and will be kept under a judicial pension scheme, if lawmakers approve the Judges Emoluments and Allowances [Amend- ment] Bill, 2016. The law, if passed, will place magistrates who oversee the local Summary Courts in the judicial pen- sion plan, now only made up of current and retired Grand Court judges. This change is to “recog- nize their independence as a part of the judiciary and their separation from the general public service.” Accountants Bill The Accountants Bill, 2016, if passed, will formalize the creation of a profes- sional standards body for the profession, seeking to for- malize the establishment the Cayman Islands Institute of Professional Accountants. The organization, which has already been created in practice, will act as a body corporate for members of the local accounting profession. The bill also sets out reg- istration requirements and qualification criteria for members of the institute. Segregated health fund The government’s already existing segregated insurance fund, which essentially col- lects money from individuals’ healthcare plans to help pay for indigent/uninsured care will be placed under direct management of the Health Insurance Commission, if amendments to the Health Insurance Commission Law are approved. According to the legisla- tion, the collection of sums due by private plan payees to the segregated fund and re- mittance of those funds is to be handled by the Health In- surance Commission. Typically, Cayman collects between $5 million and $6 million per year from the pri- vate health plan customers for the benefit of the segre- gated insurance fund. Tax information bill This bill proposes the amendment to the Tax Infor- mation Authority Law which would allow Cabinet to intro- duce administrative penalties of up to $50,000 for breaches of the regulations. The leg- islation does not state what specifically the penalties would be issued for, which will be decided in the regula- tions attached to the law. Generally, the tax infor- mation law governs tax in- formation exchange with foreign jurisdictions in in- stances where that informa- tion has been requested by lawful means. Bill would remake Anti-Corruption Commission CHARLES DUNCAN cduncan@pinnaclemedialtd.com A new proposal to re- make the Anti-Corruption Commission would man- date that all five members of the commission be appointed by the governor, and remove the police commissioner, the auditor general and the complaints commissioner. The bill, which could be de- bated as soon as the end of this month, would also give the Anti-Corruption Commis- sion the power to hire its own investigators instead of using police officers seconded from the Royal Cayman Islands Police Service. The commission is cur- rently made up of two mem- bers appointed by the gov- ernor and the three public officers, with the police com- missioner as chair. The Anti- Corruption Commission is tasked with investigating al- legations of public corrup- tion and forwarding its inves- tigations to the Department of Public Prosecutions when they believe someone broke the law. The commission came under fire earlier this year when it emerged that it had not met in more than 12 months. Its membership too has been up in the air as the complaints commissioner post has been open since January 2015, and the auditor general left his position in July, leaving acting heads of those offices. With the recent announce- ment that Police Commis- sioner David Baines would be leaving his post at the end of May, the three public officers on the commission will all be acting heads of their respec- tive departments. “The biggest thing is going to be the composition of the commission,” Deborah Bodden, manager of the Commissions Secretariat, said. The change will mean that all five members will have to be appointed to the commis- sion. The amendments give the commission the option to in- vite the auditor general or po- lice commissioner to attend meetings and give reports on their work, but they will not be voting members. The bill also changes the terms for members from five years to three years or less, based on the discretion of the governor. Under the pro- posal members will be eli- gible for reappointment for a second term. New staff Other amendments to the Anti-Corruption Law, if ap- proved, would give the com- mission the ability to hire its own investigators. The cur- rent law gives the commission investigators seconded from the Royal Cayman Islands Police Service. The new investigating of- ficers would be employed di- rectly by the commission. “They’d have all the neces- sary powers to conduct anti- corruption-related investiga- tions,” Ms. Bodden said. The investigators would have the ability to investigate possible corruption-related crimes and make arrests. Corruption of- fenses, as noted in the law, in- clude bribery, defrauding the government, selling or pur- chasing a public office, abusing office, making false statements to the commission, and other similar offenses. The amendments include a section specifically noting that the commission’s investigators are not subject to direction or control by the police commis- sioner or governed under the Police Law. The police, however, will take custody of a suspect after the commission’s officers make an arrest. Legislators are slated to consider several bills at the Legislative Assembly meeting that begins on April 25.The islands’ most-trusted news source 8 WEDNESDAY APRIL 6, 2016 • CAYMAN COMPASS David George Phipps 5 December 1948 - 29 March 2016 David is survived by his wife Ilene, daughters Courtney and Chelsea, and his mother Joan. A Celebration of Life will be held on Saturday 9 April at Pedro St. James from 4 to 7pm. In accordance with David’s wishes, the family invites attendees to wear casual, colou rful attire. All are welcome. In lieu of fl owers, we ask donations be made in David’s name to Rotary Central or Cayman HospiceCare. David is survived by his wife Ilene, daughters with partner agencies to try and reduce our popula- tion to manageable num- bers. However, we are legally bound to secure all persons remanded and sentenced by the judiciary and the size of the population is largely out of our control.” In addition to the secu- rity concerns, operating costs continue to go up with addi- tional prisoners coming in, Mr. Lavis said. “Every prisoner over our normal capacity increases costs of security and opera- tions (healthcare, catering, utility consumption, supplies etc.),” Mr. Lavis said. According to the latest data available, from mid- 2015, it costs Cayman Islands taxpayers in the neighbor- hood of $69,000 per year, per prisoner to house, feed and care for inmates. The Cayman Islands gov- ernment budgeted to spend approximately $17.2 mil- lion on its prison services in the current 2015/16 financial year, not counting outside re- habilitative and supervision expenses. According to fig- ures presented to the Legisla- tive Assembly’s Finance Com- mittee, the budget for prison services – day-to-day opera- tions – was be $10.7 million. The prison budget for “su- pervision, intervention and support services” totals about $6.6 million. The budget for prison operations increased by about $1 million during the current 2015/16 year. Mr. Lavis said the main reason for the increase was the hiring of 13 prison officers and other staff. Some of the increased workload for prison officers revolves around new respon- sibilities officers have in se- curing detained Cuban mi- grants who land illegally on Cayman’s shores from time to time. Mr. Lavis, who also has oversight responsibility for immigration detention, said a total of 55 Cuban detainees were being kept at the Fairbanks facility, known as the Immigra- tion Detention Centre. Two others, who are serving time for illegal landing in the islands, are now at Northward Prison. Four other migrants, in- cluding a pregnant woman and a juvenile who appar- ently made a trip with a parent from Cuba earlier this year, are being kept in a hotel, Mr. Lavis said. At one stage, consider- ably more than 100 landed migrants had to be kept at various community centers in the less-crowded eastern districts of Grand Cayman, simply because the main de- tention facility could not keep up with them all. Cayman is spending more than US$1 million per year housing, feeding and caring for the Cuban mi- grants, according to recent budget estimates. The proposed amend- ments remove the reference to employees, lifting the im- munity for doctors and am- bulance drivers, for example. It also adds negligence along- side bad faith as an exemp- tion to the immunity. The reworded clause states: “Neither the Authority, nor any director nor any Committee member shall be liable in damages for any- thing done or omitted in the discharge of their respec- tive functions or duties un- less it is shown that the act or omission was negligent or in bad faith.” Last month, Premier Alden McLaughlin said his govern- ment would be bringing the changes to the House. “We can’t have a situa- tion where someone suffers injury or harm as a result of negligence and there is no re- dress. It’s wrong,” said Pre- mier McLaughlin, who is also the health minister. “The way to avoid liability is by striving to avoid negli- gent treatment, not through legislation. It is a basic prin- ciple of equity and fairness that there can be no wrong without redress.” Challenging Bolt for su- premacy in the 100m dash will be fellow Jamaican Kemar Bailey-Cole, who ran a close second to Bolt at the same event in 2013, and Cay- man’s own Kemar Hyman, who is also preparing for the Rio Olympics. More than 100 over- seas athletes and 20 local runners, including Ronald Forbes and Tyrell Cuffy, are expected to compete in the one-day meet on May 14. Ms. Mothersill, who had a glittering track career and won gold in the 200m at the Commonwealth Games in Delhi, India, in 2010, said it has been relatively easy to persuade some of the world’s top athletes to come to the island. “A lot of athletes want to come to Cayman but for them to keep on returning, that is because of the type of hospitality we put forward,” she said. Tourism Minister Moses Kirkconnell said he ex- pected to see a packed sta- dium, including hundreds of visitors, for the event, which he said would show- case Cayman as a destina- tion attraction for sports tourism events. The Ministry of Tourism has so far contributed more than $100,000 to the event, but the minister said it was also providing other sup- port through its staff and partners in the industry. The Ministry of Sport chipped in $50,000 toward the event, while private sector spon- sors include Frank Hall Homes and Cayman Na- tional Bank. Sports Minister Osbourne Bodden said money could not buy the kind of expo- sure Cayman would get from having Bolt and other world track stars on the island. “When you have top- notch athletes in their prime coming to the Cayman Islands to showcase their talents, I think that’s wonderful.” He said the event should also help celebrate and in- spire Cayman’s own athletes. Bolt will take part in an event with primary school athletes, while Felix will meet Cayman’s Carifta athletes. Dominic Dyer, who won silver in the 3,000 meters and bronze in the 1,500 me- ters at the event for the re- gion’s young athletes in Gre- nada last month, said he was looking forward to com- peting at the Cayman In- vitational, which will also feature visiting international youth teams. “When I compete,” Dyer said, “it is usually me against the clock and maybe 100 people, so it will be crazy to have 5,000 people there. “Usain Bolt is the big- gest guy in athletics and it is great to have him come here to inspire the children. There may be young boys sitting in the stands that think ‘I want to be like him,’ and come down to the track and train, which is great for Cayman.” Lacee Barnes, who won gold in the shot put and silver in the discus at Carifta, said it was great to have role models like Bolt and Felix coming to the Cayman Islands. She said she hoped the event would help inspire greater interest in track and field. All the visiting athletes will get appearance fees for the meet, though organizers declined to say how much. Tickets for the event are available at Funky Tang’s and cost $55 for finish line, $45 for grandstand, $30 for Mackie stand and $25 for the bleachers. For more information, call 928-2726 or email caymaninvi@candw.ky. Lawmakers to debate removal of hospital immunity clause CONTINUED FROM PAGE 1 Sprint king Usain Bolt to headline Cayman Invitational CONTINUED FROM PAGE 1 No prison cells left at Northward CONTINUED FROM PAGE 1 Politicians, young track stars and athletics administrators announce Tuesday that Usain Bolt will be headlining the Cayman Invitational. Pictured are Lacee Barnes, Dalton Watler, Cydonie Mothersill, Tourism Minister Moses Kirkconnell, Dominic Dyer and Sports Minister Osbourne Bodden. Northward Prison is currently housing 211 prisoners. - PHOTO: TANEOS RAMSAY9 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY APRIL 6, 2016 SPECIAL FEATURE COMPLIMENTARY SPOT RED COLOR. Additional spot color or full color will be charged at regular rates. FULL PAGE 10.333”W x 15.8975”H B&W $960 Full Color $1360 HALF PAGE 10.333”W x 7.8975”H QUARTER PAGE 5.066”W x 7.8975”H B&W $240 Full Color $440 B&W $480 Full Color $780 ADVERTISING RATES AND SPECS The feature will highlight Scotiabank’s achievements of the past fi ve decades as well as the bank’s commitment to supporting the community where we live and do business. Be part of this milestone publication! AD SPACE DEADLINE: Wednesday, April 13th Contact 949-5111 | sales@pinnaclemedialtd.com Scotiabank & Trust (Cayman) Ltd. is celebrating its 50th Anniversary as a chartered bank in the Cayman Islands. To celebrate this special occasion, the Cayman Compass will be publishing a souvenir newspaper feature on Thursday, April 21. Report: Lack of skills, experience barriers to Caymanian employment CHARLES DUNCAN cduncan@pinnaclemedialtd.com A government report on Caymanian unemployment found a lack of literacy and math skills, experience and knowledge were the primary reasons Caymanian appli- cants were not hired. A lack of education and training, and perception by employers and job seekers, are making it hard for Cay- manians to find good jobs, according to the Inter-Minis- terial Committee on Employ- ment report. As for why Caymanians were fired, three quarters of the 250 employers that re- sponded said frequent tar- diness or absences were the main reasons for termina- tions. Almost as many em- ployers, 73 percent, said performance issues led to fir- ings. More than half of the employers cited “attitude to- wards coworkers” as a reason for termination, followed by “attitude towards customers,” with about 44 percent. A survey of job seekers who approached Cayman’s National Workforce Develop- ment Agency found that more than a third of respondents had a high school diploma or less education. The survey indicated that Caymanians looking for work were not as concerned about lack of skills, demonstrating “a major dis- connect between their self-as- sessment and the assessment of employers who see the lack of skills as a major weakness,” the report states. In 2014, about 70 percent of the more than 1,500 un- employed Caymanians had a high school education or less. “This appears to indicate a correlation between education levels and unemployment,” ac- cording to the report. Of the National Work De- velopment Agency’s 139 full- service clients in 2014, the survey report indicated that almost 98 percent lacked basic work readiness. About a fifth did not have basic lit- eracy skills, the report stated. Roughly 20 percent had sub- stance abuse issues, and 18 percent had serious alcohol abuse problems. Challenges The committee identified five challenges to addressing Caymanian unemployment: the need for more spending on training and development; better collaboration among government agencies; en- gaging across the public and private sectors; better infor- mation on the employment market; and addressing bar- riers like housing and In- ternet access. The committee has been studying barriers to Cayma- nian employment since July 2014, and delivered the re- port last week. The Economics and Sta- tistics Office recently re- ported that the Caymanian unemployment rate is 6.2 percent, down from 7.9 per- cent in 2014. According to the most recent Labour Force Survey, there are about 1,200 unemployed Caymanians and about another 750 who are underemployed. Employment Minister Tara Rivers, in a press release pub- lished with the Inter-Minis- terial Committee on Employ- ment report, said, “This report was a critical first step in helping the Government pre- pare a larger plan to address unemployment, in the short and long term, because it pro- vides Cabinet with useful in- formation to help guide em- ployment policy for the Cayman Islands.” In the written statement, Employment Ministry Deputy Chief Officer Tasha Ebanks Garcia said, “Direct barriers are those related to employ- ment, either through job his- tory, experience or skills ca- pacity or the means by which job seekers apply for employ- ment (e.g. cover letters, re- sumes and references). “Indirect barriers, in con- trast, are non-work-related concerns specific to an indi- vidual job seeker. They are usually environmental fac- tors which prevent or inhibit ease of entry into the work- force (e.g., transportation, In- ternet access, poor housing) as well as social, family or health issues.” The report pointed out that skills identified by em- ployers as lacking included “basic skill deficiencies in lit- eracy and numeracy; tech- nical skill deficiencies in ei- ther industry-certifications or knowledge of industry prac- tices or techniques.” Education “Obviously, focusing on education and enhancing the educational experience of our students is an integral part of the long-term employment strategy,” Minister Rivers said, adding that her min- istry is addressing overall lit- eracy and numeracy, placing greater emphasis on science, technology, engineering and mathematics (STEM) and de- veloping technical and voca- tional education and training pathways for students. There is also a concern among employers that unem- ployed Caymanians lack “soft skills” needed in the work- place, “such as customer ser- vice skills/orientation, ‘atti- tude’ problems expressed as an entitlement mentality or perceived lack of work ethic; or some combination thereof,” according to the report. The perception among some employers, the report notes, is that “the motiva- tion to learn and develop has been generally lacking or, if present, has not been at the level required to meet the ex- isting demand for skills.” Conversely, a survey of job seekers showed that un- employed people did not rec- ognize if they lacked impor- tant skills. The report states, “This demonstrates a major disconnect between the job seekers’ assessment and that of the employers who see lack of skills as their primary concern.” The committee writes that job seekers’ perception “may be that experience is depen- dent on gaining employ- ment, so their lack of expe- rience is because they have not been given the opportu- nity to gain it.” The problems for some go beyond skills, as the re- port states that analysis of data collected suggests a lack of competitiveness among a small segment of the Caymanian workforce that is “beset with challenges” that hamper long-term employ- ment prospects and which “require government atten- tion and investment in terms of training and development,” the report states. Those chal- lenges include transporta- tion, Internet access, poor housing, and a lack of social, family or medical support.Next >