ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – WEDNESDAY MAY 11, 2016 BUSINESS | PAGE 12 ABOUT 100 COMPANIES LINKED TO CAYMAN IN PANAMA PAPERS High of 88 Low of 76 Slight to moderate with wave heights of 2 to 4 feet. EDITORIAL | PAGE 4 CAYMAN’S QUEST FOR RENEWABLE ENERGY SOURCES #203 Alissta Towers, 85 North Sound Road, Grand Cayman KY1-1109, T: + 1 (345) 949-9744 E: Aleisha.Lalor@caribbeanalliance.com www.caribbeanalliance.com Nearly 90% of prisoners are Caymanian BRENT FULLER bfuller@pinnaclemedialtd.com The Cayman Islands prisons system has processed more than 1,500 individuals in the past five years and about 88 percent of them are Caymanian, according to data obtained via a Freedom of Information request filed with the prisons service last month. The numbers represent each individual, both male and female, processed through Her Majesty’s Prisons Service in the Cayman Is- lands from 2011 through 2015. The figures include convicted prisoners and remand prisoners – those awaiting trial. The prison numbers do not reflect the total inmate population at a given time, only how many people came under the prisons’ ju- risdiction during the year. Some of the in- dividuals may be repeat offenders who are processed more than once. Last year, government records showed a total of 299 people being processed through local prisons. According to the records, 256 – or 86 percent – were Caymanians. Another 43 (14 percent) were non-Caymanians. The break- down showed that the vast majority of the prisoners (269) were male. In 2014, out of 313 prisoners processed, 280 – or 89.5 percent – were Caymanians and 33 (10.5 percent) were non-Caymanians. The number of female prisoners processed was very low. Of the prisoners processed in 2013, 92 per- cent were Caymanian: 294 out of 320 in total. Foreign nationals made up about 8 percent or 26 of the prisoners processed. In 2012, 232 of the 257 total prisoners pro- cessed (90 percent) were Caymanian, and 25 of KEY PENSION PLAN ISSUES LEFT TO CABINET New ‘retirement’ plans, monthly payouts in balance BRENT FULLER bfuller@pinnaclemedialtd.com A number of critical issues regarding how private sector retirement plans will be man- aged, including when individuals who are now 60 to 65 years old can receive full retirement benefits and how much they can take out of their pension savings accounts each year have been left up to Cabinet to decide. Lawmakers approved sweeping changes to the National Pensions Law last week, the first significant amendments made since legisla- tion took effect in 1998. However, opposition party and independent Legislative Assembly members still seemed uncertain – even after a vote was taken on the legal changes – how various issues would be handled. For instance, North Side MLA Ezzard Miller questioned the government concerning how the private sector retirement plan could equate to “income replacement” when current rules only allow retirees to withdraw up to $12,000 per year from their savings plans. Employment Minister Tara Rivers, who has oversight responsibility for pensions matters, said the issue would be addressed at a future date in regulations to the National Pensions Law. Those regulations do not require a vote of the full Legislative Assembly and can be approved by Cabinet members directly. “[Legal drafters] are looking at the actual schedule that is being used currently to pay the monthly payout when you reach the age of pension entitlement,” Ms. Rivers said. Opposition leader McKeeva Bush asked Police say goodbye to their own Ever since Commissioner David Baines and two of his senior officers, Superinten- dents Michael Cranswick and Robert Scot- land, announced they were leaving their posts at the Royal Cayman Islands Police Service, they have been attending functions (usually in their honor) and saying long goodbyes to friends, acquaintances and well-wishers. We suspect, however, that a private af- fair on Monday afternoon may have been the most meaningful to them. The Police Welfare Association organized a farewell luncheon at the George Town Yacht Club for the senior of- ficers to be among their own. Dozens of po- licemen and women, as well as RCIPS sup- port staff, gathered to say their goodbyes and offer their heartfelt best wishes. A few mementos and gifts were given, a few (very short) speeches were offered, and a few moist eyes were spotted. It was the highest honor the three could receive – simply because it came from the people who knew them best, the officers they worked with every day. Detective Superintendent Michael Cranswick with a memento of his service to the Cayman Islands. Police Superintendent Robert Scotland with a photo taken at the recent RCIPS Outstanding Service Awards gala at The Ritz-Carlton, Grand Cayman. Police Commissioner David Baines addresses his officers and staff as Detective Inspector Winsome Prendergast, chairman of the Police Welfare Fund, looks on. – PHOTOS: DAVID R. LEGGE PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 »2 LOCAL NEWS WEDNESDAY MAY 11, 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 - CAPTAIN AMERICA: CIVIL WAR 3D (PG13) 1:00 I 2:00 2D I 4:10 I 5:30 I 7:30 9:00 I 9:30 2D THE JUNGLE BOOK 3D (PG) 1:00 I 1:30 2D I 3:30 I 4:00 2D I 6:30 7:10 2D I 9:40 2D MOTHER’S DAY (PG13) 1:10 I 3:50 I 7:00 I 9:50 HUNTSMAN: WINTER’S WAR (PG13) 1:20 I 4:15 I 7:20 I 10:00 Daily Matinees Every Day $8.00 Seniors, Mon-Fri Before 6pm Cayman Cinema@cbcinema6cbcinema6 640-FILM (640-3456) Visiting Gynecologist will be available for consultation at Dr. Vivek's offi ce at Smith Road Plaza from 17-25 May, 2016 For appointments please call (345)945-6077 +1 (345) 323-7840 www.drbarryrichter.com Spanish scholarships awarded to 2 students Two students from the University College of the Cayman Islands have been selected to attend a language program in Malaga, Spain this summer. Representing Cayman in July at the eSPEAK Academy for three weeks will be Con- sulate Scholarship recipients Lacey Quesada and Lydia Ebanks. This year’s schol- arship recipients mark the Spanish Consulate’s second time awarding students grants for study. This summer, both stu- dents will have the opportu- nity to immerse themselves in the Spanish language and culture at the heart of Anda- lusia, Spain. “As honorary consul, I am happy to be able to pro- vide this opportunity to young Caymanians, espe- cially to those who may not have thought that such a re- warding and memorable ex- perience would have been possible,” Garth Arch said. Mr. Arch, Spain’s honorary consul in Cayman, said he had been able to enjoy a sim- ilar experience in Granada, Spain, after attending univer- sity in the United States. “I believe this kind of ex- posure and the consistent practice of a second language would help me tremendously in both my academic and professional careers,” said Ms. Quesada, a hospitality management student. “I am so excited to explore Spain’s rich culture and beau- tiful environment, as well as to refine my skills in the Spanish language through daily interaction with locals.” Science major Lydia Ebanks said, “The opportu- nity to travel to Spain, all ex- penses paid, is not one that I’d expect to come around often. You can’t even study online at no cost, so get- ting to travel to Malaga is very exciting.” A committee from the Arts and Humanities Department reviewed Ms. Quesada’s and Ms. Ebanks’s applications, and the decision to send both students was vetted by Dean of Academic Affairs Allan Young. “UCCI expects that the students will perform excep- tionally well and be good am- bassadors for us. We expect them to learn as much as they can about Spanish culture and the language while edu- cating those with whom they interact about the Cayman Islands. We hope that they will come back and share what they have learnt with the other students who will then see that there is value in learning the language,” said Erica Gordon, department chair and coordinator of the scholarship search. “When amazing inter- national opportunities are brought to UCCI, it’s heart- breaking if deserving students lack the funds to take advantage of those op- portunities,” UCCI’s acting president, JD Mosley- Matchett, said. “Our nation is engaged in a global competition, and it is essential that our young people are provided with the resources to make their mark on the world stage,” she added. The Honorary Consulate of Spain first awarded the scholarship in 2011 to UCCI student Kayla Manderson. All funds raised from the Honorary Consulate of Spain’s cultural dinner event, “La Noche Flamenca,” went towards the scholarship. ‘Rundown’ cast surprises shoppers The cast and director of Cayman’s comedy revue ‘Rundown’ surprise lunchtime shoppers at Foster’s at the Strand on Tuesday. From left, Leroy Holness, Jevaughnie Ebanks, Matt Brown, Lesley-Ann Bernard, Josefa Martinez-Shims, Priscilla Pouchie and Cayman National Cultural Foundation’s artistic director Henry Muttoo with Rachel Gepolla give a preview of what the audience can expect at the show, which runs May 12-15, 20-22 and 27-29 at the Harquail Theatre. – PHOTO: TANEOS RAMSAY HEALTH CITY SURGEONS USE ROBOTIC TECHNOLOGY KELSEY JUKAM kjukam@pinnaclemedialtd.com Advanced robotic tech- nology is giving orthopedic surgeons at Health City Cayman Islands a leg up in performing complicated knee surgeries. Health City has recently joined hospitals around the world, such as the Mayo Clinic and the Cleveland Clinic in the U.S., that can perform robotic-assisted or- thopedic surgery, according to a press release from the hospital. According to Health City’s senior consultant orthopedic surgeon Dr. Alwin Almeida, the hospital is one of the first in the Caribbean to have the “capability and expertise” to perform the computer-navi- gated surgeries. “This technology has re- ally changed the way sur- geries are performed,” Dr. Almeida said in the press release. “With the acqui- sition of this advanced system we have taken ortho- pedic surgery to a different plane altogether.” The technology has been in use worldwide for nearly a decade, but has only re- ally taken off in the past three years as recent models have improved upon the ini- tial systems, Dr. Almedia said. Health City has had the technology, a Stryker brand system, since February, and for the past two months every knee replacement sur- gery at the hospital has been a robotic-assisted sur- gery, he said. The robotic system is comprised of a computer, advanced imaging software, cameras and sensors, which help guide surgeons as they plan surgeries and as they operate. While there is a ro- botic arm that can be at- tached to the system Health City uses, Dr. Almeida said, the arm is still in its exper- imental stages, and Health City does not use one. “It reduces surgical errors and allows for more precise placement of implants and alignment and hence, a supe- rior result,” Dr. Almeida said. The surgeon, who has performed numerous pro- cedures using computer- guided techniques, said this robotic system is most helpful in difficult primary surgeries and in correcting complex deformities asso- ciated with arthritic joints which need replacements. “These operations would not be possible without the assistance of the computer with infrared sensors and active trackers, which re-cre- ates a real time, 3-D model of the patient’s limb,” Dr. Al- meida said. He said that because the image of the area being op- erated on is displayed in real time, any movement of the patient’s limb is captured on screen. “With this level of detail, the surgeon can be guided to where he or she should place his bone cuts and how much to balance the ligaments to achieve optimal surgical precision,” Dr. Almeida said. “The computer continues to monitor the rest of the sur- gery, and we can verify our technique and decisions at any step.” From left, Erica Gordon, UCCI chair of arts and humanities, Garth Arch, honorary consul for Spain, students Lydia Ebanks and Lacey Quesada, and JD Mosley-Matchett, acting president and dean of graduate studies and professional development.3 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY MAY 11, 2016 Tiffany Rankin is “winning” for RBC! As one of our leading Auto Financing Specialists, she is a results-oriented sales professional who focuses on client satisfaction. 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Telephone: 914-8289 Mobile: 926-2982 Email: tiffany.rankin@rbc.com Tiffany Rankin Auto Finance Specialist New energy policy in the works Connolly’s motion sparks action on renewable energy plan JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Renewable energy advo- cates have applauded the government for making a commitment to clean power and called on lawmakers to turn those words into action. James Whittaker, the head of the Cayman Renew- able Energy Association, welcomed the government’s decision, announced in the Legislative Assembly last week, to revamp its draft national energy plan to in- clude far more ambitious targets on adoption of re- newable energy. Legislators unanimously backed a private mem- bers’ motion from indepen- dent MLA Winston Connolly calling for the energy plan, which has remained in draft form since 2013, to be re- vised and finalized within six months. Mr. Connolly’s motion recommended ambitious targets, including conver- sion to 100 percent renew- able energy by 2035. A National Energy Policy Review Committee is being assembled this week, with members expected to in- clude Mr. Connolly and Mr. Whittaker, as well as rep- resentatives from the Ca- ribbean Utilities Company and Cayman Brac Power and Light. Mr. Connolly said Wednesday that he is happy the government listened to the people and is hopeful that the review committee can come up with firm rec- ommendations within the next three months. “I’m hopeful that recom- mendations from the com- mittee will be taken on board and that those recom- mendations will be then dis- cussed and negotiated with CUC and a way forward can be agreed that’s best for the Caymanian people and the Cayman Islands,” he said. Mr. Whittaker said the resounding support for Mr. Connolly’s motion during an extensive debate that went till midnight on Thursday was the first time he had seen real political backing for a conversion to renew- able energy. “I think there is a collec- tive desire to push for 100 percent. It is good that we are now getting government to support these issues, but ultimately actions will speak louder than words.” The initial draft energy policy, produced in 2013, set a modest target that 13.5 percent of all electricity sold to consumers be gener- ated from renewable energy sources by 2030. Currently, Cayman derives less than 1 percent of its power from renewable energy, though that will increase slightly once the islands’ first solar farm, which broke ground Monday, is connected to the grid. Mr. Connolly, speaking in the Legislative Assembly on Thursday, said the draft energy policy was another example of a “pretty docu- ment” that had been “sitting on a shelf and lost for three years.” He said it needed to be dusted off and revamped with more ambitious targets. The George Town leg- islator, who has taken the lead on renewable energy, attending several interna- tional conferences on the issue, said Cayman was lagging behind the rest of the world in adoption of new technologies. He highlighted resis- tance from CUC as part of the problem. “We don’t want to put CUC out of business, we don’t want to affect share- holders negatively, but like many other utilities world- wide, they have to meet in the middle and they have to adapt,” Mr. Connolly said. “This is about energy revolution. This is about the people speaking and wanting change, wanting lower prices, wanting to be more environmen- tally conscious, wanting to do their part.” Highlighting an over- whelming response on so- cial media and at an energy summit he had hosted, Mr. Connolly said people were clamoring for change. He said the technology already exists for a much greater take-up of utility-scale solar. He also suggested research on and adoption of other renewable energy technolo- gies, including wind, geo- thermal and saltwater air conditioning, would create new business opportunities and new jobs in Cayman. Urging legislators not to let any shares they might have in CUC cloud their judgment, he said renewable energy presents a chance to create new opportunities. Kurt Tibbetts, the min- ister for planning, said gov- ernment had seconded an expert, named JP Morgan, to lead the review of the en- ergy policy. Mr. Tibbetts said he was happy to accept Mr. Connolly’s motion and for him to be part of the team that would review and re- vise the policy. He said the review would start next week and indi- cated the committee would look at Mr. Connolly’s tar- gets to see if they were prac- tical and realistic as they formulate the policy. Mr. Connolly’s motion included a 12-point list of recommendations, with tar- gets for take-up of electric vehicles, use of solar panels on government buildings and a request for Cayman to join the 10-island challenge organized by the Carbon War Room, which offers logistic and technical sup- port to Caribbean islands seeking to convert to clean energy. Speaking in the as- sembly on Thursday, Mr. Connolly, who also wants to see more ambitious targets around CO2 emissions, said Cayman could no longer af- ford to ignore issues such as climate change. Chal- lenging the notion that Cayman is too small to make a difference, he said striving to be part of the global solution opens up access to grant funding and logistic support from inter- national agencies. “We, as a low lying is- land at the mercy of the seas, are going to be af- fected [by climate change] long before the big coun- tries,” he said. “We need to partner with global entities and seek support from or- ganizations globally.” James Whittaker, the head of the Cayman Renewable Energy Association, and James Whittaker, the author of this article, are not related. Mr. Connolly’s motion recommended ambitious targets, including conversion to 100 percent renewable energy by 2035. Winston ConnollyThe islands’ most-trusted news source 4 – EDITORIAL – Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. PRINTED AND PUBLISHED BY: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town SEND US YOUR VIEWS OR NEWS: P.O. Box 1365 Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com ADVERTISE WITH US: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS DAVID R. LEGGE AND VICKI L. LEGGE EDITOR-IN-CHIEF DAVID R. LEGGE A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will findtheirownway” WEDNESDAY MAY 11, 2016 • CAYMAN COMPASS International bureaucrats want their ‘fair share’ of corporate taxes BY RICHARD W. RAHN Well brought-up indi- viduals are taught not to take things from other peo- ple’s pockets: “Thou shall not steal.” There are those who never learned the lesson — criminals, and many in the global political class. The latest targets of the global looters are multina- tional corporations. As re- ported in Britain’s The Guardian newspaper: “The U.N. has urged governments to stem the flow of funds to tax havens after companies funneled $221 billion into countries with low tax rates last year.” The article goes on to say, “[U.N. Conference on Trade and Development] said the growing practice among multinational corporations of diverting profits to low-tax jurisdictions denied vital in- vestment funds to developing world countries.” During the last few years, there has been an effort by high-tax countries (many of which are rich) to establish global minimum corporate taxes and for international tax bureaucrats to determine how taxes on a company should be allocated among the jurisdictions in which it operates. Even though the effort is cloaked as an issue of “tax fairness,” it is really an effort of more powerful countries and their political classes to take away more from those who earned it and spend it on themselves and their friends. This effort to tax compa- nies more raises a series of questions. First, is it wrong for corporate officers to try legally to minimize their company’s tax bills? No, in fact, corporate officers have a fiduciary responsibility to their stockholders, em- ployees and even their cus- tomers to minimize costs, including taxes. Second, should corpora- tions be taxed at all? Given that corporations are merely a legal convenience and ne- cessity for big companies to acquire and properly allo- cate large amounts of cap- ital, they are not people, and only people can pay taxes. The corporate tax is paid by their customers in terms of higher prices, their workers in terms of lower wages, and their stockholders in terms of lower dividends and capital gains. If there were no cor- porate taxes, their customers would have more money to spend on other things, which would likely be subject to some form of sales tax, and their workers and stock- holders would have higher in- comes which, in most places, would be subject to an in- come tax. To the economi- cally ignorant (including the media and many politicians), it sounds like a free lunch to tax corporations. But, in re- ality, if there were no cor- porate taxes, there would be better capital allocation and hence, higher growth, more jobs and, ultimately, more tax revenue for governments at lower rates. Third, is it possible to “fairly” allocate corporate tax profits when the corpora- tions operate in many juris- dictions? The Apple iPhone contains parts and software from more than 30 countries, and the product is sold in nearly 100 countries. While most of them are assembled in China, the iPhone was mainly designed and con- ceived of in the United States, where much of its intellec- tual property resides. Nestle, the world’s largest food com- pany with more than 2,000 brands, has plants in some- thing like 86 countries and sells some of its products in almost every country in the world, but its headquarters is legally and operationally lo- cated in Switzerland, where it was founded 150 years ago. There are software companies with little phys- ical presence anywhere in the world but employ soft- ware engineers and program- mers in many countries and sell their products almost ev- erywhere over the Internet. It is not possible to deter- mine how much profit for the above (and millions of other enterprises) can be attributed to any one tax jurisdiction. Are multinational corpo- rations depriving developing countries of needed invest- ment capital? As the distin- guished, late development economist Lord P.T. Bauer correctly observed, those countries with the right poli- cies and institutions will at- tract all of the capital they can productively utilize, but those with the wrong poli- cies and institutions will waste whatever capital that is invested or given to them. Businesses invest where their money is well treated. Places that used to be poor but now are prosperous, such as Hong Kong, Taiwan, Singa- pore, Estonia and Chile, have attracted huge amounts of private capital because they possess the rule of law, little corruption and sensible eco- nomic policies, including the protection of private prop- erty. Studies have shown that multinational corporations have been the best engines of economic development, not only because of their capital investments but, more impor- tantly, for the jobs they create and the management, organi- zational skills, technologies and training they bring to de- veloping countries. It is no surprise that the efforts to increase and ar- tificially allocate corporate profits are led by politicians, lawyers, government bureau- crats and officials of nongov- ernmental organizations, who have little or no experience in real job and wealth cre- ation. Many have lavish ex- pense accounts, facilities and great job security, and those in the international organi- zations have managed to ob- tain income tax exemptions for themselves. The corporate income tax is a highly destructive tax because it misallocates capital, hides the true cost of government, and cannot possibly be “fairly” allocated across tax jurisdictions. Such efforts will only lead to more corruption and slower global growth. The correct answer to “the problem” of corporate income shifting is to eliminate the tax. No tax, no problem. Last week, Cayman took important steps on its journey to integrate renewable energy into our current fossil-fuel-only model. The most tangible development was the ground- breaking of a 22-acre solar farm in Bodden Town that is expected to provide 5 megawatts of electrical power into Caribbean Utilities Company’s transmission and distribution grid on Grand Cayman, starting in October of this year. While we wish the best for the private sector company, Entropy Cayman Solar Ltd., which is under- taking this project, we are fully aware – and so is Entropy – that starting a new sustainable energy initia- tive in the Cayman Islands is fraught with challenges, including high costs, an entrenched supplier and, of course, a bureaucratic and regulatory morass. Another development was the unanimous support in Legislative Assembly last week of George Town MLA Winston Connolly’s private members’ motion asking the government to establish a national energy plan with specific target dates for the implementation of renewable energy. Here again, we support the government’s efforts to establish a national energy plan, and we would hope our elected members would act more as facilitators or enablers than as legislators. Cayman’s Electricity Reg- ulatory Authority, of course, should continue to be the industry’s overseer. One of the challenges in developing renewable energy here is cost, and that factor is compounded by the fact that power is supplied – at least until Entropy is up and running – by a monopoly provider, CUC, which also controls the transmission and distribution infrastructure. With CUC in the driver’s seat in any negotiations to use the transmission and distribution infrastructure, progress can be cumbersome and slow. Nevertheless, CUC, which has just marked its 50th year as Cayman’s singular supplier of energy, has been a reliable and responsible corporate citizen of these islands and cannot be blamed for being cautious as it moves forward in its embrace of renewable energy. After all, CUC is a publicly traded company that owes allegiance both to its customers and its shareholders. Despite the challenges, Cayman has one thing going for it that most countries do not: Its small size. Trying to implement a national energy plan for a large country, such as the United States, is much more formidable than doing it in a country the size of the Cayman Islands. We also have an abundance of sunshine to charge solar panels, warm surface water and cold deep water to make practical ocean thermal technology and, of course, an abundance of Caribbean breezes to keep windmills whirling productively. Ultimately, it must be the economics and reli- ability of alternative energy sources that will deter- mine their success – or lack thereof – in the Cayman Islands (and elsewhere). Government should be wary about “anointing” any particular energy technology, especially if it means granting concessions or incentives that ultimately will skew the market. Cayman’s quest for renewable energy sources Looking for loot in other people’s pockets5 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY MAY 11, 2016 Travel Financial and Accounting, legal Government insurance services & other business and other services 432.8 170.2 485.6 470.6 Foreign Exchange Revenue from Services in 2014, CI$Million ® Registered trademark(s) of Royal Bank of Canada. Used under licence. ‡ All other trademarks are the property of their respective owner(s). Accept Visa cards on your RBC EZPay device and win a trip to the Rio 2016 Olympic Games, courtesy of Visa‡ RBC EZPay is ideal for businesses on the go For further information about RBC EZ Pay, call 949-4600 or contact our Merchant Sales Officer on 914-8221 or 916-5070. • Additional monthly prize of a tablet. It's Easy! Just accept 10 Visa card transactions for a chance to win. • Promotion runs from April 5th to May 31st, 2016. • All merchants (EXISTING AND NEW) who own an RBC EZPay device and complete 10 Visa card transactions will have a chance to win the monthly and grand prizes. • One merchant in Bahamas, Turks and Caicos and Cayman will have a chance to win monthly prizes of a mobile tablet device. • One merchant from across the region will have a chance to win the grand prize of a trip to the Rio 2016 Olympic Games, courtesy of Visa. • The grand prize trip includes airfare, accommodation, spending money and tickets to a pre-selected Rio 2016 Olympic event for two (2) persons. • Winners will be selected by random draw. • Monthly winners will be selected on May 5th and June 6th, 2016. • The grand prize winner will be selected on June 13th, 2016. Elections Office: Candidates bear responsibility for ensuring eligibility JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Candidates for the 2017 general election will have per- sonal responsibility for en- suring they are eligible for of- fice under the Constitution. The Elections Office says it has made recommendations to bring clarity to the issue in light of the landmark ruling from Chief Justice Anthony Smellie which followed a constitutional challenge to West Bay legislator Tara Rivers’s right to stand in the 2013 election. However, Suzanne Bothwell, deputy supervisor of elections, said the ultimate responsibility lies with the candidates and that anyone hoping to run for office should “familiarize themselves with the Constitution.” She said the Elections Of- fice would give advice and make recommendations, but where there was doubt, the candidates would make the final choice and risk the pros- pect of a legal challenge. “The most we can do is in- terpret the law as the court has stated it,” she said. “The onus is going to be on them to make sure they are quali- fied under the Constitution be- cause if there are issues that arise, it is up to their peers perhaps to raise a petition in the Grand Court on that fact. “The onus was and still is on the person putting them- selves forward as a candidate to ensure they are qualified.” Education Minister Ms. Rivers faced a Grand Court challenge in 2013 after John Gordon Hewitt, whose wife Velma Powery-Hewitt nar- rowly missed out on election in West Bay, disputed her eligi- bility to stand. Mr. Hewitt’s petition to the Grand Court suggested that Ms. Rivers’s candidacy fell foul of the residency requirements outlined in the Constitution which disbar candidates who have lived overseas for 400 days or more in the seven years prior to the election. Ms. Rivers’s lawyers suc- cessfully argued that she qualified for an educational exemption to the provision. They argued that the London law firm where Ms. Rivers spent three years training and working should be considered an “educational institution” and that she had never given up residency in the Cayman Islands. Chief Justice Smellie ruled in her favor and Ms. Rivers has since filed a peti- tion seeking to bankrupt the Hewitts for failing to comply with a court order to pay her legal costs of nearly $140,000. Wesley Howell, supervisor of elections, said his staff would take advice from the chief justice on the implica- tions of that judgment for can- didates in 2017. He said his office has also recommended changes to the Elections Law to help clarify the process. Ms. Bothwell said the Elections Office would consult with the attorney gen- eral of questions of eligibility of candidates. “However, I think, moving forward, it may very well not be up to the Elections Office to say we are not going to ac- cept your nomination,” she added. “It may very well be put through, if there is an obser- vation to be made, it may be made and then that is the risk the candidate will run. If he or she is successful and a po- tential issue comes after that, things will take its course.” Travelers stranded after ticket scam, court hears JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com A travel agent took more than $25,000 in cash from cus- tomers but failed to provide them with valid airline tickets, a court heard Tuesday. Ingrid Scott, who ran the business Sea 2 Sky Travel in George Town, has denied 29 counts of “obtaining by deception” in connection with the allegations. Several customers did not realize their travel documents were not valid until they ar- rived at the airport, Crown prosecutor Toyin Salako said as she opened the case in Grand Court, Monday. She said Ms. Scott had pro- vided her customers with a travel itinerary, falsely telling them that was all they would need to make the trip. The customers paid for the trips, which ranged from flights to Jamaica and Canada to as far afield as India, Sri Lanka and the Philippines. “In each of the cases we are concerned with, it was cash that was handed over. None of them were able to take the flight they had paid for. They either had to forgo their holiday or pay again,” said Ms. Salako. She said Ms. Scott was re- sponsible for the day-to-day business of Sea 2 Sky Travel, with a partner providing the fi- nancing. She said the business had previously experienced cash flow problems, which Ms. Scott had indicated to her busi- ness partner were connected to her giving some customers tickets on credit. Ms. Salako added that it was not the Crown’s inten- tion to say what Ms. Scott had done with the money she ob- tained from the 29 customers on the indictment, saying it could be a case of “robbing Peter to pay Paul.” “When each of those customers sat oppo- site Ms. Scott and planned out their trip, they believed they were handing over cash for one reason and one reason only – their ticket to travel. “She falsely represented to them, that is what she was going to do, to purchase on their behalf a ticket to travel. She knew full well that she was not going to use that cash for its intended purpose.” The trial was continuing Tuesday afternoon.6 DISTRICT DAYS WEDNESDAY MAY 11, 2016 • CAYMAN COMPASS In the May 11, 1966 edition of the Caymanian Weekly, a precursor of the Cayman Com- pass, Cayman Brac correspon- dent Lilian Ritch wrote: “We welcomed home this week: “Mr. and Mrs. Anton Foster of the Buccanneer’s Inn re- turning from a business and pleasure trip. They enjoyed a brief vacation at one of the highland lakes in Texas, both are looking well rested and ready to launch into the summer season. “Capt. R.C. Foster after nearly 2 months in Jamaica for the benefit of his health. In spite of her troubles he thinks Jamaica is progressing steadily. “Mrs. Arthur Ebanks of the West End after a very enjoyable stay of three weeks in Jamaica. “Mrs. Herbert McDermot (Claudia) of Lady Musgrave Rd., Half Way Tree, and her two sons Winton and George came by charter flight on the 2nd to visit her aged mother, Mrs. Dinah Scott, whose health is failing. Mrs. Claudia came to assist her sister, Mrs. Helge Tibbetts. “Mr. Ullin Bodden of West End who returned after a pro- longed visit with his sons, Carey, in Tampa, and Darley, in Port Arthur, and their families. He is feeling well after an op- eration on his eyes. “The motor vessel Foster Trader called on Monday 3rd and her Captain Gerald McLaughlin remained three hours to visit with his family. Met by teacher Layman Scott (cousin) they went to visit Spot Bay to visit his father Mr. Ivan and grandfather Mr. Bob McLaughlin. Capt. McLaughlin was last here in 1956. This gave Mr. and Mrs. Alston Scott of West End the happy opportu- nity of a visit from their son, Radley, who is a crew member. “We welcome the visit of Mr. Thomas Jackson of West Bay, Public Works Department me- chanic who came last Thursday to install a new motor in the roller for the road. “Welcome also to Mr. Truman Bodden of George Town who with Mr. Edgar Wood, are now the staff of Barclays Bank here. Mr. Bodden has been with the bank for five years and both these gentlemen have attended the bank’s training courses.” 50 YEARS AGO: Homecomings and long awaited reunions Law firm helps Caring Cousins in Brac Program provides lunches and school snacks for students A recent appeal from the Na- tional Council of Voluntary Organ- isations was answered through a kind donation from Conyers Dill & Pearman to the Caring Cousins Lunch Support Program in Cayman Brac. The Caring Cousins program funds daily lunches and snacks for students in need across Cayman. The program currently supports more than 30 students in several schools, said NCVO co- ordinator Alta Bodden Solomon. Uniforms are often provided through this program as well. Ms. Bodden Solomon said the funds from Conyers came at a particularly important moment. “The day I received the email from Conyers, I was so over- whelmed with joy. I had just met with a lady on the Brac the pre- vious day who needed assis- tance with her children, but as the lunch support program was lacking in funds I had to tell her that the NCVO would not be able to help right away. “The fact that Conyers Dill stepped up and made this won- derful donation means that we are now able to provide her chil- dren lunch at school for one year. We are so grateful,” she said. A nutritious meal has many positive impacts on children, in- cluding their ability to learn, and physical and emotional develop- ment, she explained. Kevin Butler, managing partner of Conyers Dill & Pearman, ex- pressed the firm’s willingness to contribute to this program: “It is heartbreaking to learn that for many children the lunch they get at school may be the only decent meal they get all day. If we want a healthy community, then we need to support the most vulnerable as best we can. Giving a kid a lunch is one of the most profound ways we can make an enormous differ- ence in our community,” he said. The NCVO Children Services runs several programs that assist hundreds of children and fami- lies in Cayman’s community, in- cluding the Nadine Andreas Resi- dential Foster Home, the Jack and Jill Nursery and Miss Nadine’s Preschool. For more information on how to donate or become involved, please visit www.ncvo.org. ky or email ncvocoordinator@ncvo.org.ky. “It is heartbreaking to learn that for many children the lunch they get at school may be the only decent meal they get all day.” KEVIN BUTLER Marteca Soler-Bodden of Conyers, left, presents a check to Alta Bodden Solomon, NCVO coordinator. The Little Cayman Baha’i com- munity hosted a seaside Mother’s Day tea on Sunday, May 8 at the Casa Cassiopeia. “The tea was held for the pur- pose to honor the station of moth- erhood,” explained organizer Debbi Truchan. She said a quote from Abdu’l- Baha on the guidance provided by mothers, “O Ye loving mothers, know Ye in God’s sight, the best of all ways to worship Him is to edu- cate the children and train them in all perfections of humankind; and no nobler deed than this can be imagined,” summed up for her the meaning and honor associated with motherhood and the theme of the tea party. “Many people on island do not have their mothers here nor sadly do mothers have their children with them,” said Ms. Truchan, and the tea was a way for those in attendance to pay tribute to their mothers or their children even if they couldn’t be together in person. The tea delights served at the event included traditional scones and cucumber sandwiches, as well as more exotic fare like lavender cookies, mini rum cakes garnished with local edible flowers, and Na- naimo bars. Guests also enjoyed creative iced teas with essences of lavender lemon, pomegranate rasp- berry, and blood orange. Tea time to honor mothers Claire McGee, Susan Ploplys, Charmaine Coore and Dianne Fite at the afternoon tea District Days Sister IslandsCAYMAN COMPASS • WEDNESDAY MAY 11, 2016 7 DISTRICT DAYS Programs for kids bring heritage to life For the past few weeks, Brac Heritage House staff and volunteers have been out and about in the com- munity delivering a variety of kid-friendly programs, bringing Cayman history and tradition to life for the Brac’s youngest residents. The Heritage House wel- comed the eldest group at- tending the Cayman Brac Day Care on April 4 for a session introducing the chil- dren to Cayman’s national symbols. “The little ones became familiar with, and learned how to identify some of the national symbols, such as the national bird, the na- tional tree and the national flower,” said Heritage House program manager Saskia Edwards. She said the children further explored the sym- bols by decorating paper and putting together photo puzzles. “They also participated in another activity where they were asked questions and then took turns tossing balls into a basket with a photo of either a Cayman Parrot, Silver Thatch Palm or Banana Orchid,” she said. On April 18, the chil- dren were back at Heritage House exploring how daily life in Cayman’s early days differed from that of today. “They looked at and com- pared various items that were once commonly used with that of modern day in- ventions, such as the wash- board and bath pan versus a washing machine,” ex- plained Ms. Edwards, adding that for a craft the children decorated an ac- tivity sheet, and during game time took turns matching photos of past ob- jects with their modern-day counterparts. High school students also took part in Heritage House activities at the Layman E. Scott High School’s tradi- tional cooking class on April 7, learning how to make the traditional dish of stewed whelks under the guidance of Greta Tatum. “Whelks are West Indian Top Snails, saltwater mol- lusks that live in the shal- lows of the tidal line along the rocky coastline,” said Ms. Edwards. “They are considered a local delicacy, and are stewed in coconut milk and seasoned with onions and peppers.” She noted that preparing the dish is a lengthy pro- cess as the whelks must be boiled, picked, cleaned and chopped finely before the stewing begins. The class learned how to chop and season prepped whelks and cook the dish. “The students also learned how to make ‘sea pie’ - a flour dump- ling stretched very thinly and stewed along with the whelks,” said Ms. Edwards. She said the name’s origins may lie in the fact that the dough should be so thin you can “see” through it, or be- cause it resembles pieces of a soft pie crust for seafood stews. Whelks are protected by Marine Conservation laws and closed season is from May 1 to Oct. 31. Heritage House staff were also on hand to lead two sessions at the Cayman Brac After-school Program on April 13 and 20. At the first session on past in- dustries and exports of the Cayman Islands, the youngsters learned about popular past trades like ship building, turtle and shark fishing, egging, phos- phate mining and tanning. The students also learned about local products, like coconuts, turtle shells and thatch rope, that were often sent off for sale to interna- tional markets. Following the lesson, the children made shark-shaped headbands adorned with symbols representing each past export or industry. At the second session on, traditional Caymanian homes, the students learned how the early Caymanian settlers who came from many backgrounds and countries played a role in influencing local building styles. After familiarizing themselves with the ap- pearance, design and va- riety of building materials of past homes including wattle and daub construc- tion, Ms. Edwards said, as a craft, the children then each made and decorated their own model houses, complete with beautiful flower and sand gardens. High school students also took part in Heritage House activities at the Layman E. Scott High School’s traditional cooking class held on April 7, learning how to make the traditional dish of stewed whelks. Greta Tatum leads a class for Layman E. Scott High School students on traditional preparation of whelks. Children at Cayman Brac Day Care learn about the national symbols.After-school program students show off shark headbands they made while learning about national industries. Children make their own model houses. District Days Sister Islands Stewed whelks are a delicious traditional dish.The islands’ most-trusted news source 8 WEDNESDAY MAY 11, 2016 • CAYMAN COMPASS LUNCH SPECIAL EVERYDAY MON-SAT 11.30 TO 4PM DIM SUM SUNDAY 11-3PM Plaza Venezia, North Sound Road, George Town 945-3490 OPEN FOR DINNER DELIVERY AFTER 5PM Public pensions urge government support for funding plan BRENT FULLER bfuller@pinnaclemedialtd.com Cayman’s Public Service Pensions Board said Tuesday that it is “looking forward” to government’s continued cooperation to ensure long- term stability in the three public sector retirement plans it manages. The board’s statement was made in response to a Cayman Compass article published Monday which re- vealed a consultant’s esti- mate that the main civil ser- vice retirement fund for most older government workers and current retirees could face depletion by 2024. The projection involves the “defined benefit” portion of the civil service retire- ment plan. The defined ben- efit plan – which provides a monthly payment to retirees based on their final month’s salary with the government – was closed to new gov- ernment employees in April 1999. After that date, the vast majority of government hires have contributed their pen- sion into a defined contri- bution plan which operates more like a 401K retirement savings account and does not secure a “lifetime” benefit for plan members. As of Jan. 1, 2014, Public Service Pensions Plan finan- cial advisers estimated the civil servants retirement plan was “underfunded” by more than $226 million. That means the plan’s finan- cial assets would be signifi- cantly lower than its liabili- ties when estimated over a 20-year period. “The Public Service Pen- sions Board has devel- oped a funding proposal for government’s consider- ation,” the board statement indicated. “This proposal, once approved, is expected to service the deficit not only for the main public service pensions plan, but also for the parliamentary pensions plan.” The statement did not indicate any details of the board’s funding proposals. The Public Service Pen- sions Board stated in its 2014/15 annual report that its objective was to make the civil service retirement plan “fully funded in 20 years” from the Jan. 1, 2014 actuarial report date. The board indicated that contri- bution rates for retirement plan members on the defined contribution scheme would not have to increase, but pay- ments attributable to the defined benefit plan would likely have to increase. The financial evaluation of the fund recommended that government increase its 12 percent of salary contri- bution toward civil servant retirement plans to between 16 percent and 19 percent of salaries. If that were taken from government workers di- rectly, it would represent a 4 percent to 7 percent pay cut for civil servants. The board’s annual re- port for 2014/15 urged the government to make pen- sion contributions “in accor- dance with reliable actuarial valuation requirements.” Now, the Cayman Islands government is putting in more than $11 million each year, in addition to the 12 percent contribution for civil service employees, to make up the projected shortfall in the retirement plan. According to the pensions board annual report: “A cur- rent surplus is maintained through receipt of payments from the Cayman Islands government against past ser- vice [pensions] liabilities. The greatest risk the board faces, other than market related risks in terms of its invest- ments, is the possibility that there could be some form of pension contribution hol- iday. Should this happen it would seriously impede the board’s operations.” The government imple- mented a two-year break for employers’ pension payments in 2010-2011, but the current administration has not sug- gested any such plan. In its statement, the pen- sions board noted that many public service pension plans around the world are “com- pletely unfunded” and that payments due to retirees are taken entirely from govern- ment revenues. By contrast, the board statement indicated the public service pensions plans in Cayman have more than $500 million worth of assets under manage- ment to be used for future pension benefits. The board’s annual report for 2014/15 urged the government to make pension contributions “in accordance with reliable actuarial valuation requirements.” how long the changes might take to come into effect. “We’re not going to wait an- other 18 years to make the changes that we need to these bills,” the minister said. North Side MLA Mr. Miller, long a critic of gov- ernment’s current private sector-led retirement in- vestment regime, said the low limits on pension with- drawals were just one ex- ample of how the nearly 20-year-old National Pen- sions Law had failed the territory. “It was never intended to provide poor working Cay- manians with adequate in- come replacement,” Mr. Miller said. “The people that we try to convince our- selves that we are doing this for aren’t getting [anything] out of it.” Mr. Bush also noted that there appeared to be a good deal of confusion around what would happen to people who are at or near age 60 right now. Previ- ously, the law set 60 as the “normal” retirement age. The new legislation makes 65 the age at which a person is en- titled to their full pension. The opposition leader said there is uncertainty on the part of older workers re- garding when they can retire and what benefits they will receive if they do quit work prior to reaching age 65. Minister Rivers said the main reason for the legal changes was to ensure that no capable workers were “forced out” of a job simply because they had reached age 60 or even age 65. How- ever, she said Cabinet would later make an order re- garding workers who had al- ready attained age 60 prior to the law taking effect. The Cabinet order, which has not yet been is- sued, will deal with any transitional provisions with regard to any private sector workers who are age 60 or above now. Early retirement is also still contemplated under the new legislation, how- ever, the date set for that has been pushed up five years. Under the previous National Pensions Law, age 50 was the earliest date set for re- tirement. The new legisla- tion sets 55 as the earliest retirement age. Mr. Bush asked whether the person who wishes to re- tire at age 60 under the new law would be “disenfran- chised” at any point. Minister Rivers reiterated that Cabinet would set the transitional provisions for those workers. “But certainly … the purpose is to try to ensure that the people who want to continue to work aren’t forced out at age 60,” she said. Mr. Miller then asked whether conditions for early retirement would be changed under the new legislation. Ms. Rivers responded that there were still areas in the National Pensions Law that government believed it needed to “strengthen moving forward.” “That’s just another sec- tion of the bad law,” Mr. Miller said. 257 were non-Caymanian. In 2011, the number of Caymanian prisoners pro- cessed was 86 percent of the total (312 out of 361); for- eigners made up the other 14 percent. For the five years, the prisons service’s average pro- cessing figures were 88.6 per- cent Caymanians or 1,374 out of 1,550 total. Foreign resi- dents made up the other 174. Asked to comment on the figures Tuesday, Prisons Di- rector Neil Lavis said the ser- vice was doing what it could to lower recidivism rates but had nothing to do with the frequency of arrests or the outcomes of those cases be- fore the court. The prisons data also shows that prisoner pro- cessing numbers have decreased generally since 2010, when they hit a high of more than 400 people going through the system. In 2011, 361 were processed, and last year the number was 299. The number of foreign nationals going through the local jails fluctuated during the same period. In 2010, there were 53 non-Cayma- nians processed through the prisons system. That fell to 49 in 2011, and dropped to a low of 25 in 2012. In 2015, 43 non-Caymanians were processed. There has been a de- crease in the number of fe- male prisoners going through the system since 2010, from 60 processed in 2010 to 30 in 2015. The men’s prison had a resident population of more than 210 inmates as of early April. Mr. Lavis said at the time that it appeared the number of male pris- oners had been increasing steadily in recent years with no apparent spikes. The resident number fluc- tuates on a daily basis and is separate from the annual processing figures. Prisons Director Lavis told the Cayman Compass that the average prisoner roll for the government’s 2014/15 budget year – last year – was about 188 in- mates, including Northward adult men’s prison, Fairbanks women’s prison and juvenile detention facilities. In the first week of April, that number stood at 224, in- cluding the 211 prisoners at Northward and 13 women at the Fairbanks detention fa- cility in George Town. Key pension plan issues left to Cabinet CONTINUED FROM PAGE 1 “The people that we try to convince ourselves that we are doing this for aren’t getting [anything] out of it.” EZZARD MILLER, North Side MLA CONTINUED FROM PAGE 1 Nearly 90% of prisoners are Caymanian Northward PrisonThe islands’ most-trusted news source 9 CAYMAN COMPASS • WEDNESDAY MAY 11, 2016 Impeachment annulment reversed The acting speaker of Brazil’s lower chamber of Congress on Tuesday reversed his own decision from just hours earlier that would have plunged the impeachment process against President Dilma Rousseff into uncertainty. New Philippine leader seen as emancipator, looming dictator MANILA, Philippines (AP) – Ro- drigo Duterte, the bombastic mayor of a major southern city, was heralded Tuesday as president-elect of the Phil- ippines after an incendiary campaign that projected him alternatively as an emanci- pator and a looming dictator. “Our people have spoken and their verdict is accepted and respected,” outgoing President Benigno Aquino III’s spokesman, Sonny Co- loma, said in a statement. “The path of good gover- nance … is already es- tablished as all presiden- tial candidates spoke out against corruption.” Former Interior Secretary Mar Roxas, who was run- ning second behind Duterte in the unofficial vote count following Monday’s election, conceded defeat. “Digong, I wish you success,” Roxas said at a news conference, using Duterte’s nickname. “Your victory is the victory of our people and our country.” Duterte’s harshest critic also conceded that the mayor, known for his off- color sexual remarks and pledges to kill criminal sus- pects, had emerged the unquestioned winner. “I will not be the party pooper at this time of a fes- tive mood,” Sen. Antonio Trillanes IV, who has filed a plunder complaint against Duterte, told The Associated Press. “I will step back, listen to his policy pronounce- ments. This time we don’t ex- pect a stand-up comedy act but a president who will ad- dress the nation.” Duterte, 71, has not spoken publicly since casting his vote Monday, and re- mained at his home in Davao, on the southern main island of Mindanao. Results from a semi-of- ficial count gave Duterte an unassailable lead, thrusting him into national politics for the first time after 22 years as mayor of Davao and a government prosecutor be- fore that. In those two jobs, Duterte gained recognition by going after criminals, although he was accused of carrying out hundreds of ex- trajudicial killings. That earned him the nick- name “Duterte Harry,” a ref- erence to the Clint Eastwood movie character with little regard for rules. He has also been compared to Donald Trump, the U.S. Republican presumptive presidential nominee, for his propensity for inflammable statements. In the election for vice president, who is separately elected in the Philippines, the son of late dictator Ferdi- nand Marcos was trailing by a narrow margin behind Rep. Leni Robredo, who is backed by Aquino. During the three-month campaign, Duterte made au- dacious promises to erad- icate crime and corrup- tion within six months. His explosive outbursts and curses against the inequality and social ills that bedevil the Filipino everyman reso- nated among different class levels of the people that his big political rivals clearly underestimated until he began to take a strong lead in opinion polls in the final weeks of the campaign. He captured domestic and international attention with speeches peppered with ob- scene jokes about sex and rape and anecdotes about his Viagra-fueled sexual es- capades, and with undiplo- matic remarks about Aus- tralia, the United States and China, all key players in the country’s politics. He has not articulated an overall foreign policy, but has described himself as a so- cialist wary of the U.S.-Phil- ippine security alliance. He has worried members of the armed forces by saying that communist rebels could play a role in his government. When the Australian and American ambassadors criticized a joke he made about wanting to be the first to have raped an Australian missionary who was gang- raped and killed by inmates in a 1989 jail riot, he told them to shut up. He said he would talk with China about territorial disputes in the South China Sea but if nothing happened, he would sail to an artifi- cial island newly created by China and plant the Phil- ippine flag there. China, he said, could shoot him and turn him into a national hero. He has also threatened to form one-man rule if legisla- tors in Congress oppose him. But his campaign man- ager, Peter Lavina, told The Associated Press that the brash image, the obscene jokes and the outlandish promises were a strategy to attract voters. “That’s part of the game. You know in Philippine elec- tions you have to act like a comic, you have to find ways for you be in the headlines,” Lavina said. Other presidential candidates have heralded Rodrigo Duterte as the Philippines’ president-elect, but as of Tuesday, he had yet to claim official victory. – PHOTO: AP/BULLIT MARQUEZ Big Oil abandons $2.5 billion in US Arctic drilling rights After plunking down more than $2.5 billion for drilling rights in U.S. Arctic waters, Royal Dutch Shell, Cono- coPhillips and other compa- nies have quietly relinquished claims they once hoped would net the next big oil discovery. The pullout comes as crude oil prices have plum- meted to less than half their June 2014 levels, forcing oil companies to slash spending. For Shell and ConocoPhillips, the decision to abandon Arctic acreage was formalized just before a May 1 due date to pay the U.S. government millions of dollars in rent to keep holdings in the Chukchi Sea north of Alaska. The U.S. Arctic is esti- mated to hold 27 billion bar- rels of oil and 132 trillion cubic feet of natural gas, but energy companies have struggled to tap resources buried below icy waters at the top of the globe. Shell last year ended a nearly $8 billion, mishap- marred quest for Arctic crude after disappointing results from a test well in the Chukchi Sea. Shell decided the risk is not worth it for now. All told, companies have relinquished 2.2 million acres of drilling rights in the Chukchi Sea – nearly 80 per- cent of the leases they bought from the U.S. government in a 2008 auction. Oil companies spent more than $2.6 billion snapping up 2.8 million acres in the Chukchi Sea during that sale, on top of previous purchases in the Beaufort Sea. Shell relinquished 274 Chukchi leases and others in the neighboring Beaufort Sea. In doing so, the company forfeits what it paid the U.S government for the rights to drill in those tracts – and the millions of dollars it spent on annual rent since then. Other energy companies have followed Shell out of the Arctic, according to In- terior Department records obtained by the conserva- tion group Oceana under a Freedom of Information Act request and reviewed by Bloomberg News. ConocoPhillips formally relinquished its 61 Chukchi Sea leases on April 26, and spokeswoman Christina Kuhl said the company will end In- terior Board of Land Appeals proceedings that aimed to extend their life. Statoil dumped 16 Chukchi Sea leases and its working interest stakes in 50 others in the U.S. Arctic last November, conceding the portfolio was “no longer con- sidered competitive.” © 2016, Bloomberg NewsNext >