High of 90 Low of 80 Moderate with wave heights of 3 to 5 feet. SECTION | PAGE ## TITLE FOR THE SPORT/ BUSINESS SKYBOX THE CAYMAN ISLANDS JOURNAL Tackling the decline of correspondent banking relationships in the Caribbean EDITORIAL | PAGE 4 SMITH COVE: ‘ALDEN POND’? ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – WEDNESDAY OCTOBER 5, 2016 UK minister makes first trip to Cayman BRENT FULLER bfuller@pinnaclemedialtd.com U.K. Overseas Territories Minister, Baroness Joyce Anelay, made what is believed to be the first speech given by anyone in her position to the Cayman Islands Legislative Assembly on Tuesday morning, during a whirlwind tour of all three Cayman islands. The baroness visited the Sister Islands Monday, stating she could not have “chosen a more beau- tiful starting point” for her first trip to a British Overseas Territory. On Tuesday morning, she visited the Kimpton Seafire Resort and Spa before heading to the Leg- islative Assembly to give a brief address that surprised some in attendance in its urging that Cayman accept “gradual change” in preventing dis- crimination against homosexuals and in providing US military stages regional disaster relief in Cayman Haiti battered by Hurricane Matthew CHARLES DUNCAN cduncan@pinnaclemedialtd.com United States military helicop- ters began landing at Owen Rob- erts International Airport on Grand Cayman Tuesday afternoon as part of a disaster relief program in the wake of Hurricane Matthew. The U.S. Southern Command di- rected a team of 100 military per- sonnel and nine helicopters at the airport to support disaster relief op- erations as Hurricane Matthew con- tinued to bring torrential rains and 145 mph winds to Haiti. U.S. Marine Colonel Tom Prentice, standing on the tarmac at the air- port Tuesday afternoon, said his task force was “poised to respond as rap- idly as possible.” He said their mission is to “posi- tion ourselves into Haiti” as soon as the U.S. government receives a re- quest for assistance. Matthew moved slowly over Haiti Monday and Tuesday, bringing as much as 3 feet of rain to some areas of the country still reeling from PLEASE TURN TO PAGE 8 » Government and corporate officials meet U.K. Overseas Territories Minister, Baroness Joyce Anelay, center, who is flanked by Dart Realty’s Jackie Doak, left, and Governor Helen Kilpatrick, at the Kimpton Seafire resort Tuesday morning. - PHOTOS: MATT LAMERS Baroness Anelay addresses the Legislative Assembly. PLEASE TURN TO PAGE 9 » OCT OBER 2 0 1 6 • WWW .CA YJOURNAL. COM 1 6 8 THIS ISSUE: SPECIAL REPORT Healthcare >>PAGE 13 INVESTMENT ‘It’s regulation, stupid’ - Why does LIBOR continue to spike? >>PAGE 2 TAXES Tax non-transparency - The truth will eventually emerge >>PAGE 4 OFFSHORE INDUSTRY Wealth preservation, asset protection - A conversation with Hans-Lothar Merten >>PAGE 6 PAGE 13 SPECIAL REPORT October 2016 A Special Advertis ing Feature! Journal Special Report Tackling the decline of correspondent banking relationships in the Caribbean ‘Modernized’ in tellectual property laws bring big changes ■ ■ MICHAEL KLEIN Correspondent banking, the col-lective term for banking servic- es provided by a bank in one country to a financial institution in an- other, has been the backbone of interna-tional banking operations and payments for some time. Smaller banks without a large international network of their own, in particular, rely on their relationships with correspondent banks in other coun-tries to make cross-border payments.For the past two to three years, how-ever, correspondent banks in the United States, Europe and Canada started sev-ering ties with banks in the Caribbean.The Caribbean Association of Banks warned in August that the decline of cor- respondent banking relationships among financial institutions in the Caribbean un- dermines trade and business activity and threatens the economies in the region.At least 16 banks in five Caribbean countries have lost all or some of their correspondent banking relationships. Worldwide the situation is similar. Al-though the overall volume of payments increased between 2011 and 2015, the Committee on Payments and Market In- frastructure of the Bank for International Settlements determined that the number of active correspondent banks declined in 120 of the 204 countries it examined. According to a May 2016 IMF report, there are several reasons for the decline in banking relationships. On the one hand, banks are more broadly reassessing the cost benefits of their business lines, including transac-tion banking activity like correspond-ent banking. On the other hand, the IMF stated in its research paper, banks are uncertain about their regulatory obligations and fear large penalties and reputational risks in connection with the enforcement of sanctions, tax transparency and anti-money launder-ing, which have significantly increased the compliance costs for global banks.The confusion and uncertainty is in part related to the U.S. Justice Depart-ment’s Operation Choke Point, which in 2013 identified certain industries, such as money remittance services, as high risk for fraud and money laundering. Although the Federal Deposit Insur-ance Corporation later clarified that U.S. banks should use a risk-based approach to determine the risks rather than cut business ties with all potentially risky sectors, banks have been exiting un- profitable business lines and businesses they perceive as risky, amid a general decline of cross-border activity. As a result, correspondent banking has been high on the agenda of both the Cayman Islands Bankers Association and Cayman Finance for some time.Responding to questions by the Journal, both associations said in a joint statement that Cayman’s retail banks enjoy strong and long-standing relation-ships with U.S. correspondent banks.“But as large correspondent banks exit business lines globally in the region, primarily due to ‘de-risking’ dr iven by regulatory obligations and pressures, it is important to proactively engage to ensure there are no unintended consequences that could affect efficient and effective ac-cess to the global financial payments and settlement systems,” they said. The Cayman Islands Bankers Asso- ciation, Cayman Finance and the Minis-try for Financial Services therefore con-tinue to work closely and proactively “to reinforce the message that the Cayman Islands is a well-regulated and key in- ternational financial center for the glob- al economy which gives international correspondent banks comfort both at an institutional and jurisdictional level,” they added. The effect in Cayman In the Cayman Islands, the pressure on correspondent banking relationships has shown its effect in two ways.Money service businesses, essential for sending remittances by migrant workers, found themselves cut off from all banking services after Fidelity Bank told its money service provider clients that it had decided to “de-risk” and exit the business of pro- cessing payments on their behalf because it had been made unprofitable by in-creasing regulatory obligations. Other banks followed suit, also citing the anti-money laundering risk profile of this type of business. This resulted in significant disruption with money service businesses closing operations until they were able to se-cure suitable alternative arrangements. “In that situation the Cayman Islands Bankers Association, Cayman Finance and the Ministry for Financial Services and the Cayman Islands Monetary Au- thority worked very hard to ensure an appropriate solution was found,” the fi-nancial services associations said. In addition, Cayman Islands class B banks, which rely on correspondent banks to make international money ■■ CHARLES DUNCAN A new copyright law is already in effect, and Cayman’s lawmak-ers hope to pass a trio of bills updating rules for trademarks, design rights and patents as soon as this month. More changes to the patent laws are also being drafted as the Commerce Ministry pushes to modernize protections for in-tellectual property. When the United Kingdom extend- ed its Copyright Act to Cayman last year, it replaced a law that was writ- ten in 1956. That law went into effect in June, updating protections for musi-cians, artists and other creators, in line with the digital age. Reading from a written statement in the Legislative Assembly just after the U.K. extended the Copyright Act, Commerce Minister Wayne Panton said, “The protection of intellectual property is categorized in several key areas: patents, copyrights, trade marks, design rights and trade secrets. Basic protection in these areas is necessary for economic success; advanced protec-tion is critical to allow creativity in an economy to really flourish.” More than a year later as the law came into force, Mr. Panton said, “Local artists and investors have been frustrat-ed for many years by the lack of modern IP protection in Cayman and clamored for improved rights. With copyrights, while previous legislation offered a level of protection, it was outdated to the point where local artists could not properly protect their digital music, images and other digital creations.” Mr. Panton’s next push is for trade-mark and design rights. The current trademark regime re- quires companies to register first in the U.K. and then have the mark extended to the Cayman Islands. Mr. Panton, in an interview with the Cayman Compass last month, said the new trademark rules will give “better options for local trademark owners” and “ensure we have better control over local trademark protections.” Sophie Davies, an attorney with HSM specializing in intellectual property, said the new rules will “cut out the middle-man” from the trademark process. Local companies will no longer have to go to the U.K. to register trademarks. Dr. Warren Smith, president of the Caribbean Development Bank (CDB), Onika Miller, government relations and public policy executive at the Jamaica National Building Society, Gaston Browne, prime minister of Antigua and Barbuda, Earl Jarret, general manager of JNBS, and Ian Durrant, deputy director in the economics department at the CDB, at a meeting in September. PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 » U.S. military helicopters land at Owen Roberts International Airport Tuesday afternoon, positioning equipment and 100 members of the U.S. Marines and Army in preparation for Haiti hurricane relief operations. - PHOTO: TANEOS RAMSAY2 LOCAL NEWS WEDNESDAY OCTOBER 5, 2016 • CAYMAN COMPASS Daily Matinees Every Day $8.00 Seniors, Mon-Fri Before 6pm Cayman Cinema@cbcinema6cbcinema6 640-FILM (640-3456) *Additional charges will apply per 3D ticket requested. 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. BAZODEE (PG13) 1:30 | 4:20 | 7:10 | 9:45 MISS PEREGRINE’S HOME (PG13) FOR PECULIAR CHILDREN 3D 1:00 | 4:00 2D | 7:00 | 9:50 2D THE MAGNIFICENT SEVEN (PG13) 12:50 | 3:45 | 6:45 | 9:40 DEEPWATER HORIZON (PG13) 1:15 | 4:10 | 7:15 | 10:05 STORKS 3D (PG) 12:30 | 3:30 2D | 6:30 | 9:00 2D WHEN THE BOUGH BREAKS (PG13) 12:45 | 3:15 | 7:20 | 10:00 - WEDNESDAY - BRENT FULLER bfuller@pinnaclemedialtd.com Criminals who have served their time and spent a spe- cific period following their re- lease from prison crime-free will have previous convic- tions wiped from their per- manent record, under legis- lation to be considered by lawmakers this month. The Criminal Records (Spent Convictions) Bill, 2016, which would replace the Cayman Islands offender reha- bilitation laws, is largely aimed at putting criminals back to work once the legal system has deemed them to have paid their debt to society. “[This bill] will enhance the employment prospects of ex-offenders,” Premier Alden McLaughlin said. “It will as- sist in removing travel restric- tions as well as help to reduce the barriers to successful rein- tegration into the community.” The issue has been a con- cern of lawmakers for years, particularly when criminal of- fenses involve what are consid- ered “lesser” crimes: drug use, petty theft and the like. Former Bodden Town MLA Dwayne Seymour proposed a similar change to what government is considering now during a 2012 meeting of the Legisla- tive Assembly. “Criminal records often prevent them from finding work, particularly as more people vie for a smaller pool of positions,” Mr. Seymour told the Legislative Assembly in No- vember 2012 as he introduced a private members’ motion that sought to change the Re- habilitation of Offenders Law. Mr. Seymour said he was seeking legislation in the Cayman Islands similar to that proposed in 2009 by U.S. Con- gressman Charlie Rangel. Mr. Rangel’s Second Chance for Offenders Act permits the ex- punging (or clearing) of records for individuals convicted of a first nonviolent offense as long as they fulfil all requirements of the sentence set by a court, remain free from dependency or abuse of alcohol and con- trolled substances for a min- imum of one year, obtain a high school diploma or equiva- lent and complete at least one year of community service. Mr. Seymour proposed that some or all of those measures could form any part of a bill Cayman law- makers might enact. “It’s not just a situation where we’re saying ‘you made a mistake, no problem. We will expunge this, go make another mistake,’” Mr. Seymour said. “Sometimes offenses are left on record for five years, seven years, depending on what it is. We don’t want a person to wait for five years or seven years to find employment again. We’re talking about offenses that you don’t even go to prison for.” The bill now before the as- sembly creates a new body called an Expungement Board to review and determine a re- leased offender’s applica- tion to have their criminal record cleared. Criminal convictions cannot be removed from an individual’s record if they are sentenced to life imprison- ment, or a if a conviction re- sults in a five-year prison sen- tence, except when the person convicted is a minor, and of- fenses committed against corporations. Neither does the proposal allow for unlimited expunge- ments. In most cases, only two expungements of criminal re- cords will be permitted. The ability to have convic- tions removed from one’s re- cord will also be available to offenders convicted before the enactment of the new law, if it is approved by the Legisla- tive Assembly. The “crime-free period” during which a previously con- victed person must remain free of any new convictions or ar- rest for other offenses is not strictly defined in the law, but will be decided on a case-by- case basis depending on the specific offense. Gov’t may clear conviction records for ‘crime-free’ inmates Bush: Caymanian attorneys afraid to speak out on lawyers bill BRENT FULLER bfuller@pinnaclemedialtd.com There is significant op- position to the government’s latest attempt to amend working rules for local law- yers, but it is being sti- fled due to fear, Opposi- tion Leader McKeeva Bush said this week. Mr. Bush said a number of Cayman Islands Legisla- tive Assembly members had received private communica- tions from lawyers who op- pose the 126-page amended draft of the Legal Practitio- ners Bill. One attorney wrote to all 18 assembly members Monday asking them not to approve the changes, he said. “It has also been reported to me that a number of Cay- manian lawyers are not speaking out … due to real or perceived fear/intimidation from the firms they work for,” Mr. Bush said. The opposition leader said that while he agrees changes are needed to a law that took effect in 1969, not least to comply with international anti-money laundering stan- dards, attempts to “rush this bill through” the assembly would “do wrong” to current and future lawyers. Mr. Bush requested that the government defer consid- eration of the bill until early December in order to obtain more feedback from local at- torneys. He said he would not vote for the bill in its current form. At least four attempts to significantly amend the Legal Practitioners Bill in the past 15 years have failed, most recently following com- plaints from the financial services industry that the updated legislation would hurt attempts to expand business overseas. Financial Services Min- ister Wayne Panton said Cay- man’s major professional or- ganizations for attorneys, the Caymanian Bar Association and the Cayman Islands Law Society, collaborated with government on the bill, al- lowing it to “come closer to passage than ever before.” Premier Alden McLaughlin said passage of the revised law is critical to Cayman’s continued success in the offshore financial ser- vices industry. However, Mr. Bush has questioned whether the gov- ernment’s collaboration has gone past merely speaking to a few leading members of the associations to address the concerns of Caymanian lawyers who are on the lower rungs of the corporate ladder. “While there have been a number of surveys con- ducted by the Caymanian Bar Association, there seems to be a clear lack of probity in representing such statements to government, when in fact the membership has not had an opportunity to comment,” Mr. Bush said. The bill is partly aimed at addressing concerns around money laundering and ter- rorist financing identified by the Caribbean Financial Ac- tion Task Force, which is ex- pected to make a return in- spection of Cayman in the latter half of 2017. Next year’s review is expected to encompass not only the local financial services op- eration, but also other busi- nesses that typically handle large sums of money, in- cluding real estate and pre- cious metals dealers. The Legal Practitioners Bill is one of several pieces of legislation that have ei- ther recently passed or which are due to be considered this month in preparation for the 2017 Financial Action Task Force review. Minister Panton said the lawyers bill will demonstrate the local legal profession’s adherence to the task force’s anti-money laun- dering recommendations. The legislation creates a new regulatory body for local lawyers, called the Cayman Islands Legal Prac- titioners Association. This is envisioned as an industry “self-regulator” with eight at- torneys appointed as mem- bers, five of whom must be Caymanian. If the bill is passed, the association will be respon- sible for promotion and training of Caymanian attor- neys. It also must ensure all attorneys practicing in the Cayman Islands are suit- ably qualified. The bill also creates a separate business staffing plan regime for local law firms, including rules that seek to ensure Caymanian lawyers are “properly consid- ered” for promotions. TWO CHARGED WITH JEWELRY STORE ROBBERY CAROL WINKER cwinker@pinnaclemedialtd.com Two people charged with the November 2015 rob- bery of Mitzi’s Fine Jew- elry store on West Bay Road appeared in Summary Court on Tuesday. Madeinys Ebanks-Pol and Adrian Adela Gea are accused of stealing jewelry valued at approximately $500,000 belonging to Mitzi Callan and using force against a named store em- ployee at the time in order to do so. The alleged offense occurred on Nov. 18 last year. Gea, 31, is further charged with possession of an imitation firearm on Nov. 18 with intent to commit an offense, namely robbery. He is represented by attorney Nicholas Dixey. Ebanks-Pol, 38, is repre- sented by attorney Keva Reid. Magistrate Valdis Fol- dats explained that rob- bery is a charge that can be dealt with only in the Grand Court. He therefore transmitted the files to the higher court for mention there on Oct. 14. Opposition Leader McKeeva Bush in the Legislative Assembly chamber in early 2016.The islands’ most-trusted news source 3 CAYMAN COMPASS • WEDNESDAY OCTOBER 5, 2016 Our Business Bankers are now your Relationship Managers For more information, call: Rolan Heeralal, Area Vice President, Business Banking - 914-8274 Shane Storr, Senior Relationship Manager, Business Banking - 914-8222 Samuel Jacques-Cloutier, Relationship Manager, Business Banking - 914-8273 Peter Letko, Relationship Manager, Business Banking - 914-8228 Sary Menjivar, Associate Relationship Manager - 914-8238 Lana Cranston, Merchant Sales Officer - 914-8221 Sherry Ebanks, Sales Support Officer - 914-8272 The people who work for your business should be loyal, dependable and knowledgeable... and that includes your banker. At RBC Royal Bank, our Relationship Managers are committed to the long term success of your business. They’ll work closely with you to understand your specific challenges and find appropriate, realistic and effective solutions to help your business progress. Let us assign a Relationship Manager to partner with your business today! Come on in! Meet your relationship manager today. www.rbcroyalbank.com/caribbean ® / ™ Trademarks of Royal Bank of Canada. Used under licence. Growing your business starts with the right relationships The islands’ most-trusted news source 4 – EDITORIAL – Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. PRINTED AND PUBLISHED BY: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town SEND US YOUR VIEWS OR NEWS: P.O. Box 1365 Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com ADVERTISE WITH US: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS DAVID R. LEGGE AND VICKI L. LEGGE EDITOR-IN-CHIEF DAVID R. LEGGE EXECUTIVE EDITOR PATRICK BRENDEL A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will findtheirownway” WEDNESDAY OCTOBER 5, 2016 • CAYMAN COMPASS We knew Tuesday’s front page story, “Development planned on edge of Smith Cove,” would generate con- troversy among the community. And it has. Smith Cove (or, as many longtime residents know it, Smith Barcadere) is a national, natural treasure. For decades, the white sandy beach–flanked turquoise lagoon has been a magnet for swimmers, sunbathers and tourists in the South Church Street area. Simply put, Smith Cove is the epitome of a beau- tiful public space. Not so, however, for the property right next door. Yes, it is beautiful. But no, it is not public. It is private property, formerly belonging to the Dart Group but now in the hands of developers seeking to build 24 two- and three-bedroom condominiums. Don’t pick up the torches and protest signs just yet. For now, the developers appear to be approaching their project in a conscientious and responsible manner, adhering to setback requirements, stating that there will be no fences and relying on existing vegeta- tion to provide separation between the beach and the new buildings. “We are very sensitive to the fact that that area is a very popular public beach, and we are trying to create a nice buffer so that it doesn’t impose on the beach area,” said Tim Peck of architectural firm OBMI. In other words, the developers are saying — and appearing to be doing — “all the right things.” That’s their choice. It is important to recognize that landowners are under no obligation whatsoever to do anything — or refrain from doing anything — with their own private property, except as it accords with their own wishes and existing law. If someone did want to build a wall splitting Smith Cove in two, and they could obtain the necessary permits and licenses, that would be their prerogative. Not that we, personally, are in favor of barricades in beauty spots, but the protection of private property rights is so fundamental that to argue against that concept, even in the case of our precious Smith Cove, could — and should — send negative tremors throughout our society. In the case of Smith Cove, opprobrium should be directed not toward the developers, but toward the government, namely the Progressives and their leader, Premier Alden McLaughlin. You see, the government not too long ago had the opportunity to acquire the privately held portion of land adjoining Smith Cove — and walked away from it. As part of the “NRA Agreement” that enabled the creation of the new Seven Mile Public Beach and the Kimpton hotel, Dart had placed the parcel of land next to Smith Cove on the negotiating table. Instead of making a deal, Premier McLaughlin and his government picked up their chips and said, in effect, no thanks. We certainly understand if the government didn’t want to acquire the Smith Cove land amid all the moving parts of the complex NRA Agreement and its amendments. However, if officials knew Dart was willing to part with the property, and they did place value on pro- tecting the public space from encroaching develop- ment, why didn’t they do a separate deal for what is, in the context of the public sector budget, a relatively small amount of money? Premier McLaughlin and the government he leads have no choice but to take ownership of this issue — since they didn’t take ownership of this beautiful property. For better or worse, Smith Cove can now rightly be called “Alden Pond.” Smith Cove: ‘Alden Pond’? LETTER TO THE EDITOR Manderson killing: Appeal for peace I pray for peace. I pray that those who can advocate for the safety and peace of the young men in this country, especially the women who are mothers, wives, sisters and daughters of these young men, will do so. I am extremely hurt by Justin Manderson’s death. He, like many others be- fore him, will never return. He will not call to his father again. Nor will he hear the words of his own son as he calls for him. His mother will never hear “Mommy” from his lips again. Nor will his death make any of these things possible for the others who have gone before him. The “tit-for-tat” path has become a senseless, wicked avenue of pain, sorrow and despair. Of anger and desire for retribution, which only fuels and extends the pain, sorrow and despair. To the youth of this country I say this: Let’s stop this. There is no sense, no reward in this. It is a means to an undesirable end for the role players. Each family, each side has their own losses and their own loved ones. We will all continue to cry as long as you continue to retaliate against each other. And you are killing, physically killing your own family, your own flesh and blood. You are descendants from the same four-genera- tion bloodline. There are others across the island who are not re- lated, but feel the pain of losing Justin and others and you are ready to ride. At what cost, I must ask? Many of you will reply “cost it what it will.” That is an expensive answer for all concerned. Your life is not refundable. Nor is it guaranteed. You could embark on your last ride. Much to the expense of your loved ones. This is not an easy ap- peal for me to make; I knew Justin before he was born. I held him as a baby. I played with him as a child and laughed with him as a man. There are many more whom I have watched grow up. There are many more whom I have seen the funeral pro- grams of and I am tired. I am tired of the programs, of the yellow roses. I am tired of consoling mothers and girlfriends. Of children asking about their fathers. Of telling baby mothers how proud the child’s fa- ther would be, of how much the child reminds me of the father. There are enough wailing mothers in this country. Mothers who will hear their sons’ voices coming through the door, mothers who will smell their sons’ co- logne. Mothers who, regard- less of how many children they have, will long for the one who is gone. I, too, lost my own adopted son, Jason Powery, just over a year ago. I know the pain. Let’s stop the sorrow. As for the powers that be in this country I say this: Please start supporting pre- vention and intervention in- stead of investigation. Why do our youth in our country suffer while you continue to persecute and prosecute them? Why are you so stiff- necked and resistant to as- sisting those in the commu- nities in which you live? If you are thinking that you can keep pumping money into the judicial service to lock young men away and this will then, somehow in your belief, bring and main- tain peace and safety per- sonally to you, then you are a fool. A tree grows from its roots, not from its leaves. You must start addressing the myriad problems that are associated with crime in this country. Your focus must be on the grass roots’ concern and ap- proach to the issues. In this country, we have millions of dollars of re- ports which have not been acted on. We have the em- ployees needed to effect the changes needed; their di- rectives should be urgently heeded. As a result of the is- sues and recommendations of Yolanda Forde, National Security Council and the IPAC report – which should become the National Crime Policy of the Cayman Islands, we have YouthACT, a pro- gram that has the module and management needed to arrest the problems we face instead of arresting youth for the problems we have failed to remedy. We have the tools needed and yet we have failed miserably for individual members of the community and for the country as a whole. The full financial sup- port of YouthACT, the very product identified as a source of youthful success, is necessary and yet it has been left to beg for that par- amount support. It appeals to the private sector to fund it, although it is a product of the Strategic Policy and a program that has the po- tential to positively address the concept of crime before it becomes an act of crime. It is a preventative pro- gram that needs funding to make its full effect known, yet, we have almost com- pletely ignored it, in favor of creating new laws and longer sentences. Most certainly we cannot, as a country, continue on this path where our commu- nities advocate for retalia- tion, our government refuses to address the problem from the angles that are necessary, and our youth are misguided. As a society we must stand collectively and play our roles, both collec- tively and individually, and stop the sorrow. Katina Masura Anglin Cayman Advocacy Group5 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY OCTOBER 5, 2016 175197_PRINT-Ad-Compass-4colx12-Page 1 9/9/16 11:59:31 AM Prison for possession of child pornography CAROL WINKER cwinker@pinnaclemedialtd.com Magistrate Valdis Fol- dats sentenced a man to 16 months’ immediate imprison- ment Monday for possession of child pornography. The case is believed to be the first of its kind in Cayman. Two previous cases were cited by attorneys, but those defendants were sen- tenced for indecent assault or defilement as well, and each man’s sentence for pos- session of child pornography was concurrent. Jamie Diaz Vargas, 38, admitted possession of 10 videos depicting sexual ac- tivity with children who ap- peared to be between the ages of 8 and 14. He also pleaded guilty to a charge of accessing child pornography. Crown counsel Eleanor Fargin said the videos, which ranged in length from 31 sec- onds to 26 minutes, were found on a laptop computer. Police sent a forensic copy of the computer hard drive to a special agent in the U.S., who found two videos in different locations. Eight others were in a deleted folder. Vargas initially denied that he had been involved in searching for the porno- graphic material. However, he also said he did not think he was committing any offense. After his guilty pleas, defense attorney Prathna Bodden said Vargas, a work permit holder with no pre- vious convictions, was re- morseful and was prepared to go to counseling. “Whether he knew it was illegal or not, he was aware it is morally wrong,” she said. The offense did pass the custody threshold, she agreed, but asked if the sentence could be suspended. There has to be a differentiation be- tween those who film child pornography and those who possess it, she submitted. The magistrate said some people might think that the private viewing of these videos is not a serious matter, but people who possess child pornography provide the market for the people who produce it, he pointed out. He quoted extensively from a 2010 Canadian case: “At the root of all child por- nography offences is the hands-on sexual abuse and sexual exploitation of chil- dren by those who pro- duce child pornography. That hands-on sexual abuse of children is a criminal offense that is extremely serious and is one that strikes at the core values of any right thinking member of society. “Child pornography cap- tures this sexual abuse of children in an electronic image, creates a record of that abuse, and permits the per- petrator to share that abuse with others. Those who wish to possess child pornography encourage the sexual abuse of children and encourage the recording of this abuse by providing an audience or a market for those who produce child pornography. “Therefore, simple pos- session of child pornog- raphy must also be treated as a very serious offense. If the court can deter or reduce the market for child pornog- raphy, the court may in turn effectively reduce the sexual abuse of children.” The magistrate referred to another section of that sen- tencing decision in pointing out that the harm from child pornography includes the fact that widespread exposure to it “may reduce the inhibitions of a person who would be a pedophile by numbing the conscience, and by making the ab- normal seem normal and the immoral seem acceptable.” In Cayman, the max- imum sentence for the of- fense is 15 years. One of the most impor- tant sentencing objectives is deterring would-be of- fenders, the magistrate in- dicated. “A court must at- tempt to deter all members of the general population from possessing and sharing child pornography in order to deter the hands-on sexual abuse of children by those who produce such pornog- raphy,” he said. With a starting point of two years, the magistrate said aggravating factors in the case included the fact that Vargas had deliberately searched for the pornographic videos, and they were movies rather than still photos. He was guilty of multiple of- fenses, not a one-off error in judgment. All of this was bal- anced by the mitigation Ms. Bodden put forth, he indi- cated, plus the fact that time in custody will be more dif- ficult for him as a foreigner with no family to visit him. Because Vargas took re- sponsibility for what he had done, the magistrate gave him the full one-third dis- count, resulting in a term of 16 months. He ordered the destruction of the videos and computer equipment. “Those who wish to possess child pornography encourage the sexual abuse of children and encourage the recording of this abuse by providing an audience or a market for those who produce child pornography.” VALDIS FOLDATS, magistrate CAROL WINKER cwinker@pinnaclemedialtd.com A Bulgarian national visiting the island ap- peared in Summary Court on Tuesday, charged with theft from automatic teller machines belonging to two different banks. Nikolay Nikolov, 35, is ac- cused of stealing an undeter- mined amount of cash from the ATMs between Sept. 23 and Sept. 28. He is further charged with attempting to steal cash from various ATMs during the same period. Defense attorney John Furniss told Magistrate Valdis Foldats that Nikolov is a Bulgarian national whose English “is not too bad.” The defendant was first brought to court on Sept. 30 and was assisted by someone on the island who speaks Bulgarian. Mr. Furniss told the court that Nikolov would prefer to be dealt with in Summary Court. The magistrate pointed out that no amounts had been specified in the charges. Without that detail, they would have to be treated as relating to less than $5,000, which would keep them in Summary Court. Mr. Furniss said he un- derstood from an inves- tigating officer that more charges might be coming. The magistrate ad- journed the matter until Oct. 17. The defendant has been in custody since his ar- rest and no bail application has been made. Visitor charged with thefts from ATMsDISTRICT DAYS 6 District Days Sister Islands WEDNESDAY OCTOBER 5, 2016 • CAYMAN COMPASS Pajama party inspires young readers A fun twist on story time recently helped kick off the new school year on the Brac. The Cayman Brac Lions Club hosted a back-to-school pajama reading party at the public library on Cayman Brac on Sept. 9. The service project was aimed at pro- moting the importance of lit- eracy among young people and providing an opportunity for academic development. “It was a welcome sight to see children from the pri- mary schools, as well as high school, coming out dressed in their PJs ready to enjoy the stories being read to them,” said Lion Kevin Roberts. “We had more than 90 children in attendance, ac- companied by parents and guardians. The readers, Lions Lois Thompson, Martin Keeley and Monica Hurlston, shared stories that held the kids in rapt attention.” Lions Clubs International has more than 1.3 million members in approximately 45,000 clubs in more than 200 countries and geograph- ical areas around the world. Since 1917, Lions clubs have aided the blind and visually impaired and made a com- mitment to community ser- vice and serving youth. The Cayman Brac Lions Club, which has 26 members and meets twice a month at the Cayman Brac Beach Re- sort, focuses on finding ways to address various needs within the community. “Each year our num- bers grow, and the youth committee has already started to think of ways to make the event better for our young people,” said Mr. Roberts. Youth Committee Chair Lion Yvette Gayle said, “The future of the islands and by extension, the world, is in their hands and we ought to do everything we can to pro- vide opportunities for their development.” Club President Dionne Smith said the club organizes a variety of youth related projects “which meet needs in our community, including the Public Speaking Competi- tion and the Little Miss and Master contest.” She thanked the parents and all those who contributed and sup- ported this important work. “You are truly helping Lions make a difference in our community,” she said. For more information or to get involved with the Cayman Brac Lions Club, email cblions@candw.ky or visit www.braclions.blogspot.com or like their Facebook page, www.facebook.com/braclions. The Cayman Brac Lions Club, which has 26 members and meets twice a month at the Cayman Brac Beach Resort, focuses on finding ways to address various needs within the community. The pajama party gave kids a fun way to dive into reading. Sister Islands residents of all ages can look forward to a number of educational and entertaining events scheduled to take place over the next few days that cover a range of topics from health to culture. On Wednesday, Oct. 5, marking Right to Know Week 2016, there will be a Cayman Brac Civil Servant Lunch and Learn from 11 a.m. to 12:30 p.m. at the Cayman Brac Beach Resort Confer- ence Room. Contact derrylee. martin-rankin@ico.gov.ky for more information. As part of Older Per- sons Month, an Island Tour will be taking place from 9 a.m. to 2 p.m. On Friday, Oct. 14, there will be a health fair marking World Diabetes Day at the Faith Hospital grounds from 10 a.m. to 2 p.m. Contact Joe Salazar at 939-5303. Also on Friday, the Brac Autumn Arts festival kicks off with a Cultural Arts Fair at house #396 at the Creek from 7:30-10 p.m. The Older Person’s Month free bingo night also takes place on Friday from 7 to 9 p.m. at the Aston Rutty Centre. The Brac Autumn fes- tival continues on Saturday with poetry and drawing workshops at the Cayman Brac Public Library from 10 a.m. to noon, and Open Mic Night starting at 8 p.m. at the Cayman Brac Beach Resort. The Cayman Brac Com- mittee for the National Trust meeting has been rescheduled until Tuesday, Oct. 18. COMING UP LUNCH AND LEARN 50 YEARS AGO Accomplishments praised and incidents at sea In the Oct. 5, 1966 edition of the Caymanian Weekly, a precursor of the Cayman Compass, Cayman Brac cor- respondent Lilian Ritch wrote: “We offer congratulations to Mrs. Warren Conolly on her appointment as Acting Director of Education. Islay is the eldest daughter of Capt. and Mrs. Harris Bodden of the Creek and we are humbly proud of this promo- tion awarded our ‘daughter of the soil.’ “Yet another glow of pride fills us with the advancement of Capt. Harold Banks of the Rock, West End to Chief Officer on the Danginn on Aug. 28. The Danginn is the palatial yacht of Mr. Ludwig, owner of National Bulk Carriers, Inc. Harold is from Little Cayman. “Mr. Samson McCoy of Spot Bay brought home the first kingfish of the season. It weighed 20 pounds, but the catch was followed by an accident … “Towing off the turn of the bluff, Mr. McCoy hooked the fish and threw him in the boat. He hit the fish. It jumped. He saw blood running from his leg. He cannot tell whether it was the fish’s teeth or the hook that gave him two slashes to the bone on the right leg, one 3 1/2 inches the other 8 inches. He was taken immediately on landing to the clinic... He is re- covering satisfactorily. “On Saturday … Mr. Amalek Scott of Spot Bay and his nine year old son Eddie had gone towing off the bluff and had not returned. Boats put out in search of them. Around 7 p.m. Messrs. Aaron Tatum and Silis Bodden came upon them some 50 fathoms offshore at Booby Point. They had paddled their way in with their hands for approximately three miles in as many hours.” UCCI Brac campus director Martin Keeley was among the Lions taking part in the literacy event.DISTRICT DAYS 7 District Days Sister Islands CAYMAN COMPASS • WEDNESDAY OCTOBER 5, 2016 Baroness takes in Sister Islands sights The U.K. Overseas Territo- ries Minister, Baroness Joyce Anelay, made a brief but ac- tion-packed visit to the Sister Islands Monday. With a busy itinerary, the baroness visited a number of sites on Cayman Brac and Little Cayman. A press release states that along with Governor Helen Kilpatrick, Premier Alden McLaughlin, Deputy Premier Moses Kirkconnell and other dignitaries, the baroness started the day with a trip to Little Cayman and toured the Central Caribbean Ma- rine Institute. Researchers at the marine center revealed the latest de- velopments at the facility, as well as discussing their reef conservation work and other research projects. The next stop on the tour was Little Cayman’s National Trust Centre, to meet residents and observe the breeding grounds of rare bird species. The baroness was able to view various nature exhibits throughout the facility, while National Trust Committee members explained the deep- rooted history of Little Cay- man’s red-footed boobies, the release states. The party then flew to Cayman Brac where Baroness Anelay first visited the islands’ Parrot Reserve and enjoyed a nature trail through part of the reserve. She then traveled to the Cayman Brac Sports Centre, where she viewed the latest developments of the 18-acre sports project. The Cayman Brac Hurricane Centre and the Lighthouse were also on the tour. For lunch, Baroness An- elay and dignitaries gathered at Aston Rutty Civic Centre to meet and eat with local resi- dents. This was followed by an attendance at an awards cer- emony at Layman E. Scott Sr. High School, where she pinned more than a dozen student leaders. The students also pre- pared musical entertainment for the baroness and govern- ment officials. The final stop on the Cayman Brac tour was to Faith Hospital for an opening cere- mony for a new helipad. Bar- oness Anelay and Governor Kilpatrick cut the ribbon and introduced Cayman Brac’s first official emergency landing pad for Faith Hospital. The baroness is the first serving Overseas Territo- ries minister to visit all three Cayman Islands. Little Cayman’s tiny snails in the spotlight A tiny population of snails found only in Little Cayman may be making a comeback. Recently, researchers from the Department of Environ- ment found that the num- bers of these rare snails once on the brink of extinc- tion have risen significantly since researchers recorded fewer than 100 of them in the mid-1970s. In the September/Oc- tober issue of the Depart- ment of Environment’s Flicker bulletin, Fred Burton wrote about the tiny crea- tures that, though small in size, represent a unique el- ement of Little Cayman’s fragile ecosystem. “There are places in the west of Little Cayman where you can easily wander off the road into a habitat that is hard to find anywhere else in our islands. The ground is smooth, flat rock with thin layers of soil here and there. The plants are low and spaced apart, so you can move around freely,” writes Mr. Burton. Describing how the small trees and shrubs are fes- tooned with land snails, in the article he notes that on these limestone flats the ground is ornamented with clusters of their white dead shells. Of interest, among the fat inch-long shells that are everywhere, an occasional much smaller and thinner shell can be found. “This is the shell of Little Cayman’s unique Cerion nanus snail, believed to be one of the most endangered snails on Earth,” he wrote. “Their shells can be found over all the limestone flats throughout western Little Cayman, but live ones have long been known to be re- stricted to a few tiny colonies close to the Spot Bay Road. Once they were obviously far more widespread. What- ever happened?” He noted that the area also contains occasional lumps of very old, weathered coral which are out of place. “According to DoE’s ma- rine biologists Croy McCoy and Philippe Bush, these are probably pieces of the Boulder Brain Coral, Col- pophyllia natans, a species found on the slopes and tops of reefs,” wrote Mr. Burton, adding that the coral pieces are modern corals from the sea, not fossils, and can only have ended up where they were in a tumultuous storm powerful enough to rip the corals off the reef and the coastline, throw them up to 800 yards inland and on to land 8 feet or more above sea level. “All that surging seawater would be immediate death for any land snails in the way,” continued Mr. Burton. “So maybe that is why the last living Cerion nanus colonies off the Spot Bay road are all in areas pro- tected from storm surges by a 20-foot ridge of high land. The bigger land snails seem to be tougher and more mobile, and may soon have recolonized the storm-shocked landscape closer to the sea. Cerion nanus seems to be having a harder time.” He noted that recent sur- veys by the Terrestrial Re- sources Unit suggest that despite this, Cerion nanus is recovering, with numbers far above those recorded by Mike Hounsome and Dick Askew during the Cam- bridge University/Cayman Islands Government bio- logical expedition to Little Cayman in 1975. At that time the researchers estimated the population of Cerion nanus to number about 88 individual snails – which Mr. Burton observes is peril- ously close to extinction. After that, their numbers appear to have been growing, as in January 2012, Dr. Mat Cottam counted 266 live snails, noting there were also more uncounted ones hiding under rocks. “In a short visit by myself in June this year, the esti- mate shot much higher again, with a density suggesting some 5,000 of these unique snails may now be alive,” wrote Mr. Burton. “In August, I returned to Little Cayman, and with TRU’s Jessica Harvey, dis- covered two new colonies of living Cerion nanus in the same ridge-protected area, and another small cluster now on the oceanside of the ridge,” he continued. “Are the surviving colonies starting to spread? This is all great news for Little Cay- man’s tiny, unique and criti- cally endangered land snail.” Mr. Burton stated the De- partment of Environment plans to develop a Species Conservation Plan for Cerion nanus this year, under the framework of the National Conservation Law. A group of the rare snails. Baroness Joyce Anelay pays a visit to the National Trust house on Little Cayman.The islands’ most-trusted news source 8 WEDNESDAY OCTOBER 5, 2016 • CAYMAN COMPASS Condolences can be registered at: www.churchillsfuneralhome.com We have been asked to announce the passing of Mrs. Ruby Rose Scholes of Northside, who passed away on Thursday, September 29, 2016. A Thanksgiving Service will be held on Sunday, October 9, 2016 at the Church of God Full Gospel Hall, Northside at 2:00p.m. Viewing will be from 1:00-1:45p.m. Interment to follow at Northside Cemetery. We have been asked to announce the passing of A Thanksgiving Service will be held on Sunday, equal legal rights to individ- uals in same-sex unions. “I know this is a sensi- tive matter in the Cayman Is- lands,” Baroness Anelay said, addressing the Legislative Assembly, where heated de- bates over legal rights for members of same-sex unions have raged since last year. “It took some time for changes to equality legislation to be agreed in the U.K., so I do un- derstand the need for time, the need to reflect and adjust. “It is in everyone’s inter- ests to ensure [the] LGBT [les- bian, gay, bisexual and trans- gender community] equality and freedom from discrimi- nation,” she continued. “I want to make clear that the British government has no plans to impose same-sex marriage in the Cayman Islands.” In the same section of her brief speech before par- liament, the baroness re- ferred to the “legal imperative” for changes to accept civil unions, lest Cayman and the U.K. fall in breach of their in- ternational legal obligations. “The people of the Cayman Islands are famous for of- fering a warm welcome to di- verse people from all over the world,” the baroness said. “I hope they can begin to offer the same welcome to their own LGBT communities.” Cayman’s Marriage Law and its Constitution Order (2009), which was agreed by the U.K., define marriage as the union of one man and one woman. However, at least one case has arisen that involved a same-sex marriage, or- dained in another jurisdiction, where a partner in the union was afforded certain legal rights that would typically be given to couples in tradi- tional marriages. In that instance, former law school professor Leon- ardo Raznovich was allowed to remain in Cayman as a dependent on his same-sex partner’s work permit, even though he had lost his own job. The decision by the Immi- gration Appeals Tribunal led members of the independent opposition bench in the Legis- lative Assembly to seek a ref- erendum on whether Cayman should accept gay marriages. Opposition Leader McK- eeva Bush used his “vote of thanks” response to Baroness Anelay’s speech Tuesday to dispute claims that Cayman discriminates against anyone. “We disagree that there is discrimination on LGBT … it has never been so,” Mr. Bush said. “My own party position says we do not discriminate against any human being. However, we will not change our law, nor allow our boards to circumvent our laws … to change our culture.” Speaker of the House Ju- liana O’Connor-Connolly also commented after the Baron- ess’s speech that her constit- uents in Cayman Brac were concerned about LGBT mat- ters but would be “grateful that the U.K. will not impose [gay marriage].” Marine announcement Later in the afternoon, the baroness appeared at the Royal Cayman Islands Police Service’s Joint Marine Unit alongside the governor and premier to announce a re- view of search and rescue ca- pability in the territory. The research project will be part of a wider review of capacity in Britain’s Ca- ribbean overseas territo- ries, Bermuda and the Falk- land Islands. It follows a U.K. Maritime and Coastguard Agency analysis of the police response to an incident ear- lier this year in which five boaters, including two chil- dren, went missing at sea. Baroness Anelay said, “This research project is to look strategically at how best to deploy resources that exist and to see where there are gaps in resources.” Brexit During her speech in the Legislative Assembly, Baroness Anelay also foreshadowed that the Joint Ministerial Council meeting between the U.K. and over- seas territories representa- tives next month would focus on “a new item” … the sepa- ration of Britain from the Eu- ropean Union that was ap- proved by U.K. voters in June. She said the U.K. would work closely with the ter- ritories to ensure their in- terests were protected and that the split could present new opportunities between the Mother Country and the territories. Baroness Anelay said fi- nancial services in Cayman and the City of London are “second to none” and that al- though the sector is often in the spotlight, the “Cayman Is- lands’ record of cooperation and transparency” in the fi- nancial services industry “speaks for itself.” Mr. Bush said that was not always the mes- sage emanating from the U.K., in particular from cer- tain politicians and their “chosen” academics. “There is a distinction be- tween bank secrecy and the legitimate right to privacy,” Mr. Bush said. “Cayman [fi- nancial] vehicles invest over $350 billion a year in the City of London. Proper rec- ognition of the Cayman Is- lands [regulatory standards] is long overdue.” UK minister makes first trip to Cayman CAROL WINKER cwinker@pinnaclemedialtd.com David Andrew Bodden was sentenced to three years in prison for cutting the throat of another man who he claimed was threat- ening his life. In passing the sentence for wounding last week, Justice Charles Quin told Bodden he could not take the law into his own hands. Bodden was found guilty after trial earlier this year, but the same jury found him not guilty of the more se- rious charges of attempted murder and wounding with intent. The injured man, Blake Barrell, faces charges that include threats to kill Bodden. Justice Quin said he ac- cepted Bodden’s evidence that he was threatened on more than one occasion in a very serious way. “But the de- fendant cannot take the law into his own hands,” he said. “Should everyone begin acting in like manner, it would lead to a state of violent lawless- ness and anarchy.” The Crown had agreed that Bodden was subjected to serious provocation, and to a greater degree than nor- mally expected. The court heard that on June 8, 2015, Barrell had gone to Cruz Lane in George Town with Jose Sanchez, who alleg- edly fired some shots. Two days later, the men attended Bodden’s workplace and threats were allegedly made against Bodden. Bodden asked police for help and assisted officers in their investigation. On June 16, 2015, Bodden was taking officers to interview some witnesses who were willing to assist. On the way, Bod- den’s car passed Barrell’s car and Barrell pointed his finger “like a gun” at Bodden, who then turned his car around to chase Barrell’s car and rammed it twice. The incident occurred on Fort Street near the Ad- miral Building in down- town George Town. Barrell got out of this car and ran; Bodden chased him with a scalpel in his hand. Bodden caught Barrell and cut his throat with the scalpel. The officers who had been fol- lowing Bodden intervened, with Detective Constable Junior Durrant restraining Bodden and Sgt. Charmaine Dalhouse transporting Bar- rell to the hospital. Had it not been for the quick thinking and quick actions of Sergeant Dal- house and the expertise of the doctors, Barrell would not be alive today, Justice Quin commented. Barrell had sustained two wounds – a laceration to the neck extending from right to left, and an extension of the neck wound to the left side of his chest, with a com- bined length of 7-8 inches. Without surgical treatment, he probably would have bled to death, the court heard. In a victim impact state- ment, he said he still had a problem turning his head from side to side; he wears high-neck T-shirts to conceal the scars on his neck, the judge summarized. The aggravating features included the fact that the incident occurred in broad daylight at a time when of- fice workers were coming and going during the lunch hour, Justice Quin noted. Bodden was on bail at the time for another matter and had previous convictions. A social inquiry report pre- pared after the trial indi- cated that Bodden was still adamant that he had pro- tected himself and he ex- pressed no remorse. In mitigation, attorney Amelia Fosuhene pointed out that there was no premedita- tion – Bodden never expected to run into Barrell on that day. Further, Bodden was in the course of assisting po- lice. She said Bodden felt he had done everything he could to deal with the situation and was distraught and ter- rified. As to lack of remorse, Ms. Fosuhene submitted it was hard to feel remorse for someone who wanted to see you dead. Three years for throat slashing The injured man, Blake Barrell, faces charges that include threats to kill Bodden. Russian sends more air defense missiles to Syria MOSCOW (AP) – The Rus- sian military said Tuesday it had beefed up its forces in Syria with state-of-the- art air defense missiles, an announcement that fol- lows Washington’s move to suspend contacts with Russia over Syria. The deployment imme- diately raised questions in the Pentagon, which won- dered about its purpose. Russian Defense Min- istry spokesman Maj. Gen. Igor Konashenkov said a battery of the S-300 air defense missile systems had been sent to Syria to protect a Russian fa- cility in the Syrian port of Tartus and Russian navy ships off the Mediterra- nean coast. Tartus is the only naval supply facility Russia has outside the former Soviet Union. The deployment adds more punch to the Rus- sian military force in Syria, which already in- cludes long-range S-400 missile defense systems and an array of other sur- face-to-air missiles at the Hemeimeem air base in Syria’s coastal prov- ince of Latakia. Russia has conducted an air campaign in sup- port of Syrian President Bashar Assad since Sept. 30 2015, saving his army from imminent defeat and helping it win key ground. The S-300 deployment was announced a day after the U.S. announced it was suspending direct diplo- matic contacts with Russia on ending the war in Syria. Washington’s decision followed the collapse of the Russia-U.S.-brokered cease-fire in Syria and the Syrian army’s onslaught on Aleppo backed by Rus- sian warplanes. While Washington put diplomatic contacts on hold, it has maintained a military-to-military di- alogue intended to pre- vent incidents in the air between Russian and the U.S-led coalition air- craft over Syria. Amid the rising U.S.- Russian tensions, the new Russian missile de- ployment seems in- tended to send a warning signal to the U.S. Russia reacted ner- vously last month when aircraft of the U.S.-led co- alition struck Syrian army troops near Deir el-Zour. Damascus said 60 Syrian soldiers died in the air raid. Washington said the strike was launched by mistake, but Moscow has questioned the U.S. explanation. The S-300, a sophisti- cated long-range system capable of striking enemy aircraft and cruise mis- siles up to 250 kilometers (155 miles) away, could cover other areas in Syria along with Tartus. Pentagon press secre- tary Peter Cook noted that Russia’s declared goal in Syria is to fight extremism, but that the Islamic State group and the al-Qaida branch there do not have planes that could be tar- geted by such a system. The Russian military said Tuesday it has deployed the S-300 air defense missile systems, pictured, to Syria to protect a Russian navy facility in the port of Tartus and Russian navy ships in the area. - PHOTO: AP CONTINUED FROM PAGE 1The islands’ most-trusted news source 9 the 2010 earthquake and a cholera epidemic. The mas- sive Category 4 storm is ex- pected to pass over Cuba and the Bahamas in the coming days before heading toward the southeast United States. Hurricane warnings were in effect Wednesday for eastern Cuba and most of the Bahamas. Much of central Florida’s east coast is under a hurricane watch. The U.S. military is staging heavy equipment in George Town, ready to sup- port disaster relief opera- tions in Haiti. Members from U.S. Joint Task Force Bravo, a mix of air and ground units, flew from Honduras to Grand Cayman on Tuesday to sup- port U.S. Agency for Interna- tional Development foreign disaster work in Haiti and other areas that need assis- tance in the wake of Matthew. The large helicopters – Chinooks, Black Hawks and Super Stallions – landed Tuesday afternoon to begin staging to move supplies and equipment into Haiti. On Tuesday afternoon and evening, members of the Ma- rines and Army unloaded equipment and prepared their helicopters to be ready to move into Haiti as soon as the storm clears and the U.S. and Haitian governments give the go-ahead. Kafara Augustine, with the Cayman Islands Airports Authority, said another six to eight civilian jets would bring additional supplies. The U.S. military said the Marine Corps units deployed to Honduras in June are on call as a rapid response force through hurricane season. Flooding, damaging winds hit Haiti Matthew slammed into Haiti’s rural southwest Tuesday, causing flooding and mudslides across much of the country and the Do- minican Republic. The Asso- ciated Press, as of press time, reported at least seven people have died over the past week from Hurricane Matthew. The storm – at one point the most powerful hurricane in the region in nearly a de- cade – dumped heavy rain as it swirled on toward Cuba and the Bahamas. The dangerous Category 4 storm blew ashore with pow- erful winds around dawn in the poorest country in the Western Hemisphere, hitting a corner of Haiti where many people live in shacks made of wood or concrete blocks. The country’s Civil Protec- tion Agency said many homes were damaged or destroyed, and people had to wade through flooded streets to rescue their belongings and find higher ground. “It’s the worst hurri- cane that I’ve seen during my life,” said Fidele Nicolas, a civil protection official in Nippes, just east of where Matthew came ashore. “It destroyed schools, roads, other structures.” A fisherman drowned in Haiti as Matthew closed in, and four deaths were recorded in the neigh- boring Dominican Republic, authorities said. The storm left the pen- insula that runs along the southern coast of Haiti cut off from the rest of the country. Many streets were flooded or blocked by land- slides and fallen trees. Local radio reported that the water was shoulder high in parts of the city of Les Cayes. “They are getting every- thing a major hurricane can throw at them,” said Dennis Feltgen, a meteorologist with the U.S. National Hurricane Center in Miami. 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