High of 90 Low of 78 Slight to moderate with wave heights of 2 to 4 feet. EDITORIAL | PAGE 4 WE’VE GOT YOUR NUMBER … OR WISH WE HAD SPORTS | PAGE 15 ACADEMY EXCELS IN YOUTH SOCCER TOURNAMENT ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – WEDNESDAY JULY 26, 2017 New concern over fuel terminal location Sunday’s fire puts fuel depot site in spotlight JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com The safety of having Grand Cayman’s fuel storage depot in the midst of a heavily populated residential area has come under new scrutiny in the wake of Sunday’s fire in a diesel tank that prompted a mass evacuation of neighboring properties. Firefighters battled for eight hours to put out the fire at the Jackson Point terminal on Sunday and Monday, and fire chief David Hails said their efforts had helped avoid a cat- astrophic incident. Duke Munroe, director and chief inspector of OfReg’s Fuels Market division, said his de- partment would be formally reviewing the in- cident, including safety measures at the plant. He said the location of the terminal, on South Church Street in George Town, was under constant review, but acknowledged that it would be difficult to move. “It is not common in many jurisdictions, but it is not unique,” he said, in response to questions from the Cayman Compass. He said the situation was under review as part of the National Energy Policy. “It is true that it will not be an easy deci- sion,” he said, “and the number of critical fac- tors which must be taken into account is the very reason this matter continues to remain actively under review to make sound recom- mendations to our policymakers in this regard. “In the meantime, we continue to do our part to ensure the inherent risks associated with this essential service sector are min- imized so that events like Sunday do not happen, or reoccur. “This incident could elevate the discussion on location considerations and also any other FLORIDA AUTHORITIES RELEASE BUSH ARREST REPORT BRENT FULLER bfuller@pinnaclemedialtd.com A Florida casino waitress told Seminole Po- lice during an interview that she wanted to press charges against Cayman Islands Speaker of the House McKeeva Bush because Mr. Bush “touched [her] body against her will,” records obtained by the Cayman Compass reveal. The Broward County Court Clerk’s office has released a probable cause affidavit filed by the police officer who arrested Mr. Bush on July 17 at the casino in Coconut Creek. The legal document serves as the initial re- port of what occurred and explains why the officer arrested Mr. Bush. Mr. Bush, 62, told the Cayman Compass last week that he was “wrongfully arrested” by Seminole Police at the South Florida casino and that he expected to be exonerated once all the facts were known. According to the affidavit, the arresting of- ficer was contacted by Coconut Creek casino security late Monday, July 17, concerning “an incident that occurred between a casino wait- ress and a guest.” The officer reported: “I made contact with H/F [police abbreviation for Hispanic female – the woman’s name is redacted from the report] who advised that William Bush … touched her lower back and buttocks while she was at- tempting to take his order. “[The waitress] completed a sworn state- ment stating she desires to press charges against William. Casino surveillance video also shows William touching [the waitress’s] lower back with his right arm. “William was placed under arrest at PRISONS BOSS GETS NEW CONTRACT Crowded jails pose challenges BRENT FULLER bfuller@pinnaclemedialtd.com Prisons Director Neil Lavis has been awarded a new three-year contract, keeping him in charge of the local prisons service through mid-2020. The contract for Mr. Lavis, who came to Cayman in June 2013, was renewed upon its expiry last month, according to Ministry of Home Affairs officials. “Director Lavis’s contract was renewed by the ministry per the established process,” said the ministry’s Deputy Chief Officer Kathryn Dinspel-Powell, adding that the contract re- newal included review by the civil service moratorium committee and Deputy Governor Franz Manderson. Mr. Lavis’s tenure has become particu- larly challenging of late, as the prison pop- ulation has swelled well above 200 at Her Majesty’s Prison, Northward – the main adult male prison. The veteran U.K. corrections officer has noted a steady, but significant rise in the number of adult male prisoners since last April. At the time, the total prison population, including all adult male convicted and re- mand prisoners, was 213. “This is higher-than-normal occupancy,” Mr. Lavis said at the time. “In my opinion, the numbers [of prisoners] have been steadily rising for some time with no apparent spikes.” The 2016 number was a significant jump from 2012, when Northward held 179 adult male prisoners. As of Thursday, Northward reported 211 adult males incarcerated. There were 11 female prisoners at Fairbanks prison as of last week. Stunt scooter rider takes flight Professional scooter rider Jai Walker, 19, performs stunts at the Black Pearl skate park in Grand Harbour on Tuesday as part of a week-long summer camp for children. More than 30 kids are taking part in the camp, where they are learning flips and tricks from the world-class competitor. For more, see page 16. - PHOTO: JAMES WHITTAKER PLEASE TURN TO PAGE 6 » PLEASE TURN TO PAGE 6 » PLEASE TURN TO PAGE 6 »2 LOCAL&REGIONAL WEDNESDAY JULY 26, 2017 • CAYMAN COMPASS Daily Matinees Every Day $8.00 Seniors, Mon-Fri Before 6pm Cayman Cinema@cbcinema6cbcinema6 *Additional charges will apply per 3D ticket requested. 640-FILM (640-3456) 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. - WEDNESDAY - DUNKIRK (PG13) 12:35 VIP I 4:00 I 7:10 I 10:00 VIP SPIDER-MAN: HOME COMING 3D (PG13) 12:55 2D I 3:10 2D VIP I 4:05 6:30 2D I 9:30 DESPICABLE ME 3 3D (PG) 1:30 2D I 12:20 I 9:30 2D I 7:05 BABY DRIVER (R) 3:35 I 9:45 WAR FOR THE PLANET OF THE APES 3D (PG13) 12:20 I 3:35 2D I 6:55 2D VIP I 9:55 TRANSFORMERS: LAST KNIGHT (PG13) 2:35 I 5:45 I 9:00 WONDER WOMAN (PG13) 12:30 I 6:20 FOOTBALL CAMPS Exciting Summer REGISTER TODAY: info@esmcayman.ky 924-8797 / 925-5032 Week 1: July 3rd - July 7th Week 2: July 10th - July 14th Week 3: August 7th - August 11th Week 4: August 14th - August 18th Italian consul general visits Cayman Italian Consul General Gloria Marina Bellelli, who is based in Miami, Florida, pays a courtesy call to Premier Alden McLaughlin at his office in the Government Administration Building on Monday morning. In addition to the Cayman Islands, Ms. Bellelli’s jurisdiction includes several territories in the Caribbean and some U.S. states. LAST ORCA CALF BORN IN CAPTIVITY AT A SEAWORLD PARK DIES ORLANDO, Fla. (AP) – The last killer whale born in captivity under SeaWorld’s former orca-breeding pro- gram died Monday at the company’s San Antonio park, SeaWorld said. Veterinarians were treating 3-month-old Kyara for an infection last weekend, but her health continued to decline, the Orlando- based company said in a news release. “Kyara had a tremendous impact on the entire zoolog- ical team, not to mention all of the guests that had the chance to see her,” San An- tonio trainer Julie Sigman said in a statement. A veterinary team will conduct a post-mortem ex- amination to determine the cause of death. The re- lease said that could take several weeks. SeaWorld announced the end of its breeding program in March 2016, following years of pressure from an- imal rights protests and shifting public opinion about orcas being held in captivity. SeaWorld has not collected a wild orca in nearly 40 years, and most of its orcas were born in captivity. Kyara was born to 26-year-old Takara last April but was conceived be- fore the program’s end was announced. Orca gestation can last up to 18 months. SeaWorld also has de- cided to phase out its world- famous killer whale perfor- mances by 2019. Tourist boat operators assist in sea rescue SPENCER FORDIN sfordin@pinnaclemedialtd.com A pair of tourist boat op- erators came to the assis- tance of a boat that had stalled due to engine trouble and was beginning to take on water on Saturday. Alerted by the police, the Blue Ho- rizon and Trouble took turns towing the boat, an 18-foot Striper with five adults and one child on board. Mike Nelson, captain of the pontoon boat Blue Ho- rizon, said he was alerted to the boat in distress by the presence of the police heli- copter overhead. He saw the helicopter and noticed the boat bobbing up and down and decided to try to help. “It’s one of those things,” Mr. Nelson said of helping out a fellow boater. “You don’t hesitate. You don’t stop to think about it. You just do it.… It could be my turn next.” The rescue was in North Sound between Stingray City and SafeHaven. Police re- sponded to a call from a person aboard the distressed vessel. The Blue Horizon, at that point, was nearby. Mr. Nelson said he began towing the boat before devel- oping mechanical trouble of his own, and then he hailed Trouble by shining the light of a cellphone across the water. Trouble came in to take on the towing respon- sibilities, and they hauled the boat toward the West Bay Yacht Club. A police boat caught up to the towing tourist boat near the yacht club channel and proceeded to ensure that none of the passengers on the distressed boat needed medical attention. “I was on my way back in from a party trip and I saw them shining a phone light,” said Justin Ran- kine of Trouble. “I went over there and assisted. They said their boat engine shut out. They had no power.” Mr. Nelson said his boat had a gearbox issue, necessi- tating the handoff to Trouble, and he said he was not sure if that was due to misfor- tune or to the extra strain of towing the boat. This type of rescue at sea happens quite routinely among the small community of boaters, said Mr. Nelson. “It happens a lot,” he said when reached by phone on Tuesday. “The problem in Cayman is that there is no accountability or standards set for recreational boats, so people go out with all sorts of weird and wonderful things you’re not prepared for. They run out of fuel. People are going to get them- selves in situations at some point. It’s a fact of life. When you see someone needs help, you help them out.” Joint Marine Unit offi- cers were mobilized from the Marine Base, and the Port Authority was notified and sent VHF hails to ves- sels in the area near the boat. The police helicopter arrived quickly, and shortly there- after the rescue began in earnest with Blue Horizon and Trouble sharing the du- ties, police said. “We would like to ac- knowledge the quick re- sponse of boat captain Mike Nelson of Blue Horizon and boat captain Justin Ran- kine of Trouble to the area, and thank them for the as- sistance they rendered,” said Chief Inspector Brad Ebanks, head of Specialist Support Operations. “Both of these vessels are commer- cial tourist vessels that were engaged in charters at the time with paying patrons, but their captains did not hesi- tate to help others in need even though this put them off schedule. They demon- strated that the safety of life at sea is paramount and is a shared responsibility.” CUBAN DIPLOMAT WITH TIES TO U.S. LEAVING HER POST HAVANA (AP) – The public face of Cuba’s diplo- matic opening with the United States is leaving her post to become am- bassador to Canada, offi- cials said Sunday. Josefina Vidal was sworn in to her new role at a ceremony presided over by President Raul Castro, according to Cuban media. Officials said Vidal’s deputy Gustavo Machin would also leave the division of U.S. affairs to become ambas- sador to Spain. Vidal and Machin were given unusual rein to talk publicly about Cuba’s re- lations with Washington. They offered regular brief- ings to journalists about the state of diplomatic ties, which were re-established two years ago. Under their watch, the Cuban govern- ment often spoke more openly than the U.S. admin- istration about the state of bilateral relations. Vidal took the reins of the U.S. affairs divi- sion in 2006, helped nego- tiate the reestablishment of diplomatic relations and stayed through the an- nouncement of President Donald Trump’s new Cuba policy last month. In this image taken by the RCIPS helicopter, Trouble takes over towing duties from Blue Horizon before bringing the distressed boat back to the West Bay Yacht Club.3 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY JULY 26, 2017 Aquaponics operation tests Cayman’s potential Canadian company aims to fulfill Cayman’s leafy vegetable demand KAYLA YOUNG kyoung@pinnaclemedialtd.com While Cayman’s natural barriers may inhibit its ag- ricultural potential, a Ca- nadian farming operation is betting on transforming the islands into a potential aquaponics site. Alberta-based Nutra- Ponics is evaluating plans to set up a 6,000-square- meter (64,580-square-foot) growing bed in Grand Cayman that director Tim Goltz anticipates will satisfy 80 percent of the local leafy greens market. “We can blow the top off it and really surprise people. We can make Cayman a global leader,” Mr. Goltz said. “Indoor vertical farming in and of itself is probably one of the hottest investment spaces in the world right now,” Mr. Goltz said. The company’s aqua- ponics systems operate in a fully enclosed, high-density growing environment. Ti- lapia kept in tanks produce byproducts that are then fil- tered to create nitrate-rich water. These nutrients are fil- tered to the vertical growing area, where plants sit under LED lighting. Pesticides unnecessary The enclosed nature of the growing method elim- inates the need for fer- tilizers, pesticides and other chemicals. The setup aims to min- imize operating costs and maximize food pro- duction. Mr. Goltz esti- mates a 6,000-square-meter growing bed would produce enough leafy greens to feed 60,000 people. He noted that shoppers in Cayman depend on high-cost imports routed from farms in North and Central America. While Cayman’s grocers and restaurants already receive a limited supply of local produce, including some grown using hydroponics, Mr. Goltz hopes NutraPonics will be able to supplement supply and offer an alterna- tive to imports. The perishable leafy greens are particularly sen- sitive to long journeys, which creates an extra headache for supermarkets, Mr. Goltz said. Temperature fluctuations, de- lays on the tarmac and other disruptions can all compro- mise shelf life. “Grocers have a real lo- gistical and structural problem unless someone can figure out how to grow the volume they require,” Mr. Goltz said. After meeting with gro- cers in November, Mr. Goltz said aquaponics could solve many of their supply-chain problems. He contends ver- tical, indoor farming could provide a local solution. He expects the opera- tion would require around 40 local employees. With two other operations under way in Saskatoon and White Horse, Canada, Nu- traPonics hopes to prove its model can operate under the most hostile growing environ- ments. Once a Cayman facility takes off, Mr. Goltz envisions moving beyond leafy greens to a range of hothouse vege- tables, including strawberries, tomatoes, sweet and hot pep- pers and cucumbers. “Our ultimate goal is to be- come kings of the strawberry empire in the Caribbean,” Mr. Goltz said. Investment interest While it has been diffi- cult to attract international partners to the company’s Edmonton facility, Mr. Goltz said entrepreneurs in Singa- pore, Dubai and Oman have already shown interest in Cayman’s potential. He ex- pects the islands’ natural beauty and tax neutrality will be a draw for investors. NutraPonics’ opera- tions in Cayman would fall under two branches, the ver- tical aquaponics facility, and a separate corporation for global development. In the long term, Mr. Goltz hopes to turn the Cayman fa- cility into a showcase for sus- tainable agriculture, where tourists and schoolchildren can learn about farming. The company is evalu- ating a West Bay property owned by the National Trust for the project but has not fi- nalized a lease on the land. Mr. Goltz said his team is in the fundraising stage and meeting with poten- tial partners. “Indoor vertical farming in and of itself is probably one of the hottest investment spaces in the world right now.” TIM GOLTZ, NutraPonics director An artist’s rendering shows the vertical growing facility that NutraPonics hopes to establish in West Bay. Vertical stacks allow the NutraPonics system to grow more food in less space.The islands’ most-trusted news source 4 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. During the eight-hour battle to extinguish a fire inside a diesel tank at Jackson Point last Sunday, fire- fighters used every tool at their disposal – high-tech thermal imaging, cooling jets and foam – in a heroic effort that averted a potential catastrophe. Public safety officials also made coordinated efforts to protect human life – evacuating the area, setting up roadblocks and preventing vessels at sea from sailing too close to the danger zone. We are grateful for their work and thankful the fire was contained. But there was one key area in which officials did not make full use of the tools available or adequately coordinate their efforts during Sunday’s potentially explosive incident: Communication. Even though hundreds of residents and tourists were evacuated, and many more could have been affected, updates about the blaze were few and far between. Some people told the Compass they weren’t made aware of the fire until hours after firefighters arrived on the scene. Others said they weren’t advised about emergency shelter, or told when it was safe for them to return to their homes. Hazard Management’s Simon Boxall told us on Tuesday that he did try to spread the word – to local media and directly to affected people – but faced many challenges, including a lack of information to share and the timing of the incident – Sunday evening and overnight, smack in the “dead zone” of the local news cycle. Mr. Boxall agrees that emergency communications should be improved moving forward, saying Sunday’s incident provided “some ongoing lessons about how we can do better.” Mr. Boxall told us that a test of an emergency text message alert system (during March’s tsunami response exercise) revealed that current equipment cannot handle the volume needed to truly assist in an emergency. It will take an investment of resources to make sure all mobile phone users receive timely messages by text. He also explained that the national emergency operation center’s emergency phone number comes online only if the National Emergency Operations Centre is activated, which it wasn’t during Sunday’s fire. (If a two-mile-wide evacuation notice doesn’t con- stitute a “national emergency,” what does?) We acknowledge officials’ efforts under duress and with apparently limited options. But the first lesson of Communications 101 (or Intro to Ham Radio Opera- tion) is that sending a message is only one half of the equation – the other half is receiving the message. The bottom line is that much of government’s intended audience (i.e., the people who were evacuated because of the fire) felt like they were in an informa- tion vacuum. When the next emergency occurs, officials should use every tool at their disposal, via every medium (text, TV, radio, internet, local media – including Compass reporters – etc.) to ensure vital information is being sent and received. Better still, why not create a single, special 3-digit hotline number that people can call to get timely and accurate information from government when they’re not sure exactly where to turn? Setting all of the above aside, the real issue with Sunday’s fire at the fuel terminal isn’t government’s immediate communications response. It’s the presence of the fuel terminals in the midst of a densely populated residential area. The solution is straightforward – move the fuel terminal – but not simple. Readers will recall that Cayman had at least two opportunities to address this issue – first with the proposed East End Seaport in 2010, and again in 2014 when the dangers were brought up by then-Minister Kurt Tibbetts in a proposed deal with Navasota Clean Energy LLC. In both cases, those plans went nowhere, stymied by competing public, private and political interests. If that reminds anyone of discussions over the George Town Landfill, it’s no coincidence. The fuel terminal, like the landfill, is a potentially hazardous, but necessary, facility proximate to homes and businesses. Who wants that in their back (or front) yard? – EDITORIAL – We’ve got your number … Or wish we had WEDNESDAY JULY 26, 2017 • CAYMAN COMPASS Crony capitalism vs. the real thing LAS VEGAS — For the past decade, a strange migration of a couple of thousand people from all over the world to Las Vegas takes place — in the middle of July. They come — at least most — not to gamble and cer- tainly not for the weather where the normal daytime tempera- ture is a 100-plus degrees, but to participate in an event called FreedomFest. This confab has been created and organized by economist Mark Skousen, with the goal of bringing together people who believe in free mar- kets and limited government. Most attendees define them- selves as libertarians, which can mean anything from Republi- cans who want somewhat lower government spending, taxation and regulation, to those who want almost no government. Many are well known, such as publisher and former presiden- tial candidate Steve Forbes, lib- ertarian TV journalists John Stossel and Kennedy, financial guru Jim Rogers and others. But also in attendance is a cross sec- tion of both young and old who are concerned about protecting themselves financially and the loss of their personal liberty. Almost all would also claim to be capitalists, meaning they believe in private owner- ship, rule of law, free markets, free trade, and limited govern- ment intervention in their eco- nomic lives. Calling someone a capitalist is a pejorative term in many left-leaning political circles. Mr. Forbes saw it as a market opportunity — when a number of competing business magazines seemed to almost be embarrassed in having to de- fend capitalism — so Forbes magazine proudly refers to itself as a “capitalist tool.” The opponents of capitalism have succeeded in clouding the minds of many, by failing to dis- tinguish between free-market capitalism and crony capitalism. Crony capitalism exists when politicians and government bu- reaucrats collude with business people to restrict competition and obtain monopoly advan- tages. Examples abound with everything from sole source gov- ernment contracts and special tax treatments to restricting the number of taxicabs through the sale of “medallions.” The various government re- strictions raise prices for con- sumers and discourage innova- tion. State and local government officials collude with industry groups to require expensive training for hairdressers, flower arrangers and interior decora- tors — all in attempts to restrict entry by new potential competi- tors. Just look at the number of governments that against the desires of their own citizens are trying to prohibit Uber and Lyft from operating, because the politicians are under the con- trol of the taxicab operators and the taxicab unions. It’s pure and simple crony capitalism, aka corruption. The federal government cre- ated Fannie Mae and Freddie Mac as private companies to buy mortgages from banks, with the goal of increasing mortgage availability for the middle class. These organizations soon be- came corrupted and drove much of their competition out of busi- ness because they were able to offer lower interest rates due to their “implicit” government guar- antee. Members of their boards were appointed by people in government rather than only by their private stockholders. Millions of campaign dona- tions were given by Fannie and Freddie to maintain their privi- leged status. When they predict- ably collapsed, taxpayers were left with the bill, but the man- agers and the politicians who benefited walked away. Con- gress, rather than using the bankruptcy laws as a reason to abolish Fannie and Freddie, in- stead renewed them — so the same play can happen again. When President Donald Trump and others talk about the “swamp” of Washington, much of what they are referring to is crony capitalism. From the time of organized governments, rulers found it useful to make spe- cial deals with merchants. The father of modern economics, Adam Smith, in his great classic, “Wealth of Nations” published in 1776, had many warnings about the dangers of business people colluding among them- selves or with government of- ficials against the interests of the people. This was long before Karl Marx labeled the naturally evolved private economic system as “capitalism.” Smith had a great influence on the American Founding Fa- thers. They had read his book. Benjamin Franklin was a per- sonal friend of Smith. Smith’s descriptions of how those in business and government col- lude reinforced the Founders’ belief that a system of limited government with many checks and balances was the best hope to limit corruption and ensure liberty. A government that spends trillions of dollars and con- trols the fate of tens of millions of businesses and individuals through regulation is a gigantic honey pot for those who seek to gain without engaging in pro- ductive activity. President Trump has been explicit about understanding at least part of the problem. Yet, he has given little indication that he understands the true depth of the problem. Even his limited attempts to rein in government have caused his opponents to fear that he will take away their honey pot, which, in part, ex- plains their vicious attempts to get rid of him. Richard W. Rahn is chairman of Improbable Success Productions and on the board of the American Council for Capital Formation. © 2017, The Washington Times RICHARD W. RAHN vs. the real thing RICHARD W. RAHN 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 find their own way”5 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY JULY 26, 2017 Cayman to get a taste of CARIFESTA JEWEL LEVY jlevy@pinnaclemedialtd.com Local audiences will get a sneak preview this weekend of the program Cayman is taking to the Caribbean Fes- tival of the Arts in Bar- bados next month. Cayman will be sending 36 delegates to Barbados on Aug. 17-28 to participate in the festival of performance and visual arts, which will feature participants from some 20 countries in the Ca- ribbean and Latin America. Patrice Beersingh, the Cayman National Cultural Foundation’s programs di- rector, said the Cayman del- egation is comprised of the Cayman National Gal- lery, Cayman National Mu- seum, University College of the Cayman Islands, Swanky Kitchen Band and Cayman National Cultural Founda- tion. The cultural founda- tion also will be bringing along fashion designers Isy B and Jawara Alleyne, an en- semble of dancers from var- ious schools on the island, a theater production, “Play- ground,” written by Frank McField and directed by Cayman National Cultural Foundation artistic director Henry Muttoo, and a Youth Services cooking class. Mr. Muttoo, speaking at a press conference Monday, said the foundation wants people in Cayman to get a chance to view a show- case of the work that will be presented in Barbados. “I think it is really important the country gets an under- standing clearly of what it is we are doing,” he said. He noted that the weekend shows will be fundraisers to help pay for the trip. “We are really hoping to sell out all three shows so we can help people even more, so we are encouraging ev- eryone to come out and sup- port the showcase of arts this weekend,” he said. “[CARIFESTA] is an amazing experience, not just for an artist but for a Cay- manian coming from such a small nation,” said Ms. Beers- ingh, who participated in CA- RIFESTA when it was held in Suriname some years ago. “Sometimes we forget the part we play in the global spectrum,” she said. “What it did for me is remind me of how special our culture is and how we differentiate from other Caribbean coun- tries, even though we are so close in proximity, as well as open my eyes as to what the performing arts [are] really about and how it affects us socially and culturally.” On their first day in Barbados, the delega- tion will tour the island. At the opening ceremony, the group will wear official jer- seys featuring the Cayman Islands flag. CARIFESTA kicks off with a “grand market,” at which all the nations taking part will present expos, presentations and performances. Martyn Bould, chairman of the Cayman National Cul- tural Foundation, said the key thing he found from pre- vious festivals was the im- portance of the event to young people. He said when he asked participants what they learned about them- selves and their country while attending CARIFESTA, almost always the answer has been, “I now really now know what it means to be a Caymanian and be proud to represent my country.” Dancer Melissa Mc- Field said attending the fes- tival gives her a sense of pride to say she is Cayma- nian. Working with young dancers, she sees their eagerness and willing- ness to dance. Swanky Kitchen Band member Nicholas Johnson said he had an “Aha” moment at his last CARIFESTA event. The minute they struck up the band, people stopped in their tracks to listen because the songs are unique. “Here is a fiddle playing on top of a Caribbean beat and people wanting to find out more – that’s the mo- ment it made me realize we have something very spe- cial and unique in Cayman with Swanky Kitchen Band that we need to preserve and keep,” he said. Peggy Leshikar-Denton, Cayman Islands National Museum director, is excited to be part of the contin- gent. She said the museum, which recently celebrated its 25th anniversary, has more than 9,300 objects, and cu- rator Debra Barnes-Tabora is taking 16 of those pieces to Barbados, along with copies of the museum’s anniver- sary publication Natalie Urquhart, director of the Cayman Islands Na- tional Gallery, said she is traveling to Barbados with five Caymanian artists who will also be showcasing their works this weekend. “Of course, that’s only a tiny part of what is going on in the visual arts in the Cayman Islands,” she said. CARIFESTA is held every two years and includes per- formances from more than 4,000 artists. This will be the seventh time the Cayman Is- lands is taking part in the festival, whose theme this year is “Asserting Our Cul- ture, Celebrating Ourselves.” The CARIFESTA Showcase will be held at the Harquail Theatre on Friday, Saturday and Sunday, July 28-30, with performances starting at 8 p.m. on Friday and Saturday, and at 6 p.m. on Sunday. Tickets, $25, are available at Funky Tang’s, the Cayman National Cultural Foundation office or at www.artscayman.org/upcoming. Leaders and members of the various delegations along with Cultural Foundation artistic director Henry Muttoo at the Harquail Theatre. - PHOTO: JEWEL LEVYThe islands’ most-trusted news source 6 WEDNESDAY JULY 26, 2017 • CAYMAN COMPASS 11:02 p.m. due to the fact that William intentionally touched [the waitress’s] body against her will,” the probable cause affi- davit concluded. Both Mr. Bush and his Florida attorney Keith Seltzer have argued pub- licly that Mr. Bush was mistakenly arrested by Seminole Police. Mr. Seltzer has emphasized that to date, Mr. Bush has not been formally charged in Broward County with any offenses, nor has he appeared before any court of law. Mr. Bush returned to Cayman last week after posting US$1,000 bond fol- lowing the arrest. The state attorneys of- fice has up to 21 days after the arrest to decide whether to bring charges and pursue a case of mis- demeanor battery. In Florida, misdemeanor battery is defined under the state’s criminal code: “The offense of battery oc- curs when a person, 1) Ac- tually and intentionally touches or strikes another person against the will of the other; or, 2) Intention- ally causes bodily harm to another person.” Upon con- viction, the charge carries a maximum one-year jail sen- tence or a US$1,000 fine. Mr. Lavis said Fairbanks could serve as a “fallback” for male remand prisoners [those who have not been convicted], if the number gets too high. Mr. Lavis said North- ward’s maximum capacity is 214, but the prisons ser- vice has another backup plan if that is exceeded. “I’ll ring [Police Com- missioner Derek Byrne] and say, ‘Hey, if you’ve any overnight remands, please hang on to them,” he said. “I think we’ve had up to three or four in there … the po- lice have been very helpful.” With a packed prison, tensions inside appar- ently led to the unusual decision to send two men – Osbourne Douglas and Justin Ramoon – to the U.K. prisons service to serve their decades-long sen- tences for murder. Ramoon, 25, was sen- tenced in December last year to 35 years for the murder of Jason Powery. Ramoon’s brother, Douglas, 30, was sent to the U.K. in June for the same murder. “[Ramoon’s] removal was authorized by the U.K. and Cayman Islands gov- ernments in the interests of national security and public safety for the people of the Cayman Islands,” a govern- ment statement released Thursday night noted. A similar statement was put out following Douglas’s transfer to the U.K. Cost per prisoner The Cayman Islands government spent approx- imately $17 million on its prison services in the last financial year, not counting outside rehabilitative and supervision expenses. According to figures presented to the Legisla- tive Assembly’s Finance Committee, the budget for prison services – day-to- day operations – was $10.7 million for the fiscal year 2015/16. The prison budget for “supervision, interven- tion and support services” totaled about $6.6 million. The most recent figures released by Her Majesty’s Prison Service in Cayman show that $69,000 per year, per prisoner, was being spent to house individuals at Northward. Compass journalist Spencer Fordin contributed to this story. McCain returns to Congress to cheers from fellow senators WASHINGTON (AP) – Ap- plause and whoops greeted Sen. John McCain, who is battling brain cancer, as he returned to the Capitol on Tuesday to vote for moving ahead on legislation to dis- mantle Obamacare. The 80-year-old McCain had a visible scar above his left eye after doctors re- moved a blood clot earlier this month. Days after the surgery, the senator disclosed that he had a brain tumor and had been diagnosed with an aggressive form of cancer. “Stop listening to the bombastic loudmouths on the radio, TV and internet. To hell with them!” the feisty McCain said in a speech on the Senate floor. He bemoaned the lack of legislative action in Congress. McCain also said he would not vote for the current GOP version of the repeal and replace bill. McCain drew a standing ovation after his remarks. He had cast his vote to take up the healthcare bill, delivering for his party and President Donald Trump on the issue that was defined the GOP for the past seven years. “He’s tough as a boot,” said Republican Sen. John Kennedy of Louisiana. “Many people understandably would be curled up in bed in the fetal position.” McCain himself cam- paigned heavily on the “Obamacare” repeal issue last year as he won re-election to a sixth and almost certainly final Senate term. And there could be sweet revenge in de- fying cancer to undo the sig- nature legislation of the man who beat him for the presi- dency in 2008, Barack Obama. The Arizona senator would also deliver a key victory to President Donald Trump, de- spite emerging as one of the president’s most outspoken GOP critics on Capitol Hill. During last year’s campaign Trump shockingly ridiculed McCain over his years as a POW during the Vietnam War. And the situation was ee- rily reminiscent of a similar scenario involving McCain’s good friend, the late Demo- cratic Sen. Ted Kennedy of Massachusetts, who returned to the Senate in July 2008 while battling brain cancer to vote on Medicare legisla- tion, his dramatic entry in the chamber eliciting cheers and applause. Ted Kennedy died of cancer in August 2009 (the current Sen. Kennedy is no relation). The possibility of Mc- Cain returning had been dis- cussed around the Capitol on Monday, yet the announce- ment from his office late in the day came as a surprise. Nor did it guarantee success on Tuesday’s vote for Ma- jority Leader Mitch McCon- nell, who is managing a balky GOP caucus with almost no room for error in the closely divided Senate. Yet fellow Republi- cans took McCain’s re- turn as a positive sign for Tuesday’s vote. interim measures to be ad- opted to keep the public safe while the island has its con- tinuous supply of fuel.” Two proposals for new bulk fuel storage facili- ties in the eastern districts have been put forward in the past decade. Developer Joe Imparato was behind a 2010 pro- posal that would have in- cluded a hydrocarbon [fuel] storage facility as part of a larger seaport develop- ment in East End. Mr. Imparato said Tuesday that the weekend fire had demonstrated the pressing need to move the fuel depot from such a heavily populated area. “The dangers of having a fuel terminal in a residential neighborhood are real and will continue until the fa- cility is relocated,” he said. “Sunday’s fire at Jackson Point could have been a lot worse and could tragically repeat itself at any time.” Mr. Imparato said there was no chance of reviving his plan, as the land associated with the project has been used for the Health City med- ical tourism facility. He said he was disappointed that the idea had not proceeded. “The East End Seaport project addressed this very issue, as it was inclusive of a hydrocarbons terminal ca- pable of off-loading deep draft vessels at a dock and not off of a mooring, as is done at Jackson Point,” he said. “This would have mini- mized the danger of spillage, moved the petroleum storage from a residential to an in- dustrial area, and signifi- cantly lowered the cost of diesel and gasoline, and by extension electricity.” In a separate proposal in 2014, government signed a joint development agreement with a Texas-based energy company that sought to even- tually shutter the Jackson Point facility and build a new one in East End. The three-page memo- randum, signed in April 2014, states that Cayman and Na- vasota Clean Energy LLC in- tended to “establish a fully integrated development plan and structure such that they might attract one or more [fuel] terminal compa- nies” that are interested in fuel supply and transship- ment operations. The project did not pro- ceed, though the company is understood to be interested in renewing discussions with government. Kurt Tibbetts, then plan- ning minister, said in April 2015 that the project did not top the Progressives’ list of priorities. He said, “The government has a million other things to do and, if it happens, it hap- pens, and if it won’t, it won’t.” Mr. Tibbetts had pre- viously said in the Legis- lative Assembly that the current terminal was dan- gerous and would ultimately need to be moved. “The government is aware of the growth restriction at the fuel terminal site which has a direct effect on the premium price we pay for fuel,” Mr. Tibbetts said in September 2014. “It is inevitable that we expand our fuel capacity to meet the islands’ demand and, to do so, we must make plans to move the terminal from Jackson Point to a less developed location on these islands,” he added. No one from Navasota Clean Energy was available for comment Tuesday, but the plan is understood to remain on the table. CONTINUED FROM PAGE 1 Florida authorities release Bush arrest report CONTINUED FROM PAGE 1 Prisons boss gets new contract Firefighters attend the scene of Sunday’s fire at the fuel terminal at Jackson Point. - PHOTO: TANEOS RAMSAY CONTINUED FROM PAGE 1 New concern over fuel terminal location Sen. John McCain is embraced by Senate Minority Leader Charles Schumer as he arrives of the floor of the Senate on Capitol Hill in Washington on Tuesday. - PHOTO: AP Northward Prison Neil Lavis will continue as Cayman’s prisons director for the next three years.The islands’ most-trusted news source 7 CAYMAN COMPASS • WEDNESDAY JULY 26, 2017 Home Options BRITISH CAYMANIAN INSURANCE COMPANY LIMITED BritCay House, 236 Eastern Avenue, George Town, P.O. Box 74, Grand Cayman KY1-1102 Tel. 949-8699 12 Kirkconnell Street, Stake Bay, P.O. Box 254, Cayman Brac KY2-2101 Tel. 948-1760 www.britcay.ky A member of Colonial Group International Ltd. insurance, health, pensions, life Be insured and be prepared! 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Smugglers offer crammed big rigs as ‘VIP treatment’ for US-bound migrants AUSTRALIA DENIES RENEGING ON DEAL TO ACCEPT REFUGEES CANBERRA, Australia (AP) – The Australian foreign minister on Tuesday rejected the United Nations refugee agency’s al- legation that her government reneged on a deal to resettle some refugees who attempted to reach Australia by boat. The UNHCR said on Monday it had agreed to fa- cilitate a deal in which the United States would take up to 1,250 refugees among more than 2,000 asylum seekers languishing in immi- gration camps on the impov- erished Pacific island nations of Papua New Guinea and Nauru “on the clear under- standing that vulnerable ref- ugees with close family ties in Australia would ultimately be allowed to settle there.” U.N. High Commissioner for Refugees Filippo Grandi’s statement is the first indica- tion that Prime Minister Mal- colm Turnbull’s government had ever discussed backing down from its 4-year-old policy that no refugee who attempts to reach Australia by boat will ever be al- lowed to stay. But Foreign Minister Julie Bishop said her government had never wavered from its tough policy that stopped asylum seekers from paying people smugglers to bring them from Indonesia aboard overcrowded fishing boats. “The Turnbull gov- ernment’s position has been clear and consistent throughout, and that is that those who seek to come to Australia illegally – who pay people smugglers that are criminal networks and have then gone to regional pro- cessing centers – will not be resettled in Australia,” Bishop, who is deputy leader in the ruling center-right Lib- eral Party, told reporters. “That’s been our clear and consistent position throughout,” she added. Grandi said his agency had only recently been told that the only options for ref- ugees on Nauru and Papua New Guinea were to stay on the islands or relocate to the United States or Cam- bodia. Australia pays Papua New Guinea and Nauru to look after the asylum seekers who are legally Australia’s responsibility. Vulnerable refugees sub- jected to four years of “pun- ishing conditions” on the is- lands should be reunited with their families in Aus- tralia, Grandi said. “The Australian govern- ment’s decision to deny them this possibility is contrary to the fundamental principles of family unity and refugee pro- tection and to common de- cency,” Grandi said. SAN DIEGO (AP) – When Thomas Homan, the acting director of U.S. Immigra- tion and Customs Enforce- ment, was awakened Sunday morning with news that mi- grants were found dead in- side a sweltering tractor- trailer outside a San Antonio Walmart, his mind flashed back to 2003, when he stood at the back of a truck about 120 miles southeast of San Antonio that carried 19 dead migrants. “It is sad that 14 years later people are still being smuggled in tractor-trailers,” he said. “There still isn’t water, there still isn’t venti- lation. These criminal orga- nizations, they’re all about making money.” The striking similarities of the Texas tragedies dem- onstrate how smugglers have found a durable business model carrying large groups – often in big rigs – through an elaborate network of foot guides, safe house operators and drivers. A criminal com- plaint about Sunday’s dis- covery that 10 were dead and dozens injured in the truck opens a window on their de- gree of sophistication and or- ganizational muscle: passen- gers had color-coded tape to split into smaller groups; and six black SUVs awaited them at one transit point to bring them to their destinations. Big rigs emerged as a pop- ular smuggling method in the early 1990s amid a surge in U.S. border enforcement in San Diego and El Paso, Texas, which were then the busiest corridors for illegal cross- ings. Before that, people paid small fees to mom-and-pop operators to get them across a largely unguarded border. As crossing became exponentially more difficult after the 2001 terror strikes in the U.S., mi- grants were led through more dangerous terrain and paid thousands of dollars more. Guadalupe Correa-Ca- brera, a political scientist who teaches at University of Texas, Rio Grande Valley, said migrants she interviewed last year in South Texas paid $2,000 to $3,000 more to ride in the crammed tractor- trailers, considering them more effective, faster and safer than walking through the desert to a pickup point far from the border. Hun- dreds of border crossers perish each year in the desert, getting lost and dehy- drated in extreme heat. The growing use of trucks coincided with increased trade with Mexico under the North American Free Trade Agreement, allowing smug- glers to more easily blend in with cargo, particularly on Interstate 35 from Laredo, Texas, to San Antonio, Correa- Cabrera said. Walking in the open desert more easily ex- poses them to U.S. Border Patrol agents. Women, some carrying children, think they are less likely to be raped on a truck than in the open desert be- cause there are more wit- nesses, Correia-Cabrera said. Riding in a big rig, she said, is “the VIP treatment.” For smugglers, the advan- tage of tractor-trailers boils down to scale. “It’s like any other busi- ness: the more they move, the more profit they make,” Homan said. “Rather than taking four in a car, the profit margin on tractor-trailers is a lot more.” The striking similarities of the Texas tragedies demonstrate how smugglers have found a durable business model carrying large groups – often in big rigs – through an elaborate network of foot guides, safe house operators and drivers.8 WORLD&REGIONAL WEDNESDAY JULY 26, 2017 • CAYMAN COMPASS UK’s trade secretary: Hard to strike EU trade deal by 2019 U.K.’s Trade Secretary Liam Fox acknowledged it will be a stretch for Britain to negotiate a new trading relationship with the Euro- pean Union by the time of their 2019 divorce in another sign that the U.K. government will seek a post-Brexit transi- tional period. “There’s a growing con- sensus amongst the Cabinet that we will leave the Eu- ropean Union, but we will have a transition and imple- mentation phase,” Fox said on Monday during a trip to Washington, D.C. “It would be nice to think we could get a full trade agreement by the time we get to March 2019, but that would be an opti- mistic view of recent free- trade agreements.” Prime Minister The- resa May’s government once maintained a trade pact would be possible by the time Brexit happens despite doubts within the EU and warnings it took Canada and the bloc seven years to nego- tiate a less ambitious agree- ment than the one she seeks. Her failure to maintain a parliamentary majority in last month’s election and in- creasing calls from busi- ness to avoid a “cliff edge” are now forcing the govern- ment to rally behind a transi- tional period. Fox’s noting of the time constraints came a week since he suggested politics rather than economics would be the main obstacle to any trade deal with the EU and a day after he shifted gears on the length of any imple- mentation phase from a “few months” to potentially as long as 25 months. Speaking on the BBC, Fox said that while the U.K. will be “out” of the EU’s single market and customs union, it may still “decide to imple- ment some of the practices of those for a period of stability, which we believe is in the in- terest of U.K. business and our overseas investors.” He nevertheless repeated that a deal with the EU should be straightforward to seal, given four decades of trade ties. The trade secretary is vis- iting Washington for talks with U.S. Trade Representa- tive Robert Lighthizer and Commerce Secretary Wilbur Ross in a bid to prepare the ground for a U.K.-U.S. trade deal to be signed fol- lowing Brexit. Such a pact would open “a new and exciting chapter in our special relationship,” he said in a speech at the Amer- ican Enterprise Institute. Removing commercial barriers with the U.S. could generate an additional 40 bil- lion pounds (US$50 billion) in trade with the U.K. by 2030, according to the U.K. govern- ment. Fox will also tell law- makers in Washington that 700,000 U.S. jobs are sup- ported by trade with Britain, and he’ll present them with a U.K. government report that outlines the impact on each of the 435 congres- sional districts. Still, economists and trade specialists say any deal will be difficult to deliver because U.S. negotiators have more experience and could bull- doze the U.K. on issues such as agricultural and finan- cial regulation. There is already a split in May’s Cabinet about al- lowing imports of chlorine- washed chicken from the U.S., according to Monday’s Daily Telegraph newspaper. Questioned about whether he would eat such chicken, Fox said the media was “ob- sessed” by a “detail of the very end stage of one sector of the potential agreement.” Back in London, May’s spokesman, James Slack, said the report was premature and that any trade deal must work for farmers, consumers and businesses. “You’re getting way ahead of yourself,” Slack said. “Maintaining safety and public confidence in the food we eat is the highest priority.” © 2017, Bloomberg “It would be nice to think we could get a full trade agreement by the time we get to March 2019, but that would be an optimistic view of recent free-trade agreements.” LIAM FOX, U.K. Trade Secretary Liam Fox, U.K. international trade secretary, is talking to lawmakers in Washington this week. - PHOTO: BLOOMBERG EU-Turkey talks fail to ease friction over detentions BRUSSELS (AP) – High-level talks that European Union officials had with Turkey’s foreign minister Tuesday did not appear to ease ten- sions between the 28-na- tion bloc and Ankara over a wave of detentions of human rights defenders, journal- ists and others. After the meeting in Brus- sels, European enlargement commissioner Johannes Hahn expressed “very strong concern” about the deten- tions, while Turkish Foreign Minister Mevlut Cavusoglu defended them as a neces- sary part of his country’s fight against extremism. Turkey has been mired in a diplomatic row with EU powerhouse and fellow NATO ally Germany following the arrests last week of a group of human rights activists, in- cluding a German national, on terror-related charges. Earlier, a German-Turkish journalist was arrested for allegedly spying and aiding Kurdish rebels. Before the talks in Brus- sels started, Turkish Presi- dent Recep Tayyip Erdogan signaled that the era of Turkey bowing to Western pressure was over. “The West wants Turkey to bring about their demands no questions asked … I am sorry to say that Turkey no longer exists,” Erdogan told a meeting of his ruling par- ty’s legislators. The meeting in Brussels was formally about Turkey’s long-stalled bid for EU mem- bership, the fight against ter- rorism and energy and trade ties. But they were held in the shadow of the sweeping government crackdown that came in the aftermath of a failed coup last year. More than 50,000 people, including journalists and op- position lawmakers, have been detained since the July 15, 2016 coup attempt. Critics say the purge initially tar- geted people suspected of links to the leaders of the failed military takeover, but has expanded to include gov- ernment opponents. “Human rights, the rule of law, democracy, fundamental freedoms – including media freedom – are all basic im- perative requirements for any progress towards the Euro- pean Union,” Hahn said. The EU wants to see “prog- ress in all these areas,” he said. “I would like to stress once again our very strong concern about the impris- onment of a large number of journalists, writers, aca- demics, lawyers and human rights defenders and we ex- pect a due legal procedure in respect of the presumption of innocence,” Hahn said. Cavusoglu, however, de- fended the arrests of ac- tivists and journalists by saying they were detained on suspicion of involvement with extremists. Turkey applied to join the EU three decades ago, and it started negotiating in 2005. But of the 16 negotiating chapters on issues as varied as capital movement and food safety, only one – sci- ence and research – has been provisionally closed. Ankara’s minister in charge of EU issues, Omer Celik, said Tuesday’s discus- sions were “constructive.” “It’s clear that we have differences, that we have dis- agreements, but dialogue, discussions and (the) search for settlements … will of course continue,” Celik added. Celik called accession ne- gotiations “the backbone” of EU-Turkey relations and said the best way to discuss dif- ferences would be to open ac- cession chapters. He said the chapters that cover the judiciary, funda- mental rights and security should be opened. Turkey’s Foreign Minister Mevlut Cavusoglu and High Representative of the European Union for Foreign Affairs and Security Policy Federica Mogherini speak at a press conference in Brussels on Tuesday. - PHOTO: AP US, IRANIAN WARSHIPS HAVE ANOTHER CLOSE ENCOUNTER IN PERSIAN GULF A U.S. Navy patrol boat fired a warning shot at an Iranian military ship Tuesday as it made an alarmingly fast and close approach in the Persian Gulf, marking the latest ag- gressive encounter between the two adversaries. The unidentified Iranian Revolutionary Guard Corps vessel got within 200 yards of the USS Thunderbolt before the American pa- trol boat fired the warning shot, quickly ending the en- counter. A Pentagon offi- cial described it as an iso- lated incident and said one person was hurt. It is not clear where in the Persian Gulf the in- cident occurred or how many Americans were aboard the Thunderbolt. The vessel, based in Nor- folk, can carry a crew of 27 and is used primarily to patrol coastlines and pro- vide surveillance for inter- diction operations. U.S. officials also have not disclosed what type of weapons the crew fired. The ship is heavily armed, car- rying chain guns, automatic grenade launchers and .50-caliber machine guns. At least three other U.S. vessels were nearby at the time. Iranian military officials characterized the incident as a U.S. provocation and took credit for having “neu- tralized” the threat. In a report published last winter, the Office of Naval Intelligence indicates that vessels operated by the Rev- olutionary Guard Corps rou- tinely monitor U.S. and allied warships in the Persian Gulf and the Strait of Hormuz, a busy waterway that links to the Gulf of Oman. The majority of these encoun- ters are “safe and routine,” it says, but “unprofessional or aggressive” run-ins are be- coming more frequent. “Such operations in- crease the likelihood for a mishap at sea, potentially leading to strategic tension and insecurity in the re- gion,” the report says. The Pentagon docu- mented 35 such interac- tions with the Iranians last year, up from to 23 in 2015, according to the Associated Press. This year, it has ac- knowledged at least five. © 2017, The Washington PostThe islands’ most-trusted news source 9 Business CAYMAN COMPASS • WEDNESDAY JULY 26, 2017 Chevron: $20M in safety upgrades Chevron Corp. has reached a settlement related to a 2012 fire at its Richmond, California, oil refinery that will require the company to spend about $20 million on safety improvements, officials announced. The agreement requires Chevron to replace all carbon steel piping that transports corrosive liquids. BVI-US direct route takes nosedive SANDALS LOOKS TO WALL STREET TO FUND CARIBBEAN EXPANSION Sandals Resorts Inter- national is looking to Wall Street to help finance as many as a dozen new Ca- ribbean hotels as the luxury resort manager ditches its conservative strategy of building just one project per year and keeping debt right down. CEO Adam Stewart, who runs Sandals with his father, Gordon “Butch” Stewart, said the closely held company is not for sale and has no immediate plans to go public, contrary to ru- mors. Instead, it’s looking beyond the regional Carib- bean banks it has tradition- ally used, to fund the big- gest expansion in its history. “We’re open to taking on more debt to build more than on hotel at a time. We want to build three or four hotels a year,” Stewart said in a telephone interview. “We are trying to look for bigger capital to grow. We know exactly what to do and how to do it. But up until now we’ve been re- stricted by the balance sheet of regional banks.” The company, which owns and operates 23 re- sorts across seven Carib- bean islands, is in talks with Deutsche Bank and others to raise money as it weighs the new projects, in- cluding four hotels it plans to build next year, Stewart said. While he declined to say how much he is seeking to borrow, the com- pany next year is spending about $375 million to build a 580-room Barbados hotel and around $500 million to construct a resort on the island of Tobago in the southern Caribbean. “We’re not looking at $200 million any more,” he said. With its expansion, San- dals is aiming to capitalize on a Caribbean tourism boom. A record 29.3 mil- lion tourists visited the is- lands last year, according to the Caribbean Tourism Or- ganization. And 41,000 new rooms are under construc- tion or being planned in the region, said STR, which tracks the industry, up more than 40 percent from a year earlier. The increase was led by several major projects, such as a 2,000-room ca- sino hotel in Montego Bay, Jamaica, and a 934-room beach resort in Varadero, Cuba, STR said. Tourism is the biggest source of foreign currency earnings for many coun- tries in the region. Stewart said growth in the Carib- bean tourism has attracted interest from private equity and some of the hotel in- dustry’s biggest names. While the company does not disclose reve- nues, Stewart said the com- pany is “very sound,” with a ratio of debt to earnings before interest, tax, depre- ciation and amortization of less than one. “The Marriotts, the Hil- tons, the Hyatts, institu- tional capital and private equity, they’re all looking to get a piece of the action in the Caribbean,” he said. “It’s at an inflection point. I expect to see a massive boom in the 2-star or 3-star level of hotels.” Sandals, the biggest pri- vate employer in Jamaica, targets the luxury vaca- tion market. The average daily rate across its port- folio of 6,000 rooms is around $550, according to Stewart. It’s opening over- the-water suites in Jamaica and St. Lucia, which come with a dedicated butler and around-the-clock service, for as much as $3,000 a night. “We’re easily among the most expensive and we’re proud of it,” Stewart said. © 2017, Bloomberg Carrier lays off crew before starting flights KEN SILVA ksilva@pinnaclemedialtd.com In January 2016, the gov- ernment of the British Virgin Islands agreed to provide BVI Airways with a US$7 mil- lion subsidy in exchange for the airline establishing a di- rect route between the BVI and Miami by October of that year – an agreement touted as crucial for the continued development of the territory’s financial and tourism sectors. But after finally re- ceiving all the requisite reg- ulatory approvals from the United States and the United Kingdom after months of de- lays, BVI Airways announced last week that its cash re- serves are depleted and that it is laying off its entire flight crew. The airline had yet to operate a single flight be- tween the BVI and Miami. In a written statement, BVIA executives attributed its financial woes to unful- filled obligations by the gov- ernment, as well as recent efforts to expand the terri- tory’s airport. The airport-expansion ef- forts, the executives claimed, hampered their ability to raise private capital because an expanded runway would attract competing airlines that would also offer direct flights to the United States. This claim was made despite the fact that the airport ex- pansion project has been a priority for the current BVI administration since it took power in 2011. The executives also stated that government has “unful- filled obligations” with the company, including prom- ised updates to the airport’s terminal and additional Cus- toms Department personnel. “Passengers cannot be ex- pected to wait in line for two hours to get through the se- curity and immigration – this would be disastrous. The cur- rent system is antiquated and barely works for low- density flights,” the airline stated in its layoff announce- ment. “There was a clear un- derstanding from the onset that this needed to be cor- rected and better training of personnel provided prior to our launch of service.” The BVI government, for its part, strongly disputed those claims. “The government has pro- vided all the financial sup- port agreed between our- selves and BVI Airways, and furthermore, the Airports Au- thority has put in place most of what was agreed to en- hance the arrivals and depar- ture experience of BVI Air- ways passengers, including an office, additional seating, air conditioning and two ticket counters,” stated the territory’s premier, Dr. Or- lando Smith. “Having pro- vided the agreed support, this government and people are awaiting the commence- ment of the much-anticipated direct Miami-BVI flight.” Neither government nor BVI Airways has responded to media inquiries about what steps they are taking to resolve their disagreements, and when the airline’s opera- tions are expected to resume. Commenting on the lay- offs last week, BVI opposition legislator Julian Fraser, who was the minister responsible for airlift when his party was in power, said that direct routes are vital for the BVI to compete with the Cayman Islands and other offshore fi- nancial sectors. “Cayman has an inter- national airport, a national airline and an economy three times that of ours,” he stated on his Facebook page on Thursday. “It is not rocket science what’s missing in the BVI.” Mr. Fraser further called for government to emulate the Cayman Islands by in- jecting more money into BVI Airways to help it launch. “In fiscal year 2016-17, the Cayman government has given its national airline US24.7 million … and yet an additional US7.7 million to help pay off its debt,” Mr. Fraser stated. “In the scheme of things, US7.2 million on the part of the [BVI govern- ment] to own its own national airline is not a big deal.” Sandals, the biggest private employer in Jamaica, targets the luxury vacation market. BVI Airways’ financial woes caused it to lay off its entire flight crew, and flights between the BVI and Miami never took off. BDO sued over alleged shoddy audits KEN SILVA ksilva@pinnaclemedialtd.com Liquidators for the Cayman Islands-based hedge fund Argyle Funds SPC are suing several branches of the auditing firm BDO Ltd., including the one in the Cayman Islands, for allegedly failing to spot fraud by two of the fund’s credit advisers, costing Argyle millions of dollars and causing it to enter liquidation as a result. Either gross negligence or intentional misconduct on the part of BDO’s Cayman, Trinidad and Tobago and U.S. offices allowed the New York-based credit adviser New Solutions Financial and the Canada-based ECB Funding LLC and RMP Cap- ital Corp. to defraud Argyle out of some US$86 million, according to an amended claim form filed by Argyle on July 10 in the New York State Supreme Court. “[BDO] acted with utter disregard for their duties to Argyle and with such ex- treme recklessness that their conduct rises to the level of gross negligence and/or in- tentional and fraudulent misconduct,” Argyle’s claim states. “Thus, Argyle seeks compensatory damages against BDO in an amount to be determined at trial.” Argyle stated that it is seeking at least US$280 mil- lion from the BDO offices, as well as at least US$139 million from the U.S-based firm Schwartz & Co., which is allegedly a subcon- tractor of BDO. Argyle’s claim form details the frauds allegedly perpe- trated by the New York- and Canada-based credit advisers, which were hired by Argyle to build investment portfolios. According to the claim form, the Canada-based credit adviser represented to Argyle that it had grown the fund’s US$54 million invest- ment to some US$200 million between 2006 and 2011. However, the credit ad- viser instead used Argyle’s money “to extend large loans to already bankrupt compa- nies, such as Death Row Re- cords record label and a de- funct dried fruit company – entities that are deemed high risk, as the likelihood of ever recovering that in- vestment, let alone making a profit from it, is incredibly low,” the claim form states. Likewise, Argyle stated that it invested some US$31 million with the New York- based credit adviser from around 2010 to 2012, but in February 2016 the adviser informed Argyle that only about 10 percent of that in- vestment remained. When the Canada-based credit adviser was discovered to be a scam around 2012, Argyle sued it in the Cana- dian courts and won a judg- ment against it. However, as of this month, Argyle has yet to collect an outstanding claim of about US$40 million from the defunct advisor, ac- cording to the fund’s claim form. Additionally, fraud on the part of the New York credit adviser was not dis- covered until last year. Argyle could have avoided being defrauded if BDO did not “rubber stamp” audit re- ports on the credit advisors, the fund claims. Court hearings have yet to be scheduled for this matter. BDO’s Cayman office did not immediately respond to a re- quest for comment on the matter before this issue’s press deadline. Argyle stated that it is seeking at least US$280 million from the BDO offices, as well as at least US$139 million from the U.S-based firm Schwartz & Co., which is allegedly a subcontractor of BDO.Next >