ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – MONDAY OCTOBER 9, 2017 High of 90 Low of 79 Slight with wave heights of 1 to 3 feet. EDITORIAL | PAGE 4 WHAT YOU DON’T KNOW CAN HURT YOUR POCKETBOOK WORLD NEWS | PAGE 11 WEAKENING HURRICANE NATE HITS GULF COAST 8 Butterfly Shrimp, Reg Fries and Biscuit 805 $ FROM THE PUBLISHER Anatomy of an error, efforts to correct it – and an apology to Gloria McField-Nixon DAVID R. LEGGE In a moment, I want to share with you, our readers, in as truthful and transparent a way as I am capable, the events that led up to the publishing of a grievous error in a story that was destined for the Friday edition of this newspaper. But before I get to that, I want to apolo- gize without reservation both personally and on behalf of Pinnacle Media to Ms. Gloria Mc- Field-Nixon, a highly regarded senior civil ser- vant who was implicated in a Compass story of a wrongdoing in which she had no part. In fact, Ms. McField-Nixon’s role in that story was a positive one: She was the spokesperson for the government, not the wrongdoer, as this narrative will make clear. What follows is in no way an excuse, but it is my best attempt at an explanation. Perhaps the place to begin is at the beginning … On the morning of Thursday, October 5, Compass journalists gathered, as they rou- tinely do, to plan out the next day’s news- paper. An initial “news budget” of expected or developing stories is compiled and discussed among reporters and editors. Shortly there- after, a smaller group of key editors convenes in my office to identify potential Page One sto- ries, debate the arguments that would be in- cluded in the next day’s editorial, discuss art and photo possibilities as well as review our previous day’s efforts. On this particular morning, an item ap- peared on the news budget involving the ar- rest of a former government employee on the suspicion of theft. I made the initial decision to put the story “inside,” not on Page One. The issue also was raised as to whether we should HEALTH CITY DRIVER KILLED SUNDAY IN EAST END WRECK BRENT FULLER bfuller@pinnaclemedialtd.com A man driving his motorcycle into work early Sunday died after his vehicle and a truck were involved in a collision in East End. According to the Royal Cayman Islands Po- lice Service, the crash happened around 6:30 a.m. Sunday on Sea View Road near the East End Blow Holes. The motorcycle driver was taken to the Cayman Islands Hospital in George Town but succumbed to his injuries, police said. Health City Cayman Islands developer Gene Thompson confirmed that the man, whom he identified as 30-year-old Tony Rodrigues, was employed as a driver at the hospital and was heading into work when the accident occurred. “Our Health City Cayman Islands family is hurting over the loss of Tony,” Mr. Thompson said. “He is a young Caymanian who was doing very well. It is very sad.” The driver of the truck was not injured, RCIPS Chief Inspector Brad Ebanks said. The RCIPS was still investigating the inci- dent and had not stated by press time Sunday how the wreck occurred. Mr. Ebanks did say the circumstances of the accident do not ap- pear to place any fault on the truck driver. It appeared the motorcycle was headed westbound toward George Town and the truck was going eastbound along Sea View Road Audit reveals ‘immediate threat’ to Cabinet member BRENT FULLER bfuller@pinnaclemedialtd.com An ‘immediate threat’ to an unidentified Cayman Islands Cabinet member required the ex- penditure of more than $50,000 for security services, according to a July report made public re- cently by the government’s In- ternal Audit Service. The nature of the threat was not revealed, but the payment was flagged up during a re- view of expenses for the 2015/16 budget year, which was the pe- riod covered by the audit. The report detailed a stan- dard expenses review done on the Portfolio of Legal Affairs which noted a purchase of ‘se- curity services’ being made that was not put out for public tender as required. “As a result, section 37(1) of the financial regulations (2013 revision) was not complied An elegant gala for a good cause Celebrity speakers Bill and Giuliana Rancic returned to host the 2017 Breast Cancer Gala at The Ritz-Carlton, Grand Cayman. The couple hosted the Cayman Islands Breast Cancer Foundation’s signature fundraising event in 2012. Mrs. Rancic, who was diagnosed with breast cancer in 2011, recently marked five years of being cancer-free. For a photo gallery of the event, see Page 7. – PHOTO: MAGGIE JACKSON PLEASE TURN TO PAGE 10 » PLEASE TURN TO PAGE 10 » PLEASE TURN TO PAGE 9 »TUESDAY OCTOBER 10, 2017 • CAYMAN COMPASS 2 LOCAL&REGIONAL I 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. - MONDAY - BLADE RUNNER 2049 3D (R) 12:25 2D VIP I 12:30 I 6:35 2D VIP 6:55 I 9:20 2D LEGO NINJAGO MOVIE 3D (PG) 12:50 2D I 4:15 I 10:25 2D KINGSMAN: THE GOLDEN CIRCLE(R) 12:30 I 3:40 I 6:40 I 9:40 AMERICAN MADE (R) 3:50 I 6:55 I 10:05 IT (R) 12:45 I 3:20 I 7:00 I 9:50 THE MOUNTAIN BETWEEN US (PG13) 1:20 I 3:55 VIP I 4:00 I 6:40 I 10:05 VIP Student investors chasing $2,500 prize MARK MUCKENFUSS mmuckenfuss@pinnaclemedialtd.com If you pay attention, Brian Williams told a group of high school students last Thursday, the stock market can be part of your everyday life. Mr. Williams, CEO of Saxon Smart Insurance, was at St. Ignatius Cath- olic School to help kick off this year’s Saxon Invest- ment Club competition. In its ninth year, the pro- gram offers a $2,500 prize for the team of students which puts together the most successful fictional stock portfolio. Students from several high schools listened as Mr. Williams told them how one of his recent invest- ments came from dealing with his son’s diabetes. In researching ways to mon- itor blood glucose levels, he said he discovered a com- pany which has developed a sensor implant that can pro- vide continuous monitoring for 90 days. The current product his son uses has to be changed weekly, he said. Mr. Williams said he not only liked the idea of a better system for keeping his son healthy, but he thought it would be a good investment. “It was trading at $1.70 a share,” he said of the company’s stock, when he invested several months ago. “Now it’s trading at $3.30 a share.” He encouraged the stu- dents to research such op- portunities, as they built their portfolios with an imaginary $100,000. The competition begins Monday and runs through March 31, 2018. St. Ignatius teacher Dominique Chenier has been involved with the competition from its in- ception. From the turnout at Thursday’s meeting, she said, it looked like partici- pation would increase from the 75 students who were in the club last year. “It’s been growing and growing,” she said. Some schools, such as Hope Academy and Layman E. Scott Sr. High School on Cayman Brac, are partici- pating for the first time. Chief Officer in the Min- istry of Education Christen Suckoo and Colin Wilson of OneTRADEx, which pro- duces the trading platform the students will use, were also at the kickoff meeting. Mr. Suckoo told the stu- dents his bachelor’s de- gree in finance came with a concentration on investing, which he said prepared him for anything. “What you’re doing is you’re exploring the world in a new and exciting way,” he said. “At its core, [in- vesting] is about learning to analyze. Once you have mastered that you have mastered life.” ADMIRERS HONOR ‘CHE’ GUEVARA 50 YEARS AFTER HIS DEATH LA PAZ, Bolivia (AP) – A little band of guerrillas had been on the run through rugged, mountainous terrain, strug- gling unsuccessfully to build support among the indige- nous people of rural Bolivia as a step toward a global so- cialist revolution. Finally, on Oct. 8, 1967, the army ran them down. A day afterward – apparently at the behest of the CIA – an army sergeant shot to death their leader: Ernesto “Che” Guevara. Fifty years later, the moun- tain village where he was killed and the nearby town where he was buried have be- come shrines to a sort of so- cialist saint, a man whose death helped cement his image as an enduring symbol of re- volt. Some there even pray to him – an outcome that likely would have outraged the icon- oclastic atheist. Thousands of activists and sympathizers from many countries poured into La Higuera and Vallegrande this week for ceremonies to com- memorate Guevara led by the country’s leftist president, Evo Morales, who laid flowers at a bust of the fallen guerrilla in the village on Sunday. In Cuba, President Raul Castro – one of Guevara’s old comrades-in-arms – oversaw a memorial ceremony at the large mausoleum constructed to hold the revolutionary’s remains, though the main speaker was the man many believe may replace him, Vice President Miguel Diaz-Canel. “The colossal example of Che endures and multi- plies day by day,” said Diaz- Canel, who added warnings that the United States, Gue- vara’s chief foe, had demon- strated “a marked interest in a political and economic recon- quest” of Cuba. Guevara was the very per- sonification of the communist dream of spreading revolution around the world. The Argentine-born phy- sician was radicalized by a youthful trip through South America, witnessed the CIA- backed overthrow of a leftist president in Guatemala and ran across exiled Cuban rev- olutionary Fidel Castro while working as a photogra- pher in Mexico. Despite an often-debili- tating asthma, he turned him- self into one of the most important fighters of Cas- tro’s Cuban revolution, win- ning the climactic battle- field victory in the city of Santa Clara that prompted dictator Fulgencio Batista to flee the country. The competition begins Monday and runs through March 31, 2018. Big Tech has big plans to help reconnect Puerto Rico (AP) – Facebook and Google once aimed to con- nect the world. Now they would be happy just to re- connect part of it. In the wake of Hurricane Maria, Facebook CEO Mark Zuckerberg pledged to send a “connectivity team” to help restore communications in ravaged Puerto Rico. Google parent company Alphabet of- fered to send its Wi-Fi bal- loons. They were among several tech companies pro- posing disaster response ideas, most aimed at getting phone and internet service up and running. Some of these plans, of course, are more aspira- tional than others. Battery power Tesla CEO Elon Musk often takes to Twitter to mull over ideas, but on Friday his musings about sending his company’s solar-pow- ered batteries to help re- store Puerto Rico’s power at- tracted the attention of the island’s governor. “Let’s talk,” said Gov. Ricardo Rossello in a Friday tweet. Musk agreed. Hours later, he announced he was de- laying the unveiling of Tes- la’s new semi-truck and di- verting resources, in part to “increase battery production for Puerto Rico and other af- fected areas.” The need for help in re- storing power and communi- cation after Hurricane Maria is great: The Puerto Rican en- ergy authority reported Sat- urday that about 88 percent of the island is still without power. The Federal Com- munications Commission said Saturday that 82 per- cent of cell sites remain out in Puerto Rico; 58 percent are out of service in the U.S. Virgin Islands. The FCC’s daily status re- port also shows significant wireline, TV and radio out- ages remain in both U.S. ter- ritories. The agency formed a task force this week and approved an advance of $77 million to support carriers working to restore telecom- munications services. Vague promises But many offers of help from big companies remain somewhat vague. Google parent company Alphabet has proposed launching bal- loons over the island to bring Wi-Fi service to hard- to-reach places, as it has in other parts of the world. The FCC announced Sat- urday that it’s approved an experimental license for Project Loon to operate in Puerto Rico. But that does not mean it will able to get them in the air anytime soon. “We’re grateful for the support of the FCC and the Puerto Rican authorities as we work hard to see if it’s possible to use Loon balloons to bring emergency connec- tivity to the island during this time of need,” said Libby Leahy, a spokesman for Al- phabet’s X division. But there are limitations, she said Saturday. “To deliver signal to peo- ple’s devices, Loon needs be integrated with a telco part- ner’s network – the balloons can’t do it alone,” she said, adding that the company is “making solid progress on this next step.” Collaborative efforts Cisco Systems has sent a tactical team and says it is working with local govern- ment, emergency responders and service providers to fa- cilitate restoration and re- covery efforts. The company, along with Microsoft and others, backs the NetHope consortium, which specializes in setting up post-disaster commu- nication networks and has field teams now operating in Puerto Rico and several other Caribbean islands. This Sept. 20, 2017 file photo, shows downed power and phone lines after the impact of Hurricane Maria, in eastern Puerto Rico. – PHOTO: AP3 LOCAL NEWS CAYMAN COMPASS • MONDAY OCTOBER 9, 2017 Premier Health BRITISH CAYMANIAN INSURANCE AGENCIES LIMITED BritCay House, 236 Eastern Avenue, George Town.Tel. 949-8699 12 Kirkconnell Street, Stake Bay, Cayman BracTel. 948-1760 www.britcay.ky A member of Colonial Group International Ltd. : insurance, health, pensions, life British Caymanian Insurance Agencies Limited acts solely as an agent on behalf of Colonial Medical Insurance Company Limited and it does not act as an insurance broker on behalf of its customers. Premier Health is a smart health insurance plan that does most of the thinking for you once you present your I.D. card. From instant eligibility checks to world-wide support, it allows you to feel in control of the choices that best meet your needs. 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CALL 949-8699 or visit www.britcay.ky This is what smart health insurance feels like. *based on total claims for Bermuda, Bahamas, Cayman Islands, British Virgin Islands and Turks and Caicos Islands 2016 Man charged with animal cruelty Complainant willing to forget alleged assault against her, but not against her dog CAROL WINKER cwinker@pinnaclemedialtd.com Trial has been set in Jan- uary for a man facing charges of common assault; damage to property; causing harass- ment, alarm or distress; and cruelty to animals. Ezekiel Nelson Carter pleaded not guilty in July. The setting of a trial date was delayed because the court had been told that the woman concerned was with- drawing her complaints. On Thursday, Crown counsel Emma Hutchinson told Magistrate Valdis Fol- dats that the woman had been contacted on behalf of the Office of the Director of Public Prosecutions. Ms. Hutchinson reported that the woman had said she would be “happy” to drop the charges relating to the as- saults against her and the damages to her property, but was “not happy” to drop the charge concerning her dog. Details of that charge are that Carter, 32, on April 14, 2017, at a George Town ad- dress, wantonly or unreason- ably did an act causing un- necessary suffering to a dog owned by the woman. The charge did not specify what the alleged act was. Nothing was said in court about the effect of it on the dog. During the case manage- ment hearing with defense attorney Jonathon Hughes, it was accepted that the veter- inarian who treated the dog would be a witness. Trial was set for Thursday, Jan. 11. Beach vendor cases conclude Defendants produce agreements with ministry CAROL WINKER cwinker@pinnaclemedialtd.com Charges were not pro- ceeded with against two men who had been accused of carrying on a business without a license. Raul Gonzales, who op- erates Blue Water Island Ad- venture Tours, and David Lyons, who operates Airwaves Watersports, appeared before Magistrate Valdis Foldats on Thursday, when their mat- ters were concluded. Crown counsel Emma Hutchinson said the Crown was not pro- ceeding with charges against the defendants “as long as they have documentation.” The documentation in- cludes a valid trade and busi- ness license plus a “Beach vendor license agreement” with the Ministry of Plan- ning, Lands, Housing and Infrastructure. Both defendants, and others, had been charged with carrying on a business on Seven Mile Beach without a valid license on a date in September 2016. For Mr. Gonzales, who had pleaded not guilty, the Crown offered no evidence. The mag- istrate therefore entered a verdict of not guilty and dis- missed the charge. For Mr. Lyons, who had not yet entered a plea, the Crown withdrew the charge and the magistrate dismissed it. Attorney Phillip Ebanks, who represented Mr. Gon- zalez and others, was asked by the court if he had any comment. “We’re very grateful to have this saga over with,” he replied. The matter had been before the court since March and had been mentioned approxi- mately six times. The written agreement is several pages long and spec- ifies what the license holder may and may not do. Some of the provisions are as follows: ■■ The license is for the li- censee only and his/ her employees, if any; the license cannot be shared or re-assigned ■■ The license fee is de- termined by the De- partment of Com- merce and Investment ■■ The licensee undertakes to keep his area clean and tidy and clear of rubbish; to maintain an attractive display of goods and a courteous service; to dis- play the vendor sign only at the designated space ■■ The licensee is not to cause any nuisance, damage, disturbance, an- noyance, inconvenience or interference to the premises or adjoining property, or to visi- tors or other vendors ■■ Sale of alcohol or any illegal sub- stances is forbidden. Beach chairs, watercraft and tourists dot Public Beach late last year. - PHOTO: BRENT FULELR “We’re very grateful to have this saga over with.” PHILLIP EBANKS, attorneyThe 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. Public sector officials often attract criticism when the government overspends, spends foolishly or fails to plan for future expense. That’s fair comment, of course. The money being spent is the public’s money. In the greater context, however, ignorance (or “ignoring”) of financial principles is pervasive, even as it relates to people’s own personal money. Around the globe, an astonishing number of people lack basic understanding about savings and investments. This collective ignorance is not without consequence: Consider the continuing fallout from the U.K.’s reform of the state pension. Surely people would pay attention to such a “pocketbook issue.” Yet the Financial Times reported recently that 72 percent of respondents to a recent Pensions Management Insti- tute survey did not know about planned increases to pension contributions under that country’s auto-enroll- ment scheme. In another article, the paper reports that misinformation also abounds on the distribution side, as fewer than half the people seeking profes- sional advice about whether to cash in their company- backed pensions are receiving good counsel. According to the paper, the U.K. Financial Conduct Authority is concerned that some consumers who are cashing in pensions early are at risk of losing money, or of sinking pension savings into “inappropriate” or “scam investments.” As Standard & Poor’s reminds us, financial knowl- edge is especially important as financial instruments become increasingly complex. A few years ago, S&P’s Ratings Services con- ducted a Global Financial Literacy Survey to measure people’s understanding of risk diversification, inflation, interest and compound interest – four basic concepts that are key to making smart financial decisions. A short survey was administered to more than 150,000 adults in 144 countries. Only one-third of respondents could be considered “financially literate” – correctly answering questions on three of the four topics. Cayman was not included in the S&P survey – but you can test your knowledge right now: 1. Suppose you have some money. Is it safer to put your money into one business or investment, or to put your money into multiple businesses or investments? A. One business or investment B. Multiple businesses or investments C. Don’t know; refused to answer 2. Suppose over the next 10 years the prices of the things you buy double. If your income also doubles, will you be able to buy less than you can buy today, the same as you can buy today, or more than you can buy today? A. Less B. The same C. More D. Don’t know; refused to answer 3. Suppose you need to borrow 100 US dollars. Which is the lower amount to pay back: A. 105 US dollars B. 100 US dollars plus three percent C. Don’t know; refused to answer 4. Suppose you put money in the bank for two years and the bank agrees to add 15 percent per year to your account. Will the bank add more money to your account the second year than it did the first year, or will it add the same amount of money both years? A. More B. The same C. Don’t know; refused to answer 5. Suppose you had 100 US dollars in a savings account and the bank adds 10 percent per year to the account. How much money would you have in the account after five years if you did not remove any money from the account? A. more than 150 dollars B. exactly 150 dollars C. less than 150 dollars D. don’t know; refused to answer (Answers: 1-B; 2-B; 3-B; 4-A; 5-A) How did you do? What you don’t know can hurt your pocketbook MONDAY OCTOBER 9, 2017 • CAYMAN COMPASS Opportunities from disasters The disastrous hurri- canes that struck Puerto Rico might provide the ex- cuse for the necessary, fun- damental reform on the is- land. Puerto Rico has spent most of the past 12 years in recession, leading to its cur- rent bankruptcy. The bank- ruptcy was caused by gross fiscal mismanagement over the last few decades. Only during the term of Gov. Luis Fortuno (2009-13) was any serious attempt to right the ship, but Mr. Fortuno was ul- timately defeated by the gov- ernment unions. Puerto Rico now has a federally appointed oversight board to try to sort out the mess. The task was difficult before the latest hurricane, but now it will require even more radical measures. Puerto Rico, an island of about 3.4 million people, is a largely self-governing terri- tory of the United States. Its gross domestic product per capita is about two-thirds of the America average. Puerto Ricans are U.S. citizens who can freely move to the U.S. mainland, as they are increas- ingly doing, including many of the best and brightest, seeking better opportunity. Why is not Puerto Rico richer? Singapore and Hong Kong were island colonies of the United Kingdom that, al- though being poor 50 years ago, have achieved spectacular economic success, now both having a higher per-capita in- come than the U.S.. Singapore achieved its independence in 1965, and Hong Kong re- mained a British colony until 1997 when it was transferred to China, again as a largely self-governing colony. Why have Singapore (pop- ulation 5.7 million) and Hong Kong (population 7.4 million) done so much better than Puerto Rico? All three juris- dictions have tropical cli- mates for most of the year and are subject to hurricanes. Puerto Rico, although small (3,515 square miles), is still much larger than either Hong Kong or Singapore and has more natural resources. Singapore and Hong Kong each have a smaller but much more efficient civil service than Puerto Rico — without the union problems. They have had better governance. Both individual and corpo- rate tax rates are much higher in Puerto Rico, discouraging business investment. Hong Kong and Singapore have more economic freedom, ranking re- spectively No. 1 and 2 (the U.S. ranks number 11) in the latest ranking in the Annual Eco- nomic Freedom of the World Report prepared by the Fraser Institute. Crime is an impedi- ment to economic growth. Puerto Rico’s crime index (compiled by Numbeo) is 65.4, not horrible by world stan- dards, but considerably higher than New York City’s (45.2) and vastly worse than Hong Kong’s (20.1) and Singapore’s (16.9). Puerto Rico also suffers from much greater interfer- ence in its economy from the United States — much of it well-intentioned but still de- structive — than Singapore and Hong Kong ever did from Britain, or than Hong Kong does from China today. For in- stance, the century-old Jones Act — just temporarily waived by President Trump this past week — required that only U.S. ships could bring goods back and forth between the U.S. and Puerto Rico, greatly increased shipping costs for the island. Many U.S. laws and regula- tions that Puerto Rico must abide by make Puerto Rico less internationally competi- tive. The U.S. extends federal welfare rules and benefits to Puerto Rico, which has the per- verse effect of causing many to opt for welfare rather than work in lower-wage Puerto Rico. As a result, Puerto Rico has a much lower labor force participation rate than the U.S., Singapore or Hong Kong. Puerto Rico suffers from too many mismanaged gov- ernment-owned enterprises, notably the power company, which is now also bankrupt and in no position to invest the necessary amounts to rebuild the power system. It should be immediately sold to a private international power company that agrees to make the neces- sary investment to give the is- land a modern and lower-cost power system. Other state- owned enterprises also need to be sold. A review of U.S. federal laws, regulations and rules should be made with the intention of throwing out those that have interfered with economic growth and in- ternational competitiveness (some of these changes will need to be approved by the U.S. Congress). Both individual and cor- porate tax rates need to be lowered to levels consider- ably less than the U.S. (after the expected U.S. tax reform) to make Puerto Rico once again attractive for invest- ment. Both Hong Kong and Singapore prove that a juris- diction does not need high tax rates to generate suffi- cient revenue to provide for all the necessary functions and benefits of government. Finally, the U.S. government should consider refinancing the remaining portion of the government debt — after the private-sector haircuts — and perhaps including a modest transition loan at the current low rates that the U.S. gov- ernment pays (this should be long-term debt to give the Puerto Rican economy time to right itself). The loans should only be given once the Puerto Rican constitution is amended to provide for balanced bud- gets and guarantees that the old tax-and-spend ways will be prohibited. The current Puerto Rican economy will neither sup- port statehood or indepen- dence. Once the economy is restored, a rational decision can be made as to which way its citizens wish to go. 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 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 • MONDAY OCTOBER 9, 2017 Overhaul of welfare system proposed Nominations open for Governor’s Awards Ceremony scheduled for Dec. 7 KEN SILVA ksilva@pinnaclemedialtd.com Nominations are open for the 2017 Governor’s Awards for Design and Con- struction Excellence in the Cayman Islands. The Governor’s Award Committee held a launch event on Thursday night at Harbour Place on Thursday to announce the categories, which are residential and commercial hospitality. Committee member Garth Arch said that there are two categories this year due to the number of high-caliber applications made in the past. “Every year we have been astounded by the entries and this year, with the two cate- gories, we expect an exciting response to the submission call,” said Mr. Arch. Past winners include the “Rum Point House” and the “Beach House” in 2015, the Barcadere Marina in 2013, the “Seagrape House” and the Lighthouse Point in 2011, and the Camana Bay Town Center and the Elmslie Me- morial Church in 2010. Dave Johnston, of the Cayman Society of Archi- tects, said that projects that did not win the award in the past can be nominated again. “Commercially speaking, it would be really hard to go against Camana Bay Town Center,” he said, “so some of those submissions at that time, you could submit now.” To nominate a candi- date project for the awards, any member of a project team may submit the cre- dentials of that develop- ment for consideration. The submission deadline is Nov. 17 at 6 p.m., and entries will then be short listed by a panel of judges, with the award-winners selected by Ms. Kilpatrick. The winners of the awards will be announced at a ceremony at the Governor’s Residence on Dec. 7. JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Welfare programs should be integrated in a “one stop shop” to provide swifter access to assis- tance to those in need and better value for money to government, according to an outline busi- ness case for reform of the belea- guered system. A $180,000 report, by con- sulting and accounting firm KPMG, recommends restructuring the way services for the elderly, disabled and unemployed are administered. The report, which has yet to be officially released and is still under review by Cabinet, recom- mends government calculate a “standard rate” based on the cost of food, shelter and other basic needs in Cayman. Individual welfare payments would then be calculated by de- ducting the applicant’s income from this basic figure. Commissioned following a crit- ical Auditor General’s report, which warned there was no account- ability or coordinated strategy for the $50 million government spends annually on welfare, the KPMG re- port’s principal recommendation is the creation of a new agency that brings various welfare programs under one roof. It suggests this approach will deal with many of the key issues, including lack of strategy and over- sight for welfare payments and help eradicate fraud, waste and abuse in the system. For those in need, it suggests in- tegrating services in one hub will make the process of applying for aid swifter and more efficient. Under the new proposal, wel- fare applicants, would be able to go through a “single door” to apply for assistance for healthcare, rental assistance or seamen and veter- an’s benefits. The report recommends that each client is seen by a case worker, who would coordinate with other departments to address social as well as financial needs. It recommends compiling a single database of all people re- ceiving any form of welfare to better inform policy and budgeting. It cautions the new approach would need to involve the re- training of staff, as many of the Needs Assessment Unit’s intake staff are not social workers and are primarily tasked with assessing financial need. “Getting staff members to adopt new working practices, change mind-sets, and commit to reforms takes time and considerable ef- fort,” it warns. Other potential problems high- lighted include integrating com- puter systems and altering leg- islation to ensure data sharing between agencies. The report sug- gests centralized data but “local- ized services,” potentially including district offices or home visits from social workers. It suggests grouping clients based on need, recommending four categories of aid: for older persons; persons with disability; persons with temporary disability; the un- employed and low income earners. The report indicates that the new approach would free up time for case workers to address the “root cause” of each client’s issues, for example helping unemployed people find work. Thought it anticipates the system reform will bring cost sav- ings by lessening the need for ex- pensive “crisis interventions” and cutting down on administrative duplication, it warns that the bur- dens on the welfare system are likely to increase. “It is anticipated that there will be a doubling of the number of per- sons over 65 by 2030,” the report notes, cautioning that this will sig- nificantly drive up demand for pro- grams including healthcare. It also makes recommendations for more efficient delivery of gov- ernment sponsored healthcare pro- grams to those in need. The report is still under review by Cabinet, but a draft has been released to a limited number of people including lawmakers and was discussed at a recent Public Accounts Committee hearing. Members expressed concern that it focused on the structure of the services, rather than on the pro- grams themselves. “I have some serious con- cerns that we are integrating sys- tems that are not working, and there doesn’t seem to be a plan to correct the things that are not working in those units before we integrate them,” PAC chair Ez- zard Miller said. “I have some serious concerns that we are integrating systems that are not working, and there doesn’t seem to be a plan to correct the things that are not working in those units before we integrate them.” EZZARD MILLER, chairman, Public Accounts Committee Caledonian liquidator says debt slashed 10-fold, promises new payout TAD STONER tstoner@pinnaclemedialtd.com August’s $3.83 mil- lion sale of the Caledonian Bank Building had con- tributed to a 10-fold debt reduction for the bank- rupt company, according to Ernst & Young liquida- tors, who have scheduled a sixth payout to long-suf- fering creditors. In a 300-word Thursday statement, EY Joint Of- ficial Liquidators Keiran Hutchison and Claire Loe- bell “confirm[ed] that the sale of Caledonian House was completed on Aug. 25, 2017. “The JOLs are in the pro- cess of realizing the Com- pany’s remaining assets,” they said, but declined to identify them. “At present the total of outstanding claims net of set-offs amount to approx- imately $46.1 million, but this number is likely to be further reduced as recov- eries continue to be made and dividends are paid.” The liquidators had “advertised a notice of in- tention” for a sixth “in- terim dividend,” but said they could not “determine the amount or date” of the payout “as it depended “on the success of fu- ture recoveries.” EY Associate Director for Brand, Marketing and Communications Christine Haring, declined to elabo- rate saying she was “not at liberty to answer” questions regarding remaining credi- tors, “recoveries,” prospec- tive dividends or schedules. New York City’s Securi- ties and Exchange Commis- sion forced Caledonian into receivership in February 2015 in the wake of a law- suit alleging that the bank and three offshore broker- dealers had netted US$75 million selling unregistered, restricted shares as part of a penny stock “pump-and- dump” scheme. Four days after the SEC move, the Cayman Is- lands Monetary Authority appointed EY as liquida- tors as approximately 1,550 Caledonian customers with nearly 1,900 active accounts sought to withdraw US$68 million in a massive bank run, forcing the institution to suspend operations. On Feb. 10 2015, the Grand Court appointed Mr. Hutchison and Ms. Loe- bell joint controllers of the company. Two weeks later, on Feb. 23, the court ap- pointed the pair joint offi- cial liquidators. “At the date of appoint- ment,” Thursday’s JOL statement said, “the com- pany had over 1,300 de- positors and a small number of trade credi- tors. Total admitted cred- itor claims net of potential set-offs [were] in excess of US$460 million.” In July that same year, the JOLs paid “a first and final” dividend of 100 cents on the dollar to “priority” creditors, which they de- scribed as those with claims of CI$20,000 or less. Thursday’s statement did not enumerate them. Liquidators, the state- ment said, since 2015 had paid four more interim dividends at 90 cents on the dollar for “non-pri- ority” creditors “with ad- mitted claims against the company.” The state- ment neither quanti- fied those “non-priority” claims nor enumerated the group, but said original de- mands had been slashed to $46.1 million. Mr. Hutchison and Ms. Loebell also did not say if the latest payout would remain at 90 cents on the dollar. “The total outstanding claims amount to approximately $46.1 million, but this number is likely to be further reduced.” KEIRAN HUTCHISON AND CLAIRE LOEBELL, joint liquidators, Ernst & Young Cayman Society of Architects member Dave Johnston, right, announces the categories for the 2017 Governor’s Awards for Design and Construction Excellence in the Cayman Islands. – PHOTO: KEN SILVADISTRICT DAYS 6 District Days George Town MONDAY OCTOBER 9, 2017 • CAYMAN COMPASS Cayman Arts Festival makes appeal to expand music program KAYLA YOUNG kyoung@pinnaclemedialtd.com The students in the Cayman Arts Festival music program do not need to be convinced to stay be- hind after school to practice their instruments. The gifted young people in this program enjoy put- ting in the extra time be- cause it means they get to create music. “I find that they abso- lutely love what they’re doing and they’re always here. You don’t have to nag them about missing rehearsals. They just come and they just love playing together. They really enjoy it,” said teacher Fran McConvey, sub- ject leader of music at John Gray High School. During an after-school practice for advanced violin- ists, violists and cellists, the enthusiasm of these students is clear. The 11- and 12-year- olds chatter and joke be- tween songs, then snap back into form to practice sheet music for their upcoming holiday concert. Without the Cayman Arts Festival pro- gram, many of these students would not have had access to music lessons. While the students have been selected for their promise as musicians, none participate in private les- sons outside of the program, explained music teacher Naomi Allnutt. “Obviously, many of the students cannot afford to have private instrumental lessons. In the U.K., parents would often pay for instrumental lessons one-on-one, every single week. Here, parents can’t afford that” she said. “So to have this oppor- tunity for musicmaking is inspiring, the fact that so many of them are touched by music. They touch our hearts every single week. They’re fantastic children … They’re funny. They’re witty. They’re talented. They’re musical. It’s just an absolute joy to work with them.” The program depends on community support to keep instruments in the hands of these public and private school students from across Grand Cayman. Funding from RBC Do- minion Securities covers the costs of teacher salaries and other administrative needs. The instruments, however, come from individual do- nors, said festival director Marius Gaina. “We buy violins for them and we give them those vio- lins. They are ours but they can use them as long as they want to practice. If for their entire life they would like that violin, they can keep it,” he said. “We are always in need of instruments. This is part of the public appeal we make all the time. If someone has something to donate, at home gathering dust and they want to give it to a child, this is an opportunity.” The program has ex- panded greatly from its first year when just a handful of students started playing vi- olin. It now incorporates around 100 children and in- terest continues to grow. With more instruments, Ms. McConvey said the pro- gram could reach more stu- dents. While the program reaches many schools, in- cluding John Gray and Clifton Hunter, it still has not been able to expand to East End or Bodden Town. “Even though we are teaching a lot of students, we are only really touching the surface. There are so many kids out there who are gifted and talented but don’t have the opportu- nity. We’ve had parents who have contacted us and music teachers, but we just don’t have enough instruments or teachers to include everybody that we would like to,” Ms. McConvey said. “So anything helps. There might be people who have got instruments siting in a cupboard at home or would like to give a few dollars to the program so we can help the kids.” Mr. Gaina would like the community to remember that Cayman Arts Festival is not just for entertainment but also for education. The program organizes ensemble groups to ensure students play at least twice a week. It orga- nizes guest concerts to inspire students and also sends se- lect students to attend music courses in New York. “One of CAF’s goals is to track our young musicians as they work their way through our education system – sup- porting them at every step of the way, providing bigger and better quality instru- ments as needed and pro- viding opportunities to per- form and extend themselves to reach their full potential,” Mr. Gaina said. The nonprofit is currently making an appeal for cello donations, in particular. For more information on the program’s needs and how to offer support, contact Mr. Gaina at director@caymanartsfestival.com. 50 years ago: Flights begin from Jamaica Visiting at the Beach Club last week were Dr. and Mrs. James Kennedy of Houston, Texas. Dr. Ken- nedy is one of the leading heart specialists in the Sates. With them were Dr. and Mrs. Ralph Vaughan of Boston, Massachusetts. Due to the volume of work, Mr. R. Cayer, the U.S. Consul from Jamaica, ex- tended his stay in the is- lands. He visited Cayman Brac and dealt with quite a few applications in that island also. We welcome Mr. Per- shing Merren who has been away at sea for some time. He arrived from Italy and is now happily settled with his family. We are happy to see that Mrs. Wentworth Bodden has arrived from Miami and so far her eye operation has been successful. Her mother Mrs. Kingsley Thompson and her sister Mrs. Austin Bothwell have all returned feeling fine. Mr. Watson is home for a while with his wife Billie Lee. We are happy to an- nounce that CBA started the first regular flight to Ja- maica on Oct. 2. Arrivals from Kingston on the second were Mr. John Conolly, who states that his wife had her op- eration and is doing well; Mrs. Basil Monteith, wife of the acting judge, arrived to spend a few days with her husband; Mr. John Elliott of White Sands Cottages; Mrs. AJ Moo Young to join her husband who is on the is- land on Texaco Co. business; Mr. Leo Sullivan who is spending some time in the island as guest of Mr. and Mrs. Lawrence Thompson. He was accompanied by a friend Mr. George Johnides. Also Mr. Stanley Wood of British Dev Corpora- tion in connection with the schools, Miss Maggie Miller, Mrs. Florence Jervis and little daughter. We welcome back Dr. and Mrs. Charles Broadbent after a most wonderful hol- iday in which they toured the U.S., having spent some time in the Washington and thence the West Coast, New Mexico and up to Van- couver, Toronto and various other places. Northbound on the 2nd were Ruby Silbernagel and baby Patricia, who enjoyed her visit at South Sound with her parents; Mr. Austin Piercy who returned to sea after a brief visit home. He hopes to return for Christmas; Mr. Orion M Bodden who has gone to join his ship Ore Nep- tune, NBC at Mobile. Ala.; Mrs. Millie Banker who is on a fortnight’s visit with her brother Mr. Therlo An- drews and family in Mo- bile, Ala.; also Mrs. Darley Solomon and 3 children Darla, Darley and Doss, who are on a visit. Departures Northbound on the 4th were Mr. Norberg Thompson and son Kel, who will join his wife and son in Miami and then go on to New Jersey for a Bakers’ Convention; Capt. and Mrs. Theo Bodden who are on a holiday when they will visit relatives in Mobile. Capt Theo will also attend a con- vention in North Carolina; Mr. and Mrs. Neville Ebanks and Mr. Urban Myles. Mrs. Ebanks will go on to New York and her husband and Mr. Myles will go to Jack- sonville to join their ship; Mrs. Eric Bergstrom of Tor- tuga Club to Miami for a few days; Mr. and Mrs. Albert W Sykes and son Richard, who returned home after a pleasant stay at South Sound with relatives Mr. and Mrs. Hedley Conolly. Teacher Naomi Allnutt helps students with their technique during after-school practice. - PHOTO: KAYLA YOUNG7 LOCAL NEWS CAYMAN COMPASS • MONDAY OCTOBER 9, 2017 Decked out in evening gowns and “pink tie” at- tire, hundreds of residents attended the 2017 Breast Cancer Gala at The Ritz-Carlton, Grand Cayman, on Saturday night. The funds raised help the Breast Cancer Foundation to support Cayman Islands breast cancer patients, either directly or through pro- grams such as Cancer Society initiatives and the founda- tion’s Wellness Initiative. Kim Lund and Melissa Wolfe Dr. Randall Pinder and Paul Pearson Suzy Soto and Ana Luisa Uria Dr. Vir Sennik and Mrs. Sennik Melissa and Mike McWatt Lydia and Matthew Forbes Dr. Pervez Ali and wife Fiona Breast Cancer Foundation Director Janette Fitzgerald with Bill and Giuliana Rancic Auctioneers Bill Rancic and Vicki Wheaton – PHOTOS: MAGGIE JACKSON Dr. Winifred Banks and Samuel Banks Joannah and Peter Small James BovellThe islands’ most-trusted news source 8 MONDAY OCTOBER 9, 2017 • CAYMAN COMPASS Former government administrator arrested in theft investigation BRENT FULLER bfuller@pinnaclemedialtd.com A former Cayman Is- lands government em- ployee has been arrested in connection with a police investigation involving theft of rent money paid for the use of govern- ment facilities over a five year period. The 38-year-old former administrator at the Fa- cilities Management De- partment was arrested in August on suspicion of theft, but she had not been charged as of press time Thursday. According to govern- ment’s senior human re- sources official, Gloria McField-Nixon, the em- ployee left the government service prior to her ar- rest on Aug. 16. The alleged thefts were uncovered in two audits conducted earlier this year, the first in March and the second in May. Those re- cords were passed to the Facilities Management De- partment which then noti- fied the Royal Cayman Is- lands Police Service. The RCIPS said it is still actively investi- gating the matter. “It is alleged that in her former position [the sus- pect] arranged for short- term rental of government facilities to a community group between the years 2011 and 2016 and that monies paid by the group to the woman were not paid to the Cayman Is- lands government finance department,” an RCIPS statement on the investi- gation noted. The suspect has been released on police bail for the time being, police said. Typically, the govern- ment does charge private companies and non-profit groups for the use of its civic centers, although ex- emptions can be made to those rental charges for “community enrich- ment activities,” Ms. Mc- Field-Nixon said. In this case, the alle- gation is that the govern- ment employee simply did not pass on funds she col- lected for those rents to the public purse. The government has a number of community centers around the is- lands. One of the theft cases being looked into in- volved rent money paid for the use of the South Sound Community Centre facility. The group which paid the rent costs was con- tacted for comment by the Cayman Compass, but declined to make a statement. The 38-year-old former administrator at the Facilities Management Department was arrested in August on suspicion of theft. Some of the money police said was stolen was taken from rental payments made for use of the South Sound Community Centre. - PHOTO: TANEOS RAMSAY Are you between 18 and 40 years? Do you have what it takes to help keep the Cayman Islands a safe place to work, live and visit? If so, the RCIPS wants to hear from you! The RCIPS have a range of specialist and patrol functions, including: Neighbourhood Policing, Traffic, Drugs and Serious Crime, Criminal Investigations, Financial Crimes, Armed Response, Joint Marine Unit, Air Support, Joint Intelligence Unit, Family Support Unit and the recent Multi-Agency Safeguarding Hub (MASH). All short-listed candidates must pass each stage of the selection process: Stage One: Initial Employment Application Stage Two: Entrance Examination: Written test Stage Three: Physical Test Stage Four: Structured Interview Stage Five: Medical Test Stage Six: Invitation to join New recruits will have 17 weeks of initial training before deployment under the direction of a tutor. All recruits must successfully complete a two-year probationary period. Applicants should be Caymanian (as defined under the Immigration Law) or Permanent Resident (with the right to work without restrictions); be physically fit, computer literate and have a sound educational background. Applicants must have no criminal convictions in any jurisdiction and truthfully declare all information requested on the application form. It is important that potential recruits have sound social awareness and an interest in law enforcement and public service. Police Constable (Recruit) Salary range: CI$32,532 – $43,788 per annum (increased after successful completion of 2 years’ probation to $39,732 – 53,436), plus an additional $200 monthly allowance. Allowances and benefits will be determined in accordance with the relevant laws and regulations. (Pension and health benefits are non-contributory). Follow our social media feeds for more details about the RCIPS and news updates. For more information, including the application form and job description, visit our website: www.rcips.ky email: localRecruits@rcips.ky CLOSING DATE FOR APPLICATIONS 11 OCTOBER 2017 For more information, including the Do YOU have what it takes? ANSWER THE CALL TO SERVE Are you between 18 and 40 years? Do you have what it takes to help keep the Cayman Islands a safe Applicants must have no criminal convictions in any jurisdiction and truthfully declare all information Do YOU have what it takes?Do YOU have what it takes? Police: Car crash in London is traffic accident, not terror LONDON (AP) – A car crash that injured 11 people outside a major London tourist attrac- tion Saturday sparked fears of a terrorist attack but turned out to be simply a traffic acci- dent, London police said. The accident at 2:20 p.m. outside the popular Natural History Museum in the heart of central London brought a gigantic police response, in- cluding helicopters and haz- ardous area response teams, because of terrorist concerns. Police said 11 people were injured when a car apparently mounted the pavement and hit pedestrians. Nine people were hospitalized with head and leg injuries that were not judged to be life-changing. Panicky scenes ensued after the pedestrians were struck and it took nearly four hours for police to reassure the anxious public that it was not another terrorist attack. Britons in general, and Londoners in particular, have been jumpy after a string of extremist attacks this year, including deadly at- tacks using vehicles to hit pedestrians on Westminster Bridge and London Bridge. Britain has been on a “se- vere” terrorist threat level indicating that the Joint Terrorism Analysis Center believes an attack is viewed as highly likely. Police said one man at the scene, thought to be the driver, was detained. He has not been charged or identified. Witnesses described a rush to leave the scene, nearby shops were evacuated and the sprawling museum, a favorite site for families with chil- dren, closed down early. Po- lice established a large secu- rity cordon around the area within minutes. Workers in a cafe near the Natural His- tory Museum say they fled the scene in fear. Marilin Mueller, 20, said she thought at first it was a traffic accident but had doubts when “loads of police cars” ar- rived. “All of these police came marching down saying, ‘Move, move.’ They said, ‘you need to evacuate,’” she said. Dieon Ru- rora said people were running down the street to get away and some fell. British Police and a forensic investigator at the scene of an incident outside the Natural History Museum in central London, Saturday, after a car struck pedestrians. – PHOTO: APThe islands’ most-trusted news source 9 CAYMAN COMPASS • MONDAY OCTOBER 9, 2017 name the individual who was arrested (We were privy to the person’s identity). I decided against naming the person since she had not been formally charged, and we could always revisit that decision at a later date, if and when charges were ul- timately filed. Brent Fuller, one of our most senior reporters, was tasked with researching and writing the story. At the Compass, we have in place an elaborate computer pub- lishing system that allows us to track every aspect of a developing story. We can tell, for example, when the story was entered into our system, who subsequently accessed it, what changes, if any, were made to it, and the exact time those changes were made. The timeline is relevant to this narrative: At 1:10 p.m., Brent en- tered his story into our system. The story, it must be emphasized, was correct in every detail. Between 1:10 p.m. and 3 p.m., the story was accessed by four separate editors for fact checking, copy editing, proofreading and layout and design purposes. No changes of any consequence were made. This is not surprising. Brent is respected in our newsroom for writing “clean” and accurate copy. At this point in the pro- duction process, his story was deemed to be fac- tually correct and ready to be printed. However, we now know that at 4:36 p.m., yet another editor as part of her official review accessed Brent’s story and introduced into his copy the errors that had the effect of wrongly implicating Ms. McField-Nixon. In the furtherance of transparency, we are re- printing in its entirety Brent’s original story on Page Eight. For the purposes of this narrative, two particular passages are relevant. Brent originally wrote: “According to govern- ment’s senior human re- sources official, Gloria Mc- Field-Nixon, the employee left the government service prior to her arrest on Aug. 16.” The editor changed the copy so that it read: “According to the gov- ernment’s senior human resources official, Gloria McField-Nixon left govern- ment service before her ar- rest on Aug. 16.” The second material change was this: Brent originally wrote: “The suspect has been re- leased on police bail for the time being, police said.” The editor changed the copy so that it read: “Ms. McField-Nixon has been released on police bail, police said.” For the record and in terms of personal and cor- porate accountability, that editor was terminated from her employment with Pin- nacle Media, parent com- pany of the Cayman Com- pass, as soon as the errors came to light. (We frequently take government editorially to task for not taking timely and decisive action when wrongdoing takes place within its ranks. It would be unthinkable and unconscio- nable, not to mention hypo- critical, if we didn’t hold our- selves to the same standard we advocate for others.) If I may, I’d like to pause for just a moment to assure our readers that the Com- pass employs an extensive array of cross-checking edi- tors, fact checkers and proof- readers to ensure the accu- racy of our stories. In the present instance, no fewer than five “sets of eyes” were involved in checking Brent’s story. It’s not that the story was par- ticularly unique or sensitive. We go through this process, at the least, with every story – and considerably more with some stories. In my ex- perience of many decades in many newsrooms, I am comfortable that our system compares favorably with much larger news organiza- tions and surpasses nearly all news outlets of our size. And yet, as this instance demonstrates, mistakes do happen and, when they do, we do our very best to cor- rect them promptly and, when possible, to make amends for them. That’s what I’m trying to do here. Just one more detail re- lating to our editing process in the above instance. After the errors were inserted into the story, two other editors examined the “page proof” before it was forwarded to “plate making” and, ulti- mately, our printing press. At this stage, editors re-ex- amine only “major elements” on a page, such as headlines, photo captions, folios and similar items. When our newsroom staff departed in the late af- ternoon/early Thursday eve- ning, no one, including my- self, knew we had an issue. — Our first inkling that there was a problem with the story actually came from Ms. McField-Nixon herself. At about 8:15 p.m., Ms. McField-Nixon reached Brent on his cell phone and told him that she had just seen the article online, and it identified her as the suspect, not as the spokesperson. Brent was incredulous. He told her that was not pos- sible – he had written the story himself – but he would look into it and call her back immediately. He checked the story online and, of course, Ms. McField-Nixon was correct. The article had been altered and was ma- terially wrong. He immediately made on- line “corrections” and noti- fied Compass Managing Ed- itor Norma Connolly, who was at home, of the issue. Moments later, Norma reached me, also at home, and briefed me on what she had learned. — It would be comforting if an “instruction manual for publishers” existed for guidance in situations such as these — but, of course, none does. If I may get just a bit per- sonal, I knew we had a se- rious matter on our hands and things would likely get chaotic and difficult in the next hours or even days. At that moment I made a pri- vate commitment to myself that my actions would be guided by a single principle: Do the right thing. No hair- splitting lawyers, no penny- pinching financial control- lers, no damage-control committees. None of that. Do the right thing. Of course, “Do the right thing” sounds pious, even pontifical, but inexorably leads to the next question: What is the right thing? I jotted down three over- riding thoughts: 1) Take responsibility. 2) Fix this damn thing. 3) Learn from it. I was fortunate to have the full support of my wife Vicki, who is also co-pub- lisher of the Compass with me as well as co-owner of Pinnacle Media. We were to- gether on this. My first call, necessary but difficult, was to Ms. Mc- Field-Nixon. She was polite and professional but obvi- ously distraught. I told her we would do everything within our power to correct the story that was, at that very moment, being distrib- uted in our print edition. The story also had been posted, at about 7 p.m., on our newspaper web- site (www.caymancompass. com). Brent had personally corrected the online ver- sion, but Ms. McField-Nixon told me she did not think the “fix” was adequate. I agreed with her. We then attempted to fashion a more complete cor- rection and apology to Ms. McField-Nixon and affix it to our website story. How- ever, I still wasn’t satisfied with that attempt and is- sued the instruction to re- move immediately the com- plete story from our website, which we did. — After my conversation with Ms. McField-Nixon, it became clear to me that we had to at least attempt to retrieve the newspapers that were already in distri- bution throughout the is- lands – thousands of them. For perspective, such a re- call had never taken place in the 50-year history of this newspaper. Minutes, not hours, were essential here, not only be- cause more and more news- papers were being distrib- uted by the minute but also because a number of our largest sales outlets, such as the supermarkets, would be closing at 10 p.m. We had to get those papers back be- fore they were locked up for the night. To continue the scenario, I was able to reach Telman Wright, our distribution manager, on his cellphone to determine whether our re- call plan was even feasible. He said he thought it was and would immediately con- tact our delivery drivers to “reverse their rounds” and gather up the errant copies. (I’ve since learned that Telman himself chipped in and was at a petrol station picking up papers when he spotted a customer at the cash register about to pur- chase the Compass. Telman snatched it out of his hands and told him, “This edition is not for sale; check back in the morning!”) Basically at this point, we had two immediate tasks: First, retrieve the newspa- pers containing the erro- neous article and, second, prepare a “replacement” newspaper to be distributed first thing Friday morning. The “recall effort” was amazingly successful. Nearly 99 percent of the newspapers containing the errors were retrieved; they never went into circulation. While the recall was taking place, I was able contact our key personnel and inform them that I was about to ask them to do the impossible. They were going to prepare an unprecedented “midnight edition” of the Cayman Compass. Justin Uzzell, Pinnacle’s Director of Operations, was a first responder. He headed to the Compass Centre and, in effect, “turned on the lights” for what was to be a very long night. While he was orchestrating the cata- loging of newspapers that were now arriving back at the Compass, he was si- multaneously assembling his team of platemakers, pressmen, and, particularly important, inserters. Meanwhile, Compass Executive Editor Patrick Brendel also arrived at the Compass newsroom to oversee the makeover of the new edition, as did Taneos Ramsay, who was tasked with doing the layout and design of the new page. Frankly, the editorial makeover was not overly challenging. We were simply going to delete the story that contained the errors and re- place it with a new story – on an entirely different sub- ject. At any given moment, we have access to hundreds of stories that are churned out 24/7 by our wire ser- vices, such as the Associated Press. All we needed to do was select one. Meanwhile, an additional problem had presented it- self. Our Friday paper, which is the largest edi- tion we publish each week, regularly contains a multi- tude of “fliers,” other promo- tional materials, and special sections (such as the Week- ender, which we normally print a day in advance of our Friday print run). We quickly realized that we did not have enough “extra copies” of these “in- nards,” nor did we have time to reprint the Weekender. Justin, Telman and Se- nior Press Operator Don- ovan Nelson came up with the solution: We would man- ually remove the page (in this case, Page 2) that con- tained the errors and reprint that single “form” (meaning Pages 1, 2, 27, and 28 – which are all “connected”) and then manually replace just that single form. To conclude, we went back on press just after mid- night, about a dozen of our inserters worked all night manually swapping out the two forms, and shortly after dawn our delivery trucks were back on the streets de- livering our “new” Compass. — Friday morning, we re- assembled our key staff to thank them for their ex- traordinary efforts but also to begin a review of what changes we might make to reduce the risks of such an occurrence ever happening again. I was reminded, once again, that publishing a newspaper is a high-risk enterprise. Each day, in a very compressed period of time, we make literally hun- dreds of judgments and de- cisions that are incorpo- rated into the paper that our readers hold in their hands. At Newsweek maga- zine, where I used to work, the top editors were known inside the building as the “Flying Wallendas.” Publishing is a high- wire act, but we try to put into place as many “safety nets” as are possible or practicable to reduce our daily risks. Normally, these safety nets work. In the present instance, they didn’t: A story fell through them and, for that, I once again apologize, un- conditionally, to Gloria McField-Nixon. If I may, I’d like to close with an exchange of emails between myself and Deputy Governor Franz Manderson that took place near mid- night on Thursday. We had spoken about two hours ear- lier on the phone: At 11:46 p.m., to Mr. Manderson: Franz, we have now suc- cessfully recalled nearly all copies of Friday’s Com- pass. Initial estimates are that fewer than 50 copies are unaccounted for. I’ll get an exact count in the morning. Of course, we re- moved the entire story from the website shortly after I talked to Gloria. At the moment, I’ve got a complete crew at the Com- pass – editors, layout people, platemakers, pressmen, in- serters, etc. – and we should be back on press with a “new” Compass about 1 a.m. or so. The “new” newspaper will not include any story on this topic. My plan is to write a front-page story for Mon- day’s Compass, explaining what happened and apolo- gizing to Gloria. Thanks, Franz; I really appreci- ated your call … G’night, Dave At 12: 02 a.m., Mr. Manderson responded: Good night Mr Legge That you very much for taking this matter so se- riously and for your de- cisive action. We all make mis- takes. However the true test is how we respond to those mistakes. Your actions will make my job much easier. Thank you and goodnight. Best regards, Franz Manderson Deputy Governor and Head of the Civil Service FROM THE PUBLISHER Anatomy of an error, efforts to correct it – and an apology to Gloria McField-Nixon CONTINUED FROM PAGE 1 Police: Car crash in London is traffic accident, not terrorNext >