NO VEM BER 20 1 7 • WW W. C AY J OUR NA L. C OM 18 1 THIS ISSUE: WOMEN IN BUSINESS Special report Page 9MARKETS Inflation, quantitative easing and US interest rates BUSINESS EXCELLENCE AWARDS Chamber honors business contributions, beyond pure economics >>PAGE 4 ANTI-MONEY LAUNDERING Real estate, jewelry dealers awaiting new reporting requirements >>PAGE 5 PAGE 9 SPECIAL REPORT Novembe r 2017 WOMEN IN BUSINE SS Journal Special Report Money problems: the global currency system needs reform ■■ MICHAEL KLEIN For a country like Cayman whose currency is tied to the U.S. dollar and therefore to the whims of the U.S. Federal Reserve’s monetary policy actions, the Cayman Invest- ment Summit had a decidedly gloomy message: the U.S. dollar-led global currency system is in urgent need of reform and central banks have essentially no power to affect monetary or eco- nomic goals. The conference, hosted by the Chartered Fi- nancial Analyst’s Society of Cayman, is never shy on pessimism and often invites speakers whose theories run contrary to mainstream economics. But given the track record of mainstream econom-ics, that can be of significant value for investors who have to anticipate the big and small swings in the markets and their underlying economic factors. Most recently, U.S. central bankers seemed at a loss as to why there is no inflation.While some blame sharp online retail price declines, to an extent that is still misunderstood by economist, for low inflation figures, others argue that central bankers have been unable to interpret money supply and other monetary indi- cators for quite some time. In an article about a crisis of confidence for cen- tral bankers, The Financial Times wrote in October that “the ability of central banks to resolve these questions does not just affect growth rates, but is fundamental to the health of the democracies of advanced economies, many of which have been assailed by populist uprisings.” Jeff Snider, head of Global Investment Re- search at Alhambra Investment Partners, agrees with these political and social implications, but he says that after the financial crisis “central bankers did not suddenly lose all their power, they did not have it to begin with.”Snider identifies the Eurodollar market, U.S. dollar-denominated deposits, as well financial instruments and transactions in U.S. dollars out- side of the United States, as one large element of the shadow banking markets that are outside of any monetary control. “There is no other, more appropriate place on Earth to talk about money than here” in the Cayman Islands, where U.S. banks are holding more than $1 trillion in U.S. dollar-denominated claims on Cayman banks, he said at the confer- ence on Oct. 11. Snider’s theory is that economists who viewed each economy as a closed system failed to recog- nize the effect of Eurodollars. They first misunder-stood the growth of the market as capital outflows and then as a global savings glut. Central bankers, on the other hand, recognized these markets but ignored their effect even though monetary supply trends veered increasingly off trend. Shadow banking means a lot of things to dif- ferent people. For Snider, it is the balance sheet capacity of private banks globally for Eurodollar instruments, repurchase agreements or repos, in- terest rate swaps and other financial instruments like FX derivatives. In September, the Bank for International Settle- ments, which is sometimes called the central bank of central banks, published a study that estimates $13 trillion to $14 trillion exist in offshore interbank FX derivative dollars that “are functionally equiva- lent to borrowing and lending in the cash market.” “It takes the form of whatever liability one bank can dream up that another bank will ac- cept,” Snider says. Crucially, much of this money is not captured by any monetary statistics which should guide central bankers in their actions and when they set mon- etary policy targets. It is not that these developments had gone un- noticed by central bankers. Both Eurodollars and repo were once included in M3, the broadest mon- ey supply figure, but discontinued in March 2006 when the Federal Reserve decided it would take too much effort to determine what is going in these markets when for the most part they do not affect the United States. Former Federal Reserve chairman Alan Greenspan warned for years that finding money and measuring it had become an increasingly du- bious proposition. “The proliferation of products has been so ex- traordinary that essentially a decision-based policy on measures of money presupposes that we can locate it,” he said in June 2000. Even during his famous “irrational exuberance” speech in 1996, a warning that the markets were overvalued several years ahead of the dot.com crash, he noted that “money supply trends veered off years ago as a useful summary of the overall economy.”This is evidence, Snider contends, that central bankers have not acted as monetary stewards for a long time. As early as in the 1970s, central bank- ers suspected the Eurodollar market undermined money supply in some form. Guido Carli, an Italian central banker at the time, warned that there was a monetary blob lurking hidden in the shadows of global finance which multiplied U.S. liquid liabili- ties outside of any monetary control.Repo transactions, for instance, were not believed to be monetary transactions. Today, Most recently, U.S. central bankers seemed at a loss as to why there is no inflation. Simon Mikhailovich, co-founder Tocqueville Bullion Reserve, shows a gold bar during his presentation at the Cayman Investment Summit on Oct. 11. Cayman beneficial ownership model comes with cybersecurity edge ■■ KAYLA YOUNG Cayman Islands law govern- ing beneficial ownership data took effect July 1, ushering in a technology-based system to manage the exchange of information about the true owners of Cayman-registered entities. In an age of daily cyberattacks, the system brings with it questions about safeguarding sensitive business data. Fi-nancial information can prove particularly enticing for hackers, making the integrity of the system all the more important. Cayman Finance CEO Jude Scott dis-cussed the cybersecurity considerations when establishing the database and the elements that set Cayman’s system apart from other international models. The Journal: What were the priority considerations when determining the format of the new beneficial ownership platform? Jude Scott: It was important to develop a platform which would fully meet the needs of law enforcement and regulatory bodies both here in the Cayman Islands and in the United Kingdom while at the same time maintaining the basic right to privacy and ensuring the security of what is extremely sensitive data. The data has to be collected, and held, in a consistent and easily searchable format so as to en- sure rapid and coherent responses are able to be provided to those tasked with investigating, among other things, organ-ized crime and terrorist financing – that is clearly to the benefit of all. On the other hand, cybersecurity and identity fraud/ theft are live issues in today’s world, as demonstrated by a recent worldwide spate of data hacks and, in that context it was critical to ensure that the platform was highly secure both physically and digitally. Every decision, from the extent of the data collected, to the methodology for doing so, to the system for making that data available for searches had to be made on the basis of maintaining that balance. TJ: Why not establish a central, publicly searchable database? JS: It is important to note that a central, publicly searchable database does not represent the current “standard” ar ound the world and, in fact, the Cayman Islands platform already represents a level of transparency well ahead of many lead-ing onshore financial centers. The EU’s Fourth Anti-Money Laundering Direc-tive stops short of requiring that infor-mation be made available publicly, yet even so, the EU Justice Commissioner, in July 2017, formally reprimanded 17 EU Member States for failure to estab-lish appropriate systems for collecting beneficial ownership information. In that context, the Cayman Islands is at the forefront of compliance in stark con- trast to incorrect perceptions of the juris- diction based on lazy prejudice. While the U.K. operates a central, publicly searchable database, the data which is submitted is not required to be independently verified. Accordingly, it is hard to know the true value of such an approach for law enforcement (who are the key users of this information). In contrast, the Cayman Islands already operates well-respected and internationally approved verified anti-money laundering and know your customer processes carried out by licensed corporate services providers whose compliance is the subject of regular scrutiny by well-respected regulators. Verification of information is essential in attempting to detect unintentional or intentional inaccuracies in such PLEASE TURN TO PAGE 6 » PLEASE TURN TO PAGE 6 » >>PAGE 3 THE CAYMAN ISLANDS JOURNAL Money problems: the global currency system needs reform High of 86 Low of 76 Seas: Moderate to rough with wave heights of 4 to 6 feet. Small craft should exercise caution over open water. EDITORIAL | PAGE 4 IMMIGRATION: GOVERNMENT’S THIRD LARGEST REVENUE SOURCE ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – WEDNESDAY NOVEMBER 1, 2017 Gov’t eyes $209M in immigration revenues Earnings from PR, work permit fees increase BRENT FULLER bfuller@pinnaclemedialtd.com The Cayman Islands government expects to collect more than $100 million per year in the next two years from immigration-related fees charged for work permits, permanent res- idence applications, visitor work visas, Cay- manian status fees and other permits, ac- cording to budget documents reviewed by the Cayman Compass. The collections fall into both coercive rev- enue and fees for goods and services areas and are expected to make up approximately 14 to 15 percent of central government’s an- nual earnings in 2018 and 2019. The figures compiled by the Cayman Compass do not include non-work or non-residency related fees, such as permits charged to visitors who stay less than 30 days at a time, or for things like police background clearances which are often required for permit approvals. Work permit revenues alone are budgeted to account for more than $70 million in rev- enue during 2018 and more than $72 million in 2019 – that is about 10 percent of central government’s total earnings for the year. The work permit annual earnings repre- sent a significant increase from the govern- ment’s 2015/16 budget year, when $63 million in work permit fees was collected. However, the largest percentage increase in immigration-related fees comes in the area of permanent residence applications, according to the budget records. Fees charged for the annual renewal of res- idency for individuals who obtained perma- nent residence after eight years of working in the islands are expected to generate $13.5 million during 2018 and $14.2 million in 2019. During the last government budget (2015/16), those fees accounted for less than $8 mil- lion in revenues. Another $7 million each year is expected to FIFA DEFENDANT TAKKAS GETS 15-MONTH SENTENCE BRENT FULLER bfuller@pinnaclemedialtd.com Former Cayman Islands football official and U.K. national Costas Takkas received a 15- month prison sentence Tuesday in U.S. federal court, but he will only be required to serve five months of it. According to court records released Tuesday, Takkas was sentenced to 15 months’ imprisonment after pleading guilty to one count of money laundering conspiracy in con- nection with the ongoing FIFA bribery and corruption scandal that rocked world foot- ball’s governing body in 2015. However, Federal District Court Judge Pa- mela Chen credited Takkas with 10 months already served in Swiss detention following his arrest in May 2015. Takkas was held by Swiss authorities while he fought extradi- tion to the U.S. Prosecutors had earlier argued that Takkas should not receive such credit, as it was his decision to dispute extradition on the charges. All other charges filed against Takkas in a November 2015 federal court indictment were dropped as part of the deal reached with prosecutors to obtain his guilty plea. In addition to the prison sentence, Takkas was given a one year term of supervised re- lease and was told he could be deported from the U.S. The court ordered that he turn himself in to federal authorities at 3:30 p.m. Tuesday to begin serving his sentence. Takkas had been out on bail pending sentencing following his guilty plea in May 2017. In addition, the court found Takkas “joint Ganja user brings prescription to court CAROL WINKER cwinker@pinnaclemedialtd.com A young man in court for possession and consumption of ganja raised legal questions in the minds of Magistrate Valdis Foldats and Crown counsel Greg Walcolm after the defendant pro- duced a prescription for ganja. No convictions were recorded against him, so his name will not be published. He was charged with having 2.79 grams of the illegal drug in George Town in November last year and testing positive for con- sumption. He appeared in court in May, July and August. The matter was set for sen- tencing on Oct. 2, when he pro- duced a medical doctor’s pre- scription for cannabis oil. The magistrate asked the prosector for “an update on the medical marijuana scene.” This week, Crown counsel Greg Walcolm advised that the law provides that the medical practitioner who prescribes can- nabis oil has to be licensed spe- cifically to prescribe it – in addi- tion to his regular license. The magistrate asked how to distinguish between testing a person whose use is recreational and testing a person whose use is prescriptive. “There is no way, is there?” Conch and whelk season opens A small stingray swims past a conch at the Stingray City Sandbar. The annual conch and whelk season opens Wednesday, Nov. 1, and will continue until April 30. During this period, it is legal to take conch and whelk from local waters, but only within the legal limits. For more on this story, see page 7. - PHOTO: ELLEN CUYLAERTS PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 8 » PLEASE TURN TO PAGE 7 »2 LOCAL NEWS WEDNESDAY NOVEMBER 1, 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 - GEOSTORM 3D (PG13) 12:35 I 3:30 2D VIP I 4:10 2D I 6:50 9:45 2D SUBURBICON (R) 12:45 I 3:55 I 6:40 I 9:35 VIP THE SNOWMAN (R) 12:50 I 7:00 THE MOUNTAIN BETWEEN US (PG13) 9:55 HAPPY DEATH DAY (PG13) 12:20 I 1:00 VIP I 2:45 I 5:10 I 7:00 VIP I 7:35 I 10:00 THE FOREIGNER (R) 3:35 I 9:35 TYLER PERRY’S BOO2! A MADEA HALLOWEEN (PG13) 1:10 I 4:15 I 7:15 I 9:50 LAW ENFORCEMENT RECRUITMENT FAIR TO BE HELD Cayman’s law enforce- ment agencies will hold a recruitment fair next fair. The 2017 Law Enforce- ment and Public Safety Re- cruitment Fair will take place from 3-7 p.m., on Thursday, Nov. 9 at the Town Hall in George Town. The joint drive will be hosted by the Her Maj- esty’s Cayman Islands Prison Service, Cayman Islands Fire Service, De- partment of Immigration, Department of Labour and Pensions, Department of Public Safety Communica- tions, the Cayman Islands Customs Department and the Royal Cayman Is- lands Police Service, ac- cording to a government press release. Representatives of those agencies will present to talk to those interested in finding out more about careers in the law en- forcement field. “Staff members will also deliver brief presentations and demonstrate their spe- cialist skills during the event, and will be avail- able to answer any ques- tions from the public,” the release noted. Gov’t analyst sentenced for disorderly conduct Community service and costs ordered, no convictions recorded CAROL WINKER cwinker@pinnaclemedialtd.com Cory Douglas Mar- tinson, 40, was sentenced on Monday after pleading guilty to charges of property damage and disorderly con- duct arising from incidents in December 2016. Defense attorney John Furniss spoke on behalf of Martinson, the senior ap- peals and policy analyst with the Information Commission- er’s Office. Martinson was placed on paid suspension last month, his office con- firmed Tuesday. Mr. Furniss said Mar- tinson was having prob- lems at the time of his of- fending because of what was for him a traumatic divorce. “He was taking medication and unfortunately combined that with alcohol,” the at- torney explained. Magistrate Valdis Foldats accepted that the charges in- volved property damage and words – no violence toward any individual. Crown counsel Greg Walcolm summarized the offenses. On Dec. 9, Martinson dam- aged a door at the Jungle Bar and Lounge by kicking in a pane of glass in the door. The damage was valued at $230. On Dec. 29, police received a report from a female tourist who had been snorkeling along Seven Mile Beach. She said a man had run directly at her and then attempted to jump on her. He then swam off toward a vessel about 400 feet offshore. She was dis- tressed by the incident. Police arrived and saw a man – Martinson – aboard the vessel and he appeared to be scattering items around. The officers attempted to pro- cure a police vessel to go out, but none was available. Offi- cers then approached a pri- vate citizen who had a boat nearby and they requested his assistance. They went out and at- tempted to speak with the defendant, but he jumped into the water and began swimming away. The officers apprehended him “with some effort,” Mr. Walcolm noted. In the exchange, Martinson used disorderly language and told officers, “Nobody gives a damn any more.” On shore, Martinson head-butted a police ve- hicle twice, causing $580 worth of damage. The magistrate said someone as intelligent as the defendant would have known not to combine alcohol with his prescribed medication. Mr. Furniss suggested that this action showed his state of mind at the time. The attorney said Mar- tinson had paid for the door and stood ready to pay com- pensation for the police car dents. The defendant’s salary had been reduced “quite considerably” while court proceedings were on- going, he added. Mr. Furniss asked for a special result, given the “profound effect” these in- cidents could have on Mar- tinson’s future. The magistrate referred to various reports, not all of which were read aloud. He said the incident at the beach was a tremendous example of heroic action by private citi- zens and police in an emer- gency situation. One man had lent his boat without hesita- tion. An off-duty special con- stable had put himself at risk in the water, trying to save the defendant’s life. “He was fighting the ocean and fighting you,” the magistrate told Martinson. The police had rescued him and then arrested him, as they should have, he continued. Af- terward, Martinson had done everything right, cooperating with the probation officer and attending counseling. He had an excellent letter of support from his employer, the magistrate summarized. He ordered Martinson to perform 80 hours of commu- nity service and pay $500 to- ward the costs of prosecution. He said no convictions would be recorded. Toastmasters graduate from leadership program The Grand Cayman Toast- masters Club graduated 11 young members from its Youth Leadership Program at the George Town Public Li- brary on Saturday, Oct. 21. Alex Richards, Dejea Lyons, Hannah Lawrence, Taejah-Rae Nixon, Bradley McLaughlin, Carlyah Santo, Diandra Whittaker, Martina Watler, Romilly Miller, Tarec Francis and Thea Foster- Ebanks, aged between 13 and 18, made the grade. The graduates from Clifton Hunter, John Gray, University College of the Cayman Islands, St. Igna- tius, Cayman International, Cayman Prep and High School and Youth Flex at- tended eight weeks of classes to gain self-confidence while improving their public speaking skills. The aim of the program is to teach participants to be “better thinkers, listeners and speakers,” said Josette Lawrence, Toastmaster assis- tant coordinator. She said the skills learned during the eight-week pro- gram can be transferred to the classroom and other as- pects of their lives. “Every week, I had the immense pleasure of seeing our young people grow from strength to strength,” she added. Handing out gradua- tion certificates, Deputy Gov- ernor Franz Manderson said that true leaders were inspi- rational and did not blindly maintain the status quo. He personally congratulated each graduate and com- mended them on following their dreams. Toastmaster area director Paul Persaud presented awards to Carlyah Santo for “Most Improved” speaker and Hannah Lawrence for “Best Speaker.” He said the awards were especially meaningful, as the young leaders were se- lected by their peers and the toastmasters through a dem- ocratic voting process. Graduate Bradley McLaughlin, an amateur chef, spoke about his pas- sion for cooking; Hannah Lawrence spoke on the art of self-expression; Martina Watler spoke on the sig- nificance of art in life to family and friends, and Car- lyah Santo presented an ice- breaker speech. The speeches were eval- uated by a panel of fellow Youth Leadership Pro- gram participants who gave verbal feedback. Speeches were assessed for content, use of sophisticated vo- cabulary, structure and co- herence of speech. Physical cues, including maintaining eye contact, use of body lan- guage and speaking up, were also reviewed. Toastmaster overall pro- gram coordinator Anna Clarke received special men- tion for work in making the program a success. “This has been a re- warding experience for me,” she said. “At the first session, I did most of the talking but I promised [the] participants they would be able to do the same by the end of week seven. This was evident by the display of chairmanship and choice of speech topics. Both were well received by their peers and the coordina- tors,” she said. Diandra Whittaker gave the vote of thanks, extending appreciation to Kirk Freeport for graduates’ gift certificates and for the work of Toast- masters Merrell McCann, Jo- diann Jackson, Kevin Creary and Gerry Robinson. Deputy Governor Franz Manderson, Toastmaster Josette Lawrence, Taejah-Rae Nixon and Toastmaster Merrell McCann. WOMAN DENIES ‘RECKLESS’ COSMETIC PROCEDURES Three-day trial set for March CAROL WINKER cwinker@innaclemedialtd.com Zunilda Anaya Baldo- vino pleaded not guilty in Summary Court on Tuesday to two charges of doing a reckless and negligent act. The acts alleged are supplying or adminis- tering poisonous or dan- gerous matter in a manner so reckless or negligent as to endanger human life or safety. The acts were said to have occurred in October and November of 2016. No details were given in court, but a press re- lease from police earlier this year indicated that the charges had to do with cos- metic injections. Since the defendant re- quired an interpreter of the Spanish language, it was expected that trial would take three days. Crown counsel Darlene Oko indicated that the prosecution’s case would include expert evidence. Defense attorney Jonathon Hughes said he expected more ma- terial to be disclosed by the Crown. Magistrate Valdis Fol- dats set trial to start on Monday, March 26, 2018 for three days. A case management hearing was scheduled for Feb. 1. The defendant’s bail was con- tinued until then.3 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY NOVEMBER 1, 2017 ®Trademark of The Bank of Nova Scotia, used under licence (where applicable). ky.scotiabank.com #StartWithYou You’re always moving forward in your life. That is why every loan we offer—from auto to education to home loans—always helps you to do just that. Because with a good start, there’s no stopping where you can go. It’s about giving you the best start. Hazard Management official returns from BVI, predicts ‘long road’ to recovery TAD STONER tstoner@pinnaclemedialtd.com Following a month spent helping restore basic ser- vices to the hurricane-rav- aged British Virgin Islands, Danielle Coleman of Hazard Management Cayman Islands says full recovery is likely to take more than a year. The British Overseas Territory was hit in Sep- tember by Category 5 hur- ricanes Irma and Maria, leaving local infrastructure devastated, most housing destroyed, electricity and running water supplies wrecked, and even law and order badly compromised. Residents said that any- thing Irma had not ru- ined, Maria did: “Irma did a lot of damage but, for me, Maria finished the job,” Tortola resident Karon Brown, 29, told U.K.’s The Guardian newspaper. “We already had flooding inside the house and lost most of our possessions in Irma,” she said. “Before Maria came, we boarded the house up and tried to secure what remained. But Maria just ripped it all off, damaged the building more and destroyed most of what was left.” Into this, Cayman Islands authorities sent teams of po- lice, as well as Red Cross and Hazard Management Cayman Islands crews, to offer re- lief. Ms. Coleman, HMCI’s deputy director of prepared- ness and planning, arrived just after Maria, working with the Red Cross, them- selves collaborating with the BVI Department of Di- saster Management. “It’s hard to imagine, but the impact of Irma on BVI, compared to Ivan on the Cayman Islands, was un- doubtedly more severe,” Ms. Coleman said. “Whilst in BVI, there was little storm surge, the significantly stronger winds [sustained winds of 180 miles per hour inside the hurricane, with higher gusts] caused more structural damage. “Most roofs were breached, roads severely damaged, vehicles and boats smashed, and the majority of utility poles destroyed. A large number of persons have been displaced and many of them have been laid off from their work due to lack of business.” “In the month I was there, I don’t think I saw a single house that had been spared. At the very least, houses had shattered windows; at worst, the whole structure had been destroyed,” she said. Ms. Coleman said she had visited much of the rural in- terior of Tortola and three BVI Sister Islands, finding significant damage likely to require tremendous re- covery efforts. “We visited most of the areas in Tortola that we could access, and also the Sister Is- lands of Jost Van Dyke, Ane- gada and Virgin Gorda,” she said. “We were assigned three main areas to focus on by the National Disaster Manage- ment Office [Department of Disaster Management] and much of our distribution was to the most vulnerable per- sons in these areas. “However, the BVI Red Cross Office was also set up as a distribution point so people who needed re- lief stock would come to BVI Headquarters, Road Town, get assessed by Red Cross volunteers and [receive] re- lief items if they qualified for it. Assessment questions in- cluded level of income/sig- nificant damage to homes/ single headed households/ disabilities, etc.” Storm damage in the in- terior, she said, was “sub- stantially” worse than in the capital: “Significant work has been done to get Road Town up and running. However, there are a number of other areas that haven’t had the same amount of attention. “This is natural, of course, as Road Town, being the cen- tral commercial area, needs to be functioning in order to respond effectively to other areas. Like everywhere, Road Town was severely im- pacted after Irma/Maria, but progress is being made every day to get it up and running again.” She said most of the utility poles had been destroyed and Road Town’s Red Cross head- quarters had only gained power and water about 10 days ago – about five weeks after the passing of Irma. She estimated approxi- mately 13 official shelters operate in the territory, in addition to “a number of un- official shelters,” and that when she left last week, “ap- proximately 90 people [re- mained] in emergency shel- ters in Tortola.” “Some shelters are still housing people and many roofs are still open to the el- ements. Suffice to say, there is a long road ahead for the recovery efforts across BVI,” Ms. Coleman said. “One of our focuses at Red Cross was to assist shelterees in getting back home, pro- viding relief supplies to them to ensure they could live in their homes comfortably.” She helped distribute a thousand sets of domestic necessities, including kitchen sets, cleaning kits, tarpaulins, jerricans, mosquito nets and spray, buckets and blankets. “As with Ivan, Hurricanes Irma and Maria have been a big equalizer,” Ms. Coleman said. “Everyone living in BVI has been significantly af- fected, having lost many of their worldly possessions. “We also had items do- nated that we distributed in- cluding dignity kits, diapers for babies and adults, bat- teries and a number of other items. Clothes were being do- nated by the truck full on a regular occasion.” “Dignity kits,” conceived in 2001 by the U.N. Population Fund, largely address wom- en’s needs for non-food items, such as underwear, sanitary napkins, soap, toothbrushes and towels, intended to make an impact, according to the U.N., “on the dignity, health, education, mobility, com- munity involvement, family functioning, economic par- ticipation, and security of women and girls.” Recovery, Ms. Coleman said, would require sus- tained effort and time: “Due to the significant infrastruc- ture damage, there is a long road to recovery, however, assuming the momentum stays the way it is now, ap- proximately 1 to 1.5 years,” she said, acknowledging her estimate was a best guess. Premier Alden McLaughlin praised Ms. Coleman’s role in BVI. “I am very proud of the crucial part that Ms. Coleman and the RCIPS played in BVI when they needed help the most,” Mr. McLaughlin said. “They are a shining example of the will- ingness of our people to step up and do whatever we can to alleviate the difficult and sometimes desperate circum- stances that are wrought by a major storm.” He praised HMCI Director McLeary Frederick, the RCIPS helicopter team, the medical personnel “and all the other civil and public servants who have played an essential role in our humanitarian work in our sister territories.” A private plane lies wrecked at Beef Island Airport, Tortola, following Hurricane Irma. Danielle Coleman and RCIPS officers unload a Red Cross relief flight from Panama.The islands’ most-trusted news source 4 – EDITORIAL – Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass offi ce. When listening to talk radio or perusing the (largely anonymous) comments sections of local websites, it is not unusual to come across the following argument against the expatriate half of the Cayman Islands population: Foreign workers contribute little to the country’s economy. That of course, is obviously untrue and easily refuted. We could fi ll this editorial space with explana- tions, examples and evidence of the mutually benefi - cial symbiotic relationship between Caymanians and non-Caymanians. But today’s front-page story on the government’s new budget presents the opportunity to refute that argument using a single round number – $100 million. That is how much the government expects to collect each year from immigration-related fees levied, by defi nition, only on “foreigners.” Those fees – including for work permits, permanent residence applications, visitor work visas, etc., – are expected to comprise about 15 percent of central gov- ernment’s revenue over the next two years. Typically, immigration fees are the third-largest revenue item in the budget, behind only import duties and fees for the fi nancial services sector. Simply put, without those immigration-related fees on foreign workers, the government would fi nd it extremely diffi cult to provide essential services – many of which (such as public education and social welfare) are not made available to those same foreign workers. (If you factor in foreign workers’ share of taxes that are levied on the entire population, such as import and stamp duties, it would be impossible for the govern- ment to function anywhere near its current level.) That being established, the same voices who argue that foreign workers do not contribute to Cayman are also known to put forth a second argument: Govern- ment has grown too reliant on immigration fees, and Cayman offi cials are inclined to discriminate in favor of foreign workers, against Caymanians. There is a kernel of truth in that statement – but only up to the fi rst comma. Yes, in our opinion gov- ernment is far too reliant on immigration fees, but no, Cayman’s government does not give preference to non-Caymanians over Caymanians. To belie that fantasy, simply look at the Byzantine system of nit- picking and nickel-and-diming that often engenders signifi cant delays in hiring for critical positions. Or recall the approximately 1,000 applicants for perma- nent residence who have been waiting for months or years for decisions on their immigration status. The bottom line is, government has no business treating the “immigration business” as a cash cow for the public coffers. First, there is a danger of government being addicted to fees for foreign workers – because that dependency is an active impediment to changing existing fee structures or streamlining processes. Second, Cayman’s system of immigration taxation is inherently unfair. Not only are those fees levied on one half of the population, but within that base the fees are distributed with little consistency or reason. While work permit fees are higher for people in certain industries that tend to have higher salaries (such as law and accounting), the reality is that Cayman’s work permit fees are not determined according to income – but according to job title. The amount of subjectivity involved is incredible, illogical and unacceptable. Third, while immigration fees are linked to individual foreign workers, the majority of the fees (particu- larly for work permits) are actually paid by employers. Those fees are absorbed into the overall “cost of doing business” and, like all costs, are passed on in the form of higher prices to the country’s consumers. That means everyone who visits, lives in or does business in Cayman, regardless of residency, nation- ality or immigration status. Immigration: Government’s third largest revenue source WEDNESDAY NOVEMBER 1, 2017 • CAYMAN COMPASS A man walks into a bar in Oregon I hung out in Eugene last week where it rains every day so the air is fresh and clean. Old people my age don’t care for rain so Eugene is not a re- tirement mecca – more of a youth mecca, a real Alt sort of town for hikers and bikers and vegans and people with multicolored hair. A lifestyle town, with not so many suit- and-tie guys like me. That’s fi ne. My former father-in-law was named Eugene and so the town feels friendly to me. And the university is there, so there’s plenty of ambi- tion in the air. Sat in a bar Friday night with Meiko, Christopher and Keely, talking about barred owls, aging, Ireland, limericks, everything other than what’s been in the news lately, and I asked Meiko about her Japa- nese ancestry, and out came a wonderful story. Her father Haruo Aoki, as a teenager, was drafted into the Imperial Navy but the war ended before he was called to service. He went to college in Hiroshima, came to America on a Fulbright to study English, and in 1958 headed to University of Cal- ifornia, Berkeley to get his Ph.D in linguistics. His ad- viser said, “How’d you like to go to Idaho and study the Nez Perce?” Haruo said, “Where’s Idaho?” This patient saintly man wound up working for the next 20 years to write out a grammar and a dictionary for the Nez Perce who had never had a written language. He listened to the elders talk and transcribed their words into phonetic symbols and organized them, with defi - nitions, into a practical tool to usher the language into the future. He himself could speak Nez Perce, but with a Japanese accent, which he did not want the Nez Perce to pick up, so he mainly sat still and took notes. This struck me as the no- blest project I’d heard about in ages. I was stunned with admiration. A man of two languages sets out to be- come an authority on a third, which has no connection to either of the fi rst two, for no reason other than the chal- lenge of scholarship. As the Nez Perce young are bom- barded by radio, TV, movies, pop music, the internet, this silent man, a complete stranger, preserved their an- cestral tongue for succeeding generations should they wish to know it. A scholarly man from Japan Devised the linguistic plan For the Nez Perce, Chapter and verse, If they wish to speak, so they can. This conversation was interrupted by an old man who overheard the refer- ence to Hiroshima and was curious what was said. He had a strong accent. I asked if he was German. He was. His name was Peter, he was 92, and he had grown up in Berlin during World War II, the son of a Jewish father and a Lutheran mother, and saw up close the destruc- tion of the city under Allied bombing, the arrival of the Russian cavalry. He’d been in forced labor but not at a death camp. When he told us how he felt when his mother sewed the gold star on his coat identifying him as a Jew, his voice halted, he trembled, on the verge of tears. We three all said, “You’ve got to write this down.” He said, “I’ve told my children and my grandchildren. That’s enough. The past is the past. Enough books about the Ho- locaust already.” So there we were, an or- nithologist, a mathemati- cian, a priest, a writer of lim- ericks, and a survivor of the Holocaust, all cast together in a bar. Peter was the one with the big message. “It’s all in your mind,” he said. “Old age. The past is the past. You think young, you stay young.” The boy who survived holocaust, Battered, tormented and tossed, Stands in our midst A bold optimist: “Lighten up, all is not lost.” I said that I love Berlin and wish I knew more German. “Entschuldigen sie mir bitte,” I said. He waved it away. “They speak Eng- lish,” he said. Nothing was said this whole time about the Hol- lywood producer or the New York real-estate ty- coon who’ve been in the news lately. They are irrele- vant. Hugely. The patience of the Japa- nese linguist making a dic- tionary for strangers, the joyful spirit of the Holocaust survivor who had witnessed more human suffering than everybody in Eugene com- bined: those are the stories that matter. The old man gave me a high fi ve. “Go for 92,” he said. “Life is good.” So I shall. The gentle people shall pre- vail. Count on it. Garrison Keillor is an author and radio personality. © 2017, Garrison Keillor, distributed by The Washington Post News Service with Bloomberg News. 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 fi nd their own way” GARRISON KEILLOR GARRISON KEILLOR5 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY NOVEMBER 1, 2017 Wilbraham & monson academy Wilbraham & Monson Academy is a transformational college preparatory middle and upper school experience located in Wilbraham, Massachusetts. Distinctive to WMA, our Center for Entrepreneurial & Global Studies offers a state-of-the-art Financial Trading Center, our showcase facility for economics, finance and entrepreneurship classes. With 23 AP courses, sports such as rugby and soccer, and faculty-led international travel and conference opportunities, students experience a well-rounded and innovative curriculum in academics, athletics, student life and the arts. Join Dorm & Day and Wilbraham & Monson Academy for a special reception and learn more about WMA programs and offerings. November 15 from 6 to 8 p.m. George Town Yacht Club Refreshments and hors d’oeuvres will be served. RSVP to Dorm & Day at admin@dormandday.ky or 936.3676 or to WMA at kgaw@wma.us or 413.596.9174 by Nov. 8. CAROL WINKER cwinker@pinnaclemedialtd.com Possession of a “signifi- cant amount” of ganja put Robert Marvin Johnson, 66, in danger of a prison sen- tence when he appeared in Summary Court on Monday. But, Magistrate Valdis Foldats asked, “Do we put a mature man back in jail again?” The magistrate balanced the positive and negative fea- tures of the case after facts were outlined by Crown counsel Greg Walcolm. Mr. Walcolm told the court that police officers went to Johnson’s prop- erty in East End on June 1 and saw a white container where a dog was tied. The container contained two smaller containers, one with .074 of a gram of ganja, and the other with 321 grams, or 11.3 ounces of the illegal vegetable matter. Johnson told the officers, “It’s mine. I have it. I smoke it.” The magistrate said it was a significant amount, but the Crown had not sug- gested Johnson had it with intent to supply. In addition, Johnson pleaded guilty to possession and consumption the very first time he came to court, which was in August. He co- operated with the probation officer preparing a pre-sen- tence report. He tested pos- itive several times but told the officer he was not inter- ested in getting help; he said he would get himself clean. On Monday, Johnson did test clean and the magistrate said that changed everything in terms of the sentencing options he had. In this case, he would have said 12 months’ impris- onment because of the quan- tity of ganja and Johnson’s previous history. With a dis- count for the guilty plea, he made it eight months and suspended it. “A suspended sentence still sends a mes- sage to you and everybody else – if people break the law, they can be put in jail.” He warned that if Johnson committed another offense, the suspended sen- tence would be activated. He indicated his impression that Johnson would continue to “stay strong.” He also added a sting in the form of a $1,000 fine and $200 assess- ment of costs. “If you can af- ford over half a pound of ganja, you can afford a fine,” he told the defendant, but of- fered him time to pay. ‘MATURE’ GANJA USER GETS SUSPENDED SENTENCE Justice Malcolm retires with accolades CAROL WINKER cwinker@pinnaclemedialtd.com The first judge to pass a murder sentence under Cayman’s new Condi- tional Release Law. The trial judge for men charged with the 2012 Cayman National Bank robbery – the largest in local history. The attorney who success- fully defended his client in one of the largest money-laun- dering trials in the Cayman Islands (Cash4Titles in 2004). To those who know him, it will come as no surprise that the people referred to above are in fact one and the same man – Alastair Malcolm, Queen’s Counsel. Justice Malcolm’s last day in court was Friday. In spite of the torrents of rain, attorneys from the public and private sectors at- tended a late afternoon ses- sion to pay tribute to the man who has been coming to Cayman for almost 17 years, first as lead counsel and then as a Grand Court judge. Director of Public Pros- ecutions Cheryll Richards captured the mood when she said that the announcement of his retirement had been met with keen disappoint- ment that he would no longer be on the bench. “We hoped that someone got the date wrong,” she confessed. That sentiment was in- dicative of the high regard in which he was held, Ms. Rich- ards continued. She outlined various stages in his long and distin- guished career, from his call to the bar in the U.K. in 1971 to his work as assistant re- corder and then recorder in 1986, to being made a QC in 1996. His areas of specializa- tion had included financial, regulatory and asset forfei- ture cases, as well as other criminal matters. Cayman had benefited significantly from his background, she said. As an acting judge in Cayman since 2013, he had sat largely in the criminal division of the Grand Court, but also presided in the civil and family divisions. Ms. Richards thanked him for his calm courtesy and the care with which he addressed each matter before him. Attorney Ben Tonner spoke on behalf of the private bar, with attorney Alice Carver seconding his remarks. Mr. Tonner said he had spoken with his colleagues about Justice Malcolm as a tribunal and all had agreed he was knowledgeable in law, informed in facts and even-handed in his de- cision making. He said Cayman had been fairly lucky in the succes- sion of judges coming here on a temporary or acting basis. He hoped that steady stream of expertise would continue, “but it’s always a shame to lose a good one,” he commented. “Thank you for all you have done in private practise and on the bench.” Justice Malcolm thanked everyone for their kind and flattering remarks. He also thanked everyone for coming out “in the mon- soon” so late on a Friday when they could be elsewhere. He said he felt lucky to have practiced here and then to have sat on the bench. He referred to his first trial in Cayman as an advocate; he recited details of the case and recalled that Ms. Rich- ards had been the prosecutor, but he chided himself for not remembering in which court- room the trial had been held. He thanked everyone in the justice system who had been so helpful and made him feel welcome, including the court staff and mar- shals. He made special men- tion of the court reporters: “It requires only one glance to stop me in my tracks and slow down,” he said. Justice Malcolm thanked the people working in admin- istration and singled out Su- zanne Livingston, personal assistant to Justice Charles Quin, saying she kept the system working smoothly. He joked that one of Ms. Liv- ingston’s last acts on his be- half was to smuggle his wife into the courtroom so that she could witness the farewell session. He said they will miss Cayman and would not be able to come from the U.K. as often as in the past, “but it will be on our itin- erary,” he promised. Justice Alastair Malcolm and his wife, Anne, are flanked by attorneys from the public and private sectors after the late court session on Friday. - PHOTO: CAROL WINKERDISTRICT DAYS 6 District Days Sister Islands WEDNESDAY NOVEMBER 1, 2017 • CAYMAN COMPASS Brac seniors enjoy island tour JEWEL LEVY jlevy@pinnaclemedialtd.com Cayman Brac seniors en- joyed two island tours and a gala as a part of celebra- tions for October’s Older Persons Month. They visited a goat farm and Cayman Brac Power and Light Company as part of the tour, which was or- ganized by the Brac De- partment of Children and Family Services. The first stop was a goat farm on the Bluff where the visitors met manager Brian Payne, who shared informa- tion about the farm. Some seniors watched as the baby goats were bottle fed. The group then stopped by the lighthouse on the Bluff where they walked around and took pictures. Those too frail to make it to the edge observed the scenery and birds from a distance. “Many seniors reminisced about climbing the Bluff years ago and walking five or six miles to get to the lighthouse, some- times just to sit and have a picnic,” Annie-Rose Scott, a member of the Brac Depart- ment of Children and Family Services, said. The trip also included stops at the Sports Com- plex, the Mosquito Re- search and Control Unit, the power plant, Agriculture Grounds, Christopher Co- lumbus Park, government af- fordable homes, numerous new roads, and also homes of family members which were built after Hurricane Paloma. They also enjoyed a bingo night and a visit with Brac District Commis- sioner Ernie Scott. “It was a very joyous time, singing along the way with our musician, Conrad Martin, to various sites is- landwide,” said Ms. Scott. Special needs seniors got special care. “Even though they were unable to exit the van, they were thrilled to visit and see the goat farm and lighthouse,” Ms. Scott said. Seniors also enjoyed lunches at Paradise Delight, West End, Asian House Res- taurant and Brac Reef. Brac seniors also made the trip to Grand Cayman to attend the Children and Family Services Gala at the Westin. At the gala, Ms. Scott was honored for outstanding contribution to Cayman Brac and Little Cayman commu- nities and to Older Persons Month. Lurlie Scott, Older Persons Month ambassador, received $3,500 on behalf of Brac seniors from Cayman National Bank toward ac- tivities on Cayman Brac and Little Cayman. The Brac’s Older Per- sons Month culminated with a church service at Little Cayman Baptist church. Ms. Scott highlighted the theme: “Take a Stand Against Ageism.” At the service, fruit baskets were given to the eldest male and female, Bruce Eldemire, 80, and Pamela Rockette, 79. FAITH HOSPITAL STAFF TRAINED IN FIRE SAFETY Thirteen staff members at Cayman Brac’s Faith Hos- pital have been trained in the Health Services Authority’s Fire Marshal Program. The new fire marshals will be responsible for evacu- ations and fire safety checks at the hospital. Brac fire marshal Melissa Ritch said the program was “very beneficial to Faith Hos- pital as it improves the safety of staff members, patients and the premises.” Debra Gaffigan, the HSA’s occupational health and safety manager, said the Fire Marshal Program has pro- vided the organization with valuable and timely informa- tion gathered from fire risk assessments performed by the marshals. “There are currently 94 fire marshals at the HSA. Each of these employees volunteered to be part of the program and they dedicatedly continue to perform their daily and monthly marshal duties on a voluntary basis,” she said. She added that the Fire Marshal Program aim is to have the right people in the right place at the right time. “Having these well- trained and committed em- ployees operating as marshals throughout the HSA promotes a culture of safety and creates a safer environment for our valued patients, employees and visitors,” she said. Since the start of the year, the 13 staff members of Faith Hospital have completed the United Kingdom-accredited Basic Fire Safety Awareness and Fire Marshal courses, launched by the Health Ser- vices Authority in 2016. Meanwhile, in Grand Cayman 38 staff were trained this year, bringing the total com- plement of employees oper- ating as fire marshals across the HSA to 94. A graduation ceremony was held recently at the Cayman Islands Hospital, where the new batch of mar- shals were presented with badges and certificates. 50 YEARS AGO: British MP calls Cayman ‘Slum Islands’ In the Nov. 1, 1967 edi- tion of the Caymanian Weekly, a precursor of the Cayman Compass, the fol- lowing story, titled: “Cay- mans called ‘Slum Islands’ by British M.P. on U.S. television,” appeared on the front page: “It has come to our knowledge that on Oct. 6, over the NBC TV network in the USA on the pro- gramme titled “The Today Show,” a statement very determinantal to these is- lands and our tourist in- dustry was made. “Maurice Edelman, a British M.P. who, with his wife and Mr. D. Dodds- Parker visited here Sep- tember, 1965, as special representatives of the Sec- retary of State, was being interviewed about his novel ‘Shark Island’ while in the U.S. on business for the Council of Europe. The novel uses these is- lands as its background, but, being fiction, does not pretend to set out facts about the islands. “The offensive part of the telecast, and we quote from a transcript received from NBC, is as follows: “‘I was sent out to the Caribbean a few years ago by our Colonial Secre- tary to look into the con- stitution of some of the tiny islands, the Cayman Islands and the little locked grouped of islands called the Turks and Ca- icos off the tip of the Ba- hamas, and what shocked me there was this great di- lemma of our times. Here you had a couple of is- lands with beautiful cli- mate, but they were really islands on the dole, they were called slum islands. There were entrepreneurs, speculators who wanted to move in there, get conces- sions, put up casinos and yet the indigenous people, they just wanted to live their quiet, happy life, and they didn’t want progress in that particular form.’ “It is true that we have flatly rejected having gam- bling casinos, but by no stretching of the imagina- tion could anyone say the Cayman Islands are ‘on the dole.’ It is our proud boast that we have never been grant-aided, and to call us ‘slum islands’ is literally preposterous. Compared with Britain and the USA, we have no slums here. “Asked about this, His Honour the Administrator said that the matter had come to his notice through Mr. Anton Foster’s nephew in the U.S., who had seen the telecast and was highly incensed by it. His Honour has sent a strong protest to the Secretary in this matter. “No doubt, Mr. Edel- man’s fertile mind will find some excuse, but we think such damaging propa- ganda is inexcusable.” Faith Hospital welcomes its first team of fire marshals. Lurlie Scott receives a donation of $3,500 from Cayman National Bank manager Zanda McLean, on behalf of the Brac seniors.The seniors meet some friendly goats at the goat farm. The new fire marshals will be responsible for evacuations and fire safety checks at the hospital.The islands’ most-trusted news source 7 CAYMAN COMPASS • WEDNESDAY NOVEMBER 1, 2017 US prosecutors approve sale of Webb’s Georgia mansion BRENT FULLER bfuller@pinnaclemedialtd.com American prosecutors agreed to accept cash from the sale of FIFA defendant Jeffrey Webb’s home in Lo- ganville, Georgia, rather than seizing the property it- self, according to records filed with a Brooklyn-area court Monday. The property, which Webb bought in June 2011 for US$590,000 from a construction company that purchased the home while it was in foreclo- sure, was sold on June 28, 2017 for US$1.5 million, ac- cording to Rockdale County, Georgia tax records. According to a court- approved stipulation and order signed June 27, which was made public this week, Webb’s wife, Kendra Gamble- Webb, who co-owned the property, had consented to a judicial forfeiture of the home in late 2016, about a year after Webb pleaded guilty to seven counts in a racketeering indictment filed against him in connection with the ongoing bribery scandal that rocked world football’s governing body. As part of the guilty plea, Jeffrey Webb agreed to for- feit a total of US$6.7 mil- lion in cash assets and prop- erty, which included the Loganville home. The district court in the Eastern District of New York made a preliminary forfeiture order for the property on Dec. 2, 2016. However, before the final forfeiture was effected, the Webbs entered a contract to sell the property, court records state. According to the stipula- tion documents, Acting U.S. Attorney for the Eastern Dis- trict of New York Bridget Rhode said the government would accept cash from the home’s sale in lieu of the property itself. “Provided, however, that all proceeds of the sale of the property shall be paid directly [to] the U.S. Mar- shals Service at closing,” Ms. Rhode wrote, adding that government represen- tatives would attend the closing to ensure payment is received. The U.S. Mar- shals were authorized to hold the funds from the sale as a substitute for the prop- erty “until further order of the court.” Court records further in- dicated that US$1.43 mil- lion had been deposited into the U.S. government’s Seized Asset Deposit Fund as of June 30, 2017. The three-story Logan- ville mansion formerly owned by the Webbs was valued at US$931,000 in 2015 and is located in the small town east of Atlanta, Georgia. A swimming pool was built on the property with the proceeds of bribes funneled through several in- ternational bank accounts, front companies and inter- mediaries, U.S. federal pros- ecutors have alleged. The 9,851-square-foot home, which is listed as having six bedrooms and eight bathrooms, was one of several properties Webb owned in the state of Georgia that were poten- tially subject to asset forfei- ture proceedings. Jeffrey Webb’s former house at 2116 Adel Drive, Loganville, Georgia. – PHOTO BY KEVIN D. LILES/KEVINDLILES.COM and several” liable, along with co-defendants in the FIFA case for US$3 million in restitution. Attorneys for world foot- ball’s Central/North Amer- ican and Caribbean region asked the U.S. court to order Takkas to pay US$3 mil- lion to the Caribbean Foot- ball Union in recompense for bribe money ultimately given to Cayman’s Jeffrey Webb. Webb is due to be sen- tenced for his role in the FIFA racketeering scheme in January 2018. It was revealed in court records, including the 2015 indictments against Webb, Takkas and other FIFA de- fendants, that two sports marketing companies ar- ranged to pay Webb US$3 million in bribes to secure marketing rights to World Cup qualifying matches in the Caribbean and Central American region. Although only US$1.75 million of that amount was ever paid, the court alleges that Takkas was involved in laundering all of the money that was paid in bribes. Caribbean Football Union officials argue that because the two sports marketing companies involved were “willing to pay CFU at least US$3 million more for its media and marketing rights in an honest transaction,” the union believes Takkas’s ac- tions “harmed CFU in at least that amount” and that he should be ordered to pay at least that much in restitution. Joint and several lia- bility rules vary from state to state in the U.S., but gener- ally they make the obligation to repay a claim the respon- sibility of all defendants in- volved in a case. According to court re- cords issued Tuesday after- noon, Takkas would be re- quired to pay restitution at a rate of US$500 per month during the year period of su- pervised release. The Associated Press contributed reporting. FIFA defendant Takkas gets 15-month sentence All other charges filed against Takkas in a November 2015 federal court indictment were dropped as part of the deal reached with prosecutors to obtain his guilty plea. CONTINUED FROM PAGE 1 Conch, whelk season opens in Cayman waters Conch and whelk season opens Nov. 1 in the Cayman Islands. Those interested in fishing these marine gastro- pods should adhere to legal limits to avoid poaching, the Department of Envi- ronment advised. Lobster season remains closed until Dec. 1. Queen conch and certain species of whelk can legally be taken from Cayman Is- lands waters from Nov. 1 to April 30 within legal limits. Daily conch fishing is lim- ited to five per person or 10 per boat, depending on which is fewer. No more than five conch from the Cayman Islands can be purchased, received, sold or possessed in a day. Whelk is limited to two- and-a-half gallons in the shell or two-and-a-half pounds of processed whelks per person, per day. No one may purchase or re- ceive more than this limit of processed whelks from Cayman in a day. Chitons, periwinkles and bleeding teeth whelks may not be taken. Echinoderms, including starfish, sea eggs and urchins, sea cucumbers and sand dollars are never permitted for removal from Cayman waters. DoE Senior Research Of- ficer John Bothwell said the open season for conch and whelk is aimed at providing a chance for recreational and sustainable harvest. “Our goal is a sustain- able, recreational fishery for both of these species, not just this November, but for many years in the future as well,” Mr. Bothwell said. “Don’t buy conch or whelk from people who are over the limit during the open season. And remember that lobster season is still closed. Poaching is a crime and should be reported to authorities.” Suspected poaching of conch, whelk or lobster can be reported by calling 911 or contacting the DoE at 916-4271 in Grand Cayman, 926-0136 in Cayman Brac and 916-7021 in Little Cayman. As part of the guilty plea, Jeffrey Webb agreed to forfeit a total of US$6.7 million in cash assets and property, which included the Loganville home.The islands’ most-trusted news source 8 WEDNESDAY NOVEMBER 1, 2017 • CAYMAN COMPASS Plaza Venezia, North Sound Road, GT LUNCH SPECIAL EVERYDAY MON-SAT: 11:30-4PM DIM SUM SUNDAY 11AM-3PM OPEN FOR DINNER Delivery After 5PM MON THUR: 5pm - 9:30pm • FRI SUN: 5pm - 10pm 945-3490 chinavillage@candw.ky be collected from individuals awaiting word on permanent residence applications or work permit appeals, those who are on what’s known as “per- mission to continue working” status. In the 2015/16 budget, about $4.4 million was col- lected in those fees. Since June, hundreds of permanent residence applica- tions from non-Caymanians who have been working in the jurisdiction for more than eight years have been approved, as immigration officials have made a concerted effort to hear those cases following a two-and-a-half year delay. Through early Oc- tober, 243 people have been granted the right to reside in Cayman for the rest of their lives. However, more than 800 people were still on the “waiting list” for those ap- plications at the time. Gov- ernment’s budget figures clearly anticipate a signifi- cant increase in the number of people paying yearly residency fees. Those fees, based on the annual cost of the person’s work permit, are not charged to people who obtain perma- nent residence through mar- riage to a Caymanian. There are a litany of other immigration-related permit fees collected by the govern- ment each year, according to budget records. For the 2018 and 2019 budgets, these include: ■■ More than $1.1 mil- lion collected in Cay- manian status fees ■■ Approximately $650,000 collected from non-Cay- manian individuals who are permitted to work in the special economic zone, Cayman Enterprise City ■■ $1.2 million in fines the Immigration Depart- ment expects it will col- lect for various immigra- tion-related violations during 2018 and 2019 ■■ $2.6 million in residency certificates for “persons of independent means” ■■ $700,000 from individ- uals applying for and receiving naturalization status as British Over- seas Territories citizens ■■ $3.3 million in non- refundable repatria- tion fees employers pay to send workers back to their home jurisdic- tions following the ex- piry of work permits. Long debate The debate over whether Cayman’s government has be- come overly dependent on im- migration-related fees to keep functioning has been raging for more than a decade. Typically, the immigration fees are the third-largest rev- enue item in the annual budget behind import duties and fees charged to financial services- related businesses. If the government puts a Caymanian in a job held by a work permit-holder, the ar- gument goes, it loses the an- nual fee associated with that job. Similarly, once a perma- nent resident non-Caymanian receives Caymanian status (an immigration designation akin to local citizenship), they no longer must pay the annual fees for their job. Premier Alden McLaughlin has said that creating a gen- erally stronger economy will create more jobs for ev- eryone, both Caymanians and non-Caymanians. During his budget policy address last week, the premier urged Cay- manian workers to branch out into trades and vocational fields, as well as the more tra- ditional banking and financial services industries. “It is important to under- stand that there are many good, well-paying jobs available in the vocational trades in this country,” Mr. McLaughlin said. “As an example, as of June 2017 there were about 2,800 work permits held by people in voca- tional trades such as air condi- tioning technicians, dental and lab technicians, personal assis- tants and secretaries.” There are another 3,400 jobs now held by work-per- mitted non-Caymanians for mechanics, electricians, car- penters, masons, painters and plumbers. In addition, he said, the hospitality and health- care sectors are offering many opportunities. Deputy Opposition Leader Alva Suckoo said Tuesday that while the premier is touting opportunities for Caymanians, his government’s financial planning appears to indicate government is planning for another influx of work permit holders and larger num- bers of permanent resident non-Caymanians. Mr. Suckoo said opposition members’ research indicated that government planned to introduce “another 2,000 new work permits” in the 2018/19 budget cycle. “If you’re creating 1,900 new jobs, but your policies are creating 2,000 new work per- mits … where are the jobs for Caymanians?” Mr. Suckoo said. “It boils down to the govern- ment’s intention to rapidly in- crease the population. Clearly, our tax base is based upon consumption … but we’re growing that at the expense of Caymanians.” “No, sir,” Mr. Walcolm replied. They agreed that the situation put the court – and the police – in a diffi- cult position. The magistrate won- dered whether users of medical ganja should be re- quired to carry an ID card specifically saying they had a prescription. He questioned what the legal limit for ganja would be for someone driving. Mr. Walcolm suggested there could be implications affecting all of society. The magistrate won- dered if an added “marker” could be mandated for medical ganja. In that sit- uation, if a test showed the presence of the marker substance it would mean it was medical ganja. “Sorry to use you as a guinea pig,” the magistrate told the defendant, “but you can understand the court’s concern.” Typically, first-time ganja offenders are mon- itored over a period of time and may have no conviction recorded if they stay clean. The magistrate said he normally would have put the young man, now 19, on probation for a year, with random testing. He could not do that however, be- cause the defendant would be testing positive from the prescribed ganja. His task was made easier, he indicated, because the defendant did test clean before he produced the pre- scription. Also, his pre-sen- tence report was excellent and he wanted to pursue further education. The magistrate fi- nalized the case by im- posing a costs order for $200 to cover costs of the drug tests. Ganja user brings prescription to court Gov’t eyes $209M in immigration revenues CONTINUED FROM PAGE 1 The magistrate wondered if an added “marker” could be mandated for medical ganja. CONTINUED FROM PAGE 1 Large reduction in John Gray student suspensions JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Student behavior prob- lems that once blighted life on the John Gray High School campus appear to be de- creasing, according to statis- tics from the school. The total number of school days lost to exclusions is down from 1,083 in the 2014/15 academic year to 428 in the last school year. The number of exclusion incidents is also down from 319 to 200 over the same time period. Students are typically ex- cluded from school for any- thing from a day to a week as a disciplinary measure for a variety of serious offenses, ranging from assault on an- other student, verbal abuse of an adult, or incidents in- volving alcohol or drugs. Problems with student be- havior were highlighted in a 2012 consultant’s report, which suggested staff were essentially “firefighting.” The report indicated a small mi- nority of students influenced by “criminal intent and drug abuse” were having a dispro- portionate effect throughout the school, allowing other stu- dents to exploit the “sense of crisis” and disrupt learning. School principal Jon Clark, who arrived in February 2016, said things were improving dramatically. He insisted the school was not taking a more lenient approach and that the figures represented a clear and genuine improvement in student behavior. “We have had less se- rious incidents and less days lost to suspension in total,” he said. Armed police were called to the school in September after a fight ended up with one boy suffering a head injury and three students being excluded. Mr. Clark said such in- cidents still occurred oc- casionally but were in- creasingly rare. “You will never avoid it completely,” he said. “There are certain inci- dents that are non-negotiable and the students involved were excluded. The important thing is that when they come back we do the proper restor- ative work and help ensure it doesn’t happen again.” In this case, he said, the boys involved in the fight were brought into school with their parents and staff helped mediate a truce. He said addressing the root cause of conflicts like this had helped keep recur- ring incidents down. He also credited the Pos- itive Behavior Intervention System with impacting the school climate. The system has involved establishing a leadership team at the school, a cross- section of cleaners, bus drivers, security staff and teachers, who are respon- sible for encouraging and re- warding good behavior. He also seeks marginal gains through seemingly small changes. Senior staff greet the children off the bus every morning. Data analysts look at the times and loca- tions of offenses to find and address patterns driving bad behavior. School report cards now carry a grade for “Atti- tude to learning.” “I think these small things can add up to a big differ- ence,” he said. “We have 1,060 kids on site. There are always going to be confronta- tions, [but] the majority are solved peacefully.” YEAR NO. OF EXCLUSION INCIDENTS NO. OF DAYS LOST TO EXCLUSIONS 2014/153191,083.5 2015/16250624.5 2016/17200428.5 Premier Alden McLaughlin delivers the 2018/19 budget speech on Friday. - PHOTO: ALVARO SEREYThe islands’ most-trusted news source 9 CAYMAN COMPASS • WEDNESDAY NOVEMBER 1, 2017 FEMA: $200 million/day for disaster relief FEMA head Brock Long says the U.S. is spending more than $200 million each day on the response to hurricanes and wildfires. He told a Senate oversight committee Tuesday the challenge presented by hurricanes Irma, Harvey and Maria is unprecedented in the history of his agency. IN LOVING MEMORY OF OUR MOTHER, GRANDMOTHER, GREAT GRANDMOTHER AND FRIEND CYNTHIA (CHRISTIAN) BERKENBOS Sunrise - January 15, 1915 - Sunset - Nov. 1, 2007 GREAT GRANDMOTHER AND FRIEND You’ve been away for ten long years, yet still we see your face, In memories that come with tears, and time cannot erase. We’ll never ll this empty void that came when you departed. Your earthly home and left us all, so sad and broken hearted. We all sometimes still reminisce on things we used to do, And hope you know just how much we all loved and worshipped you. One day we hope to see your face, smiling and full of love, But until then we know you’re safe with God our Father now. So live in peace in Heaven where no more pain you will bear, And we will try to follow God and someday meet you there. So sadly missed but in our hearts always and forever. Your children, Eugene, Dudley, Clive, Barbara, Molly and Marion, sons and daughters in law, Grand Children and Great Grandchildren Rest in peace forever in God’s loving care With first charges, Mueller sends warning to Trump, aides WASHINGTON (AP) – Special counsel Robert Mueller has sent a warning to individuals in President Donald Trump’s orbit: If they lie about con- tacts between the president’s campaign and Russians, they will end up on the wrong end of federal criminal charges. With the disclosure of the first criminal cases in his investigation, Mueller also showed that he will not hesi- tate to bring charges against people close to the campaign even if they do not specifi- cally pertain to Russian elec- tion interference and pos- sible collusion with the Trump campaign. Court papers unsealed Monday revealed an indict- ment against Trump’s former campaign chairman, Paul Manafort, and a guilty plea by another adviser, who ad- mitted to lying to the FBI about meetings with Russian intermediaries. Perhaps more unsettling for the White House, the plea by George Papadopoulos came weeks ago and his ini- tial arrest has been kept quiet for months, all while he has been cooperating with federal agents. The charges had been sealed specifi- cally to keep the news of his guilty plea from discouraging others from cooperating with the special counsel or from destroying evidence. At Papadopoulos’ plea hearing earlier this month, one of Mueller’s prosecu- tors, Aaron Zelinsky, hinted at the possibility of more to come. The Mueller probe is “a large-scale ongoing inves- tigation of which this case is a small part,” Zelinsky said, according to a transcript un- sealed Monday. The developments, in- cluding the unexpected un- sealing of a guilty plea, usher Mueller’s investigation into a new, more serious phase. And the revelations in the guilty plea about an adviser’s Rus- sian contacts could compli- cate the president’s asser- tions that his campaign had never coordinated with the Russian government to tip the 2016 presidential election in his favor, the central issue behind Mueller’s mandate. The Kremlin denied Russia is implicated by the first criminal cases against associates of President Donald Trump. Kremlin spokesman Dmitry Peskov says that con- nections between Papado- poulos and a man he believed to have links to the Russian Foreign Ministry did not prove any complicity by the Russian government. “So far Russia doesn’t figure in any way in these charges which have been made,” he said. Peskov added that accusations of Russian meddling in the election re- main “unfounded.” Manafort, who steered Trump’s campaign for much of last year, and business as- sociate Rick Gates ended the day under house arrest on charges that they fun- neled payments through for- eign companies and bank accounts as part of their po- litical work in Ukraine. Papadopoulos, also a former campaign adviser, faced further questioning and then sentencing in the first – and so far only – crim- inal case that links the Trump election effort to the Kremlin. Manafort and Gates, who pleaded not guilty in fed- eral court, are not charged with any wrongdoing as part of the Trump campaign, and the president imme- diately sought to distance himself from the allega- tions. He said on Twitter that the alleged crimes occurred “years ago,” and he insisted anew there was “NO COL- LUSION” between his cam- paign and Russia. But potentially more per- ilous for the president was the guilty plea by former adviser Papadopoulos, who admitted in newly un- sealed court papers that he was told in April 2016 that the Russians had “dirt” on Democratic rival Clinton in the form of “thousands of emails,” well before it be- came public that the Demo- cratic National Committee and Clinton campaign chairman John Podesta’s emails had been hacked. Papadopoulos was not charged with having im- proper communications with Russians but rather with lying to FBI agents when asked about the contacts, suggesting that Mueller – who was appointed in May to lead the Justice Department’s investigation – is prepared to indict for false statements even if the underlying con- duct he uncovers might not necessarily be criminal. Mueller’s investigation has already shadowed the administration for months, with investigators reaching into the White House to de- mand access to documents and interviews with key cur- rent and former officials. The Papadopoulos plea occurred on Oct. 5 but was not unsealed until Monday, creating further woes for an administration that had pre- pared over the weekend to deflect the Manafort allega- tions. In court papers, Pa- padopoulos admitted lying to FBI agents about the na- ture of his interactions with “foreign nationals” who he thought had close connec- tions to senior Russian gov- ernment officials. The court filings do not say whom Papadopoulos may have told about the Rus- sian claims about possessing emails damaging to Clinton. According to a previous filing in the case, Papadopoulos told the FBI that he did not tell anyone in the Trump campaign about the “dirt” on Clinton because he didn’t know if it “was real or fake.” Previous emails obtained by The Associated Press show Papadopoulos discussing his attempts to line up a meeting between Trump and the Rus- sian government. The emails showed that Manafort and Gates, who were top officials in the campaign at the time, rebuffed those efforts. Papadopoulos has been cooperating with investiga- tors, according to the court papers. His lawyers hinted strongly in a statement Monday that their client has more testimony to provide. There, too, the White House scrambled to contain the potential fallout, with press secretary Sarah Huck- abee Sanders contending that Papadopoulos’ role in the campaign was “extremely limited.” She said “any ac- tions that he took would have been on his own.” Paul Manafort, President Donald Trump’s former campaign chairman, departs the Federal District Court in Washington. Manafort and former business associate Rick Gates surrendered to federal authorities Monday. – PHOTO: AP 8 dead, others hurt after motorist drives onto New York bike path NEW YORK (AP) – A man in a rented truck drove onto a busy bicycle path near the World Trade Center memo- rial Tuesday, killing at least eight people and injuring several others, police said. The driver was then shot by police after jumping out with what turned out to be two fake guns. A police official said the attack was being investigated as a possible act of terrorism. The official was not autho- rized to discuss the investi- gation and spoke on condi- tion of anonymity. The attacker was taken into custody. His con- dition was not immedi- ately disclosed. Police said the vehicle, a rented Home Depot truck, en- tered the bike path on West Street a few blocks from the World Trade Center memorial and struck at least 15 people, leaving mangled bicycles be- hind. At least two bodies could be seen lying on the path beneath tarps. A man who was riding in an Uber along the West Side Highway near Cham- bers Street said he saw sev- eral bleeding people on the ground after the truck struck several people. Another wit- ness said the truck had also collided with a small bus and one other vehicle. Tom Gay, a school photog- rapher, was on Warren Street and heard people saying there was an accident. He went down to West Street and a woman came around the corner shouting, “He has a gun! He has a gun!” Gay said he stuck his head around the corner and saw a slender man in a blue track suit running southbound on West Street holding a gun. He said there was a heavyset man pursuing him. He said he heard five or six shots and the man in the tracksuit fell to the ground, gun still raised in the air. He said a man came over and kicked the gun out of his hand. Uber driver Chen Yi said he saw a truck plow into people on a popular bike path adjacent to the West Side Highway. He said he then heard seven to eight shots and then police pointing a gun at a man kneeling on the pavement. “I saw a lot of blood over there. A lot of people on the ground,” Yi said. Bicycles and debris lie on a bike path near West and Houston Streets in Manhattan, New York, Tuesday. At least eight people were killed after a truck drove onto a bike path, striking bicycles and pedestrians. - PHOTO: APNext >