High of 85 Low of 74 Slight with wave heights of 1 to 3 feet. EDITORIAL | PAGE 4 THE FOI REGIME: ADDRESS THE MESS LOCAL | PAGE 6 FASHION SHOW SUPPORTS BIG BROTHERS, BIG SISTERS ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – MONDAY DECEMBER 10, 2018 $ 399 MEALDEALS MONDAY - SATURDAY 9pcs MIXED , 2 Sides & 5 BISCUITS NEW FAMILY SUNDAY Bikers rev up for toy run MARK MUCKENFUSS mmuckenfuss@pinnaclemedialtd.com The rattling blat-blat-blat of motorcycle engines shook the air inside Margarita- ville’s open lobby on Sunday morning like a portable thunderstorm. Not exactly sleigh bells, but the 60 bikes roaring out of the hotel and across the is- land were there to bring Christmas cheer – never mind the skull scarves a couple of riders wore over their faces. After all, Santa was bringing up the rear, waving and hol- lering, “Ho, ho, ho!” from the back seat of the reindeer-festooned Suzuki Boulevard 800 that was last in the string of bikes. This is the 16th year that Keith and Casey Keller have organized the ride to coin- cide with the Toys for Tots drive they run on the island. Mr. Keller owns Cayman Custom Cycles. The couple also organizes an annual fundraiser for the Cayman food bank. This year’s Toys for Tots turnout was up from the 50 riders that took part last year, Ms. Keller said. Donations are up as well. Bins by the hotel’s Christmas tree were filled with toys, but the organization also collects at other locations in the days leading up to the ride. “We collected more toys at Cost-U-Less than ever,” she said, busily signing up late arrivals just before the ride got started. “We always get well over 1,000 toys, and it may be more this year.” More cash contributions have also come in, although she did not have an estimate on the amount. “We’ll have a lot of money to go shop- ping afterwards,” she said. GOVERNMENT PROPOSES SUBSTANCE TESTS FOR OFFSHORE BUSINESSES MICHAEL KLEIN mklein@pinnaclemedialtd.com Government has released draft legislation that will have far-reaching consequences for parts of the offshore finance industry in the Cayman Islands. The bills, developed after consultation with Cayman’s financial services industry and reg- ulators, the OECD and the European Union, require certain Cayman-registered companies to meet new economic substance standards. For a business to qualify as tax resident in Cayman, entities must have substantial busi- ness activity locally; for example, in terms of staffed offices and management decisions made on island. The new legislation comes in response to the threat of a blacklisting by the European Union as part of the EU’s process of assessing whether countries are deemed cooperative or uncooperative in tax matters. According to the EU Council, Cayman has fallen foul of a fair tax criterion aimed at tax regimes that facili- tate offshore structures which attract profits without real economic activity. SECOND HELICOPTER APPROVED FOR RCIPS New helicopter to cost US$11 million The Royal Cayman Islands Police Service is doubling its air force. With the help of the U.K. government, the agency is purchasing a second helicopter. It is expected to be in use by mid- to late 2019. Officials said the new chopper will boost Cayman’s capability in the areas of search and rescue, law enforcement and border protection operations. The aircraft will also be used to respond to disasters and other emergency sit- uations in the other U.K. Caribbean Overseas Territories. The new H145 helicopter is manufactured by Airbus, as was the EC135 model which the RCIPS has been using since March 2010. Unlike the current helicopter, the new one is equipped with a winch capability that can be used in rescue operations. It also has a search and radar system. The U.K.’s Conflict, Stability and Security Fund will pick up 25 percent of the US$11 million cost, PLEASE TURN TO PAGE 5 » Santa brings up the rear of the motorcycle ride raising funds for Toys for Tots on Sunday. - PHOTO: TANEOS RAMSAY PLEASE TURN TO PAGE 7 » PLEASE TURN TO PAGE 7 »2 LOCAL NEWS MONDAY DECEMBER 10, 2018 • CAYMAN COMPASS • Matinees Daily (matinee price before 6pm) • Seniors $8.00, Mon-Fri Before 6pm • Additional charges apply per 3D/VIP tickets Cayman Cinema@cbcinema6cbcinema6 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 - 640-FILM (640-3456) ELLIOT THE LITTLEST REINDEER (PG) 12:40 I 3:05 I 5:25 I 7:45 ROBIN HOOD (PG13) 12:45 VIP I 4:20 I 7:00 VIP I 10:00 CREED II (PG13) 1:00 I 4:00 VIP I 7:20 I 9:40 VIP THE GRINCH (PG) 12:15 I 2:30 I 4:45 I 7:00 INSTANT FAMILY (PG13) 1:15 I 4:10 I 7:10 I 9:50 THE POSSESSION OF HANNAH GRACE (R) 9:15 I 10:15 RALPH BREAKS THE INTERNET (PG) 1:35 I 4:10 3D I 6:45 3D I 9:30 Premier hosts London dinner Past and present gover- nors of the Cayman Islands attended a dinner hosted by Premier Alden McLaughlin in London last week. Mr. McLaughlin, who was in London with a Cayman delegation to attend Joint Ministerial Committee meet- ings, hosted the annual Pre- mier’s Dinner for more than 200 friends and associates at the Institute of Direc- tors in Pall Mall in central London Thursday. Former governors Bruce Dinwiddy, John Owen and Duncan Taylor, along with the current governor Martyn Roper, were at the dinner, as were Cayman All-Party Par- liamentary Group members Lord Naseby, Sir Graham Brady and others, as well as Minister for the Over- seas Territories, Lord Ahmad of Wimbledon. According to a press re- lease, the event is an op- portunity to network and thank business and po- litical partners, associ- ates and friends who have taken an interest in, or have worked with, the Cayman Is- lands government in the U.K. throughout the year. “It is also a valuable op- portunity for the Premier to update an engaged audience about the current state of af- fairs in the Cayman Islands and the recent JMC meetings with the U.K. Government,” the release continued. Mr. McLaughlin said the reception and dinner was the largest Cayman had hosted in London, “with a turnout of 215 people.” “We are delighted to have been able to share Cayman news and update our friends and associates. The dinner also serves as a vital time to thank and keep close ties with political and business partners,” he said. Members of Friends of Cayman and the Nth Degree dining club also attended, as well as people from cultural partnerships, Caymanians living in the U.K and Cay- manian students studying in the U.K. who are members of the Cayman Connection UK network. 16 shih tzu dogs removed from home The Department of Ag- riculture removed 16 shih tzu dogs, aged between one and three years old, from a home in George Town. The animals were re- moved from their owners’ home as part of a joint in- vestigation between the DOA, the Department of Children and Family Ser- vices and the Department of Environmental Health. “After being made aware of the very unsatisfactory welfare and sanitary condi- tions in which the animals were being kept, the owners agreed to voluntarily sur- render the animals, [which] were all examined by a vet- erinarian and appeared to be well fed but very dirty and smelly as a result of the unsanitary conditions,” the Department of Agricul- ture stated in the release. DOA Director Adrian Es- twick said the living condi- tions in which these animals were found were “untenable.” “We were able to move quickly to remove the ani- mals from the home and are now working with var- ious animal rescue and charity groups in an effort to have as many of the dogs as possible fostered or ad- opted into loving homes,” he said in a statement is- sued Friday afternoon. By Friday evening, fol- lowing social media ap- peals, foster or adoptive homes had been found for all the dogs, according to the Humane Society. One dog was suffering from a chronic eye condi- tion and will need surgery, Mr. Estwick said, “However, we are very pleased to re- port that it has been fos- tered by a local veterinarian who will ensure the animal receives the medical treat- ment and care that it needs.” Mr. Estwick said none of the dogs would be euth- anized, contrary to a What- sApp message that has been circulating suggesting that all would be put down. “I would like to take this op- portunity to thank Must Love Dogs for donating grooming services to the small breed dogs and the Humane So- ciety for its continued part- nership in these types of rescue operations,” he said. The Humane Society is- sued a statement on Face- book saying it had been “over- whelmed by the response to our plea for foster homes for the shih tzus,” adding, “For those who don’t get to foster or adopt one of them, please don’t forget about the 32 dogs surrendered to the DOA on Sept. 7. We took in 15 of them, 7 of them still remain in the shelter and are in need of help …. Please help these guys too! They are as loving as any dog.” National Gallery opens two exhibits Two new exhibits open Tuesday at the National Gal- lery of the Cayman Islands. One looks into Cayman’s past, while the other looks at how young artists in the is- lands are being encouraged to develop their craft.. “The Photographer is Present: Select photographs from the collection of Ella Latter” showcases the work of Cayman’s first professional female photographer. Culled from the National Archive, the rarely seen col- lection spans a range of sub- jects from portraits, land- scapes, architecture and events, illustrating the wide scope of Latter’s interests. These photographs offer valuable, direct insight into Caymanian society in the mid-20th century – from the people and pastimes to na- tional events. Through formal commissioned work and her own personal interests, Ms. Latter documented her small island community and pro- moted the preservation of memory through her de- voted practice. The show was put together by the National Gallery’s as- sistant curator Simon Tatum and runs through Jan. 24. The second exhibit, “Traces: Activating the Art Curriculum,” features new works by government high school art instructors Kerry- Ann Brown, Kerwin Ebanks, Sarah McDougall, Claire Musser, Lorna Reid and June South-Robinson. The show il- lustrates how lesson plans are transformed into in- spiring art projects and runs until Jan. 18. Various concepts and techniques that are intro- duced to students through the art curriculum are dem- onstrated in the artists’ own work, which shows how they have followed instructions set for their students to expand their own personal portfolios. It includes a diverse range of art media and materials such as painting, sculpture, pho- tography, video and more. Supporting events such as lectures and tours are planned during the run of the shows. The gallery is open 10 a.m. to 5 p.m. Monday through Saturday. Admission is free. “We are delighted to have been able to share Cayman news and update our friends and associates. The dinner also serves as a vital time to thank and keep close ties with political and business partners.” PREMIER ALDEN MCLAUGHLIN Premier Alden McLaughlin, center, with Governor Martyn Roper, second from right, and three of Cayman’s former governors, from left, Duncan Taylor, John Owen and Bruce Dinwiddy, This image is among the historical photos taken by Ella Latter featured in a new exhibit at the National Gallery. - PHOTO: COURTESY OF THE CAYMAN ISLANDS NATIONAL ARCHIVES By Friday evening, following social media appeals, foster or adoptive homes had been found for all the dogs, according to the Humane Society. Through formal commissioned work and her own personal interests, Ms. Latter documented her small island community and promoted the preservation of memory through her devoted practice.3 LOCAL NEWS CAYMAN COMPASS • MONDAY DECEMBER 10, 2018 MEDIA LTD. HURLE Y’S CAYMAN’S CULINARY MAGAZINE The tastiest Christmas gift Fill their stockings with Taste of Cayman tickets! january 26, 2019 · festival green · 5pm - 11:45pm EARLY BIRD: $35 VIP EARLY BIRD: $135 CHILD: $20 Early Bird discount available until 23rd December! Send Santa to TasteofCayman.org, or visit Bon Vivant, Blackbeard’s and Big Daddy’s for in-store tickets. For more information visit www.tasteofcayman.org Conviction, sentence upheld in GT ‘execution’ JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Two brothers convicted of killing a gang member in a “chilling public execution” have had their convictions and sentences upheld by the Court of Appeal. Justin Ramoon and Os- bourne Douglas were sen- tenced to 35 and 34 years’ imprisonment, respectively, for the murder of Jason Powery outside the Globe Bar in George Town in July 2015. Attempts to overturn the con- viction and sentence were dismissed by the appeals court in a judgment handed down Friday. The appeals panel agreed that the evidence demon- strated Mr. Ramoon shot Mr. Powery, 20, in the face at close range. Mr. Douglas handed him the firearm before the shooting and then drove him away from the scene. The pair were convicted of the joint enterprise murder after a judge alone trial in front of Justice Charles Quin in 2016. The case hinged on CCTV footage of the brothers’ movements before and after the crime, as well as eyewit- ness evidence. Jerome Hurlston testified that he had seen Mr. Ramoon shoot Mr. Powery. He claimed the gunman then aimed his weapon at him, but it had misfired. Justin Ebanks gave evidence that he saw Douglas hand the gun to his brother immediately before the shooting. Lawyers acting for the killers had sought to ques- tion the credibility of the two witnesses, claiming they were gang members with an ulterior motive for blaming Mr. Ramoon and Mr. Douglas for the crime. This was dismissed by the appeals court, who said the evidence of the two men had been scrutinized by the trial judge and was consistent with the CCTV footage. “In the final analysis, this was a strong case left wholly unanswered by the appel- lants. It is quite impossible to say that these convictions are unsafe or unsatisfactory,” Sir John Goldring, president of the Court of Appeal, wrote in the judgment. Mr. Ramoon and Mr. Douglas also sought to have their sentences reduced. The penalty for murder in the Cayman Islands is life in prison. But the law requires the sentencing judge to im- pose a tariff after which the prisoner becomes eligible for release. The starting point for judges in such cases is 30 years but that can be re- duced or increased depending on the circumstances. In this case, Justice Quin sentenced the brothers to 35 and 34 years, highlighting the possession of the firearm, Mr. Ramoon’s apparent at- tempt to shoot the witness and the general escalation of gun crime in the Cayman Is- lands among a list of aggra- vating factors. “This was a very public execution of the most evil nature and it could be accu- rately described as chillingly clinical in its planning and execution,” the judge wrote in his original sentencing ruling. Lawyers for the brothers argued that the judge had gone too far with this assess- ment, claiming, among other things, that the use of a gun should not be considered an aggravating factor. The appeals court upheld Justice Quin’s original deci- sion, adding that he was en- titled, as an experienced local judge, to make the comments he did about gun crime in the Cayman Islands, without calling evidence to back up this assessment. The judges concurred with Justice Quin’s analysis that there were sufficient ag- gravating circumstances to warrant an increase from the 30-year tariff. The judgment states, “We add this. These appel- lants wore no disguise. They openly had with them a gun. They were not unknown to at least some of those present in the area of the Globe Bar. They plainly did not believe anyone would dare to give evidence against them. That says much about these appel- lants. It also underlines the difficulty of obtaining evi- dence in cases like these.” The brothers were flown to the United Kingdom last year to serve out their sen- tences in a British prison. At the time, the Cayman Islands government issued statements saying the men’s removal, carried out under the 1884 Colonial Prisoners Removal Act, had been au- thorized by the U.K. and Cayman Islands govern- ments “in the interests of na- tional security and public safety for the people of the Cayman Islands.” Attempts to overturn the convictions and sentences of Justin Ramoon and Osbourne Douglas were dismissed by the appeals court in a judgment handed down Friday. In this photo taken in April 2016, Justin Ramoon, front, striped shirt, and Osbourne Douglas, back, step from a prison van outside the Globe Bar in George Town when the Grand Court moved its proceedings to the scene of the crime. - PHOTO: JAMES WHITTAKERThe islands’ most-trusted news source 4 – EDITORIAL – Opinion&Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. PRINTED AND PUBLISHED BY: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town SEND US YOUR VIEWS OR NEWS: P.O. Box 1365 Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com ADVERTISE WITH US: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS DAVID R. LEGGE AND VICKI L. LEGGE EDITOR-IN-CHIEF DAVID R. LEGGE EXECUTIVE EDITOR PATRICK BRENDEL A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will findtheirownway” “Access to government records provides the public with the information they need to participate in the democratic process. An informed electorate is better able to evaluate and monitor public officials and ensure an honest, competent and responsive government. In a democracy, the records belong to the people, and are held in trust for the people by government.” – Your Guide to The Freedom of Information Law 2007 It has been more than a decade since lawmakers passed Cayman’s Freedom of Information Law, enshrining in statute the fundamental right of the people to access the work of government that is being conducted on our behalf. By law, Cayman’s public authorities are required to “open their books” for public inspection unless they can provide a compelling reason not to do so. Last week, Ombudsman Sandy Hermiston upheld a refusal of records on the most unusual grounds: The records are in too big a mess. Last spring, an applicant requested data concerning licensed taxi drivers in Grand Cayman, including their total number, how many are Caymanian-born or are status holders, how many hail from Jamaica, how many are employed by government, etc. The following month, the Ministry of District Admin- istration, Tourism and Transport advised that there are 285 taxis on Grand Cayman but declined to provide any driver information, maintaining that the Public Transpor- tation Unit (PTU) does not keep such statistics. The applicant appealed to the ombudsman’s office, which determined the PTU in fact does have some of the requested information included on drivers’ appli- cations, which are stored in “two four-drawer lateral filing cabinets.” However, the Ministry’s informa- tion manager estimated it would take months for a department employee to review the applications and sift through additional piles of paperwork to compile the necessary information. To prove the point, the manager submitted “photographs of a number of paper records in disarray.” (Let’s pause for a moment and put aside the FOI issue to ask this question: Why are the records in such disarray. Why is this tolerated by any manager in any department – public or private?) The FOI law commands public authorities not only to respond to records requests, but also to proactively publish important public information. A good example is the Department of Environment’s daily progress reports for the green iguana cull. Not only does the DoE publish cull totals, it has made available on its website the names and contact informa- tion of 279 registered cullers – approximately the same number as there are licensed taxis on Grand Cayman. Even though Ombudsman Hermiston rejected the information manager’s assertion that searching the records would require eight solid months of staff time (she figured it would be closer to a month), she agreed that honoring the records request would impose “an unreasonable diversion” of scarce Transportation Unit resources, noting that the ministry has vowed to keep better records moving forward. We are not unsympathetic to the workload the FOI law imposes on our public servants. Like anything else, the law can be overused or abused. On the other hand, it is also being abused by the government itself. Far too often, government managers use the FOI mecha- nism as a tool to delay or deny the release of informa- tion which never should have been secret or seques- tered in the first instance. We believe the government could alleviate much of its FOI backlog, costs and drain on its personnel resources if it adopted a much more transparent, government-in-the-sunshine, open-records approach. Everyone would benefit: Less work for government employees, more timely information for the public. The FOI regime: Address the mess General Motors is grad- ually disappearing – like a block of ice on the hot pave- ment of an August day. Recently, it announced a fifth major round of layoffs in 14 years. Eight thousand salaried and 5,700 produc- tion employees, as it shut- ters plants making the sto- ried Chevrolet Impala and five other sedans and with- draws to mostly specializing in trucks and SUVs. CEO Mary Barra says she wants a more agile com- pany capable of moving aggressively into electric vehicles, hybrids and self- driving platforms. The truth is that Japanese automakers can sell sedans at a profit but GM cannot. Five years ago, sedans were half of U.S. auto sales, but those now capture only about 35 percent. And all the major automakers must grapple with the plateauing of annual U.S. light ve- hicle sales a bit more than 17 million. SUVs are bigger and more expensive, but improvements in the engine and vehicle de- sign have greatly reduced the gas mileage penalty imposed on drivers who choose those over sedans. And vehicles of all kinds are more durable these days. Thanks to advances in metallurgy, fuels and lubri- cants – these industries are more high-tech than most folks recognize – and better design, engines last a lot longer now and run more than 200,000 miles as com- pared to half that a few decades back. Consequently, car buyers are paying for the gas and keeping vehicles longer to compensate for higher SUV price tags. Options like Zipcar and Uber, inexpensively delivered meals and groceries and Am- azon Prime free more young people from the necessity of car ownership. Increasingly, those living in cities and congested close-in suburbs with access to decent public transportation for com- muting are opting to skip car ownership. Still, the battle for the sedan and smaller SUV mar- kets indicates just how vul- nerable GM and Ford remain to more agile foreign com- petitors. Since 2015, sales of Impalas and Fusions are down about 49 per- cent and 45 percent, respec- tively, whereas Toyota Camry and Honda Accord sales are down only 20 percent and 19 percent. Japanese sedans simply deliver more value, reli- ability and verve, and do not think for a moment the problem does not re- peat where car buyers are heading. The three best-selling ve- hicles in America may still be U.S. pickup trucks – the Ford F-150, Chevy Silverado and the Dodge Ram – but those are followed by Jap- anese SUVs – the Nissan Rogue, Toyota RAV4 and the Honda CR-V. Ford and Chrysler al- ready announced they are effectively pulling out of the sedan market and with GM’s exit, Asian automakers and Volkswagen will have a clear path to most of the re- maining 5 million sedans sold here. And those are often the first cars young folks own and a gateway for manufacturers to hawk their SUVs as careers mature and incomes rise. The U.S. tariff on sedans is only 2.5 percent, but SUVs and trucks benefit from a 25 percent levy. When announcing the re- cent jobs cuts, GM carped that the recent steel tariff was costing it about $1 bil- lion, but I did not hear Mrs. Barra offer to give up her truck/SUV tariff if the steel duty was dropped – that is the hypocrisy of Detroit. It’s going to get worse – a lot worse. Mrs. Barra is betting that electric vehicles and au- tonomous drive are coming fast, but GM has been late to the party with just about every major innovation that instigated change in what Americans buy since the 1970s. Chrysler pioneered the minivan and SUV and Honda, Toyota and Nissan contemporary front-wheel drive, hybrid and all-elec- tric vehicles. GM’s primary expertise, like the other American car- makers, is in the internal combustion engine, trans- missions and to some ex- tent the effective use of metals and plastics, aerody- namics and general platform architecture. As Tesla recently demon- strated, the latter are easily copied even by novices, and GM, Ford and Chrysler have to buy knowledge where it counts – electric motors, batteries and var- ious forms of artificial in- telligence software – either through vendors or pricey acquisitions. It is important to re- member that the carriage companies of the 19th cen- tury generally did not be- come the modern auto- makers – those emerged from younger, less hide- bound companies. Google’s Waymo is in- troducing its autonomous drive, ride-hailing service, similar to Uber, in Phoenix, and it has frequently been out in front of established automakers. Peter Morici is an economist and business professor at the University of Maryland, and a national columnist. © 2018, The Washington Times, LLC. MONDAY DECEMBER 10, 2018 • CAYMAN COMPASS The melting away of General Motors Japanese sedans simply deliver more value, reliability and verve, and do not think for a moment the problem does not repeat where car buyers are heading. PETER MORICI5 LOCAL NEWS CAYMAN COMPASS • MONDAY DECEMBER 10, 2018 Prisoners help build new playgrounds in West Bay JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Prisoners are helping to create a new children’s play- ground in West Bay. Area representative McK- eeva Bush, also Speaker of the House, is leading a project to bring two new playgrounds to the area. The first park will open next Saturday and will fea- ture swings and other chil- dren’s play equipment made by inmates at North- ward Prison. Mr. Bush said he had worked with government, the Public Works Department and the prisons department to make the park a reality. He said prisoners had cleared the site, on Ebanks Road, off Watercourse Road, and Public Works Depart- ment staff would be working throughout the week to get the rest of the park finished by opening time. The park will feature a basketball and volleyball court, as well as a rink for roller skates and scooters. Mr. Bush said this and a second park on Velma Banks Drive, off Fountain Road, would provide much needed new facilities for the area. He said the facilities would be open during day- light hours. Dart has pro- vided fencing and some of the equipment, and Digicel has provided free WiFi. Area residents Wave- line Ebanks and Densel Connor allowed the use of the land for the project, and the park will be named the Leo Ebanks Children’s Playground in honor of their relative. Mr. Bush said the idea had come out of discussions with his district council. “The aim is to provide much-needed facilities for all the children in the area,” he said. An official opening will be held at the site on Saturday. NICE PROGRAM CONTINUES THROUGH FRIDAY More than 500 participants cleaning up island Almost all of the 518 people who applied for seasonal work will benefit from the National Commu- nity Enhancement Winter Project, which is currently under way. According to the Public Works Department, 343 have already begun working on the project and, according to current atten- dance rates, 502 applicants are projected to have taken part by the end of the ini- tiative, on Dec. 14. Those accepted into the program get up to three weeks of work. The islandwide beau- tification project, known as NiCE, is designed to provide unemployed or underemployed people with additional funds at Christmastime. NiCE project manager Levi Allen, from the Public Works Department, said this year’s figures are sig- nificantly lower than the number of enrollments on either of the last two Winter initiatives. Last year, 609 people applied for the program. Unemployment for Caymanians stood at 6.2 percent last year. That number has dropped to 5.3 percent. In continuing to add new elements to NiCE, reg- istration organizers in- cluded a presentation on conflict resolution by a Royal Cayman Islands Po- lice Service trainer. During this year’s summer NiCE project, one worker stabbed a fellow worker. As well as clearing beach accesses and doing maintenance and repairs, the work include clearing litter, cutting back over- growth, cleaning up cem- eteries, repainting road markings, tidying road verges and working at the George Town landfill. Workers will be paid before Christmas, ac- cording to the Public Works Department. Those accepted into the program get up to three weeks of work. McKeeva Bush looks on as Public Works Department staff work on the new playground. - PHOTO: JAMES WHITTAKER The first park will open next Saturday and will feature swings and other children’s play equipment made by inmates at Northward Prison. Second helicopter approved for RCIPS with the Cayman Islands Gov- ernment paying the rest. The aircraft can carry up to eight passengers and can perform as an air ambulance for med- ical evacuations and transport. Police officials said the op- eration of two helicopters will provide a year-round 24/7 ca- pability for its aviation unit and the ability to assist other territories in the region in times of crisis and disaster. The details of the pur- chase were announced Friday by Foreign and Common- wealth Office Minister of State for the Overseas Terri- tories, Lord Ahmad of Wim- bledon, and Two new tac- tical flight officers are being recruited from within the RCIPS and an additional pilot will also join the avia- tion team. In addition, one of the existing flight officers will be sent to National He- licopters in Trinidad for a three- to four-year period to train and obtain flying hours in order to become a pilot captain before returning as the first Caymanian heli- copter pilot with the RCIPS. Premier McLaughlin said in a statement, “I’m very happy that we are moving for- ward with a second helicopter and I thank the Governor’s Of- fice for their assistance and the U.K. Government, in par- ticular Lord Tariq Ahmad, for partnering with us. This he- licopter will provide invalu- able support to our newly formed Coast Guard agency and the broader national se- curity agencies. “This addition to our aerial support will also po- sition us as a centre of ex- cellence with capability and capacity in supporting secu- rity, law enforcement, and di- saster response for our Ca- ribbean Overseas Territories.” Governor Martyn Roper described the acquisition of the helicopter as a “proud moment for Cayman.” “The importance of the role played by the Air Opera- tions Unit in the Cayman Is- lands is clear. The ability to provide air cover for RCIPS ground units, to help rescue people at sea and to transport critically ill patients from the Sister Islands is critical to the safety of everyone. The unit also showed its capability and willingness to deploy overseas last year to support relief op- erations following Hurricane Irma. This has been recog- nised and the Unit will now take on a wider regional role.” CONTINUED FROM PAGE 1 The RCIPS plans to add an Airbus H145 helicopter to its arsenal next year.6 LOCAL NEWS Check out these photos and others by visiting caymancompass.com/photogalleries or on facebook.com/caycompass (and don’t forget to tag yourself and your friends!) MONDAY DECEMBER 10, 2018 • CAYMAN COMPASS Designer NKY held its 10/10 Fashion Show Thursday night in Camana Bay to celebrate its 10th an- niversary and to raise funds for Big Brothers, Big Sisters. Global fashion brand BCBGMAXAZRIA, New York-based men’s luxury brand Robert Graham, wom- en’s designer Hale Bob, and California lifestyle brand Trina Turk presented a total of 115 looks from their 2019 Spring Collections. A model wears a Trina Turk design at Thursday’s fashion show.Floral designs were a major feature of the Trina Turk dresses. – PHOTOS: MAGGIE JACKSON Models wearing BCBGMAXAZRIA designs revisit the catwalk.Robert Graham’s bold shirt designs were a hit. Models wearing Hale Bob dresses clap as they walk down the catwalk.A vision in white in BCBGMAXAZRIA. Pilar Bush, chair of the Big Brothers, Big Sisters board, speaks at the fashion show. BCBGMAXAZRIA’s 2019 Spring Collection features a number of sophisticated white designs. Quinntessential Movement take over the catwalk.The islands’ most-trusted news source 7 CAYMAN COMPASS • MONDAY DECEMBER 10, 2018 Fidelity Pension Plan Fidelity Financial Centre on West Bay Road Tuesday, December 11th, 2018 6:00pm - 7:00pm Fidelity Financial Centre, West Bay Road & Esterley Tibbetts Highway Cayman Financial Centre, Dr. Roy’s Drive, George Town info@fidelitycayman.com RSVP: Carolee.Crowley@fidelitycayman.com Phone: 914-2179 Light refreshments 2018 ANNUAL GENERAL MEETING [] Government proposes substance tests for offshore businesses To avoid an immediate blacklisting and potential pu- nitive measures, Cayman’s government made a written commitment last year to intro- duce new substance require- ments into legislation by the end of 2018. The Ministry of Finan- cial Services said the new re- quirements “could be fulfilled by activities such as hiring staff and having physical busi- ness locations; or outsourcing these activities to a local ser- vice provider.” The International Tax Co- operation (Economic Substance) Bill 2018 affects banking, in- surance, fund management and shipping companies; enti- ties functioning as headquar- ters or distribution and service centers; and businesses en- gaged in financing and leasing or holding intellectual property. “If a Cayman entity is con- ducting relevant business activ- ities in one or more of these cat- egories; and if that entity is not tax resident in another juris- diction, the bill would require the entity to have ‘economic substance’ in the Cayman Is- lands,” the ministry said in a press release. Substance test Under the proposed legisla- tion, companies will pass the economic substance test if they conduct core income-generating activities on island; incur an adequate amount of operating expenditure in Cayman; have a physical presence locally; and have an adequate number of full-time staff locally. In addition, the company must be directed and man- aged from Cayman with reg- ular board meetings held and minutes of strategic decisions kept on island. Details will be defined in corresponding regulations is- sued by Cabinet, according to the draft bill. The proposed legislation contains even more rigorous re- quirements for so-called “high risk intellectual property” busi- nesses. These include compa- nies that hold intellectual prop- erty they did not create and acquired either from an entity in the same group or another entity outside of Cayman, and then license the intellectual property to related entities. They also encompass in- tellectual property businesses that do not undertake research and development, branding or distribution as part of their local core income-generating activities. High risk intellectual prop- erty businesses are presumed to have failed the substance test, even if they carry out core income-generating activi- ties on island, unless they can demonstrate that they histori- cally maintained control over the development, exploitation, maintenance, enhancement and protection of the intangible property asset. This would have to be exercised by an adequate number of full-time employees with the necessary qualifi- cations that permanently re- side and perform their activi- ties in Cayman. These types of businesses must provide detailed busi- ness plans which demonstrate the commercial rationale for holding the intellectual prop- erty assets in the islands; em- ployee information, including level of experience, type of con- tracts, qualifications and dura- tion of the employment; and ev- idence that decision making is taking place within the islands. Equity holding companies are subject to a “reduced” eco- nomic substance test under the proposed legislation. They would satisfy the substance test if they have complied with all applicable filing require- ments under the Companies Law and if they have “adequate human resources and adequate premises in the islands for holding and managing equity participations in other entities.” The draft bill is scheduled for debate in the Legislative As- sembly later this month and is expected to take effect by Jan. 1, 2019. The Cayman Islands govern- ment is expected to issue guid- ance notes for consultation in the near future. Cayman Finance Cayman Finance, the associ- ation representing Cayman’s fi- nancial services organizations, said in a statement: “We antici- pate that our sophisticated cli- ents will adapt as required and take this in their stride.” Cayman Finance described the draft legislation as the latest in a series of steps by the Cayman Islands to meet its 2017 commitment as an Inclu- sive Framework member under the OECD’s global Base Erosion and Profit Shifting (BEPS) initia- tive and, in particular, BEPS Ac- tion 5, which focuses on prefer- ential tax regimes that attract geographically mobile income. The bill also reflected Cay- man’s commitment to meet the European Union require- ments, which are modeled on BEPS Action 5. “It is worth noting that all of Cayman’s main competitor ju- risdictions are in a similar po- sition as BEPS Inclusive Frame- work members,” the financial services association said. “Those who establish Cayman structures do not do so to engage in base erosion and profit shifting activity; they do so because Cayman is an effi- cient neutral hub with key ex- pertise in handling complex transactions,” Cayman Finance added. “Cayman and its ser- vice providers are used to con- stantly evolving to meet global requirements and we are con- fident that this latest develop- ment will be no different.” The association said it en- courages its members “to fa- miliarize themselves with the bill and, once the final form is passed into law, we recom- mend that our members seek Cayman Islands legal advice on what it means for them and their clients.” Minister for Financial Ser- vices Tara Rivers said represen- tatives from more than 15 fi- nancial services and commerce associations have participated in the government consultation on the new legislation. “This breadth allowed gov- ernment to ensure that our leg- islation is appropriate for both financial services and local business,” she said. Minister Rivers acknowl- edged that government had taken some time to publish the bills but said “the breadth and depth of consultation was nec- essary in order to develop the best framework for Cayman while also fulfilling our global responsibilities as an interna- tional financial center.” Bikers rev up for toy run By then, she said, the toy donations will have been sep- arated and organized so that she will know what to buy to fill in the gaps and make sure there are adequate age- appropriate toys for the chil- dren who come to the Dec. 22 party at Airport Park. In the past several years, the Kellers have partnered with the Cayman Islands Fire Service to provide inflatable slides, a bounce house, bar- becue and a Santa to hand out the toys. Fire sub-officer Norman Joseph said he got involved with the Toys for Tots ride because of the fire depart- ment’s support. He’s done the ride the last three or four years, he said, standing next to his bright red three-wheel Polaris Slingshot. He’s not sure which he en- joys most, the ride or handing out toys at the park event. “It’s a toss up,” Mr. Jo- seph said. “Either one, I’m happy with. I’m doing good somewhere.” This is the first year that Margaritaville has helped sponsor the event. The riders rode north after leaving the hotel, turning around at the West Bay Police Station. Passing back through George Town, they then headed out to East End, making a stop there before returning to the hotel for a barbecue. Contrasting the low rumble of the engines was the decidedly lighter voice of Santa Claus. Wanda Watler has done the honors of playing Father Christmas for three years, sitting behind her husband Ladner, flanked by a plush Rudolph whose nose lights up and plays “Rudolph the Red-Nosed Reindeer.” “To help the needy is al- ways a wonderful cause,” Mrs. Watler said, her jingle bell bracelets chiming. “I play Santa for a lot of other things.” Helicopter pilot Jerome Begot, who owns Cayman Is- lands Helicopters, brought his Norton Dominator SS, one of only 200 of its kind, for the ride. He’s been taking part in the annual event since its inception, he said. “Keith and his wife have been doing a fantastic job for so long,” Mr. Begot said. “It’s very hard work. It’s long work and they make the kids so happy.” He said he had provided free helicopter rides to help motivate local schoolchildren when he worked in Canada. “When I came here and saw Casey and her husband doing that, I said, ‘How can we help?’ At the end, it’s for the kids. There’s no better thing in life than to see a kid with a big smile.” Ms. Keller said Toys for Tots will continue to take donations through Dec. 18. Collection bins will be sta- tioned at Cost-U-Less and the Book Nook. Donations can also be dropped off at Cayman Custom Cycles on Dorcy Drive. CONTINUED FROM PAGE 1 This pooch got a sidecar view of the Toys for Tots fundraising ride on Sunday. - PHOTOS: TANEOS RAMSAY Keith Keller, with his reindeer decorated bike, has been organizing the Toys for Tots fundraising ride with his wife, Casey, for 16 years. CONTINUED FROM PAGE 1The islands’ most-trusted news source 8 MONDAY DECEMBER 10, 2018 • CAYMAN COMPASS UK teen jailed for 3 years for bomb hoaxes A British teenager has been jailed for three years after his bogus bomb threats led to school evacuations and an airport security incident. George Duke-Cohan, 19, touched off panic in March 2018 when he emailed thousands of schools, warning about an explosive. Brexit ‘Plan B’: UK minister offers alternatives Paris cleans up after latest riot; pressure builds on Macron SWATH OF SOUTHERN U.S. FACES SNOW, SLEET, FREEZING RAIN PARIS (AP) – Paris tourist sites reopened, workers cleaned up broken glass and shop owners tried to put the city on its feet again Sunday, a day after running bat- tles between yellow-vested protesters and riot police left 71 injured and caused widespread damage to the French capital. The man at the focus of protesters’ anger, President Emmanuel Macron, broke his silence to tweet his ap- preciation for the police over- night, but pressure mounted on him to propose new so- lutions to calm the anger di- viding France. A spokesman said Sunday that Macron would address the nation early in the week. The number of injured in Paris and nationwide was down Saturday from protest riots a week ago, and most of the capital remained un- touched. Still, TV footage broadcast around the world of the violence in Paris neigh- borhoods popular with tour- ists has tarnished the coun- try’s image. France deployed some 89,000 police but still failed to deter the determined pro- testers. Some 125,000 yellow vests took to the streets Sat- urday around France with a bevy of demands related to high living costs and a sense that Macron favors the elite and is trying to modernize the French economy too fast. Some 1,220 people were taken into custody around France, the Interior Ministry said Sunday – a roundup the scale of which the country has not seen in years. French police frisked protesters at train stations around the country, confiscating every- thing from heavy metal pet- anque balls to tennis rackets – anything that could be used as a weapon. The Eiffel Tower and Louvre Museum reopened Sunday after closing due to Saturday’s rioting. Shops as- sessed the looting damage Sunday and cleared out broken glass, after shutting down on for a day at the height of the holiday shop- ping season. Wind and rain pummeled Paris overnight, complicating efforts to clean up the debris left by protesters, who threw anything they could at police and set whatever they could on fire. Used tear gas canister lids lay scattered Sunday on the cobblestones of the usu- ally elegant Champs-Elysees. Protesters ripped off the plywood protecting Parisian store windows and threw flares and other projectiles. French riot police repeatedly repelled them with tear gas and water cannon. Parisians lamented the damage. “What happened yes- terday and the Saturday be- fore, it was unforgettable,” said Jean-Pierre Duclos. “It happened in a country like France that supposed to be sophisticated, it’s unbearable and it cannot be forgiven.” Most of the yellow vest demonstrators in Paris ap- peared to be working class white men from elsewhere in France, angry at economic in- equalities and stagnation. Police and protesters also clashed in other French cities, notably Marseille, Tou- louse and Bordeaux, and in neighboring Belgium. Some 135 people were in- jured nationwide, including the 71 in Paris. Saturday’s protests were a direct blow to Macron, who made a stunning retreat last week and abandoned the fuel tax rise that initially prompted the yellow vest pro- test movement a month ago. CHARLOTTE, North Carolina (AP) – A storm spreading snow, sleet and freezing rain across a wide swath of the South has millions of people in its path, raising the threat of immobilizing snowfalls, icy roads and possible power outages. Governors and local of- ficials in several states de- clared emergencies ahead of the storm crossing sev- eral Southern states and poised to hit particular hard in portions of North Carolina and Virginia. North Carolina Gov. Roy Cooper said Saturday that residents in the some parts of the state should be ready for a lengthy fight with the storm, which was beginning to dump sleet and snow across its western mountain areas Saturday night. “We’re preparing for days of impact, not hours,” Cooper said, urging cau- tion. “This weekend isn’t the time to head out to see the winter wonderland. Stay safe where you are. Getting out on dangerous roads could put your life at risk.” Officials have warned residents to prepare emer- gency kits and staff off roads in impacted areas. “Virginians should take all necessary precautions to ensure they are prepared for winter weather storm impacts,” said Virginia Gov. Ralph Northam. The National Weather Service said a “prolonged period of snow” began late Saturday and would last until Monday in the region, with the heaviest snow ex- pected in northwest North Carolina and southern Vir- ginia. Forecasters have said some mountain areas of North Carolina could get up to 12 inches of snow or more. Heavy rains also were expected elsewhere in other parts of the South, cre- ating possible floods in coastal areas. North Carolina’s largest electric utility, Duke En- ergy, has said more there could more than 500,000 power outages. Charlotte Douglas In- ternational Airport, the sixth busiest airport in the country, said American Air- lines would reduce its op- erations starting Saturday evening and scattered can- cellations were expected through Monday morning. LONDON (AP) – Britain could consider a “Norway- plus” deal with the Euro- pean Union if British Prime Minister Theresa May fails to win lawmakers’ approval this week for her unpopular Brexit deal, a senior minister said Saturday. Work and Pensions Sec- retary Amber Rudd was the first minister to publicly dis- cuss a “Plan B” should May’s Brexit divorce deal with the EU be defeated in a parlia- mentary vote on Tuesday. Rudd, who backs May’s Brexit deal, said “anything could happen” – including a second referendum on whether Britain should leave the bloc. She warned of a chaotic period for the country if the government is defeated in Parliament on Brexit. She told the Times on Sat- urday that none of the pos- sible alternatives is better than the current Brexit deal. But she acknowledged that if the deal does not pass, she would prefer a model similar to that of Norway, which is not an EU member but is part of the European Economic Area. That would mean Britain stays part of the EU’s vast single market, with goods, services and people con- tinuing to move within the bloc in the same way as be- fore, limiting potential dis- ruptions to the British economy. Such an alternative “seems plausible, not just in terms of the country but in terms of where the MPs [lawmakers] are,” she added, although “no- body knows if it can be done.” The divorce agreement that May struck with the EU is widely opposed by British lawmakers across the polit- ical spectrum, and her Con- servative government must convince skeptical law- makers the deal is a good one ahead of Tuesday’s vote. A heavy defeat would sink the agreement, leaving the U.K. facing a messy “no- deal” Brexit when it leaves the bloc on March 29, and could topple May and her government. Pro-Brexit lawmakers say May’s deal keeps Britain bound too closely to the EU, while pro-EU politicians say it erects barriers be- tween the U.K. and its biggest trading partner and leaves many details of the future relationship undecided. Both sides also strongly object to a “backstop” provi- sion in the Brexit agreement that would keep Britain in a customs union with the EU in order to guarantee an open border between EU member Ireland and the U.K.’s Northern Ireland. Although the backstop is intended as a temporary mea- sure, pro-Brexit lawmakers say it could leave Britain tied to the EU indefinitely and un- able to strike new trade deals around the world. Northern Ireland’s Demo- cratic Unionist Party, which props up May’s minority gov- ernment, rejects the mea- sure because it would treat Northern Ireland differently from the rest of the U.K. An analysis by Britain’s Press Association showed that just 27 of the 163 British lawmakers who have spoken out indicated they would back May’s deal, compared with 122 – including 29 from May’s own Conservative Party – who say they will vote against it. Pressure is mounting on May to delay the vote and ask for more concessions from the EU at a Brussels summit at the end of next week. EU officials, however, have insisted that May’s Brexit deal is the best and only one on offer and said they will not renegotiate. The divorce agreement that May struck with the EU is widely opposed by British lawmakers across the political spectrum. France deployed some 89,000 police but still failed to deter the determined protesters. Protestors demonstrate opposite Parliament Thursday against Britain’s Brexit split from Europe, in London. – PHOTO: AP Police officers clash with demonstrators in Lyon, central France, Saturday. – PHOTO: AP9 WORLD&REGIONAL CAYMAN COMPASS • MONDAY DECEMBER 10, 2018 In White House shake-up, Kelly’s departure now seems certain For first time, prosecutors connect Trump to a federal crime SPACEX CHRISTMAS DELIVERY ARRIVES AT SPACE STATION WASHINGTON (AP) – The Jus- tice Department says that President Donald Trump di- rected illegal payments to buy the silence of two women whose claims of ex- tramarital affairs threatened his presidential campaign, the first time prosecutors have connected Trump to a federal crime. In a court filing, pros- ecutors said former Trump lawyer and fixer Michael Cohen arranged the secret payments at the height of the 2016 campaign “in coor- dination with and at the di- rection of” Trump. Cohen has previously said Trump was involved in the hush-money scheme, but court documents filed ahead of Cohen’s sen- tencing made clear prosecu- tors believe Cohen’s claim. The filing stopped short of accusing the president of committing a crime. Whether a president can be prose- cuted while in office remains a matter of legal dispute. But there’s no ambiguity in Friday’s filing that pros- ecutors believe Cohen’s act was criminal and Trump was directly involved, a remark- able disclosure with poten- tial political and legal ram- ifications for a president dogged by investigations. The payments are likely to become a target for House Democrats gearing up to in- vestigate the president next year. It’s unclear whether Trump faces legal jeopardy over his role. Federal law requires that any payments made “for the purposes of influencing” an election must be reported in campaign finance disclo- sures. The court filing Friday makes clear that the pay- ments were made to benefit Trump politically. In August, Cohen pleaded guilty to eight criminal charges, including cam- paign finance violations, and detailed an illegal opera- tion to stifle sex stories and distribute hush money to buy the silence of porn ac- tress Stormy Daniels and former Playboy model Karen McDougal, who had both claimed they had affairs with Trump. Trump has denied having an affair. Daniels, whose real name is Stephanie Clifford, was paid $130,000 as part of a nondisclosure agree- ment signed days before the 2016 election and is cur- rently suing to dissolve that contract. Trump denied in April that he knew anything about Cohen’s payments to Dan- iels, though the explana- tions from the president and his attorney, Rudy Giuliani, have shifted multiple times since then. Trump, in a Saturday morning tweet, said: “AFTER TWO YEARS AND MIL- LIONS OF PAGES OF DOC- UMENTS (and a cost of over $30,000,000), NO COLLUSION!” In August 2016, the Na- tional Enquirer’s parent com- pany reached a $150,000 deal to pay McDougal for her story of a 2006 affair, which it never published, a tab- loid practice known as catch and kill. In 2015, the com- pany’s chairman met with Cohen and Trump and “of- fered help with negative sto- ries” about Trump’s relation- ships with women by buying the rights to the stories, pros- ecutors said. After McDougal contacted the Enquirer, the chairman of its parent company, American Media Inc., contacted Cohen about the story. After Cohen promised the company would be reimbursed, the Enquirer paid McDougal $150,000, ac- cording to court documents. An audio recording re- leased by Cohen in July ap- peared to capture Trump and Cohen discussing buying the rights to McDougal’s story from the Enquirer’s parent company. Trump’s lawyers have said the payments were never made. Legal experts have said the issue of whether Trump violated the law would come down to whether Trump tried to influence the election and whether he knew it was le- gally improper. Former Sen. John Ed- wards, who sought the Dem- ocratic presidential nomina- tion in 2008, was indicted in 2011 in connection with pay- ments made on his behalf by a wealthy campaign donor to keep Edwards’ mistress quiet, which prosecutors ar- gued amounted to illegal campaign contributions. CAPE CANAVERAL, Fla. (AP) – A SpaceX delivery full of Christmas goodies ar- rived at the International Space Station on Saturday, following a slight delay caused by a communica- tion drop-out. The Dragon cap- sule pulled up at the or- biting lab three days after launching from Cape Ca- naveral. Commander Alex- ander Gerst used the space station’s big robotic arm to grab the cargo carrier, as the two craft soared 250 miles above the Pacific. It took two tries to get the Dragon close enough for capture. NASA called off the Dragon’s first approach be- cause of trouble with the communication network that serves the space sta- tion. Equipment failure in New Mexico for NASA’s Tracking and Data Relay Satellite system resulted in a temporary loss of com- munication with the sta- tion. For safety, Mission Control ordered the Dragon to back up. It was a successful take two – just an hour- and-a-half late – after NASA switched to another TDRS satellite. The bolted-down Dragon holds every- thing the station astro- nauts need for Christmas dinner, as well as mice and worms for science experiments, and more than 5,000 pounds of sta- tion equipment. The holiday food in- cludes smoked turkey, green bean casserole, can- died yams, cranberry sauce and fruitcake. There also are shortbread and butter cookies, with tubes of icing for decorating. Three of the space sta- tion residents will be on board for Christmas; the other three will return to Earth on Dec. 20. Until then, the station is home to two Americans, two Rus- sians, one Canadian and Gerst, who is German. SpaceX has been making station shipments for NASA since 2012. This is its 16th delivery under contract. Two other supply ships are attached to the space station: One Russian and the other sent by NASA’s other commercial shipper, Northrop Grumman. WASHINGTON (AP) – Pres- ident Donald Trump is inching closer to his long- teased major White House shake-up, gearing up for the twin challenges of battling for re-election and dealing with the Democrats’ investi- gations once they take con- trol of the House. The biggest piece of the shifting picture: Chief of Staff John Kelly’s departure now appears certain. Trump announced Friday he was picking a new U.S. attorney general and a new ambassador to the U.N., and at the same time two se- nior aides departed the White House to beef up his 2020 campaign. But the largest changes were still to come. Kelly’s re- placement in the coming weeks is expected to have a ripple effect throughout the administration. According to nearly a dozen current and former administration officials and outside confidants, Trump is nearly ready to replace Kelly and has even begun telling people to contact the man long viewed as his likely successor. “Give Nick a call,” Trump has instructed people, refer- ring to Vice President Mike Pence’s chief of staff, Nick Ayers, according to one person familiar with the discussions. Like all of those inter- viewed, the person spoke on condition of anonymity to discuss sensitive per- sonnel matters. Trump has hardly been shy about his dissatisfaction with the team he had chosen and has been weighing all sorts of changes over the past several months. He de- layed some of the biggest shifts until after the No- vember elections at the urging of aides who worried that adding to his already-re- cord turnover just before the voting would harm his par- ty’s electoral chances. Now, nearly a month after those midterms, in which his party surrendered control of the House to Democrats but expanded its slim majority in the Senate, Trump is starting to make moves. He announced Friday that he will nominate William Barr, who served as attorney general under President George H.W. Bush, to the same role in his administra- tion. If confirmed, Barr will fill the slot vacated by Jeff Sessions, who was unceremo- niously jettisoned by Trump last month over lingering re- sentment for recusing him- self from overseeing spe- cial counsel Robert Mueller’s Trump-Russia investigation. Sessions was exiled less than 24 hours after polls closed. But Trump’s broader efforts to reshape his inner circle have been on hold, leading to a sense of near-pa- ralysis in the building, with people unsure of what to do. Trump also announced that State Department spokeswoman Heather Nauert is his pick to replace Nikki Haley as the next U.S. ambassador to the United Nations, and he said he’d have another announcement Saturday about the mili- tary’s top brass. Kelly was not at the White House on Friday, but was expected to attend an East Room dinner with the presi- dent and senior staff. Ayers, who is a seasoned campaign veteran despite his relative youth – he’s just 36 – has the backing of Ivanka Trump and Jared Kushner, the president’s daughter and son-in-law and senior ad- visers, for the new role, ac- cording to White House of- ficials. But Ayers has also faced some resistance. During Trump’s flight home from a recent trip to Paris, some aides aboard Air Force One tried to convince the president that Ayers was the wrong person for the job, ac- cording to two people fa- miliar with the matter. Trump and Kelly’s rela- tionship has been strained for months – with Kelly on the verge of resignation and Trump nearly firing him sev- eral times. But each time the two have decided to make amends, even as Kelly’s influ- ence has waned. Kelly, a retired Marine Corps four-star general, was tapped by Trump in August 2017 to try to normalize a White House that had been riven by infighting. And he had early successes, in- cluding ending an open-door Oval Office policy that had been compared to New York’s Grand Central Station and instituting a more rigorous policy process to try to pre- vent staffers from going di- rectly to Trump. But those efforts also miffed the president and some of his most influen- tial outside allies, who had grown accustomed to unim- peded access. And his han- dling of domestic violence ac- cusations against the former White House staff secre- tary also caused consterna- tion, especially among lower- level White House staffers, who believed Kelly had lied to them about when he found out about the allegations. Kelly, too, has made no secret of the trials of his job and has often joked about how working for Trump was harder than anything he’d done before, including on the battlefield. President Donald Trump announces Friday that he is nominating William Barr, attorney general under President George H.W. Bush, as his Attorney General, on the South Lawn of the White House. – PHOTO: AP The filing stopped short of accusing the president of committing a crime. Whether a president can be prosecuted while in office remains a matter of legal dispute.Next >