ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – THURSDAY JANUARY 17, 2019 High of 83 Low of 74 Moderate with wave heights of 3 to 5 feet. EDITORIAL | PAGE 4 TAX RATES, TAX REVENUES AND ‘TAX COMPETITION’ LOCAL | PAGE 3 CAYMAN FUNDS SUE VENEZUELAN GOVERNMENT Regulated in the Cayman Islands as a licensed insurer by the Cayman Islands Monetary Authority. Incorporated in Guernsey under Company Registration No. 27151. Registered Head Office address: Generali Worldwide Insurance Company Limited, Generali House, Hirzel Street, St Peter Port, Guernsey, Channel Islands GY1 4PA. Head Office: Regulated in Guernsey as a licensed Insurer by the Guernsey Financial Services Commission under the Insurance Business (Bailiwick of Guernsey) Law, 2002 (as amended). Generali Worldwide Insurance Company Limited is part of the Generali Group, listed in the Italian Insurance Group Register under number 026. A farmer’s market in your office? Call us to learn more about our Pop Up Markets at 747-2000. MAY BARELY SURVIVES NO-CONFIDENCE VOTE IN PARLIAMENT LONDON (AP) – British Prime Minister The- resa May survived a no-confidence vote in Parliament on Wednesday to remain in of- fice – but saw more of her power ebb away as she battled to keep Brexit on track after lawmakers demolished her European Union divorce deal. May won a narrow victory, 325 votes to 306 votes, on an opposition motion seeking to topple her government and trigger a gen- eral election. Now it’s back to Brexit, where May is caught between the rock of her own ne- gotiating red lines and the hard place of a Parliament that wants to force a radical change of course. After winning the vote, May said she would hold talks “in a constructive spirit” with leaders of opposition parties and other law- makers, starting immediately, in a bid to find a way forward for Britain’s EU exit. Legislators ripped up May’s Brexit CUC TO MOVE AWAY FROM DIESEL ENERGY 30-year plan calls for shift to natural gas, renewable sources KEN SILVA ksilva@pinnaclemedialtd.com Cayman’s power provider, the Caribbean Utilities Company, announced this week that the Utility Regulation and Competition Office has accepted its Integrated Resource Plan, a 125-page report that sets out a nearly three- decade road map for the territory to transition from mostly fossil fuels to more sources of re- newable energy. CUC has released portions of the plan, com- missioned in August 2016 and produced by consultant Pace Global to study energy and market trends for the next 30 years, and pro- vided the Compass with a full copy on Tuesday. The report makes a number of recommen- dations that government and power industry officials have discussed over the years, in- cluding investing in battery energy storage, de- veloping natural gas infrastructure, converting diesel-fired engines to dual-fuel, assessing the viability of ocean thermal energy conversion, Chief Justice presents optimistic opening address SPENCER FORDIN sfordin@pinnaclemedialtd.com Chief Justice Anthony Smellie sounded an optimistic note in his ceremonial address opening the Grand Court on Wednesday, when he acknowledged a serious backlog in criminal cases but also saw an avenue for allevia- tion in the prospect of a freshly renovated Scotiabank building. The Chief Justice lauded gov- ernment for purchasing the Sco- tiabank building and said there will be an outline business case presented for a full renovation by May, but he also said there are plans to begin immediately constructing a courtroom there that will serve as the base for the Court of Appeal. The initial plans for con- struction also include new facil- ities for the court registrar, the clerk of the courts and court ad- ministration. In turn, that will create new space in the existing court building for a larger Legal Aid office, an additional confer- ence room and expanded area for registry staff. “The need for this to be done urgently cannot be overstated,” the Chief Justice said. “The in- tention is that when the Court of Appeal sits to hear criminal appeals, it will do so from this new courtroom and this will avoid the disruption of trials in Grand Court 1 and the knock-on Grand Court opens with pomp and ceremony New year brings challenges, opportunities CAROL WINKER cwinker@pinnaclemedialtd.com The formal opening of Grand Court for 2019 took place on Wednesday morning, with Chief Justice Anthony Smellie and other speakers addressing the challenges and opportunities involved in the adminis- tration of justice in the Cayman Islands. As has been traditional since the early 1990s, proceedings began with a Guard of Honor by the Royal Cayman Islands Police Service outside the Law Courts Building. Led by Chief Inspector Everton Spence, the contingent gave a general salute and was then inspected by the Chief Justice before the throng of attorneys, court staff and guests adjourned to Court One for the rest of the program. An overflow crowd viewed proceedings via CCTV in Court Two. Dignitaries in attendance included Cay- man’s new governor, Martyn Roper, and Deputy Governor Franz Manderson. With Premier Alden McLaughlin in Belgium for meetings with European Union officials, Cayman’s elected government was repre- sented by Finance Minister Roy McTaggart. Members of the Legislative Assembly present included David Wight, Kenneth Bryan, Alva Suckoo, Austin Harris and Arden McLean. After the Grand Court judges took their Chief Justice Anthony Smellie, third from right, presides over the ceremonial opening of the Grand Court on Wednesday. – PHOTO: TANEOS RAMSAY PLEASE TURN TO PAGE 5 » PLEASE TURN TO PAGE 5 » PLEASE TURN TO PAGE 6 » PLEASE TURN TO PAGE 6 » Chief Justice Anthony Smellie2 LOCAL®IONAL THURSDAY JANUARY 17, 2019 • 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. - THURSDAY - 640-FILM (640-3456) ON THE BASIS OF SEX (PG13) 2:50 I 9:40 ESCAPE ROOM (PG13) 1:55 I 4:30 I 7:25 I 10:00 MARY POPPINS RETURNS (PG) 12:50 I 3:50 I 6:45 I 9:45 AQUAMAN (PG13) 12:45 VIP I 3:45 I 6:35 VIP I 9:40 VIP A DOG’S WAY HOME (PG) 12:30 I 6:30 THE UPSIDE (PG13) 6:50 I 9:40 BUMBLEBEE (PG13) 1:00 I 3:55 VIP I 7:00 3D I 9:00 Man robbed on Sound Way Police are investi- gating a robbery that oc- curred in George Town last Friday night. According to police, the robbery took place on Sound Way shortly after 8:30 p.m. A man had been walking when he was ap- proached from behind by another man, assaulted and robbed of his wallet and other personal items. The suspect then fled the scene. Emergency personnel attended and transported the man to be treated for minor in- juries. He was subse- quently released. Police described the suspect as being a slim, dark-skinned male, with a bald head and about 5’11” in height. He was wearing a light-colored T-shirt and light-colored shorts. The incident is under investigation and anyone with information or who may have seen anything suspicious in the area between 8:30 p.m. and 9 p.m. is asked to con- tact the George Town CID at 949-4222. Anonymous tips can be provided to the RCIPS Confidential Tip Line at 949-7777 or via the website. Tips can also be submitted anonymously to the Miami-based call center of Crime Stoppers at 800-8477(TIPS) or online. ARGENTINA AND BRAZIL PRESIDENTS CRITICIZE MADURO SAO PAULO (AP) – The con- servative leaders of Ar- gentina and Brazil threw more support Wednesday to opponents of Venezu- ela’s socialist President Nicolas Maduro. Argentina’s President Mauricio Macri became the first head of state to visit Brasilia since the Jan. 1 in- auguration of Jair Bolso- naro and the crisis in Ven- ezuela was on their minds. Macri said that Maduro is a “dictator trying to per- petuate himself in power through fictitious elec- tions.” And he said the two leaders agree that the op- position-controlled con- gress is the “only demo- cratically elected entity in Venezuela.” Bolsonaro said the two countries “will continue ad- vancing toward democracy and freedom” in Venezuela. Maduro began a second term last week after a May election many nations con- sider illegitimate. Venezu- ela’s economic crisis has flooded nearby nations with millions of economic refugees. The two presi- dents said they also dis- cussed the Mercosur trade block, which also includes Uruguay and Paraguay. Big Brother organization marks mentoring day Since being formalized in 1995, Big Brothers Big Sisters of the Cayman Islands has paired over 200 young people with mentors who help guide them in life. On Thursday, the global or- ganization, of which the local chapter is a part, recognizes International Mentoring Day. Camana Bay will be turning its Town Centre lights purple to mark the occasion. The Big Brothers Big Sisters organi- zation will be campaigning throughout the month to bring more attention to the impor- tance of the work they do. In addition to providing support, mentors also often become a friend to the chil- dren they are working with, enjoying shared educational and enrichment experiences. Gerardo Ochoa-Vargas met Alex Richardson 10 years ago when Alex was just a boy. He’s now an adult, but Mr. Ochoa- Vargas, 53, and Mr. Richardson, 18, remain close friends and are the Cayman chapter’s longest- standing big brother match. Mr. Ochoa-Vargas, a pro- fessor of medicine at St. Mat- thew’s University School of Medicine, said he was not sure he and Mr. Richardson were a good match at first. He is more bookish, and Mr. Richardson, like most young boys, was in- terested in physical activity. It took them a year to really form a good relationship, Mr. Ochoa- Vargas said. That relationship, he said, has weathered some tough times. Mr. Richardson lost his mother in 2015. Mr. Ochoa-Var- gas’s mother died in 2018. And there was a nine-month period where Mr. Ochoa-Vargas did not hear from his mentee. There were also fun times. The two snorkeled out to the Kittiwake wreck site – even though Mr. Richardson does not much like the water – shot amateur horror movies in abandoned buildings and skated at the Black Pearl Skate Park. Mr. Ochoa-Vargas even became Mr. Richardson’s stylist for his high school prom. Mr. Ochoa-Vargas, who is single and has no children of his own, said he has learned pa- tience and how to be innovative as a result of their relationship. Pilar Bush, board chairman for the Cayman chapter, said children age out of the pro- gram at 18, but that did not end the relationship between the two men. “They are part of our BBBS family and regularly come out to our events, speak to groups and share their amazing story,” Ms. Bush said in the release. Big Brothers Big Sisters was brought to the Cayman Is- lands by Church of God Pastor Stanwyck Myles and the Lions Club of Grand Cayman in 1995, formalizing what was then an informal community mentoring program. Officials with the organi- zation said children and ad- olescents involved in a reg- ular mentoring program over 18 months have been shown to be more confident, more en- gaged at school, have better relationships with peers and adults and more likely to avoid risky behavior like alcohol or drug use. Studies show they are 52 percent less likely to skip school, 55 percent more likely to pursue higher education, 78 percent more likely to volun- teer regularly in their commu- nities, twice as likely to take on leadership roles and 33 percent less likely to engage in violent behavior. Cayman officials said there is an urgent need for male mentors. The organization has 19 boys, aged 6-14, who have been waiting for a big brother, some for as long as 2 years. To learn more, visit the Big Brothers Big Sisters website at www.bbbs.ky or contact them on email at info@bbbs.ky or via Facebook and Instagram at @bbbscayman. Cayman student wins regional essay contest JEWEL LEVY jlevy@pinnaclemedialtd.com Xara Mon Desir of Cayman Prep School is the winner of the Junior Division of the Flor- ida-Caribbean Cruise Associa- tion’s 2018 essay competition. The 11-year-old topped the regional competition with a 500-word essay titled “Cayman Kind.” The Cayman Islands De- partment of Tourism made the announcement about her win at Cayman Prep School during a brief presentation. Xara earned prize money of US$3,000 and Cayman Prep School received a matching do- nation of $3,000. The Florida-Caribbean Cruise Association Children’s Essay Competition was open to all primary and secondary students in the Caribbean and Central America. They had to write about what cultural as- pects of their country cruise passengers should experience. Cayman competed against 19 countries from within the Ca- ribbean and Latin America. In her essay, Xara wrote, “As we all know, tourism is a huge part of the flow of money into the Cayman Islands. There are lots of different aspects of our culture that draw more than one million tourists to our shores each year; but the most appealing thing about Cayman culture, which every tourist will surely experience is the warmth, friendliness and generosity of ‘Cayman Kind.’ When we say Cayman Kind, we mean the spirit of Cayman and the uniqueness of our people.” Her essay encourages vis- itors to walk through the streets of Cayman and meet the friendly and kind people who will gladly tell them about adventures at sea, and to savor some of the authentic Caymanian traditional dishes such as turtle stew, conch stew, Cayman-style beef, fish fritters and Johnny cakes. She reminded readers there is more to see than just the George Town port. “Hop onto a public trans- portation bus and start your journey to one of our many world-famous, white-sand beaches. Visit Seven Mile Beach, Governors Beach, or head to Stingray City to snorkel and swim with the ma- jestic stingrays. If you prefer, you could take the more scenic route to North Side and head up to Rum Point for the day. During your journey, a cheerful and knowledgeable bus driver will excitedly share with you his expertise on the many his- torical buildings that you will pass on the way,” she wrote. She encouraged tourists to “Visit Cayman when a festival like Batabano or Pirates Week is occurring, you will have the time of your life. After a full day of masquerading, you will walk back to your cruise ship extremely satisfied and de- lighted that you could have ex- perienced the gift of Cayman Kind. A gift you will surely never forget.” Xara said she decided to enter the competition because she loves writing, and a teacher encouraged her to enter. “I got the idea of writing about Cayman Kind because of all the warmth I encounter living in the Cayman Islands. I love the idea of incorpo- rating Cayman culture like the people, the food and the beaches,” Xara said. With the prize money, Xara said she will put some in the bank, buy a ukulele and maybe something for her whole family to enjoy. Xara’s teacher Brenda Pryce said the school will used its money to further develop Cayman culture in the primary school social studies curric- ulum, and to buy books about the Cayman Islands. Xara Mon Desir receives her prize money from MLA David Wight in the company of Cayman Prep Principal Trish Taylor and Department of Tourism’s Gail Henry. On one of his outings with Gerardo Ochoa-Vargas, Alex Richardson found a safe on the shore of North Sound that had been stolen from Pepper’s restaurant. - PHOTO: GERARDO OCHOA-VARGAS3 LOCAL NEWS CAYMAN COMPASS • THURSDAY JANUARY 17, 2019 NAU challenged by influx of elderly JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com An aging population and rising rental costs have been blamed for the growing cost of welfare in the Cayman Islands. Appearing before the Public Accounts Committee on Wednesday, Tamara Hurlston, director of the Needs Assessment Unit, said the department was dealing with an ever-increasing de- mand for its services. She acknowledged that private sector pensions were often insufficient to sustain living and healthcare costs of Cayman’s elderly through retirement. “We have an aging popu- lation and a lot of our elderly are coming in for healthcare and other services,” she said. Elderly people whose sav- ings have run out or are in- sufficient are typically given a $750-a-month “poor re- lief” payment. “That has become more of a demand over the years because elderly persons are finding it hard to sustain themselves on the minimal pension they are receiving,” Ms. Hurlston said. “We have seen an influx of elderly persons coming in to the office.” Ms. Hurlston acknowl- edged the NAU was also strug- gling to fund rent for people who could not afford housing. She said rental costs had gone up and it was in- creasingly difficult for cli- ents to find anywhere within the NAU’s $1,200 maximum monthly budget. She added that many landlords were often reluctant to rent to NAU clients for a variety of reasons, ranging from pre- vious NAU tenants destroying property to the fact that the governmental unit does not pay deposits. The NAU has used ho- tels to house people on a temporary basis in the past. Though a new direct-debit system has been introduced to make payments swifter and easier to landlords, Ms. Hurlston acknowledged pay- ment issues continued. She predicted the struggle to find suitable, affordable homes for a growing number of cli- ents would continue. “I don’t think the way we are doing it now is going to be sustainable,” she said. “I can say from now, we will be back for additional funding for NAU services be- cause I foresee, as we did last year, we will run out of funds.” She said a joint strategy with the National Housing Trust may be needed to find a longer-term solution for those who could not af- ford housing. Ms. Hurlston was also quizzed about the rising costs of providing health- care to the uninsured. Gov- ernment’s budget for indigent healthcare costs rose from just over $10 million to more than $25 million last year, a state of affairs which opposi- tion legislator Chris Saunders described as unsustainable. Ms. Hurlston said the NAU was responsible only for assessment of eligibility for the payments. Responsibility for payments fell within the remit of the Ministry of Health. She said 1,080 people had been assessed for indi- gent healthcare in the past three years. CAYMAN FUNDS SUE VENEZUELAN GOVERNMENT Venezuela defaulted on bonds and interest payments KEN SILVA ksilva@pinnaclemedialtd.com Two Cayman-registered funds are suing the Boli- varian Republic of Venezuela, claiming that the struggling South American regime owes them some US$26 million in unpaid debt. The Cayman entities are the Pharo Gaia Fund Ltd. and Pharo Macro Fund Ltd., which are controlled by Pharo Management LLC in New York, where the lawsuit is taking place. According to the funds’ claim, Pharo Macro owns a beneficial interest in US$1,500,000 of 13.625-per- cent bonds Venezuela is- sued in 2002. Those bonds matured last August, at which time their principal amount became due and payable, the lawsuit states. Because Venezuela has not redeemed the bonds upon maturity, they continue to ac- crue interest, according to the lawsuit, which is posted on the financial services site OffshoreAlert. Pharo Gaia also allegedly owns a beneficial interest in US$114,000,000 of 7.75-per- cent bonds Veneuzela issued in 2009. Pharo Macro stated that it owns US$95,500,000 of the same type of bonds. Those bonds mature this October, but the Vene- zuelan government has al- legedly missed making in- terest payments starting in October 2017. As a result of the al- leged defaults, Pharo Macro is claiming that Venezuela owes it US$1,704,375, ex- cluding accrued and pre- judgment interest, for the 13.625-percent bonds. The fund is also claiming that Venezuela owes it US$11,101,875 for defaults on the 7.75-percent bonds. Like- wise, Pharo Gaia claims that the communist regime owes it US$13,252,500 for the de- faults on the bonds. Venezuela has been in an economic crisis since at least 2010, with the country expe- riencing hyperinflation and shortages in food, medicine, and basic supplies like toilet paper and soap. More than two million people have re- portedly fled the country since 2014. According to a Canadian Broadcasting Corporation re- port, the country’s govern- ment has about US$150 bil- lion in outstanding public debt. Debt holders include a number of U.S. finan- cial institutions, as well as Russia and China. U.S. courts have report- edly allowed investors to seize Venezuelan oil ship- ments and other assets in order to satisfy the debts owed by the country’s government. “In August, a judge in the U.S. state of Delaware au- thorized the seizure of as- sets owned by Citgo, an af- filiate of Venezuela’s state oil company, to satisfy debts owed by Venezuela to Cana- dian mining company Crys- tallex,” the CBC reported in September, adding, “In May, ConocoPhillips, a U.S. oil pro- ducer whose assets were ex- propriated by Venezuela’s government in 2007, won an international arbitration ac- tion against Venezuela’s state oil company, PDVSA. “This allowed Conoco to start seizing Venezuelan oil in Curacao and other Dutch Caribbean islands in a bid to recoup US$2 billion.” In addition, China has re- portedly been receiving in- terest payments from Vene- zuela in the form of oil. “This arrangement didn’t stop at least one major Chi- nese oil company, Sinopec, from launching a lawsuit against Venezuela’s PDVSA in a U.S. court last December for not fulfilling a contract. (It has since been settled),” CBC reported.The islands’ most-trusted news source 4 – EDITORIAL – Opinion & Letters The Cayman Compass welcomes comments, opinions and viewpoints from readers. Letters to the editor can be emailed to editor@pinnaclemedialtd.com, submitted via www.caymancompass.com, sent by post or hand-delivered to the Compass office. No yawning, and no turning the page. Today’s edi- torial subject may be a bit on the “dry” side (unfortu- nately, we’re not discussing Brut Champagne), but it makes for important reading. The topic – corporate tax rates – affects every resident in the Cayman Islands … even though, officially, we have no corporate tax rate. Let’s explain: In some circles, such as those populated by bureau- crats, Eurocrats and other governmental elites, there persists a ruling doctrine that the very existence of Cayman and other low-tax jurisdictions creates a “race to the bottom,” forcing high-tax countries to lower their corporate tax rates to remain competitive, thus depriving governments of revenue they otherwise would collect. The notion of “unfair tax competition” is one of the reliable rationales that foreign entities employ to justify measures that infringe upon the economic sover- eignty of, as a rule, relatively smaller and less powerful jurisdictions – for example, the U.K.’s mandate of public registries of beneficial ownership, the EU’s demands for “economic substance” standards, and the Netherlands’ outright blacklisting of countries who have corporate tax rates of less than 9 percent. The only problem with this mythology … well, not the only problem, but a major one … is that it happens to be untrue. Now, we do not regard as an ally the Organisation for Economic Co-operation and Development, which is kissing cousin to Cayman’s current “Number One Bully” the EU, but the OECD recently released a report that belies the idea that lower tax rates yield lower revenues, or vice versa. Quite the opposite. According to the OECD report, as corporate tax rates have declined around the globe, corporate tax revenues have increased, both as a percentage of total tax revenues and as a share of indi- vidual countries’ gross domestic products. Over the past 18 years, statutory corporate tax rates have dropped significantly – from an average of 28.6 percent in 2000 to 21.4 percent in 2018. Since 2000, 76 of the 94 countries included in the OECD report had lowered their rate of corporate tax. Over the same time period, governments are col- lecting more in corporate income tax than before – from an average of 12 percent of total tax revenues in 2000 to 13.3 percent in 2016. As a share of gross domestic product, corporate tax revenues crept higher, from 2.7 percent in 2000 to an even 3 percent in 2016. We are not surprised by the results of the study, nor would anyone be who is familiar with the work of econo- mist Arthur Laffer, whose famed “Laffer Curve” model illustrates that excessive taxation stifles private sector production and decreases tax collections. Setting aside asseverations of starry-eyed ideologies, there is a simple and rational reason why large nations, particularly EU member countries, would want to break Cayman’s piggy bank: They desperately need the money. Many EU economies are being smothered under the weight of overly generous social programs and commit- ments to constituents – promises that please crowds in the short term but in the long (and not-so-long) term are unaffordable. After looting the pockets of their own taxpayers (and borrowing themselves into near-oblivion), the bureaucratic bullies start eyeing the wallets and purses of the smaller kids on the global playground. Small jurisdictions such as Cayman face incred- ible challenges when competing for business with large developed nations. Relatively speaking, Cayman is long on sun, sand and sea … but short on infrastructure, pop- ulation, social institutions, natural resources, geographic convenience, etc. In this battle of David vs. Goliaths, one of the most powerful pieces of ammunition in Cayman’s sling is our ability to determine our own tax policies and to offer competitive tax rates to international companies. Is it any wonder that this is the advantage that Europe has focused on destroying? We hope that Cayman’s delegation, led by Premier Alden McLaughlin and Financial Services Minister Tara Rivers, keep the above in mind as they engage in yet another round of discussions with Europe on require- ments for “economic substance” of Cayman companies. As the saying goes, a journey of 1,000 miles begins with a single step. But taking step after step in the wrong direction can take travelers twice as far from their destination. Tax rates, tax revenues and ‘tax competition’ THURSDAY JANUARY 17, 2019 • CAYMAN COMPASS When socialism is romanticized Who should pay for your healthcare? For your educa- tion? For your retirement? “Socialism,” we are told by the pollsters, is gaining in popularity — at least the romanticized versions of it. It would be a world without poverty where people have everything they need, and all are equal. The fact that such a system has never existed is attributed to either bad motives or incompetence of those who were supposed to bring it about. Advocates for socialism have a problem naming the specific person who is sup- posed to pay their medical, school, and food and shelter bills. They often say the “rich” – as if there were millions of random rich people floating around just waiting to have their wealth plucked by some student or snowflake. As an experiment, the next time you are in a group or classroom of people, and someone is promoting so- cialism, ask them to assume that the “group” or class is the full population, and from that group ask the socialist to identify the specific person by name who they think should pay their medical bills. The named person is al- most certain to be unhappy with the idea. As children, most of us lived under socialism – that is, our parents paid the bills and provided for us. But good parents let their chil- dren know this arrangement does not go on forever, and at some age they are supposed to get off the sofa in front of the TV, get a job and provide for themselves. Jeff Bezos is the world’s richest man and some claim he is not a particularly nice person – but that is not illegal. Alexandria Ocasio-Cortez and many other well-known Dem- ocrats want to make Mr. Bezos their slave – despite the fact that he supports them with his Washington Post. Now they do not want to make him a 100 percent slave because they know that “would be wrong,” as well as unconstitu- tional – so, according to Miss Ocasio-Cortez, a mere 70 per- cent slave will do (the income tax rate proposed by Miss Oc- asio-Cortez and others). When socialists are inter- viewed by members of the press, they are prone to say things like “every American deserves free healthcare.” In fact, Mayor Bill de Blasio of New York has said even il- legal immigrants deserve free healthcare. Somewhere, I have missed the explana- tion of why some deserve free healthcare to be paid by hard-working taxpayers under the threat of asset sei- zures and prison time. If we are all equal, as the socialists tell us, why are some involuntary slaves to others, at least part time? Fortunately, I do not have to figure this out because, back in 1945, the English au- thor George Orwell did in his classic book “Animal Farm.” The American Founding Fathers, who had a good grasp of history, understood the dangers of unrestrained democracy – yet now there is the general view that ev- eryone should vote, no matter how uninformed they may be. The socialists sell “free stuff” – in reality, the theft of labor from others, which has great appeal to the uninformed and the lazy. Restrictions on who was allowed to vote, based on property ownership or lit- eracy, were over time viewed as unfair and eventually abolished, leading to the cur- rent crop of elected officials – no more needs to be said. My fantasy solution is that be- fore being allowed to register to vote, potential voters must present evidence they have read the Declaration of Inde- pendence and the U.S. Consti- tution, and are able to under- stand the English language. They also should give ev- idence of having an under- standing of the themes of “An- imal Farm” and F.A. Hayek’s “Road to Serfdom (1944).” For those who have not learned to read in English, listening to the documents and books on tape versions will suf- fice. And for those who can neither read nor understand spoken English, they should not vote in U.S. elections until they learn the fundamentals of the language. This fantasy proposal is not a panacea for the po- litical system, but it would reduce the number of un- informed and lazy voters – yet, not discriminate against anyone who truly wishes to prepare to vote. And for those who say this fantasy proposal is too much of a burden – somewhere between 100 million and 200 million people were killed by their own socialist governments during the 20th century. That is the real burden of what the ignorance of socialism has wrought. Richard W. Rahn is chairman of the Institute for Global Economic Growth and Improbable Success Productions. © 2019, The Washington Times, LLC. LETTER TO THE EDITOR More to audits than rules Dear editorial board. “Being accountants, au- ditors general inhabit a realm of rules. If only there were some perfect codifica- tion – a golden rulebook – that by its mere existence would make the world or- derly and neat.” After reading today’s ed- itorial (extract above) (“Law passed, problem solved … Not even close,” Jan. 16), I am tempted to say you know as much about ac- counting and auditing as I do about journalism! My job is interesting because of the shades of gray and need for judgment and interpre- tation of what I find during audit, and I would be bored to tears if “the world were orderly and neat.” I’d ap- preciate it very much if you didn’t suggest otherwise in future. Thank you. Susan Winspear Auditor General RICHARD W. RAHN PRINTED AND PUBLISHED BY: Caymanian Compass Limited (a subsidiary of Pinnacle Media Ltd) Compass Centre Shedden Road, George Town SEND US YOUR VIEWS OR NEWS: P.O. Box 1365 Grand Cayman KY1-1108, Cayman Islands Telephone: (345) 815-0095 Email: newsdesk@pinnaclemedialtd.com ADVERTISE WITH US: Telephone: (345) 949-5111 Email: sales@pinnaclemedialtd.com Website: www.caymancompass.com PUBLISHERS DAVID R. LEGGE AND VICKI L. LEGGE EDITOR-IN-CHIEF DAVID R. LEGGE EXECUTIVE EDITOR PATRICK BRENDEL A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will find their own way” Rep. Alexandria Ocasio-Cortez, D-N.Y., and other freshman congressmen deliver a letter calling for an end to the government shutdown to the office of Senate Majority Leader Mitch McConnell on Capitol Hill in Washington, Wednesday. - PHOTO: ANDREW HARNIK/APThe islands’ most-trusted news source 5 CAYMAN COMPASS • THURSDAY JANUARY 17, 2019 supporting the development of landfill gas facilities and building more solar energy generators. The recommendations are to be undertaken over the short, medium, or long run depending on economic and technological conditions. The recommendations are also lumped in six energy portfo- lios – a series of plans that emphasize varying energy options and strategies for Cayman – and ranked based on cost, risk, reliability, di- versity and other factors. The portfolio ranked highest was “Portfolio 5,” which calls for investment in natural gas infrastruc- ture, wind power, solar and waste-to-energy through the year 2045. The net present value of total costs for Port- folio 5 is $1.55 billion. Pace Global stated that a reliance on natural gas will help Cayman have an affordable energy source that allows the island to cut emissions while tran- sitioning to renewable en- ergy. Pace Global projects that Cayman would use gradually more natural gas starting around 2024 while existing generators are re- tired. The islands will also be getting more of their en- ergy from solar and wind sources around that time. “Natural gas can also pro- vide optionality to the utility in terms of being able to switch from one fuel to the other based on prevailing market prices,” the consul- tant stated. “Further, natural gas can serve as a hedge against the volatility associ- ated with diesel prices.” The next-highest ranked portfolio was Portfolio 6, which was similar to Port- folio 5 but included the use of ocean thermal energy conver- sion, and would cost about $59 million more. Pace Global noted that this portfolio ranks the highest for energy diversity, renewable curtail- ment and land use – ocean thermal would mean that Cayman’s energy production would require less land. “However, OTEC is not commercially proven and is a hurdle for this portfolio,” the report stated. The report echoed state- ments recently made by OfReg Acting CEO Gregg An- derson, who said in Finance Committee in November that a proposed floating power plant in North Side would not produce energy at a reasonable price. He said at the time that this type of power produc- tion, ocean thermal energy conversion, has not been successfully deployed on a commercial scale. However, the company that is planning the floating power plant, Cayman OTI, has disputed the character- ization that its plans aren’t financially feasible. In response to Mr. Ander- son’s statements in November, the company said a month later that it has offered an en- ergy price that is “substan- tially lower” than the current rates incurred by Cayman consumers for energy. “Cayman OTI has offered to provide further reduc- tions through substantially lower capacity charges as diesel generating units are retired,” the company said in December. Portfolio 4 met Cayman’s goals for carbon reduction, but called for much more in- vestment in renewable en- ergy sources rather than using natural gas. Therefore, this plan would be about $176 million more costly than the top-ranked port- folio, according to the report. Portfolio 3, which calls for investment in natural gas and battery storage, is the most affordable, at a net-present value of $1.54 billion. However, the re- port stated that the strategy does not meet the territory’s target for carbon reduction. The report ruled Port- folio 1 – continuing to rely on diesel – was ruled flat-out unfeasible. Portfolio 2 called for Cayman primarily investing in natural gas but not storage or renewables. “Portfolio 2 does better than Portfolio 1 in terms of costs and risks but continues to rely on large thermal ca- pacity,” the report stated. “It comes closer to meeting the carbon emission reduction goals, but without storage is unable to meet the goals. This portfolio is close to meeting the [greenhouse gas] reduction target with a 57% reduction in CO2. As tech- nology improves, this port- folio may have merit.” After OfReg approved the report, CUC CEO Richard Hew touted its results. “Renewable costs have come down significantly in recent years, and projections of the [Integrated Resource Plan] show that a combina- tion of renewables, natural gas and smaller amounts of diesel, and battery storage will provide lower and more stable electricity costs than continued reliance on purely diesel-fired engines,” he stated in a press release. “Fur- thermore, the future supply mix reduces greenhouse gas emissions by 68% in 2030, meeting the Paris Accord cli- mate targets and in line with goals of the Cayman Islands National Energy Policy.” blueprint Tuesday by re- jecting the divorce agree- ment she has negotiated with the EU over the last two years. That it would lose was widely expected, but the scale of the rout – 432 votes to 202, the biggest defeat government defeat in British parliamentary history – was devastating for May’s leader- ship and her Brexit deal. Opposition Labour Party leader Jeremy Corbyn re- sponded with the no-confi- dence motion, and urged the government to “do the right thing and resign.” May, who leads a frac- tious government, a divided Parliament and a gridlocked Brexit process, said she was staying put. May said an election “would deepen divi- sion when we need unity, it would bring chaos when we need certainty, and it would bring delay when we need to move forward.” The government survived Wednesday’s vote with sup- port from May’s Conservative Party and its Northern Irish ally, the Democratic Unionist Party. Many pro-Brexit Con- servatives who voted against May’s deal, backed her in the no-confidence vote to avoid an election that could bring a left-wing Labour govern- ment to power. Had the government lost, Britain would have faced a snap election within weeks, just before the country is due to leave the European Union on March 29. Political analyst Anand Menon, from the research group U.K. in a Changing Eu- rope, said May had a remark- able ability to soldier on. “The thing about Theresa May is that nothing seems to faze her,” he said. “She just keeps on going.” May’s determination – or, as her foes see it, her inflexi- bility – might not be an asset in a situation calling for a change of course. The prime minister has until Monday to come up with a new Brexit plan. May promised to speak to lawmakers from across the political spectrum. But she also said any new Brexit plan must “deliver on the referendum result,” which May has long interpreted to mean ending the free move- ment of workers to Britain from the EU and leaving the EU’s single market and customs union. May barely survives no-confidence vote in parliament CONTINUED FROM PAGE 1 CUC to move away from diesel energy CONTINUED FROM PAGE 1The islands’ most-trusted news source 6 THURSDAY JANUARY 17, 2019 CAYMAN COMPASS places on the bench, Pastor Jeff Jefferson gave the opening prayer. In the absence of At- torney General Samuel Bulgin, who was also in Bel- gium, the motion to open court was moved by Acting Attorney General Reshma Sharma. Ms. Sharma noted court highlights of the past year, including the use of sexual harm prevention or- ders, the regular sitting of a court dealing with do- mestic violence and abuse, the acquisition of the Sco- tiabank building for court use, the amount of legisla- tion drafted and passed, and the establishment of a Wit- ness Protection Unit in crim- inal matters. Attorney Erik Bodden seconded the motion in an address he described as a “landmark moment” – the first on behalf of the Cayman Islands Legal Practitioners Association. Speaking on be- half of interim president David Collins, Mr. Bodden explained that CILPA is the newly formed single, unified and inclusive body that is re- placing the former Cayman Islands Law Society and Cay- manian Bar association. He noted that the legal profes- sion is evolving at a rapid pace, with more than 800 at- torneys now registered to practice law in Cayman. The objectives of CILPA will be the progression of Caymanian attorneys in their various firms, retention of the financial services’ preemi- nent position internationally, and the provision of an ap- propriate level of self-regu- lation through a code of con- duct for members. Mr. Bodden emphasized that attorneys welcomed the opportunity to be involved in consultation on proposed new legislation, as they have been in the past. Attorney Colin McKie, con- sultant editor of the Cayman Islands Law Reports, was the final speaker on the motion. He thanked the Grand Court judges for the 188 rulings handed down last year. He said the 2017 volume of law reports took up 1,456 pages. The increase in size was partly due to the ever- increasing number of judg- ments, he explained, as well as the ever-increasing com- plexity of matters. The prepa- ration of such judgments re- quired an enormous amount of a judge’s time outside of court, he said. A judgment explains the court’s decision to the parties involved, Mr. McKie pointed out. It also communicates reasons to the general public and to an appellate court if there is an appeal. Well- written judgments ensure continued public confidence in the rule of law, he said. He warned against an unfortu- nate but noticeable trend in lengthy judgments made pos- sible by “cut and paste” refer- ences to related cases found on the internet. Mr. McKie urged writers to avoid unnecessary ver- bosity as well as unnecessary brevity. He quoted Sir John Chadwick, former president of the Cayman Islands Court of Appeal, who explained that the court proceeded on the basis that the court below was correct “unless we are persuaded otherwise.” Chief Justice Smellie re- sponded to each speaker briefly before making his own remarks. disruption of cases in the Summary Courts as well.” The first courtroom for the Court of Appeal is in- tended to be completed by the end of April. Eventually, said the Chief Justice, there will be a need for three additional courtrooms. Chief Justice Smellie said there was a record 147 Grand Court indictments carried over from 2018, and that the 71 cases concluded is about on par for previous years. The standard time of disposal for those cases was about six months, which the Chief Jus- tice said will need to be im- proved over time. The expanded court fa- cilities will help increase the rate of disposal, but Chief Justice Smellie also refer- enced a need for more experi- enced legal practitioners who will accept Legal Aid. Right now, he said, there are more than 800 attorneys on island but only 27 who work with Legal Aid clients. “While this number has increased in recent years be- yond the 12 or 15 stalwarts of the past, it is not suffi- cient to ensure represen- tation for all defendants,” said Chief Justice Smellie of the shortage of attorneys. “The result is that nowa- days, the Summary Courts are required all too often to postpone trials because lawyers are engaged either before the Grand Court or, when in session, the Court of Appeal.” Chief Justice Smellie also noted a record 316 divorce petitions last year, and he said that the Family Court practitioners must pursue a commitment to media- tion to avoid the expensive and acrimonious gauntlet to trial that seldom serves the needs of the clients or the court system. The Cayman court system is nearing the ability to process electronic filing, court searches and pay- ments, said the Chief Jus- tice, and those services may be implemented by the end of the year. Chief Justice Smellie also took the time to acknowl- edge a retiring justice and a brand-new addition to the bench. He lauded Justice Charles Quin for his more than 10 years of service to the Cayman Islands and said that he will be sorely missed when he applies for formal retirement in June. “We, his colleagues, are bracing ourselves for the eventuality of Justice Quin’s formal retirement in June of this year, an event which we – like the rest of the court staff, the profession and very many members of the wider community – would wish to postpone indefinitely,” said Chief Justice Smellie. “The good news though, is that he has accepted appointment to the panel of judges who serve from time to time as the need arises. Justice Quin will therefore be presiding, especially in the criminal di- vision, from time to time.” Chief Justice Smellie also welcomed new Justice Cheryll Richards, the former head of the Office of Public Prosecutions. Justice Rich- ards will not be involved in any cases that she had worked in her previous ca- pacity, and will begin her life on the bench working in var- ious courtrooms. “Justice Richards, as you have heard, needs no intro- duction, having served … with great acclaim as solic- itor general and as the is- lands’ first director of public prosecutions,” he said. “We welcome Justice Richards and wish for her a long, ful- filling and productive career on the bench.” CONTINUED FROM PAGE 1 Chief Justice presents optimistic opening address Grand Court opens with pomp and ceremony CONTINUED FROM PAGE 1 Chief Justice Anthony Smellie inspects the police honor guard before making his speech on Wednesday. Inspector Ian Yearwood accompanies Governor Martyn Roper to Wednesday’s ceremonies. A police honor guard awaits inspection by Chief Justice Anthony Smellie prior to the Grand Court opening on Wednesday. – PHOTOS: TANEOS RAMSAYThe islands’ most-trusted news source 7 Community CALENDAR ■ COMMUNITY CALENDAR is published TUESDAYS and THURSDAYS. It is available to charitable or nonprofit organizations. Items should be submitted at least three working days before publication. Information must include name of sender, signature and contact number. ■ Items may be faxed to 949-2662, brought to the Cayman Compass office on Shedden Rd. or emailed to cwinker@pinnaclemedialtd.com at least three days in advance of publication. CAYMAN COMPASS • THURSDAY JANUARY 17, 2019 THURSDAY, JAN. 17 LITTLE CAYMAN VEHICLE LICENSING: 9 a.m. to 2:30 p.m. at the Little Cayman District Office. PTA MEETING: Layman E. Scott Sr. High School PTA meeting, 7 p.m. GROUNDBREAKING: The public is invited to attend a groundbreaking ceremony marking the second phase of the National Housing Development Trust’s Affordable Housing Initiative at 10 a.m. at the housing site off John McLean Drive behind East End Primary School in East End. SATURDAY, JAN. 19 COMMUNITY MEETING: Cayman 2020, Visualising Our Future. Community groups, including the National Trust, Saved The Cove, Save Barkers, Save Cayman and CPR Cayman, will host this event to address local marine and terrestrial conservation efforts and legislation, sustainable tourism and development, voter registration and constitutional rights, and more. South Sound Civic Centre. Noon to 4 p.m. SUNDAY, JAN. 20 FAMILY FUN DAY: The Garden Club of Grand Cayman and the Queen Elizabeth II Botanic Park will host a family fun day today at the Botanic Park. 10 a.m. to 3 p.m. Park entrance fee $5; children 12 and under, free. Activities include games, craftmaking and a magic show. Plants, baked goods, food and drink for sale. Tours of the Heritage Garden, Butterfly Trail and Blue Iguana Habitat. All proceeds will go to the new Children’s Garden. Email manager@botanic-park.ky for more details. THURSDAY, JAN. 24 ‘EDUCATING RITA’: Starting today and running until Saturday, Feb. 2, the Prospect Playhouse presents Willy Russell’s award-winning comedy “Educating Rita.” Jan. 24, 25, 26, 31 and Feb. 1 and 2. Shows at 7:30 p.m. Happy Hour at 6:30 p.m. Tickets are $25 for adults and $15 for students. Email boxoffice@cds.ky or visit www.cds.ky. FRIDAY, JAN. 25 BURNS SUPPER: A Burns Supper fundraiser for Jasmine, formerly known as Cayman HospiceCare, will be held at Grand Old House from 6:30 p.m. Tickets are $150 per person and include a cocktail reception, four- course dinner including haggis, wine and whisky. Dress is black tie – kilts and tartan are welcome. To reserve tickets, email info@jasmine.ky. SATURDAY, JAN. 26 TASTE OF CAYMAN: The annual food and drink festival will be held at Festival Green in Camana Bay. Find the best of Cayman’s diverse cuisines, local produce and drinks to match. Begins at 5 p.m. This year’s charity partner for the raffle is the National Council of Voluntary Organisations. TEA PARTY: Cayman Brac District Council of the National Trust presents an Octopus Tea Party from 6–11 p.m. at the Brac Trust House off Northside Road at the end of White Bay Road. Tickets CI$25 include entry, food, tea, entertainment and auction. For more information, contact 547-0892. CHRISTMAS TREE MULCH: The Department of Environmental Health invites residents to collect mulch from recycled Christmas trees from the George Town Cricket Field from 8 a.m. today. Mulch will be provided on a first- come, first-served basis. Residents are invited to come out early and to bring their shovels and bags for the removal of the mulch. SUNDAY, JAN. 27 STRIDE AGAINST CANCER: The annual Nationwide Stride Against Cancer 2019 will be held this morning at Seven Mile Public Beach. $25 early bird registration closes on Jan. 12. $30 standard rate from Jan. 13. No registration on the day. Race packets (T-shirts) can be collected from the Cancer Society office starting the week of Monday, Jan. 21. Sizes are limited, so collect early. The Half Marathon, 13.1 miles, begins at 6 a.m. The Quarter Marathon, 6.5 miles, starts at 7 a.m. Gather for the big group start picture at 6:45 a.m. HATITUDE: The National Trust’s annual fundraiser, Hatitude, a fun family brunch, will take place at Grand Old House under the theme “Birds of the Caribbean.” 11 a.m. to 3 p.m. Tickets are $135 for adult members, $165 for adult non-members (includes 2019 membership of the National Trust), and $45 children (4 to 12 years old). MONDAY, JAN. 28 HEROES DAY: National holiday. BRAC RACE/RELAY: The Lions Club of Cayman Brac annual Corporate Cup Race/ Relay will be held at Stake Bay Loop. TUESDAY, JAN. 29 SCHOOLS CLOSED: Cayman Brac and Little Cayman schools closed for professional development. THURSDAY, JAN. 31 THATCH PLAITING: Community thatch plaiting class, 7-9 p.m. at the Heritage House, Cayman Brac. Cost $5. GENERAL INTEREST PUBLIC INPUT: The public has until Jan. 28 to share feedback about the National Planning Framework, which sets out long-term goals for land use and physical development as part of the Development Plan for Grand Cayman. More information: www.plancayman.ky. SPECIAL OLYMPICS: Be a volunteer for athlete training at Truman Bodden Sports Complex. Tuesdays, 5:30 p.m. for track, bocce and football, and Thursdays, 5:30 p.m. for basketball. Swimming on Wednesdays at the Lions Pool 10-11 a.m. or on Saturdays at the Cayman International School pool, 9:30 a.m. Email soci@candw.ky or call 916-2600. COMMUNITY CHESS: Tuesdays 5-8 p.m., West Indies Wine Company. Join the Cayman Chess Club for a complimentary chess class and open challenges weekly. Anyone can learn to play and enjoy chess, even beginners. ART OPEN CANVAS: At KARoo Restaurant in Camana Bay, Wednesdays 7-11 p.m. Artists of all levels are welcome to come and enjoy painting and socializing with other artists. Includes use of easels, lights, space, beverage ticket. No fee. For more information, contact info@visualartcayman.com or jar.was@gmail.com. VISUAL ARTS SOCIETY: Adult Open Studio available to those who want to work independently in an inspiring atmosphere. Wednesdays for adults, 9 a.m. till noon. Thursdays Adults and Youth, 10 a.m. till noon. Watler House Art Studio, Pedro St. James. Fee is $5/$15 or Ceramics. $15 pp/$25 pp non-members. Includes use of studio, glazes and ceramic tools. Clay available $30 per bag/fee for kiln usage. To register, call 546-9422 or email info@visualartcayman.com. SEAFARERS HALL: The Cayman Islands Seafarers Association wishes to inform the community that the hall is now available for rent every day of the week, including Saturdays, as the church is no longer contracted with the association at 11 Victory Avenue, Prospect. THRIFT SHOP: One Dog at a Time’s New To U shop is now located at JJT Warehouses, Row 2, Unit 2 on Industrial Way. Open every Saturday from 8 a.m. to 5 p.m. and on Wednesdays from 10 a.m. to 2 p.m. Variety of items available, including men’s, women’s, children’s and baby clothes, shoes, household, electrical items, CDs, DVDs, books, home furnishings, toys, games, furniture, baby cribs, car seats, dog beds and more. BETHESDA COUNSELLING CENTRE: Caters to all who seek help. Open Monday to Friday, 9:30 a.m. to 5:30 p.m. at 68 Mary Street. Appointments available Saturdays and late evenings. Owned and operated by the United Church in Jamaica and the Cayman Islands. Call 946-6575. HUMANE SOCIETY BOOK LOFT: North Sound Road. Open Monday 12:30-4 p.m.; Tuesday-Friday, 9:30 a.m. to 4 p.m.; Saturday 9:30 a.m. to 4:30 p.m. Volunteers needed for front desk a few hours per week. For more information, email humanesocietybookloft@ candw.ky or call 946-8053. Donations of books, games, CDs, stationery, DVDs, cards etc. in good condition needed. For more Community Calendar events, visit www.caymancompass.com/events. Community groups will host an event to address local marine and terrestrial conservation efforts on Saturday at the South Sound Community Centre. – PHOTO_ TANEOS RAMSAYThe islands’ most-trusted news source 8 THURSDAY JANUARY 17, 2019 • CAYMAN COMPASS Famed Naples pizzeria bombed by mob A popular Naples pizzeria, Sorbillo, is the latest target of bombings in the area which Italian authorities have linked to mobsters. The ANSA news agency said eight bombs have targeted Naples-area businesses in recent days. Barr seeks to assure senators he will not be a Trump loyalist Blast near Syria US-led coalition patrol causes casualties BEIRUT (AP) – An explosion struck Wednesday near a pa- trol of the U.S.-led coalition in the northern Syrian town of Manbij, killing and wounding more than a dozen people, a Syrian war monitoring group and a local town council said. The Britain-based Syrian Observatory for Human Rights said 16 people were killed including nine civilians and others were wounded in the blast. It added that at least five U.S.-backed Syrian fighters were also among the dead. The rare attack came days after the U.S. began the pro- cess of withdrawing from Syria, pulling out equip- ment from the northeast into neighboring Iraq. There was no immediate comment from the U.S.-led coalition on whether there were casualties among coali- tion forces. U.S. military Col. Sean Ryan said they were “aware of open source reports re- garding an explosion in Syria. Coalition forces conducted a routine patrol in Syria today. We are still gathering infor- mation and will share addi- tional details at a later time.” Videos released by local activists and news agencies showed a restaurant that suf- fered extensive damage and a street covered with debris and blood. Several cars were also damaged. Another video showed a helicopter flying over the area. The Kurdish Hawar news agency, based in northern Syria, and the Observa- tory, which monitors the war through activists on the ground, reported U.S. troops were among the casualties. Turkey’s state-run An- adolu Agency, citing un- named local sources, said a number of U.S. soldiers were injured in the blast and that the U.S. military evacuated soldiers by helicopter. The Islamic State group claimed responsibility for the blast, saying one of its mem- bers carried out a suicide at- tack and detonated his vest with explosives. The Observatory and the Kurdish-led Manbij Mili- tary Council, which runs the town, said the blast occurred near a restaurant near the town’s main market. The Observatory’s chief Rami Abdurahman also said the explosion was caused by a suicide bomber but did not immediately have any fur- ther details. It was not the first time that forces of the U.S.-led co- alition were subjected to at- tacks in the area, although they have been rare. In March last year, a road- side bomb killed two coali- tion personnel, an American and a Briton, and wounded five in Manbij. WASHINGTON (AP) – Vowing “I will not be bullied,” Presi- dent Donald Trump’s nom- inee for attorney general as- serted independence from the White House, saying he be- lieved that Russia had tried to interfere in the 2016 presi- dential election, that the spe- cial counsel investigation shadowing Trump is not a witch hunt and that his pre- decessor was right to recuse himself from the probe. The comments by William Barr at his Senate confirma- tion hearing Tuesday point- edly departed from Trump’s own views and underscored Barr’s efforts to reassure Democrats that he will not be a loyalist to a president who has appeared to demand it from law enforcement. He also repeatedly sought to as- suage concerns that he might disturb or upend special counsel Robert Mueller’s in- vestigation as it reaches its final stages. Some Democrats are con- cerned about that very pos- sibility, citing a memo Barr wrote to the Justice Depart- ment before his nomination in which he criticized Muel- ler’s investigation for the way it was presumably looking into whether Trump had ob- structed justice. Sen. Dianne Feinstein of California, top Democrat on the Senate Judiciary Com- mittee, told Barr the memo showed “a determined ef- fort, I thought, to undermine Bob Mueller.” The nominee told senators he was merely trying to advise Justice De- partment officials against “stretching the statute be- yond what was intended” to conclude the president had obstructed justice. Though Barr said an at- torney general should work in concert with an admin- istration’s policy goals, he broke from some Trump talking points, including the mantra that the Russia probe is a witch hunt, and said he frowned on “Lock Her Up” calls for Hillary Clinton. Trump has equivocated on Russian meddling in the 2016 election and assailed and pushed out his first attorney general, Jeff Sessions, for re- cusing because of his work with the Trump campaign. Barr stated without hes- itation that it was in the public interest for Mueller to finish his investigation into whether the Trump campaign coordinated with the Kremlin to sway the presidential elec- tion. He said he would resist any order by Trump to fire Mueller without cause and called it “unimaginable” that Mueller would do anything to require his termination. “I believe the Russians in- terfered or attempted to in- terfere with the election, and I think we have to get to the bottom of it,” Barr said during the nine-hour hearing. He said that, at 68 years old and partially retired, he felt emboldened to “do the right thing and not really care about the consequences.” If a president directs an at- torney general to do some- thing illegal, he said, an at- torney general must resign. “I will not be bullied into doing anything that I think is wrong by anybody, whether it be editorial boards or Congress or the presi- dent,” Barr said. Consumed by the par- tial government shutdown, Trump remained out of sight at the White House but also kept an eye on the news cov- erage of the hearing and told aides he was pleased with how Barr was handling him- self, said two White House officials and a Republican close to the White House who spoke on condition of ano- nymity because they were not authorized to discuss in- ternal conversations. On other topics, Barr echoed in part Trump’s hard- line immigration stance and said the Justice Department would not go after marijuana companies in states where the drug is legal. He also would not rule out jailing re- porters for doing their jobs, saying he could envision cir- cumstances where a jour- nalist could be held in con- tempt “as a last resort.” Barr’s hearing continues Wednesday with a lineup of character witnesses, in- cluding former Attorney Gen- eral Michael Mukasey. Barr’s confirmation is likely, given that Republi- cans control the Senate. Even some Democrats have been looking to move on from acting Attorney General Mat- thew Whitaker, who declined to remove himself the Russia probe and has faced scrutiny over his private dealings. But he nonetheless faced skeptical questions from Democrats over whether he could oversee without bias or interference the remainder of Mueller’s probe. Feinstein said the nomi- nee’s past rhetoric in support of expansive presidential powers “raises a number of serious questions about your views on executive authority and whether the president is, in fact, above the law.” Barr, responding with a more mod- erate view, said he believed a president who ordered an at- torney general to halt an in- vestigation would be commit- ting an “abuse of power” if not necessarily a crime. Barr said under ques- tioning from Sen. Chris Coons, a Delaware Demo- crat, that he would not inter- fere with a Mueller request to subpoena Trump for his tes- timony “if there was a fac- tual basis.” But he also said he saw no reason to change Justice Department legal opinions that have held that a sitting president cannot be indicted. Barr called Mueller a friend of 30 years and said “it is vitally important” that Mueller be allowed to com- plete his investigation. “I don’t believe Mr. Mueller would be involved in a witch hunt,” he said when asked by the panel’s Repub- lican chairman, Sen. Lindsey Graham of South Carolina. The special counsel is re- quired to report his findings confidentially to the Justice Department. Barr said he then expected to produce his own report to Congress and said it was his goal to release as much information as pos- sible to the public, though he stopped short of a direct pledge. He also noted the Justice Department does not typically disclose information about people it decides not to prosecute. He disclosed having dis- cussed Mueller with Trump during a meeting in 2017 when Barr declined to join his legal team. He said he and his wife had been “sort of looking forward to a bit of respite and I didn’t want to stick my head into that meat grinder.” Trump wanted to know what Mueller, who worked for Barr when he led the Jus- tice Department between 1991 and 1993, was like. “He was interested in that, wanted to know what I thought about Mueller’s in- tegrity and so forth and so on,” Barr said. “I said Bob is a straight shooter and should be dealt with as such.” He also defended his de- cision to send an unsolic- ited memo to the Justice Department in which he crit- icized as “fatally miscon- ceived” the theory of obstruc- tion that Mueller appeared to be pursuing with regard to Trump, including inves- tigation into his president’s firing of former FBI director James Comey. Though Barr said an attorney general should work in concert with an administration’s policy goals, he broke from some Trump talking points, including the mantra that the Russia probe is a witch hunt … The rare attack came days after the U.S. began the process of withdrawing from Syria, pulling out equipment from the northeast into neighboring Iraq. This video screenshot shows a damaged restaurant where an explosion occurred in Manbij, Syria on Wednesday. - PHOTO: ANHA VIA AP Attorney General nominee William Barr is sworn in by Senate Judiciary Committee Chairman Lindsey Graham, Republican of South Carolina, on Capitol Hill in Washington on Tuesday. - PHOTO: AP9 WORLD®IONAL CAYMAN COMPASS • THURSDAY JANUARY 17, 2019 Trump economists acknowledge shutdown drag on economy Kremlin derides allegations that Trump could work for Moscow MOSCOW (AP) – Top Rus- sian officials on Wednesday ridiculed allegations that U.S. President Donald Trump could have worked for Mos- cow’s interests, dismissing them as “absurd” and “stupid.” Russian Foreign Min- ister Sergey Lavrov told a news conference that U.S. media reports claiming that Trump might have been a Russian agent reflect a dra- matic plunge in standards of journalism. Trump said this week that he never worked for Russia and repeated his claim that the investigation into his ties to Moscow is a hoax. Asked if Russia could re- lease the minutes of Trump’s one-on-one negotiations with President Vladimir Putin, Lavrov dismissed the idea, saying it defies the basic cul- ture of diplomacy. He added that such requests reflect il- legitimate meddling in the U.S. president’s constitu- tional right to conduct for- eign policy. Putin’s foreign affairs ad- viser, Yuri Ushakov, similarly derided the claims in the U.S. that Trump might have worked for Russian interests. “What kind of nonsense are you asking about?” Ush- akov snapped when asked if Trump was a Russian agent. “How can one com- ment on such a stupid thing? It has reached such a scale that it’s awkward to even talk about it.” “How can a president of the United States be an agent of another country, just think yourself,” Ushakov said at a briefing. The Kremlin’s hopes for better relations with the U.S. under Trump have been shat- tered by ongoing investiga- tions into the allegations of collusion between Trump’s campaign and Russia. Ushakov noted that Russia-U.S. relations are cur- rently at a level that “can’t be worse.” Lavrov, who was speaking at a separate news confer- ence, noted that a probe led by special counsel Robert Mueller has produced no ev- idence of Trump’s collusion with Russia. He particularly scoffed at the charges leveled against Trump’s former national se- curity adviser, Michael Flynn, saying that he only talked to the Russian ambassador in a bid to protect U.S. interests. “It’s quite obvious that the situation is absurd,” Lavrov said about the U.S. investigation. He also sharply criticized Washington for its intention to opt out of a key nuclear pact over alleged Russian violations. Lavrov noted that earlier this week the U.S. has ignored Moscow’s proposal to inspect a Russian missile that Wash- ington claims has violated a nuclear arms treaty. He said that Russia made the offer during talks in Ge- neva earlier this week but the U.S. negotiators stonewalled the proposal, repeating Washington’s demand that Russia destroys the 9M729 missile it claimed violated the 1987 Intermediate-Range Nuclear Forces Treaty. “Our questions why the Americans don’t want to ex- amine our proposals and get firsthand information about specific parameters of the missile were left unheard,” he said. U.S. Undersecretary of State Andrea Thompson said in Tuesday’s statement fol- lowing the talks in Geneva that “the meeting was disap- pointing as it is clear Russia continues to be in material breach of the treaty.” Lavrov charged that the U.S. refusal to consider the Russian offer to have a close look at the missile reflects Washington’s intention to abandon the INF treaty. Turning to last month’s arrest in Moscow of Paul Whelan, a former U.S. Ma- rine, on suspicion of espio- nage, Lavrov said the man’s brother has visited Moscow and has been briefed about prison conditions. The In- terfax news agency later car- ried the Foreign Ministry’s statement saying that Whel- an’s brother is not in the Russian capital. The U.S. Embassy would not comment. Lavrov rejected the allega- tions that Russian authorities could have arrested Whelan in order to swap him for one of the Russians held in the U.S., saying “we don’t do such things.” He said Whelan was caught red-handed and the investigation is ongoing. Whelan holds citizen- ship from U.S., Britain, Ire- land and Canada, and Lavrov said Russia will allow con- sular visits. Speaking on other issues, Lavrov insisted that Moscow is not taking any sides in the controversy over Brit- ain’s exit from the European Union. He rejected allegations that Russia was gloating in the turmoil, saying that Russia is interested in seeing a “united, strong and, most importantly, independent Eu- ropean Union.” Commenting on the situa- tion in Syria, Lavrov said that Moscow expects the Syrian government to take over terri- tory in the country’s east fol- lowing the planned U.S. mili- tary withdrawal. WASHINGTON (AP) – With shutdown negotiations dead- locked, the White House planned further meetings with rank-and-file lawmakers Wednesday, as the Trump ad- ministration acknowledged the prolonged standoff over his border wall funding de- mands is having a greater economic drag than previ- ously thought. President Donald Trump has invited a bipartisan group of lawmakers known as the Problem Solvers caucus to talks, but it was far from clear the session would yield a breakthrough on the shutdown’s 26th day. The president’s econo- mists, meanwhile, said the shutdown was having a greater impact than previ- ously projected. In a call with reporters, White House Council of Eco- nomic Advisers chairman Kevin Hassett said Tuesday the shutdown is reducing eco- nomic growth more than pre- dicted. He said the “hope is this resolves quickly and that it won’t have a major impact on the long-run outlook, even though it does have a major impact on individual lives.” White House spokes- woman Sarah Huckabee Sanders told reporters Wednesday that the economy remained strong. “I know there has been some impact, but at the same time we’re focused on the long term economic princi- ples the president has laid out,” she said. The House and Senate have announced they will cancel an upcoming recess week if the shutdown con- tinued, which seemed likely. Trump has not moved off his demand to have Con- gress provide $5.7 billion to build his promised border wall with Mexico. Demo- crats say they will discuss border security once the gov- ernment has reopened, but House Speaker Nancy Pe- losi is refusing money for the wall they view as ineffective and immoral. The president, on a con- ference call with sup- porters, showed no signs of backing down. “We’re going to stay out for a long time, if we have to,” Trump said. “We’ll be out for a long time.” With some 800,000 fed- eral employees furloughed or working without pay, Trump suggested the partial shut- down, which has clogged air- port security lines and shut- tered federal agencies, was going smoothly. “People are very im- pressed with how well gov- ernment is working with the circumstances that we’re under,” Trump said. Behind the scenes, though, the administration – and its allies on Capitol Hill – are warily eyeing the next payday, hoping to reach a resolution before next week’s Tuesday deadline, when they will need to pre- pare the next round of pay- checks for workers who have been seeing zeros on their pay slips. “There is definitely a sense that there is a deadline approaching, which would be next Tuesday, to make sure that we’re able to solve this problem,” said Mer- cedes Schlapp, a White House spokeswoman. Trump, who a week ago seemed intent on declaring a national emer- gency in order to build the wall, has turned his attention back to Congress as polling shows he is taking much of the blame for the standoff. On Tuesday, the White House had invited rank- and-file lawmakers to lunch with Trump at the White House as part of a strategy to build support from cen- trist Democrats and newly elected freshmen, including those from areas where the president is popular with voters. But none of the House Democrats took Trump up on the offer. Trump ended up lunching with a handful of lesser- known House Republicans. Trump urged his sup- porters to call the of- fices of Democratic law- makers to press them to support the wall to reopen the government Republicans complain that Democrats are the ones who are refusing to budge, and they say it’s up to Pelosi to bring Trump a new offer. “The president – who is not well-known for flexibility – has been more flexible than the other side,” said Sen. Roy Blunt of Missouri, a member of GOP leadership. Meanwhile, the effects of the partial government clo- sure intensified around the country, with workers facing deepening anxieties about mortgage payments and unpaid bills. Some lawmakers are re- luctant to return home for next week’s planned re- cess – some were planning their first town halls of the new year – as the standoff deepens. JPMorgan’s Jamie Dimon told reporters Tuesday that he expects U.S. economic growth to slow to nothing this quarter if the govern- ment shutdown continues. “I hope it doesn’t go to the end of the week,” said Sen. John Thune of South Da- kota, the No. 2 Senate Repub- lican. “I’d like to see us have a breakthrough here.” But hopes of side deals being cut by the White House seemed unlikely, as did the prospect of groups of sen- ators meeting privately to forge a compromise. Said Sen. Chris Coons, D-Del., “The shutdown will eventually take us to a place where the average American is angry at and sick of all of us.” White House press secretary Sarah Huckabee Sanders talks with reporters outside the White House on Wednesday. - PHOTO: AP Russian Foreign Minister Sergey Lavrov speaks about his department’s 2018 accomplishments during his annual roundup news conference in Moscow, Russia, Wednesday. – PHOTO: APNext >