ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – WEDNESDAY FEBRUARY 27, 2019 High of 87 Low of 72 Moderate with wave heights of 3 to 5 feet. EDITORIAL | PAGE 4 OFFSHORE UNDER SPOTLIGHT AGAIN, NO END IN SIGHT LOCAL | PAGE 5 TURTLE-FRIENDLY STREET LIGHTING INSTALLED IN TRIAL PROJECT Gov’t issues economic substance guidance KEN SILVA ksilva@pinnaclemedialtd.com Government has published a guidance booklet to help companies comply with the territory’s economic substance legislation, which was passed by legislators last year in an attempt to avoid European Union tax blacklisting. The new rules require Cayman-registered companies to demonstrate they have “ade- quate” economic activity locally to justify the profits they make. The recently released guid- ance booklet specifies what entities the law applies to, and it sheds light on what gov- ernment will consider as “adequate” eco- nomic activity. According to the guidance, the economic substance legislation applies to companies incorporated or registered under the Compa- nies Law, limited liability companies, and lim- ited liability partnerships. The legislation does not apply to domestic companies, investment funds, or entities that are tax resident outside the islands. By July 1 or sooner, the companies that fall under the law will be required to demon- strate that they have an “adequate” amount of operating expenditure incurred here, an ad- equate physical presence (including main- taining a place of business or plant, property and equipment), and an adequate number of full-time employees for the “relevant activity” being carried out here. The booklet defines relevant activity as banking, distribution and service center busi- ness, financing and leasing, fund management, headquarters business, holding company business, insurance, intellectual property business, and shipping. However, the guidance booklet does not ex- actly state what “adequate” means. “What is adequate or appropriate for each LATE 2020 NEW TARGET FOR MENTAL HEALTH FACILITY MARK MUCKENFUSS mmuckenfuss@pinnaclemedialtd.com More details have emerged on the prog- ress of the mental health facility planned on 15 acres of land in East End. Ministry of Health officials have not re- sponded to questions from the Compass about the reasons behind delays for the project, but have indicated that completion is not expected until late next year – a year later than origi- nally planned. Dr. Marc Lockhart, Cayman Islands Mental Health Commission chairman, is close to the project. He said preliminary bids that came in last year ended up costing too much. Ministry officials did not confirm that. In an email, Chief Officer Jennifer Ahearn said, “The construction of the mental health facility will be retendered this week.” The request for bids went online Monday, with a submission deadline of March 22. “The Government remains in full support of this important project,” Ms. Ahearn said, even though “there has unfortunately been some delay in the project timeline.” The project has been broken into five sep- arate elements: an administration building; three separate contracts for three cottages each; and a contract for “external works.” Currently, the only mental health inpatient service available is an eight-bed facility at the Cayman Islands Hospital. Dr. Lockhart said the demand for care regularly exceeds resources. Moves are also being made to provide more support for outpatients, with bids closing Wednesday for a 3,487-square-foot behavioral health office on Smith Road. Caybrew’s $1 million expansion under way Stephen Webster, chairman of the Cayman Islands Brewery, looks up at new tanks recently installed at the brewery as part of its $1 million expansion. The expansion includes a new warehouse, two new tanks, a larger taproom, 6,500 additional square feet of warehouse space for beer storage, and new office space. For more on this story, see Business, page 10. – PHOTO: TANEOS RAMSAY PROMISES, DELAYS MARK COURT’S ONLINE RECORDS EFFORTS SPENCER FORDIN sfordin@pinnaclemedialtd.com The Cayman Islands Judicial Administra- tion has been working toward digitalizing its court records for more than two years, according to a Freedom of Information re- quest conducted by the Cayman Compass, and has entered into contractual obligations worth more than US$150,000 in order to make it happen. The court’s push to make court records accessible on its website were highlighted in 2017 after a battle over the publication of open records. Canadian consultant Documents obtained by the Compass show the Judicial Administration had entered into an agreement with Canadian firm CSDC Sys- tems Inc. long before that, in late 2016, to digi- tally convert court records and place them on- line. The court has said on multiple occasions that it hopes to have court records online in short order, but a review of correspondence indicates that it could be ready to function in- ternally as soon as April this year. The agreement, which has been reviewed by the Compass, involves an investment of US$109,800 to modernize the court’s record system. There will also be assorted mainte- nance fees involved. The court system contacted CSDC Systems because it wanted to upgrade from a pro- gram named JEMS to one called AMANDA JEMS 7. The upgrade would allow for dig- ital record-keeping of cases and warrants, PLEASE TURN TO PAGE 6 » PLEASE TURN TO PAGE 6 »2 LOCAL®IONAL WEDNESDAY FEBRUARY 27, 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. - WEDNESDAY - 640-FILM (640-3456) HOW TO TRAIN YOUR DRAGON: THE HIDDEN WORLD (PG) 1:30 I 4:05 3D I 6:40 I 9:15 3D HAPPY DEATH DAY 2U (PG13) 1:40 I 4:50 VIP I 7:00 I 10:10 VIP FIGHTING WITH MY FAMILY (PG13) 1:45 I 10:00 ALITA BATTLE ANGEL (PG13) 2:00 VIP I 4:10 3D I 7:20 VIP I 9:30 TOTAL DHAMAAL (PG) 12:30 I 3:30 I 6:30 I 9:30 THE LEGO MOVIE 2: THE SECOND PART (PG) 4:25 I 7:00 WHAT MEN WANT (R) 1:15 I 4:00 I 6:50 I 9:40 Kimpton Seafire Resort Grand Cayman Thursday 28 Feb 2019 Braving the Turmoil Dynamic New World Register Now | rfceo.ky Media Group INTERNATIONAL SCHOOL TO HOLD OPEN HOUSE The Cayman Interna- tional School is holding an early childhood and el- ementary open house from 9-10:30 a.m. Thursday. The event is for parents of prospective students from age 2 to Year 5. Par- ents will have the oppor- tunity to learn more about the expansion of the school – its new preschool that is under construction will be completed for the be- ginning of the new school year in August. Information will also be available on curriculum. Parents can meet the fac- ulty and tour the school. The school plans to offer a new full-day nursery pro- gram for the 2019-2020 school year. For more information, call 945-4664. BVI voters choose new government Andrew Fahie is territory’s new premier KEN SILVA ksilva@pinnaclemedialtd.com The former opposition Virgin Islands Party won eight of the 13 legislative seats in the British Virgin Is- lands during Monday’s elec- tions, unseating a National Democratic Party that had controlled government there since 2011. The VIP’s victory makes Andrew Fahie the BVI’s new premier. Mr. Fahie replaces Orlando Smith, who has re- tired from office after serving as the territory’s premier for a stint in the mid-2000s, and then again from 2011 to January. Cayman’s Premier Alden McLaughlin said he de- veloped a close bond with Mr. Smith as the two po- litical leaders faced similar challenges internationally over the years. “He and I are quite close because he’s been around a while, too. He’s a good man,” Mr. McLauglin said. “He’s soft-spoken, perhaps not as hard-hitting as some would expect a politician to be, but I found him to be a very decent guy over the years.” Mr. Fahie campaigned on reducing government waste and improving transparency. According to The BVI Beacon, he promised to start working to pass freedom of infor- mation, ethics, and whis- tleblower protection laws within six months of taking office. The new BVI premier has not publicly articulated how he will handle the ter- ritory’s relationship with the United Kingdom. The BVI faces similar challenges with the U.K. and the European Union as Cayman, including being po- tentially blacklisted by the EU and being subject to the U.K.’s beneficial ownership rules. The BVI was also a sub- ject of the U.K. Foreign Affairs Committee report calling for British Overseas Territories to legalize same-sex marriage and expand voting rights to British citizens. “I’ll say nothing right now until I get to the office to see what else is there because usually those reports just don’t fall out of the sky. There are usually other correspon- dences that came to the gov- ernment before. If that is so, I have to read them and see where do I chart my course from there,” Mr. Fahie said of the report, according to BVI News. “In most of these de- cisions, we have to call the people of the Virgin Islands and ask them what do they think about the same-sex marriage. We have to hold discussions with the people.” The other seven seats won by the VIP are occupied by political newcomers, as none of the new government legis- lators previously held office. The incumbent NDP, which won 11 of the 13 seats in 2015, only retained three seats this time around. Per- haps the most surprising outcome of the election was the ousting of NDP leader Myron Walwyn, who received the most votes in the terri- tory’s history as an at-large candidate in 2015. Former health minister Ronnie Skelton also lost his seat, as did former deputy premier Kedrick Pickering. US islands ask federal government for help in wake of disasters SAN JUAN, Puerto Rico (AP) – Leaders of U.S. territories including Puerto Rico and the U.S. Virgin Islands asked the federal government on Tuesday for more help in their efforts to recover from a deadly 2017 hurricane season, saying federal funds have been denied or released too slowly to help rebuild schools, roads and hospitals as another hurricane season approaches. Governors for both Ca- ribbean territories told a Senate committee in Wash- ington, D.C. that the U.S. gov- ernment is no longer fully funding debris removal, de- molition of unsafe struc- tures and other projects even though much work remains after the strikes by Hurri- canes Irma and Maria. “We must rebuild quickly, and can ill afford not to be fully prepared as another hurricane season looms. We have nowhere else to run,” said Gov. Albert Bryan Jr. of the U.S. Virgin Islands, which received a direct hit from both Category 5 storms in September 2017. Sen. Lisa Murkowski, a Republican from Alaska who leads the U.S. Com- mittee on Energy and Nat- ural Resources, which over- sees affairs in U.S. territories, said the federal government wants to ensure the money is being used wisely but ac- knowledged the challenges the islands are facing. “It was just one con- tinuing disaster after an- other,” she said. Gov. Ricardo Rossello said Puerto Rico is running out of options after a failed ap- peal in which his administra- tion sought to have the U.S. Federal Emergency Manage- ment Agency fully fund cer- tain recovery work, including debris removal that is still continuing. Maria hit the is- land as a Category 4 storm and is estimated to have caused more than $100 bil- lion in damage. British Virgin Islands Premier-elect Andrew Fahie Electricity poles and lines lay toppled on the road after Hurricane Maria hit the eastern region of the island, in Humacao, Puerto Rico, on Sept. 20, 2017. - PHOTO: AP NEW PROBE TARGETS GUATEMALA FIRST LADY GUATEMALA CITY (AP) – Prosecutors said Friday they have opened an in- vestigation into first lady Patricia Marroquin de Morales related to appar- ently unreported cam- paign checks during Pres- ident Jimmy Morales’ election bid. The announcement fol- lows an investigative re- port by El Periodico that found that in 2015, an offi- cial with Morales’ party is- sued four checks for about $32,000. Two were in Mo- rales’ name, and two were in Marroquin’s worth about $13,000, and it is not known what happened to them. Chief prosecutor Con- suelo Porras confirmed in a news conference that Mar- roquin is being investigated for possible corruption. The probe will seek to determine if the funds were used for the political cam- paign. The Supreme Elec- toral Tribunal purportedly has no record of the money. It is the first probe of al- leged graft involving Mar- roquin but just the latest to target the first family.3 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY FEBRUARY 27, 2019 One Honeywell Lynx touch wireless residential/ commercial security alarm panel with 4.3” full colour touchscreen display Three wireless door/window contacts (white) One Honeywell pet immune motion sensor (up to 40Lbs.) One 4 button remote keychain Full installation and demonstration 12 months parts warranty WIFI module for the mobile Apps. Honeywell Lynx Intruder Alarm Package Includes: The Honeywell intruder system is linked to our 24/7 monitoring centre to keep your family and your property safe. Upon system activation our experienced monitoring station staff will handle the situation. The Total Connect app allows you complete control of your security system from your mobile device. To find out more about this special offer contact the Security Centre on 949-0004 or email info@security.ky *The free alarm system and installation is available to new clients when signing up for a 12 month monitoring contract ($660 residential - $860 commercial). 24/7 Alarm Monitoring Secure and protect your property with the Honeywell Lynx intruder protection system. Controllable from your mobile device. Three immigration officers found guilty of fraud conspiracy All five officers found guilty of failure to report solicitation or reward CAROL WINKER cwinker@pinnaclemedialtd.com Of five immigration offi- cers charged with conspiracy to commit fraud on the gov- ernment, three were found guilty by a Grand Court jury on Tuesday, with the other two officers found not guilty. All five officers, however, were found guilty of failing to report the solicitation of an advantage or reward. All verdicts were unanimous. The officers had been on paid leave since being charged in 2017. Two civilians were also charged with the same con- spiracy. The jury returned a verdict of guilty for one and not guilty for the other. Justice Philip St. John- Stevens adjourned sentencing pending the preparation of a social inquiry report for each officer. The agreed date was April 25. The conspiracy involved an agreement to commit fraud by arranging for the payment of rewards to offi- cers for providing assistance with an English language test. The test is required for work permit applicants from countries in which English is not the primary language. There is no fee for the test. However, individuals were paying so that certain ap- plicants received a passing grade. The amount most typically referred to was CI$600 or US$800. The conspiracy occurred between Aug. 9, 2015 and June 13, 2016. The offense of failing to report the solicitation of an advantage or reward oc- curred between dates in 2015 and 2017. The judge thanked the five women and two men who served on the jury for their hard work during the seven-week trial. He released them from further service this session. The case for the pros- ecution was conducted by Acting Director of Public Prosecutions Patrick Moran, assisted by Crown counsel Greg Walcolm. For legal reasons, the de- fendants are not being named at this time. Justice Philip St. John-Stevens adjourned sentencing pending the preparation of a social inquiry report for each officer. The agreed date was April 25. Students encouraged to ‘dream big’ In celebration of Engi- neering Week, Dart Minds In- spired and Caribbean Util- ities Company hosted a screening of “Dream Big: En- gineering Our World” for a group of about 130 local high school students on Friday. The students from seven high schools across Grand Cayman gathered at the Ca- mana Bay Cinema to watch the award-winning documen- tary and watch presentations from 10 engineers, from both Dart and CUC. Dart Education Pro- grammes Manager Glenda McTaggart said the students were nominated to attend the event by their teachers as a result of their strong interest in engineering. “I am delighted to see so many young people inter- ested in STEM and, in par- ticular, engineering,” she said in a press release. “This event was an incredible opportunity to connect interested students with local STEM leaders.” Dart and CUC employees with backgrounds in mechan- ical, civil, electrical, geotech- nical, biological and power engineering explained their educational backgrounds and career paths, took questions from students, and high- lighted the career opportuni- ties in engineering. Dart Executive Vice Pres- ident of Development Plan- ning and Asset Management Justin Howe told the students that engineering presents re- warding career opportunities. “An engineering degree is a very sought-after and highly paid qualification, increasingly so in the connected world in which we live. It is the pass- port that opens opportunities throughout the world in ca- reers that are interesting, chal- lenging and well paid,” he said. CUC President Richard Hew said engineers shape the world we live in. “Engineering is about making the world a better place and improving quality of life. CUC is anticipating that some of these students will become engineers in the future,” he said. Following the presenta- tions, Ms. McTaggart asked the students if they felt em- powered to pursue a career in engineering. The theater was full of raised hands. Approximately 130 students from seven high schools across Grand Cayman gather at the Camana Bay Cinema to watch ‘Dream Big: Engineering Our World.’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. 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” “They don’t even try to pretend anymore. Cayman is expected to operate at higher standards and have a greater scrutiny of the business that comes here than some other jurisdictions. It’s a result of our success and the volume of financial services business that comes through the jurisdiction.” – Premier Alden McLaughlin Brace yourselves: Another external “analysis” of Cayman’s offshore industry is coming, and the news is not expected to be good. Quelle surprise. Premier Alden McLaughlin told the Compass that the government expects a report on the Carib- bean Financial Action Task Force’s recent review of Cayman’s anti-money laundering and counter-terrorist financing systems next month and anticipates a few black marks. This is despite the fact that the Cayman Islands government, as is its custom, adopted and has imple- mented most of the safeguards and hoop-jumping required to placate the task force – for now, at least. The shifting moods and concerns of the self-pro- claimed world police of global finance never seem to be satisfied for long, no matter how much our political leaders bend and contort to their latest whims. Mr. McLaughlin advised that the group’s current dissatisfaction was not with the rules and regulations themselves, but in their execution. Likely demerits include a mountain of uncompleted reports of sus- picious activity piling up at the Financial Reporting Authority. Mr. McLaughlin told the Compass he already has formed a committee to devise plans of action to address the perceived deficiencies. He added that the expected report will include a new concept, that of “risk and context,” which will explicitly hold Cayman to a higher standard than other jurisdictions. As he said, “They don’t even try to pretend anymore.” So how much longer will government insist on fighting this war on our enemies’ turf? It is abundantly clear that the CFATF and like-minded gaggles of bureaucrats at the Organisation for Economic Co-operation and Development, in the European Union (and increasingly, those who ought to know better, such as the Netherlands and the U.K. Parliament) will never be satisfied. Simply put, the game is rigged. Each acquiescence to their shifting list of demands leaves them hungrier for power and control over our islands’ economic model, and with it our very existence. This is a war on Cayman that has been designed for us to fail. Readers need only refer to our Page One story about the recently published guidance for Cayman-registered companies to demonstrate “adequate” economic substance to fully understand how far in the weeds this has gone. We are not talking about manufacturing or any other bricks-and-mortar entity. What is “adequate” presence for a company that does business interna- tionally or primarily on paper? To attempt to answer is to miss the point. Blacklists, gray lists, ever-changing standards – all are designed specifically to make it more difficult to do business in places like Cayman. Never mind the fact that our financial services industry is profes- sional, transparent (where appropriate) and plays a pivotal role facilitating international trade, interna- tional mergers and acquisitions, opening access to capital and ensuring the wheels of the global economy continue to turn. There is, of course, a personal and practical reason to push back against these global bullies (if, indeed, it is not already too late). If government continues to adopt stifling regulation to feed an insatiable enemy, soon there will be nothing left to give. Offshore under microscope again, with no end in sight WEDNESDAY FEBRUARY 27, 2019 • CAYMAN COMPASS Cayman: A role model for harmony and prosperity I’m currently in the Cayman Islands, which is one of my favorite places since – like Bermuda, Monaco, Van- uatu, Antigua and Barbuda, and a few other lucky places in the world – it has no income tax. At the risk of stating the obvious, the absence of an income tax has helped make the Cayman Islands very prosperous, 14th-richest in the world according to the latest data from the World Bank on per-capita eco- nomic output (top 10 in the world if you exclude oil-rich jurisdictions). This does not mean, in- cidentally, that economic policy is perfect in the Cayman Islands. There is a overly large and excessively compen- sated government bureau- cracy. Indeed, financing the civil service is be- coming such a burden that the Cayman Islands almost made a suicidal decision to impose an income tax earlier this decade. And the absence of an in- come tax does not mean an absence of taxes. Yes, the tax burden is low compared to many nations, but the gov- ernment nonetheless collects plenty of revenue from im- port duties, fees on financial services, and tourism. But the key thing to un- derstand is that not all taxes are created equal. Some levies impose much more damage than others. Richard Rahn, a fellow member of the Cayman Fi- nancial Review editorial board, explained this insight a few years ago in a column for the Washington Times: “Cayman is prosperous … Critics of Cayman and other offshore financial centers call them ‘tax havens,’ ig- noring the fact that they all have many taxes, particularly on consumption – which is good tax policy – rather than on productive labor and cap- ital – which is bad tax policy. The statist political actors in the high-tax jurisdictions will not admit that people do not work, save and invest if they are going to be overly taxed and otherwise abused by their own governments.” And it’s also worth noting that the Cayman Islands are a role model for racial tranquility. There are people from 135 nations and “mixed” is the largest racial category. Here are some excerpts from a column published by Forbes about the progres- sive social structure of the Cayman Islands: “Somebody recently said to me, ‘The Cayman Islands is just a mailbox.’ I started wondering if that was fair. The Cayman Islands are a real place where people live. And they are not all attorneys and accountants, although they do have more than their fair share. … a big upside to the Caymans …. Mr. Leung, who is of Asian descent, no- ticed a whiff of it in Scot- land, but finds the Caymans utterly devoid of racism. Pi- rates, refugees, shipwrecked sailors and enslaved people might not seem to be the best material to start a country to some, but clearly there is an upside.” I’ll close by noting that there is some trouble in paradise. The Cayman Islands faces unrelenting pressure from international bureaucracies and high-tax nations. There is a lot of resentment be- cause the jurisdiction is so successful. What makes these attacks so ironic and unfair is that the Cayman Islands actu- ally has much tougher stan- dards than “onshore” nations such as the United States and United Kingdom. Folks on the left have ac- cused me of “trading with the enemy” for supporting these jurisdictions, but the real story is that we should em- ulate rather than prosecute these low-tax jurisdictions. Daniel J. Mitchell, chairman of the Center for Freedom and Prosperity, is on the Editorial Board of the Cayman Financial Review. DANIEL J. MITCHELL Critics call the Cayman Islands a ‘tax haven,’ ignoring the fact that they have many taxes, primarily on consumption.5 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY FEBRUARY 27, 2019 Turtle-friendly street lighting trial begins Amber wavelengths less likely to lead baby turtles away from the sea Forty new “turtle-friendly” streetlights are being in- stalled along roads adjacent to some of Cayman’s turtle nesting beaches as part of a pilot project. The Department of En- vironment, the National Roads Authority and Ca- ribbean Utilities Company joined forces to implement the trial scheme. The DoE, in a press release, stated that it was using money from the Cayman Islands Environ- mental Protection Fund to purchase the lights, which are similar to those used suc- cessfully in other jurisdic- tions “to reduce sea turtle hatchling mortality, while safely illuminating both roadways and beachfront properties.” The turtle-friendly street lights are part of a trial effort to lessen the rate of sea turtle misorientations on Grand Cayman’s beaches. “Roadway and residen- tial lighting that shines onto the beach discourages female turtles from nesting and is a critical threat to hatchling sea turtles,” said DoE Director Gina Ebanks-Petrie. “When they emerge from their nests at night, hatchlings find the ocean by heading toward the brightest light they can see. On an undeveloped beach, this is the moon and stars reflecting off the ocean’s surface. “However, artificial lights can be much brighter and lead the baby turtles to- ward land, where they face mortal danger from exhaus- tion, dehydration, predators and vehicles.” The 40 new turtle-friendly streetlights will replace ex- isting streetlights that have caused the greatest number of turtle hatchling misori- entations over the past five years, based on data col- lected by the DoE. One test light, on West Bay Road, has already been installed and it is anticipated that the re- mainder of the lights will be in place before the start of the 2019 turtle nesting season, which begins in late April and usually lasts until November. The new turtle-friendly streetlights are certified by the U.S. Fish and Wild- life Conservation Commis- sion and use an amber wave- length that is less likely to attract hatchling turtles away from the sea. CUC’s manager of envi- ronment, health and safety, Joni Kirkconnell, said in the release that the instal- lation of these specially de- signed light fixtures “offers a balance between environ- mental protection and road safety. We think Cayman’s community will appre- ciate these lights as much as we do.” The NRA’s acting man- aging director, Edward Howard, said, “Replacement of the lights specified in the trial will lead to an imme- diate increase in sea turtle hatchling survival and will pave the way for turtle- friendly roadway lighting to be rolled out on a broader scale in the future.” A number of jurisdictions in Florida have installed turtle-friendly lighting along roads and outside beach- front condominiums and homes in efforts to pro- tect endangered sea turtle populations. Any Cayman Islands properties wishing to install turtle-friendly lights can contact the DoE’s Environmental Management Unit at emu.doe@gov.ky. Newly hatched turtles can be easily misoriented by artificial lighting. - PHOTO: MARK ORR, DOE NCC MEETING SCHEDULED The National Conservation Council will hold a general meeting on Wednesday af- ternoon, Feb. 27. The meeting will begin at 2 p.m. at the George Town Public Library, in the old library section. The agenda for the meeting is posted on the DoE website, www.doe.ky. The meeting is open to ob- servers from the public. CUC’s Rasheed Suazo installs the first ‘turtle-friendly’ streetlight along West Bay Road, on the south side of Cemetery Beach. - PHOTO: CUC One test light, on West Bay Road, has already been installed and it is anticipated that the remainder of the lights will be in place before the start of the 2019 turtle nesting season.The islands’ most-trusted news source 6 WEDNESDAY FEBRUARY 27, 2019 • CAYMAN COMPASS relevant entity will be de- pendent on the particular facts of the relevant en- tity and its business ac- tivity,” the guidance states. “A relevant entity will have to ensure that it main- tains and retains appro- priate records to demon- strate the adequacy and appropriateness of the re- sources utilized and ex- penditures incurred.” The guidance booklet does include explana- tions for what it considers adequate in some spe- cific sectors. For example, holding companies must show they have adequate human re- sources and adequate premises for holding and managing equity participa- tions in other entities. The guidance booklet also sets a high bar for companies that acquire intellectual property and want to hold those as- sets here. To do that, they must demonstrate that there was a high degree of control over the de- velopment, exploitation, maintenance, enhance- ment and protection of the intangible asset. They also must prove that such control was exercised by an adequate number of full-time employees with the necessary qualifica- tions that permanently re- side and perform their ac- tivities here. The guidance booklet also specifies that Cayman Enterprise City’s special economic zone companies will be held to a higher substance standard. “The [special economic zone’s] requirement for a business in the SEZ to have at least one employee based in the Islands does not necessarily satisfy the [economic substance test] under the ES Law,” the booklet states. “Recall that the ES Law requires a rel- evant entity to have an ad- equate number of full-time employees or other per- sonnel with appropriate qualifications in the Is- lands having regard to the level of income derived from the relevant activity carried out in the Islands.” The penalty for not meeting the substance standards is a $10,000 fine, and then a $100,000 fine if the failure is re- peated in the next fi- nancial year. The guidance booklet can be found at www.gazettes.gov.ky. and would facilitate elec- tronic payments, as well as online calendars and docket scheduling. The Cayman Islands Ju- dicial Administration en- tered into the agreement with CSDC Systems in October 2016, and it was signed by court administrator Suzanne Bothwell on Dec. 12, 2016. The Judicial Administra- tion paid US$15,000 for soft- ware and $70,710 for pro- fessional services related to implementation and overall project management. Staff training, data conversion It also agreed to pay US$24,090 for training and an annual maintenance fee of US$60,025 once the system is operational. CSDC also asked for a fee of US$5,950 to use an analytical tool named YellowFin and Portal- Docket Sheet. Then, in Sep- tember 2018, Cayman con- tracted CSDC to organize one last round of training. CSDC charged US$21,400 for that final training, which is ex- pected to take place in April. Shiona Allenger, the clerk of court, sent an email to Ms. Bothwell on Sept. 14 last year asking how the final round of training would differ from the training set out in the 2016 contract. In her response, Ms. Both- well indicated that the initial training was conducted via video link and did not allow for individual training of de- partments within the judicial administration. “I am now proposing that each division be trained sep- arately with the Trainers ac- tually being on island and providing the necessary hands-on training that was not possible in the previous training session,” wrote Ms. Bothwell. “In addition, there have been some changes to the platform which we be- lieve that the Staff will need to intimately familiarize themselves with the details of the program.” As part of the 2016 agree- ment, CSDC Systems provided a checklist to the Judicial Ad- ministration describing how the upgrade process would work. The initial stage would be planning and evaluation, followed by analyzing the readiness of the court’s dig- ital infrastructure. From there, CSDC would gather requirements and begin work on preparation and data conversion. Finally, it would configure the new system, train and test it and then ultimately go live. The Judicial Administra- tion also entered into a 36- month agreement with Brac Informatics Centre that will cost CI$3,600 for develop- ment and implementation and CI$1,350 a month for subscription service. Sam Kumar, a customer success manager for CSDC Systems, sent an email to the Judicial Administration in November 2018 that helped to state the schedule for the project’s completion. Mr. Kumar wrote that the data conversion project will begin in January 2019 and is expected to be done by the end of the first quarter of 2019. Mr. Kumar also in- dicated that training will begin either in late March or early April, and will encom- pass two different groups of trainees. The first group – support staff – will be trained at the price agreed to in September 2018. The second group – magistrate/judiciary training – will be trained at a rate that has not been agreed to yet. The system, once com- pleted, will allow users to search for cases and for at- torneys and magistrates to file paperwork and their schedules digitally. The court system indicated that its goals for the upgrade in- clude efficiency, cutting down on paper and obtaining ana- lytical reports with correct statistics. Long delays, public dispute In September 2017, the Judicial Administration of- fice told the Compass that it had begun the process of dig- itizing its court records and that it hoped to have all ex- isting public registers online by the end of that year. A few months later – in December 2017 – Ms. Both- well told the Compass that the registers could be on- line as early as January 2018. But when that failed to ma- terialize, Ms. Allenger ac- knowledged in October 2018 that the project would not be completed until the fol- lowing year. The Compass inquired about what CSDC had been doing to advance the project during the period between the initial contract agree- ment reached in December 2016 and the beginning of the data conversion project in early 2019, but Ms. Al- lenger was unable to answer that question. “Unfortunately, I am not able to answer your query as to what CSDC was doing as they have other clients and we had to wait until their schedules allowed for them to complete the conversion as- pect of the project,” said Ms. Allenger in an email response to a request for comment. The court’s lack of dig- ital access became a point of controversy in April 2017 when the court system began restricting the photocopying of public records by citi- zens and the media. At that time, the court indicated that “wholesale reproduction” of court records by publications that operate by subscription service – such as Offshore Alert – amounted to an “un- authorized sale of those doc- uments for profit.” Later in the month, the acting court of clerk issued a notice signifying an apparent reversal of that decision, and restoring access to copying. In May 2017, Offshore Alert owner David Marchant criticized Cayman’s Chief Justice Anthony Smellie over the changes in the repro- duction of public records policy, saying: “[Chief] Jus- tice Smellie basically needs to get his act in order be- cause his actions, or the ac- tions of the court, over the last three weeks have been disgraceful, indefensible and contemptible.” In June 2017, the Grand Court Rules Committee met to consider revising proce- dures involved in searching and publishing the contents of open court records. At that time, Ms. Bothwell indicated that the court could begin making registries publicly available on its website. “I can confirm that steps are currently under way to make available online, on the Judicial Website, free of cost, the inspection of all public registers, including unre- ported judgments,” Ms. Both- well said. “This is aimed at expanding the public’s access to court records.” Gov’t issues economic substance guidance CONTINUED FROM PAGE 1 Promises, delays mark court’s online records efforts CONTINUED FROM PAGE 1 The Courthouse Building in downtown George Town. Pirates Week Festival thanks volunteers It takes a gigantic crew of volunteers to pull off one of Cayman’s most pop- ular events. The Pirates Week Festival office held its annual Appre- ciation Reception on Saturday night to pay tribute to the work of the people who help facilitate the bacchanalian celebration of Pirates Week. The event, held at Royal Palms Beach Club, offered food, drink and gratitude for the dozens of volunteers who toiled behind the scenes to make the festival a success. “For more than 40 years,” said Pirates Week General Manager Melanie McField, “Pi- rates Week has provided fun, fantasy and history to hun- dreds of thousands of locals and visitors alike, who seek to experience a festival like no other in the Caribbean and to create long-lasting memories.” Awards were distrib- uted to volunteers and spon- sors committed to the Pirates Week tradition. Patrick Thompson, di- rector of the Tourism At- traction Board, expressed his gratitude. “Volunteers like you are soldiers,” he said. “Sort of a covert army joining hands to make Pirates Week, our na- tional festival, the best and most unique festival in the Caribbean.” Long service awards were given to a crew of some of Cayman’s most prominent pi- rates: Orneil “Captain Gun- powder Wes” Galbraith, Duke “Big Cannon Jack” Tibbetts and Darvin “Captain Black Terrence” Ebanks. Mr. Galbraith, the “cap- tain” of Las Tortugas Pirates, has been involved in Pirates Week for 20 years, and his group encourages member- ship and travel to Cayman to participate in the festival. Ms. McField lauded Mr. Galbraith for his work in building props and event planning, and also his willingness to travel to the Sister Islands and to pro- mote the Cayman Islands, its people and its culture. Mr. Tibbetts was recog- nized for 30 years of service to the Pirates Week Festival and for his work traveling abroad to promote the event at Gasparilla celebrations in Tampa, Florida. Mr. Tibbetts is a member of the “Bloody Bay Buccaneers” and has spent countless hours practicing for his swashbuckling duties. Mr. Ebanks was honored for 41 years of service in pro- moting the Cayman Islands through Pirates Week. He has taken part in each festival since its inception in 1977 and has traveled to Japan, South America and the United States in support of Pirates Week. Mr. Ebanks is the cap- tain of the “Bloody Bay Buc- caneers” and has appeared in numerous magazines, photos, television specials and other forms of media. “We acknowledge and ap- preciate that the foundation of the Festival’s success is built upon individuals such as Darvin, Duke, and Orneil and their commitment to the Festival. Congratulations on your combined 90-plus years of service,” Ms. McField said. “Thank you for the many years of service and dedica- tion to making our National Festival, Pirates Week the success that it is today.” Kate Crawford was named the A. Mark Ebanks Memo- rial Volunteer of the Year, Pa- rade Marshal Marcus Gremli was honored for his indefati- gable skill and dedication to the cause. Minister of Culture Dwayne Seymour received an award for sponsoring the National Song Competition. Stran Bodden, the chief officer for the Ministry of Tourism, represented Deputy Premier and Tourism Minister Moses Kirkconnell in receiving recog- nition for support. From left, Darvin Ebanks, Orneil Galbraith, Melanie McField, Jessica Ebanks and Duke Tibbetts at the Pirates Week appreciation reception.7 WORLD®IONAL CAYMAN COMPASS • WEDNESDAY FEBRUARY 27, 2019 Working together to better our communities. A new programme of grants. What could a Dart Grant do for your organisation? We invite registered not-for-profits, based and operating in the Cayman Islands, to apply for one of fifteen new Dart Grants. Awards of financial support will be made for community development projects or programmes in the areas of Education, Youth Development and the Environment. Eligible organisations can apply for one of ten grants valued at up to CI$10,000, four grants valued at up to CI$25,000 and one grant of up to CI$50,000. For more information on this new programme, the selected areas and application process, visit dart.ky/about-us/community or email grants@dartcayman.com dart.ky/about-us/community BREXIT COUNTDOWN Parliament to decide, deal or delay LONDON (AP) – Britain’s bumpy journey out of the Eu- ropean Union took a major turn Tuesday, as Prime Min- ister Theresa May handed the steering wheel to Parliament, giving lawmakers the power to slam on the brakes and di- vert Britain away from a dis- ruptive and chaotic Brexit. Bowing to pressure from within her own government to avert a damaging “no- deal” Brexit, May told legis- lators she would give them three choices: approve the divorce agreement she has struck with the EU, vote to leave the bloc on March 29 without a deal, or ask the EU to delay Brexit by up to three months. May said the promises were “commitments I am making as prime minister and I will stick by them.” It is the first time she has conceded that Britain may not leave the EU on March 29, the date fixed two years ago and enshrined in U.K. law as departure day. With that date just over a month away, the government has not been able to win par- liamentary approval for its agreement with the EU on withdrawal terms and future relations. Anxiety over the standoff is intensifying since a chaotic “no-deal” Brexit could cause disruptions for businesses and people in both Britain and the 27 re- maining EU countries. May promised lawmakers they would get to vote again on her deal by March 12. If it is rejected, lawmakers will vote the next day on whether to leave the bloc without an agreement. If the no-deal op- tion is defeated, they will vote on whether to seek a delay to Brexit. Because a majority of lawmakers opposes a “no- deal” Brexit, Parliament’s choice is effectively between backing May’s deal and post- poning Britain’s departure from the EU. May said her goal re- mains to lead Britain out of the EU on schedule and with a deal. “I don’t want to see an ex- tension,” she said, adding that any delay to Brexit should be “as short as possible.” But her announcement an- gered pro-Brexit lawmakers. “My suspicion is that any delay to Brexit is a plot to stop Brexit,” said leading Conservative Brexiteer Jacob Rees-Mogg. “This would be the most grievous error that politicians could commit.” Pro-EU politicians, mean- while, said May’s move did not go far enough. “A temporary extension does not rule out a no-deal Brexit; it merely moves the cliff-edge back a few weeks,” said anti-Brexit Conservative Dominic Grieve. May’s concession to Par- liament came after members of her government joined calls for her to rule out a “no- deal” departure. Three gov- ernment ministers wrote in Tuesday’s Daily Mail they planned to vote with oppo- sition lawmakers to stop a no-deal withdrawal unless May agreed to delay Brexit and guarantee “we are not swept over the precipice on March 29.” Delaying Brexit would re- quire approval from all 27 other EU countries. European Council President Donald Tusk said Monday the re- maining members would “show maximum under- standing and goodwill” to such a request. But some EU leaders say Britain must have a good reason for seeking the delay. Philippe Lamberts, an in- fluential member of the Eu- ropean Parliament’s Brexit steering group, said a British request for an extension must be accompanied by “a credible plan for holding a people’s vote on the final deal that includes an option to re- main” in the EU. Businesses warn that without a deal, Britain risks a chaotic departure that could disrupt trade between the U.K. and the EU, its biggest trading partner. The uncer- tainty has already led many British firms to shift some operations abroad, stock- pile goods or defer invest- ment decisions. Businesses and the mar- kets breathed a sigh of relief at May’s statement, which did not rule out “no deal” but at least pushed it a bit fur- ther away. The pound rose above $1.32, its highest level for a month. “Today, we have seen real movement towards ruling out a chaotic and damaging no- deal on March 29,” said Mike Cherry, national chairman of the Federation of Small Businesses. But British politics re- mains deadlocked over Brexit, with both May’s gov- erning Conservatives and the main opposition La- bour Party deeply split over whether to leave the bloc, and on what terms. Pro-EU Conservative leg- islator Ken Clarke said de- laying Brexit would not break the logjam, but only see the “present panto- mime” continue, with “sim- ilar chaos about where we are going.” The House of Commons rejected May’s deal with the EU last month – largely over concerns about a provision to guarantee an open border be- tween the U.K.’s Northern Ire- land and EU member Ireland – and sent May back to Brus- sels to get changes. The EU is adamant that the legally binding with- drawal agreement cannot be changed, though the bloc’s negotiators are holding talks with U.K. Attorney Gen- eral Geoffrey Cox about po- tential tweaks or additions around the margins. A large group of law- makers, from both govern- ment and opposition parties, says the only way out of the impasse is a new referendum on the terms of Britain’s EU departure. May insists she will never support a referendum that could overturn Britain’s 2016 decision to leave the EU. The Labour Party this week moved to support a new referendum as a way to break the deadlock. The left- of-center party said it would back a second public vote if the House of Commons re- jects its alternative Brexit plan, which calls for Britain to retain close economic ties with the EU. Britain’s Prime Minister Theresa May leaves 10 Downing Street Tuesday to make a statement to the Houses of Parliament in London. – PHOTO: AP8 WORLD®IONAL WEDNESDAY FEBRUARY 27, 2019 • CAYMAN COMPASS To Our Precious Angel Shenni Vanessa Pamela DaCosta February 27, 1978 – November 19, 2014 Five Sad Years Ago. February 27, 1978 – November 19, 2014 Your broken-hearted parents Ashton & Marlene Bodden And all your family Today is full of memories of happiness and tears Of birthday celebrations we have shared throughout the years You are always in our hearts no matter where we go Always on our minds because we love you so. The day God called your name it broke our hearts in two But heaven needed an Angel and the one He picked was you. We just wish we could rewind the clock or make it turn real slow We could have hugged you one more time before you had to go. We feel you are with us in everything we do So we will celebrate your birthday But we will spend it missing you. Dearest Shen, today would have been Your 41st Birthday here on earth But it’s your 5th Birthday in Heaven Australian cardinal convicted of molesting two choirboys MELBOURNE, Australia (AP) – The most senior Cath- olic cleric ever charged with child sex abuse has been convicted of molesting two choirboys moments after cel- ebrating Mass, dealing a new blow to the Catholic hierar- chy’s credibility after a year of global revelations of abuse and cover-up. Cardinal George Pell, Pope Francis’ top financial adviser and the Vatican’s economy minister, bowed his head but then regained his composure as the 12-member jury de- livered unanimous verdicts in the Victoria state County Court on Dec. 11 after more than two days of deliberation. The court had until Tuesday forbidden publication of any details about the trial. Pell faces a potential max- imum 50-year prison term after a sentencing hearing that begins on Wednesday. He lodged an appeal last week of the convictions. Details of the trial had been suppressed because until Tuesday, Pell had faced a second trial in April on charges that he indecently assaulted two boys aged 9 or 10 and 11 or 12 as a young priest in the late 1970s in a public pool in his hometown of Ballarat. Prosecutor Fran Dalziel told the court on Tuesday that the Ballarat charges had been dropped and asked for the suppression order to be lifted. The move came days after a judge ruled out two key prosecution witnesses in the Ballarat case. Acting Holy See spokesman Alessandro Gi- sotti read a statement to re- porters Tuesday at the Vat- ican, saying Pope Francis has confirmed “precau- tionary measures” already taken against Pell, including a ban on his saying Mass in public and “as is the rule, contact in any way or form with minors.” The victim who testified at Pell’s trial said after the conviction was revealed that he has experienced “shame, loneliness, depression and struggle.” In his statement, the man said it had taken him years to understand the impact the assault had on his life. Lawyer Lisa Flynn said the father of the second victim, who died of a heroin overdose in 2014 at the age of 31, is planning to sue the church or Pell individually once the appeal is resolved. Pell was surrounded by a crush of cameras and mem- bers of the public as he was ushered from the courthouse to a waiting car. “You’re a monster!” one man shouted. “You’re going to burn in hell, you freak!” “Are you sorry?” one woman shouted. Pell did not respond. The revelations came in the same month that the Vat- ican announced Francis ap- proved the expulsion from the priesthood of a former high-ranking American car- dinal, Theodore McCarrick, for sexual abuse of minors and adults. The convictions were also confirmed days after Francis concluded his extraordi- nary summit of Catholic leaders summoned to Rome for a tutorial on preventing clergy sexual abuse and pro- tecting children from pred- ator priests. Australia’s ranking bishop, Mark Coleridge, who deliv- ered the homily at the final Mass of the summit, said Pell’s convictions “shocked many across Australia and around the world, including the Catholic Bishops of Australia.” “The bishops agree that everyone should be equal under the law and we respect the Australian legal system,” said Coleridge, who is presi- dent of the Australian Cath- olic Bishops Conference. Cardinal George Pell leaves the County Court in Melbourne, Australia, after being convicted Tuesday of molesting two choirboys moments after celebrating Mass. – PHOTO: AP India strikes inside Pakistan after Kashmir attack BALAKOT, Pakistan (AP) – A pre-dawn airstrike inside Pakistan that India said tar- geted a terrorist training camp and killed a “very large number” of militants ratch- eted up tensions on Tuesday between the two nuclear- armed rivals at odds over the disputed territory of Kashmir. Islamabad said there were no casualties in the strike near the town of Bal- akot, close to the border with Pakistan’s sector of Kashmir, where residents said loud ex- plosions woke them up, rat- tling their homes. “It was the middle of the night, we were very scared,” one resident, 20-year old Mo- hammad Abbas to The Asso- ciated Press. “We didn’t think for a moment that it was from planes but the explo- sions were very powerful.” Pakistan’s military cor- doned off the area and kept reporters about half a mile from the bombing site. The airstrike was the latest escalation since a deadly suicide bombing in India’s section of Kashmir earlier this month killed more than 40 Indian soldiers. Pakistan has denied involve- ment in the attack but vowed to respond to any Indian mil- itary operation against it. Kashmir is split be- tween the two countries but claimed by each in its en- tirety. The Pakistan-based militant group Jaish-e-Mo- hammad claimed responsi- bility for the bombing. The bomber, who made a video before the attack, was a res- ident of Indian-controlled sector of Kashmir. Pakistan’s military spokesman, Maj. Gen Asif Ghafoor, said Indian planes crossed into the Muzafar- abad sector of Pakistani-con- trolled Kashmir. He said Pak- istan scrambled fighters and the Indian jets “released pay- load in haste” near Balakot. India’s foreign secretary, Vijay Gokhale, told reporters in New Delhi that Indian fighter jets targeted Jaish-e- Mohammad camps in a pre- emptive strike after intel- ligence indicated another attack was being planned. “Acting on intelligence, India early today stuck the biggest training camp of Jaish-e-Mohammad in Bal- akot,” he said. “In this op- eration a very large number of Jaish-e-Mohammad ter- rorists, trainers, senior com- manders and jihadis being trained were eliminated.” Balakot police chief Saghir Hussain Shah said he had sent teams to the area where the Indian bombs report- edly hit, which he described as a mostly deserted wooded area. “There are no casualties, there are no damages on the ground,” he said. There was no immediate explanation for the differing accounts, but India and Pakistan routinely contradict one another. The Feb. 14 attack in In- dian-ruled Kashmir was the worst attack on Indian forces since the start of the 1989 insurgency in Kashmir and came as Indian Prime Minister Narendra Modi is in the middle of a re-elec- tion campaign. Addressing a rally of former soldier’s in the In- dian state of Rajasthan hours after the airstrike, Modi said India was in “safe hands.” “I vow that I will not let the country bow down,” he said. China, a close ally of Pak- istan, urged both sides to show restraint. “We hope that both India and Pakistan can … take ac- tions that will help stabi- lize the situation in the re- gion and help to improve mutual relations,” said China’s Foreign Ministry spokesman Lu Kang. Insurgents in the Indian- controlled Kashmir have been demanding either outright independence or union with Pakistan. India routinely ac- cuses Pakistan of arming and training militants who cross the mountainous Hima- layan region. Kashmir has been the cause of two wars between the uneasy neighbors. They fought a third war in 1979 over East Pakistan, which gained independence with the help of India and became Bangladesh. Pakistan’s Foreign Min- ister Shah Mahmood Qureshi condemned Tuesday’s incur- sion, saying New Delhi had “endangered” peace in the re- gion for political gains. Pakistan’s Prime Minister Imran Khan dismissed In- dia’s account of bombing a terrorist training camp as “self-serving, reckless and fic- titious.” Earlier this month, Khan had authorized the army to “respond decisively and comprehensively to any aggression or misadventure” by India, after New Delhi vowed a “jaw-breaking re- sponse” to the Kashmir sui- cide bombing. Pakistan said it was not involved in any way in the Kashmir attack and vowed to help investigate and to take action against anyone found to be using Pakistani soil for attacks on India. It also of- fered to hold a “dialogue” with India on all issues, in- cluding terrorism. Pakistani protesters burn a representation of an Indian flag during an anti-Indian rally Tuesday in Peshawar, Pakistan. – PHOTO: AP9 WORLD®IONAL CAYMAN COMPASS • WEDNESDAY FEBRUARY 27, 2019 CUC advises the public NOT to approach or touch downed or low-hanging power lines or attempt to move objects in contact with power lines under any circumstances. Stay as far away as possible as the ground around the downed or low-hanging power lines may be energized. Always assume the power lines are energised. Call 911 immediately and 911 will contact CUC for assistance. Establish a ‘safe zone’ at least 35 feet away from the fallen or downed power lines and anything the power lines may be touching. Be careful NOT to touch or step in water near where a downed power line is located and DO NOT drive over downed power lines. If there is someone who is in direct or indirect contact with the downed power line(s), DO NOT touch the person as you could become the next victim. Wait for the emergency services or CUC to arrive. If you have any questions on downed power lines, please contact our Customer Service Team at 949-5200 or via e-mail at service@cuc.ky. Keep away from downed Power Lines The Environmental Management System at the North Sound Road Power Plant is registered to ISO 14001 Trump, Kim in Hanoi for second round of nuclear talks HANOI, Vietnam (AP) – After long journeys to Vietnam, U.S. President Donald Trump and North Korean leader Kim Jong Un are in place for their second summit Wednesday to address perhaps the world’s biggest security challenge: Kim’s pursuit of a nuclear program that stands on the verge of viably threatening targets around the planet. Trump arrived late Tuesday in Air Force One after a long flight that in- cluded refueling stops in England and Qatar. He waved from the stairs of the pres- idential plane, then shook hands with dignitaries and walked along a red carpet to his motorcade Kim arrived in Hanoi ear- lier and spent the day trav- eling around the Vietnamese capital in his armored lim- ousine, his squad of body- guards in tow as he visited the North Korean Embassy, with hundreds of visiting journalists and thousands of local citizens following in his wake. He took a train through southern China and then traveled to Hanoi by car from a Vietnamese border town. The two leaders are slated to meet over two days, first at dinner on Wednesday followed by meetings on Thursday. They first met last June in Singapore, a summit that was long on historic pageantry but short in any enforceable agreements for North Korea to give up its nuclear arsenal. Trump has praised Pyong- yang for ceasing middle tests and has appeared to ease up on demanding a timeline for disarmament. Kim is ex- pected to ask for relief from crushing U.S. sanctions. But before the summit began, Kim took some time to venture out of his locked- down hotel and check out parts of Hanoi, including his nation’s embassy, where a loud cheer went up as he en- tered the compound. Soldiers, police and inter- national journalists thronged the streets outside Hanoi’s Melia Hotel where Kim is staying, and hundreds of eager citizens stood behind barricades hoping to see the North Korean leader. As Viet- namese, North Korean and U.S. flags fluttered in a cold drizzle, dozens of cameras flashed and some citizens screamed and used their mo- bile phones to capture Kim’s rock-star-like arrival. “I like him,” local resident Van Dang Luu, who works at a nearby bank, said of Kim. “He is very young and he is very interesting. And he is very powerful,” she said. “Trump is not young, but I think he is very powerful.” Vietnam’s authoritarian leaders set up a huge secu- rity apparatus to welcome Kim, shutting long stretches of highway and locking down swaths of the bustling capital city. Earlier in the morning, Kim, grinning broadly and waving, stepped off his ar- mored train at the end of a long ride that started in Pyongyang and wound through China to the Viet- namese border. He shook hands with officials as Viet- namese troops in crisp, white uniforms and black boots stood at attention on a red carpet at the Dong Dang railway station on the China- Vietnam border. Hours ahead of his border crossing, footage from Japa- nese TV network TBS showed Kim taking a pre-dawn smoke break at a train sta- tion in China, a woman who appeared to be his sister, Kim Yo Jong, holding a crystal ashtray at the ready. Although many experts are skeptical Kim will give up the nuclear weapons he likely sees as his best guar- antee of continued rule, there was a palpable, car- nival-like excitement among many in Hanoi as the final preparations were made for the meeting. There were also huge traffic jams in the al- ready congested streets. Vietnam is eager to show off its huge economic and development improvements since the destruction of the Vietnam War, but the country also tolerates no dissent and is able to provide the kind of firm hand not allowed by more democratic po- tential hosts. “I really hope to catch a glimpse of Kim Jong Un. He is an interesting man. And he rarely travels anywhere so it would be great to see him here,” said Nguyen Trong Toan, a retired teacher who was waiting by the side of the street on Kim’s expected travel route. There are high expecta- tions for the Hanoi summit after a vague declaration at the first meeting in June in Singapore that disap- pointed many. Trump, via Twitter, has worked to temper those ex- pectations, predicting before leaving for Hanoi a “continu- ation of the progress” made in Singapore but adding a tantalizing nod to “Denucle- arization?” He also said that Kim knows that “without nu- clear weapons, his country could fast become one of the great economic powers any- where in the World.” North Korea has spent de- cades, at great political and economic sacrifice, building its nuclear program, and there is widespread skep- ticism among experts that it will give away that pro- gram cheaply. North Korean leader Kim Jong Un waves upon arrival by train in Dong Dang in Vietnamese border town Tuesday ahead of his second summit with U.S. President Donald Trump. – PHOTO: AP Cohen expected to claim lying, racism and cheating by Trump WASHINGTON (AP) – Presi- dent Donald Trump’s former personal lawyer, Michael Cohen, is expected to give a behind-the-scenes account of what he will claim is Trump’s lying, racism and cheating, and possibly even crim- inal conduct, when he testi- fies publicly before a House committee on Wednesday, according to a person with knowledge of the matter. Cohen is expected to pro- vide what he will claim is ev- idence, in the form of docu- ments, of Trump’s conduct, said the person, who re- quested anonymity to discuss the confidential testimony. Trump’s former personal “fixer” arrived on Capitol Hill Tuesday to begin three days of congressional appearances, starting with a closed-door interview with the Senate intelligence committee. The public won’t have a chance to hear from him until Wednesday, when he testifies before the House Oversight and Reform Committee. He will go behind closed doors again when he talks to the House intelligence committee on Thursday. Lawmakers are alter- nately suspicious of Cohen, who is set to serve time in prison for lying to the House and Senate intelligence com- mittees in 2017, and eager to hear what Cohen has to say after he turned on his long- time boss. Senators on the in- telligence panel are expected to attend Tuesday’s meeting, a departure from the com- mittee’s usual practice, where witness interviews are con- ducted by staff only. Burr said committee members know a lot more than they did when they first interviewed Cohen, who later pleaded guilty to lying to the House and Senate in- telligence committees about abandoning a proposal for a Trump Tower in Moscow in January 2016. Cohen has since acknowledged he con- tinued pursuing the project for months after that. As a close confidant of Trump for many years, Co- hen’s testimony is among the most anticipated since the House and Senate started in- vestigating the Trump cam- paign’s Russia ties two years ago. In addition to lying to Congress, Cohen pleaded guilty last year to campaign finance violations for his in- volvement in payments to two women who allege they had affairs with Trump. He is set to begin a three-year prison sentence in May. Federal prosecutors in New York have said Trump directed Cohen to arrange the payments to buy the si- lence of porn actress Stormy Daniels and former Playboy model Karen McDougal in the run-up to the 2016 campaign. Trump denies the allega- tions and says that Cohen lied to get a lighter sentence. The person with knowl- edge of the matter said Cohen will provide informa- tion about Trump’s financial statements that he will claim shows Trump deflated assets to pay lower taxes on golf courses; will provide details of the Daniels payment and claim that Trump organized a cover-up by pretending Cohen would be repaid; and claim that Trump talked to him and asked him questions about the Trump Moscow project throughout 2016. He is also expected to dis- cuss what he knows about a meeting between Trump cam- paign associates and a Rus- sian lawyer in Trump Tower before the 2016 election, a matter that is of particular interest to special counsel Robert Mueller and congres- sional investigators.Next >