High of 89 Low of 79 Slight to moderate with wave heights of 2 to 4 feet. EDITORIAL | PAGE 4 MAKING CUSTOMS IMPROVEMENTS PRIORITY NO. 1 SPORT | PAGE 12 CAYMAN KIDS COMPETE AGAINST TOP CALIBRE EUROPEAN TEAMS ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – WEDNESDAY, 12 JUNE 2019 Student heading to Japan for global art contest Tamia McLean, 14, front row, fourth from left, celebrates with her classmates at Triple C last week after hearing she has made it to the final nine in her age group in an international art competition that attracted nearly 1 million entries. Tamia will travel to Japan in August for the finals of the Toyota Dream Car Art Contest. For more on this story, see page 5 . - PHOTO: KATIE O’NEILL Roads clogged as vehicle imports rocket 12 new vehicles added to Cayman’s congested roads every day JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com At least a dozen vehicles are imported to the Cayman Is- lands every day, adding to the is- land’s growing traffic problems, Premier Alden McLaughlin has acknowledged. More than 4,000 SUVs, trucks and motorcycles were shipped into the islands last year. Imports have doubled in the past decade. McLaughlin acknowledged the situation was unsustainable. “We have to have a better transport system. We need other alternatives to everybody having to own a car,” the premier said. McLaughlin was speaking in response to questions from George Town Central legislator Kenneth Bryan in the Legislative Assembly last week. Bryan asked for figures on vehicle imports over the last decade and an explanation of what government was doing to ease congestion on Cayman’s crowded roads. The statistics provided by the premier in response show that imports rose from 2,298 in 2009 to 4,457 last year. The most significant increases DERELICT VEHICLES PROCESSED AT LANDFILL 2017 1,235 2016 832 2015 402 2014 71 PLEASE TURN TO PAGE 6 » 2 IN COURT ON SMUGGLING CHARGES SPENCER FORDIN sfordin@pinnaclemedialtd.com Bail was denied Tuesday for two men ac- cused of being engaged in smuggling after they piloted a private plane carrying gold and cash to Grand Cayman. Venezuelan nationals Pedro José Be- navidez Natera and Juan Carlos Gonzalez In- fante are accused of smuggling in relation to US$135,000 in cash that was found on their plane on 4 June. Both defendants are said to have no ties to Cayman. “The case is a strong one,” said Crown counsel Garcia Kelly. “Where the case is strong, there is always risk of flight.” Defence counsel Prathna Bodden said that her clients have consented to police interviews and that they deny knowledge of the money secreted inside the plane. She said the gold on the plane belonged to the passengers and had been properly declared. Bodden described the investigation as “chaotic, disorganised and simply not CITA HOPEFUL AMID TAXI CONCERNS App in the works to regulate fares JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com Unfair and inconsistent taxi pricing re- mains a major concern for tourism industry figureheads. Cayman Islands Tourism Association leaders say they continue to field complaints from members, particularly restaurants and bars, about taxi prices. CITA has been consulted in ongoing be- hind the scenes discussions over improve- ments to how the industry is regulated. Ken Hydes, immediate past president of the association, said he understood public and member concerns about the rate of progress on the issue. But he said he was confident that a smartphone app – recommended by consult- ants as the best way to ensure fair and trans- parent fares – would be introduced soon. “We have been party to some of the discussions on this and we have seen that progress is being made on the app,” he said. PLEASE TURN TO PAGE 6 » PLEASE TURN TO PAGE 6 »2 LOCAL®IONAL WEDNESDAY, 12 JUNE 2019 • CAYMAN COMPASS BREAKTHROUGH (PG) 1:25 I 4:10 I 7:15 I 10:00 SUN: 4:10 I 7:15 I 10:00 KALANK (PG) 3:10 I 9:00 (SAT ONLY) I 9:30 (NO SAT) SUN: 3:10 I 9:20 LITTLE (PG13) 12:30 I 3:25 (SAT ONLY) I 3:50 (NO SAT) 6:50 I 9:45 SUN: 3:50 I 6:50 I 9:35 DUMBO (PG) 10:30 (SAT ONLY) I 4:35 I 7:15 (NO SAT) SUN: 4:35 I 7:15 CAPTAIN MARVEL(PG13) 1:40 I 10:00 (NO SAT) SUN: 6:30 I 10:00 THE CURSE OF LA LLORONA (R) 1:10 VIP I 4:35 I 7:00 VIP I 10:15 HELLBOY (R) 12:35 (SAT ONLY) I 1:00 I 6:10 (SAT ONLY) I 6:45 SHAZAM! (PG13) 1:30 I 3:40 VIP I 7:15 I 9:30 VIP SUN: 3:40 VIP I 4:40 I 6:40 VIP 8:00 I 9:40 VIP KIDS CLUB: OVER THE HEDGE (PG) 10:00 (SAT ONLY) CULTURE AT THE CINEMA: THE TRAGEDY OF KIND RICHARD THE SECOND(R18) SAT ONLY: 8:00 • 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) ALADDIN (PG) 12:45 I 3:45 3D I 6:45 | 9:50 3D GODZILLA: KING OF MONSTERS (PG13) 1:15 3D I 4:00 VIP | 7:00 | 9:45 VIP | 10:00 3D MA (R) 12:35 I 3:00 I 5:25 | 7:50 | 10:15 JOHN WICK: CHAPTER 3 - PARABELLUM (R) 1:05 | 9:45 ROCKTMAN (R) 4:05 I 6:55 AVENGERS: END GAME (PG13) 12:30 I 7:45 SECRET LIFE OF PETS 2 (PG) 12:30 | 4:15 3D | 5:30 3D | 7:45 X-MEN: DARK PHOENIX (PG13) 1:00 VIP | 2:45 | 7:00 VIP | 10:00 Flag flies at half-mast over courthouse in memory of Quin Man bailed in domestic violence case STRIKE PARALYSES HAITI; PROTESTERS DEMAND PRESIDENT’S OUSTER Man pleads guilty to three burglaries 10 HURT IN HONDURAN MILITARY HELICOPTER CRASH SPENCER FORDIN sfordin@pinnaclemedialtd.com A Bodden Town man was granted bail Tuesday following a weekend do- mestic violence incident that included wounding and damage to property. Kerry Whittaker, 43, was granted bail, provided that he not make contact with the complainant and that he pro- vide a surety of $950 that he will appear in court. According to a police statement, the incident that led to Whittaker’s court ap- pearance occurred just after 10pm on Saturday. Police and other emergency services were dispatched by the 911 Communications Centre to a residence in the Prospect Area, where it was reported that a woman was assaulted by a man known to her. Emergency Medical Ser- vices responded and assisted the woman who had a lacer- ation to the right side of her thigh, police said. She was transported to the hospital where she received further medical treatment. Police said the suspect was arrested on suspicion of assault causing grievous bodily harm, and was later charged with wounding and damage to property. Magistrate Valdis Foldats ordered Whittaker to appear in court again on 21 June at 2pm. Whittaker’s defence at- torney Crister Brady told the court that there was “very significant provocation” in- volved in the case. “Not a defence,” said Magistrate Valdis Foldats in response. PORT-AU-PRINCE, Haiti (AP) – Opposition leaders in Haiti launched a two-day strike Monday that paralysed the country’s capital amid an- other day of protests de- manding that President Jo- venel Moise resign over corruption allegations. Schools, businesses and government offices were shuttered as demonstrators blocked roads and set piles of tires ablaze across Port- au-Prince. Some protesters burned cars belonging to a local radio station and ac- cused the news media of working for the government. The strike began a day after protesters clashed with police, with two people reported killed and five injured. Protesters are demanding further investigation into the fate of funds that resulted from subsidised oil ship- ments from Venezuela under the Petrocaribe programme. A Senate investigation re- cently determined at least 14 former government of- ficials allegedly misused $3.8 billion under the admin- istration of former President Michel Martelly. A report re- leased on Friday levelled new accusations against govern- ment officials. Venezuela’s collapsing economy has forced it to halt or drastically curtail Petro- caribe shipments, leading to problems for power genera- tion. Many Haitians now re- ceive electricity for only a few hours a day. A man pleaded guilty to three burglaries in Summary Court on Tuesday, including one charge in which he is alleged to have taken items worth $25,000. Jude Roland Theobalds pleaded guilty to the burgla- ries which occurred between September last year and January 2019. The first count, which in- cluded theft of jewellery and sunglasses, was transmitted to Grand Court. The other two counts – one of which involved a stolen phone and the other more than $2,500 in value of stolen jewellery – oc- curred at some point be- tween 18 Dec. 18 last year and 4 Jan. this year. Magistrate Valdis Foldats recused himself from sen- tencing Theobalds because one of the victims is a court employee that he knows well. MEXICO CITY (AP) – Hon- duran authorities say a military helicopter has crashed while on an anti- drug operation in the coun- try’s east, injuring all 10 people on board. The Armed Forces of Honduras report in a state- ment that the accident took place early Tuesday in the Mosquitia region as the aircraft was carrying flight crewmembers and Special Forces troops. Those on board were listed as a captain, a second lieutenant and a commander along with seven soldiers. SPENCER FORDIN sfordin@pinnaclemedialtd.com The Cayman Islands flag flew at half-mast outside the courthouse building on Tuesday following the death of Justice Charles Quin, who passed away on Friday. His passing was also marked in courtrooms in the building, where magistrates called for a moment of si- lence in his memory. In Courtroom 2, Magis- trate Valdis Foldats, along with Crown counsel, de- fence attorneys and members of the public stood, heads bowed, and maintained si- lence until the magistrate thanked the court and invited everyone to sit. Governor Martyn Roper on Tuesday added his words of tribute to Justice Quin, saying in a statement, “With great sad- ness I learned of the passing of Justice Charles Quin. He was a well-respected man who had contributed greatly to jus- tice in the Cayman Islands and the local region over a long ca- reer. We are indebted to him for his service. “My deepest condolences to his family, friends and col- leagues at this sad time.” Justice Quin was also remembered by the office of the Director of Public Prosecutions. Acting Director of Public Prosecutions Patrick Moran said in a statement, “It is with deep sorrow that we mourn the passing of Mr. Justice Charles Quin, QC. Justice Quin was a well-loved and highly respected member of the community, whose nu- merous contributions to jus- tice in the Cayman Islands will be long remembered. “Prior to joining the Bench, Justice Quin was a skilled at- torney, dedicated both to the law and to his clients. As a Grand Court judge, he ful- filled his duties with wisdom, warmth, fortitude and good humour. His voice will live on through his many written judgments, which will con- tinue to guide attorneys and judges in the Cayman Islands for years to come. He will be sorely missed.” The court expects to close at 1pm on Friday to allow people to attend Justice Quin’s memorial service. Justice Quin’s passing was also marked in courtrooms in the building, where magistrates called for a moment of silence in his memory. The Cayman Islands flag flies at half-mast outside the courthouse in downtown George Town on Tuesday to mark the passing of Justice Charles Quin. - PHOTO: TANEOS RAMSAY Justice Charles Quin passed away on Friday, 7 June. A vehicle belonging to a radio station burns during a protest Monday in Port-au-Prince, Haiti. – PHOTO: AP3 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY, 12 JUNE 2019 Cullers put a dent in lionfish invasion CULL’s 29th tournament nets more than 500 invasive fish JAMES WHITTAKER jwhittaker@pinnaclemedialtd.com More than 500 lionfish were removed from reefs around Grand Cayman in the latest Cayman United Lionfish League tourna- ment to target the inva- sive predators. Six teams took to the reefs to spear lionfish over two days before bringing their catch to the George Town Yacht Club to be weighed, cooked and eaten. Mark Orr, one of the or- ganisers of the CULL tour- nament series, said the number of lionfish caught this weekend was signifi- cantly higher than in tour- naments last year. He said, “It was actually quite a bit of fish for the number of teams. We are not sure exactly why, but people are starting to see more of them on the reefs again. Hopefully, we put a good dent in it this weekend.” In the early days of the tournament series, cullers were regularly pulling in ex- cess of 1,000 fish. But those numbers dipped as cull pressure started to take its toll. Last year, the figures at the tournaments were closer to 300. The weekend’s tour- nament was the 29th one CULL has held. Orr said consistent pres- sure from culling by di- vers was the only way to keep lionfish numbers down on the reefs. “We know we will not get rid of them completely,” he said. “Until nature figures it out, we have to keep at it and keep the numbers down.” He said the tournaments helped keep the pressure on and keep people interested in culling. “I think everybody has that competitive spirit. We also have a lot of teams that support us tournament after tournament. Even if they don’t pick up the prizes, they still come time after time because they know it is for a good cause and it is a lot of fun.” CULL 29 overall results ■■ Total lionfish culled: 512 ■■ Total weight: 140.5 kg ■■ Total fishing line re- moved: 1.33kg Team results ■■ Smallest lionfish: Green Water 55m ■■ Biggest lionfish: War- hammer 298mm ■■ Most lionfish: War- hammer 50.5 per culler ■■ Most weight: I-Dive 16.65kg per culler ■■ Most fishing line re- moved: Green Water 825g. Ten finalists have made it into the RUBiS Top Student programme, after eight weeks of entries and two rounds of judging by two independent judging panels. Alzavia Goulbourne, 9, of Red Bay Primary School, Damoya Fearon, 9, of Red Bay Primary School, Ho- sannia O’Connor, 10, of East End Primary School, Jeleah Maize, 8, of George Town Primary School, Kai Roberts, 10, of Layman E. Scott High School, Kaz Co- nolly Basdeo, 10, of Mon- tessori By The Sea, Kezzia King, 12, of Triple C School, Naima Myles, 7, of George Town Primary School, Oral Michelin, 11, of The Light- house School and Tianna Ebanks, 10, of Prospect Pri- mary, impressed both sets of judges with their pas- sion for various academics, sports and arts. The programme, which first launched in 2015, was open to students ages 7-12 across the Cayman Islands. Organisers said students were asked to exhibit “ex- cellence, passion and en- thusiasm” in any particular area of interest such as fine arts, performing arts, sports, STEM activities or academic achievement, in order to be in with a chance of winning a financial grant. Managing director of RUBiS Cayman Islands, Nicolas de Breyne, said in a statement, “With 70 talented entries for the 2019 RUBiS Top Student program, the judging panels faced a dif- ficult task narrowing down the submissions to top ten finalists. However, the final- ists managed to stand out through their ability to artic- ulate and demonstrate their passion for their chosen ac- tivity and how being selected as RUBiS Top Student would help achieve their goals.” He added that although only 10 could be chosen to receive final grants, the amount of talent the judges had encountered had im- pressed them. “The talent we have seen from this competition has made a positive impression on everyone involved,” he said. “Cayman certainly has a bright future ahead.” The grand prize winner will be announced at the RUBiS Top Student awards ceremony this evening. The winner will receive a $5,000 grant towards developing their talent, as well as an ad- ditional $1,000 to be donated to a club or school of their choice. The runners-up will each receive a $1,000 grant to be used to help progress their passions. 10 finalists vying for Top Student award The programme, which first launched in 2015, was open to students ages 7-12 across the Cayman Islands. Lionfish cullers and supporters attend CULL #29 tournament weigh-in on Sunday. - PHOTOS: KATIE O’NEILL A tray of lionfish is weighed at the George Town Yacht Club.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 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 PUBLISHER KATHLEEN CAPETTA EXECUTIVE EDITOR PATRICK BRENDEL A MEMBER OF THE INTER-AMERICAN PRESS ASSOCIATION “Give light and the people will find their own way” “More than three years after making recommen- dations, there is still no revenue concessions policy, nor is there any systematic monitoring of the revenue concessions awarded, and so it is not known how much money has been foregone or whether the things promised in return for the concession awarded have been being delivered.” – Auditor General Sue Winspear It is reassuring to hear that Customs and Border Control officials are taking seriously a series of recom- mendations made by the auditor general. The audit report, released late last week, revealed a number of troubling deficiencies in operations. Auditors describe what might be called a rudderless agency, conducting business without a strategic plan, little workforce management or training, and no clear and consistent policy for revenue concessions. These critical failures simply cannot be tolerated in an agency charged with such vital responsibilities. Indeed, the only proper response to such a damning report is an expression of “unequivocal commitment to implement the recommendations”, as the CBC offered. We urge them to waste no time in following through on that pledge. The ‘to do’ list is daunting: Develop a strategic plan with attendant performance measurements, ensure that employees are properly trained and held to the highest standards of integrity, modernise information technology systems, the list goes on. It is true, as auditors noted, that their recommen- dations are based on an evaluation which predates the agency’s recent reorganisation, and that at the time of the audit, after a three-year stretch without a per- manent collector, the Customs Senior Management Team had been in place for just over a year. Now that turnover and reconfiguration is behind it, the agency is in an ideal position to implement meaningful changes. The news comes on the heels of an announce- ment that the agency is undergoing a paradigm shift from a ‘command and control’ to a ‘risk-based and intelligence-led approach’ that empowers public-facing officers to exercise their judgment rather than taking a ‘one size fits all’ approach to every interaction. Late last month, Michael Ebanks, deputy chief officer for human resources and immigration, told members of the Association of Caribbean Commis- sioners of Police that the new approach is paying off. “We’ve seen a record number of refusal rates,” he said. “That’s a direct reflection of recognising legitimate versus illegitimate passengers and goods.” Teaching customs and border patrol agents to rec- ognise red flags and suspicious behaviours will allow them to better target would-be lawbreakers while reducing friction for everyday travellers. It is an effi- cient, customer-friendly use of resources. And it is a good step – the first of what must be many – toward creating the effective, professional and transparent agency our islands deserve. Making Customs improvements priority No. 1 WEDNESDAY, 12 JUNE 2019 • CAYMAN COMPASS Why we need historians KARIN WULF It’s been a tough few weeks for amateur history. First, journalist Naomi Wolf discov- ered on live radio that she had misinterpreted key historical terms in ‘Outrage’, her new book, leading her to draw the wrong conclusions. A week later, journalist Cokie Roberts, too, got a quick smackdown when she claimed on NPR that she couldn’t find any in- cidence of abortion advertised in 19th-century newspapers, a claim quickly disproved by historians. Wolf and Roberts fell victim to a myth widely shared with the American public: that anyone can do history. Whether it’s diving into genealogy or digging thorough the vast troves of digital archives now online, the public has an easy way into the world of the past. But like medicine, law or en- gineering, history is a pro- fession for which scholars spend years learning crucial skills and absorbing bodies of work that help them to in- terpret the past. While we can and must encourage more people to dig into our past and work to better under- stand it, we also must under- stand how critical the spe- cialised toolbox of historians is to getting the past right. The sense that anyone can do history reflects the field’s double-sided accessibility problem. History is of such wide and compelling interest that we see it communicated all around us through school curriculums, museums and all sorts of media forms, from television and movies to blogs and podcasts. But the main criteria for some plat- forms is often the ability to communicate well, not spe- cialised training in histor- ical research. Historians have also ac- tively included the public in historical research, ranging from soliciting volunteer transcription teams for big archival projects to em- bracing contributions from citizen historians, whether through vital advocacy for forgotten or ignored histories of all kinds, through family history websites or via local history projects. Yet the ability of just about anyone to produce a historical podcast or to jump into a historical project can make it seem that anyone with enough enthusiasm can do historical scholarship – leaving us unclear about where expertise comes in. Joanne Freeman, Yale histo- rian and premiere expert on Alexander Hamilton, recently narrated via Twitter a series of “conversations with histo- rians” that covered a wide va- riety of misconceptions about the work that historians do. These misconceptions in- clude the notion that his- torians are generalists, and therefore know all history. In reality, historical knowl- edge is highly specialised. Someone who studies post- World War II America may have little grasp of, for ex- ample, medieval Europe. It is significant that the pod- cast that Freeman co-hosts, ‘Backstory’, always includes specialists for multiple seg- ments of each episode, de- spite having a regular team of five historians. Freeman’s list also in- cluded the expectation that historians are detail aggrega- tors who do or should know random details of a specific event from the past. In re- ality, historians often focus on the big picture, with an eye to the particular details emerging from the record that illuminate what hap- pened, and why. Deep re- search in the historical re- cord, such as 19th-century newspapers read alongside other materials, crucially shapes how fully we under- stand the past. Finally, and most tell- ingly, Freeman’s conversa- tions tackled the topic of revisionism, or the public perception that any historian who offers new information or a new interpretation is in- stantly suspect (a common accusation on Twitter). In reality, historical un- derstanding is not static any more than knowledge in any other field. We would not ex- pect our doctors to convey the same information that our parents received from doctors decades ago. The same holds true for history. New sources – text, objects, images or oral histories – become available all the time, along with new methods and fresh perspec- tives on the past. Such devel- opments show how powerful forces shape what we know about the past, and why. It is no coincidence, for example, that it has taken decades of scholarship on the pervasiveness of slavery, as well as decades of atten- tion to racial inequality, for slavery to become one of the key interpretive issues about America’s founding genera- tion. To know that Thomas Jefferson and George Wash- ington enslaved men, women and children does not oc- clude their role in generating the founding documents and practices of the United States, but must sit beside it and be explained. Pointing this out is not serving an agenda: It is composing a more com- plete picture. What historians know is how to locate and assess this ever-expanding world of historical sources, methods and perspectives for a spe- cific time, place and subject. Historians learn from one another and build on each other’s work to get an ever clearer, fuller picture of the past. And it is often this in- terplay that non-historians trying to write history miss. Given the invaluable na- ture of history, it’s crucial that we get it right. That means publishers and media outlets seeking answers to the history behind the news need to seek out experts to find these answers. Not doing so risks conveying a distorted understanding of history, which will, in turn, shape the present. And as the cases of Jefferson and Washington suggest, once this happens, it’s hard to dislodge. Karin Wulf is executive director of the Omohundro Institute of Early American History & Culture, and professor of history at William & Mary. She is also a co-founder of Women Also Know History. © 2019, Special to The Washington Post. While we can and must encourage more people to dig into our past and work to better understand it, we also must understand how critical the specialised toolbox of historians is to getting the past right.5 LOCAL NEWS CAYMAN COMPASS WEDNESDAY, 12 JUNE 2019 Cayman student heading to Japan for art contest final International Night at John A. Cumber school Triple C student Tamia McLean, 14, will fly to Japan in August after making it to the final nine in her age group in a worldwide art competition that attracted nearly 1 million entries. She found out she had qualified for the finals of the Toyota Dream Car Art Con- test at school on Friday when Vice Principal Robert Lank- ford announced it. After hearing the news, she said, “I am really happy, I can’t explain it, I started crying – that’s how happy I am.” She added, “I am surprised too, that’s the next thing. My friends called it trash.” Her art teacher John Broad was convinced early on that her work was far from trash, and showed great potential. “She had amazing subtle colours in her painting, very beautiful, very harmonious colours. They all went together well. The image was kind of under- stated beautifully,” he said. The picture, titled ‘My Ev- ergreen Dream Car’ features a pink convertible in a dream- scape, and Tamia said it was her first “serious” painting. All the entries were re- quired to include a description of the artwork. Tamia’s reads, “My Toyota Dream Car can take you anywhere in the uni- verse … planets, dimensions – you name it! Also my car can take you to dreamland where you see the ones you love, pink skies, and flying whales. The adventure is endless!” She is among the nine fi- nalists in the 12-15 age cat- egory. There were a total of 953,064 entries in the com- petition, in which 86 coun- tries took part. As a finalist, Tamia has won an all-expenses paid trip to Japan to compete for additional prizes. If she is a winner there, her art- work will appear in the Toyota 2020 calendar that will be printed and distrib- uted worldwide. In the local round of the competition, four judges – David Bridgeman, Jessica Ebanks, Patti J. Ebanks and Adrian Porter, assessed the entries. The top three entries were chosen from three age groups and those were shipped to Japan for final judging. The competition was in- troduced locally for the first time this year by Vampt Mo- tors. The company’s mar- keting manager, Katie O’Neill, approached teachers at a Na- tional Gallery event in De- cember last year to invite them to get students involved. “This was the first time Vampt Motors participated in this Toyota Dream Car Art Contest and the artwork that was submitted showed how very talented our young artists are in Cayman,” O’Neill said. Copies of the work of the nine local finalists are avail- able for viewing at the Vampt Motors showroom, she said. More than 300 people at- tended Sir John A. Cumber Primary School’s annual In- ternational Night recently, where students and teachers demonstrated the event’s theme of ‘A Melting Pot of Cultures’. Dancers from the Junior Batabano Band of the Year opened the 25 May show with the performance ‘Hidden in the Kelp’. This was followed by opening re- marks from Paul Samuel, the school’s principal. During the evening, stu- dents and teachers displayed an array of talents through dance, recitals, modelling and singing as they repre- sented different cultures around the world. “It is extremely pleasing to see how well the cultures were represented, and the teachers, parents and stu- dents collaborated to make the night a success,” said the school’s librarian Shanda Hunter. She said events like these create a positive envi- ronment for students to be creative and expressive while learning something new. The students created crafts, essays and vibrant displays relating to foreign countries for attendees to see during the evening. The master of ceremo- nies, East End Primary school teacher Troy Rogers, rallied the audience with his energetic persona during the performances. Before the end of the night, the entire audience participated in the famous Latin dance ‘Macarena’ by Los del Rio as the school’s Spanish department dis- played their Latin cha- risma on stage. Reception children repre- sented Italy with a fashion show. Year 1 students sang a reggae medley and Year 2 students dressed up as cow- boys and cowgirls to rep- resent Texas. Year 3 stu- dents sang Honduras’s national song, Year 4 per- formed Mexico’s ‘Poco Loco’, Year 5 students gave a taste of Barbados, and Year 6 rep- resented the Cayman Islands with a poem. Year 3 student, Mel- ayiah White ended the night with a recital titled ‘Cay- man’s Culture’. Artist David Bridgeman, left, peruses Tamia McLean’s winning artwork. - PHOTO: KATIE O’NEILL Tamia McLean, left, shows off her artwork, with Vampt Motors Marketing Manager Katie O’Neill, and Krisi Smith, who won in the local 8-to-11- year-old category. MC Troy Rogers, right, and Spanish teacher Gema Brett, and the students of the Spanish department, on stage, lead the crowd in the ‘Macarena’. Batabano junior parade winners of Spirit of Batabano and Band of the Year perform their winning dance. Year 2 student Chloie Sahadaeo represents Texas. Children from the Sir John A. Cumber Primary’s Spanish department wear the colours of Spain. Year 3 student Melayiah White performs a poem called ‘Cayman’s Culture’.The islands’ most-trusted news source 6 WEDNESDAY, 12 JUNE 2019 • CAYMAN COMPASS have been in the past five years, with a growing number of people importing secondhand vehicles from Japan. Figures from the Eco- nomics and Statistics Of- fice, reviewed by the Cayman Compass, show that vehicles are not being scrapped at anything like the same rate. In 2017, the most recent year for which figures were available, 1,235 derelict ve- hicles where processed at the dump. The numbers fluctuate wildly and in 2014 it was as low as 71. McLaughlin said the im- ports were linked to pop- ulation growth and were clearly having an impact on traffic. He said gov- ernment was aware of the problem and had an- nounced, in the recent stra- tegic policy statement, that a major traffic study was being commissioned to look at solutions. “Of course there are major concerns. You have just got to sit in traffic every morning to under- stand that,” he said. “A lot of this is being driven by population growth. We have to look at how we provide ade- quate transportation [for] the people in this country without having to construct more and more roads. Grand Cayman is so small that even if government had all the money in the world, we will run out of places to build roads.” He said there were no signs that the islands’ growth would slow down any time soon, and his gov- ernment was looking at traffic and public transport as part of a comprehen- sive plan to cope with “con- tinued, significant popula- tion growth”. “We are waiting and ready to support launch and implementation.” He said tourists and busi- nesses simply wanted an in- dependent mechanism to determine what the cor- rect fare should be for any given journey. David Carmichael, CITA vice president, said the asso- ciation had led the charge on improving consistency and rates. He said there were still frequent complaints ranging from tourists being charged different prices for the same journey to people not being able to get a cab late at night or being dropped off at the wrong location. The Compass reported last week that almost 3,000 people have signed a peti- tion over the past two years calling for the implementa- tion of taxi meters or equiva- lent technology. “For those 3,000 people, I would say the level of frus- tration is probably justified,” Carmichael said. “From our perspective, we have seen pro- gress, we have seen the app, we have seen the pricing struc- ture and we would like to see it implemented imminently. We are ready and willing to help in whatever way we can.” Hydes said concern over price and service of taxis was a thorn in the side of an oth- erwise booming industry. “We have worked too hard and come too far, for this one dynamic to be the Achilles heel in an otherwise impec- cable product,” he added. Both men pointed out that CITA also receives com- pliments about taxi drivers in Cayman. They say the app will help create a level playing field and protect the reputation of Cayman and of the taxi industry from rogue operators. Carmichael said CITA had helped start the conver- sation about this issue in 2017 and was happy to be the ‘middle men’ between government, restaurants and attractions and the drivers. He said the only aim was to ensure a valid price for a fair service. Consultants from Deloitte were hired to examine Cayman’s taxi fare system amid outcry from the tourism industry around two years ago. They produced a report in April 2018, which recommended the introduc- tion of a simple offline app to calculate and regulate fares. The report was not made public until it was released to the Cayman Compass through a Freedom of Infor- mation request in February this year. None of its recom- mendations have been imple- mented as yet. Asked, at the time, what action had been taken since the report, Rosa Harris, director of tourism and the Public Transport Board chair, said work on a strategic plan, which would include a “provision of tools to support the sector”, had commenced. She was una- vailable for further com- ment this week. Cars imported into the Cayman Islands 2009 2,298 2010 1,642 2011 1,741 2012 2,189 2013 2,287 2014 2,871 2015 3,742 2016 4,885 2017 4,294 2018 4,457 Roads clogged as vehicle imports rocket CONTINUED FROM PAGE 1 CITA hopeful amid taxi concerns Almost 3,000 people have signed a petition over the past two years calling for the implementation of taxi meters or equivalent technology. - PHOTO: TANEOS RAMSAY CONTINUED FROM PAGE 1 good enough”. “They want to have their day in court and they want to have it quickly,” she said. Magistrate Valdis Foldats told the defendants that the Crown has a strong case and that they are facing a lengthy stay of imprisonment if they are convicted. “You were in charge of an airplane and a significant amount of cash was found inside the airplane,” the mag- istrate told the defendents. Trial was set for 17 July, and all parties will be back in court 20 June for a case management hearing. The pair were among four people arrested following an investigation by the Royal Cayman Islands Police Ser- vice and Cayman Islands Customs and Border Con- trol Service. Police said on Tuesday that the other two people ar- rested had been granted po- lice bail, and that the on- going investigation is being conducted in conjunction with law enforcement agen- cies in other international jurisdictions. CONTINUED FROM PAGE 1 2 in court on smuggling charges Nicaragua officials release more political prisoners MANAGUA, Nicaragua (AP) – Principal leaders of pro- tests against President Daniel Ortega’s government and two prominent journal- ists were freed from prison Tuesday ahead of a 18 June deadline to release the last of hundreds of people the opposition considers polit- ical prisoners. Neighbours and friends gathered to receive the newly freed activists with Nicara- guan flags, blue and white balloons and cheers. Videos circulated online showing rural movement leaders Me- dardo Mairena and Pedro Mena, student leader Edwin Carcache and 100% Noticias journalists Miguel Mora and Lucía Pineda Ubau. The releases came amid a broader move to set free people detained since last year for their role in the pro- tests under an agreement meant to ease the country’s political standoff. The government has been gradually releasing prisoners since dialogue between the two sides reopened in Feb- ruary, though those talks later stalled with little pro- gress on reaching agreement, in part over opposition de- mands that all jailed govern- ment opponents be freed and cleared of charges. Authorities said in a state- ment that 56 people were freed Tuesday and that the International Committee of the Red Cross accompanied them to their homes. Fifty others were released the pre- vious day, and the Civic Al- liance opposition group es- timated that the number behind bars is now around 80, down from hundreds previously. Defense attorney Julio Montenegro demanded the government free all re- maining “because none of the political prisoners is guilty of a crime”. Tuesday’s releases came as a surprise, with no prior word from the govern- ment, he added. Noé Ubau, cousin of Pineda Ubau, said the two 100% Noticias staffers had left prison early Tuesday. Ubau was the station’s spokeswoman, and Mora its director, before it was raided and shuttered in December. Pineda said she would travel to Costa Rica where her family lives. Tens of thou- sands of Nicaraguans fled to exile during the unrest, many of those to neighbouring Costa Rica. The Organization of Amer- ican States and the Inter- American Commission on Human Rights celebrated the releases. On Saturday, Nicaraguan lawmakers allied with Ortega passed an amnesty law for crimes related to the protests, which erupted in April 2018 over a proposed social secu- rity reform and broadened to include demands that Ortega leave office and allow early elections. Government offi- cials have repeatedly alleged that the demonstrations amounted to “terrorism” and an attempted coup. The ruling Sandinista party argues the amnesty seeks to bring about “recon- ciliation” and a “stable and lasting peace”, but opposi- tion leaders have criticized it as allowing impunity for po- lice and pro-government ci- vilian militias implicated in killings and other abuses in a crackdown that left at least 325 civilians dead and 2,000 more injured, according to the Inter-American Commis- sion on Human Rights. Yubrank Suazo, in glasses, is surrounded by friends and family Tuesday after being freed from prison, in Masaya, Nicaragua. – PHOTO: APThe islands’ most-trusted news source 7 Business CAYMAN COMPASS • WEDNESDAY, 12 JUNE 2019 American pushes back Max return date American Airlines is pushing back the planned return of its Boeing 737 Max jets until early September, two weeks longer than the airline had previously expected. American is cancelling about 115 flights a day because of the grounding of its Max jets. Number of suspicious activity reports increased in 2018 MICHAEL KLEIN mklein@pinnaclemedialtd.com The administrative finan- cial intelligence unit respon- sible for receiving and ana- lysing financial disclosures related to suspected criminal proceeds received 935 suspi- cious activity reports last year, up from 868 reports in 2017. The increase would be even larger had it not been for a single case in December 2017 which alone triggered the majority of that month’s 220 reports. Presenting the Finan- cial Reporting Authority’s annual report in the Legis- lative Assembly on 5 June, At- torney General Samuel Bulgin said there was no such one- off event in 2018. “If the 2017 SARS numbers were normal- ised to discount this one-off event, the 2018 SARS filings would represent a 30% in- crease from 2017,” he said. A total of 179 different en- tities reported activities they found suspicious. This does not include the 40 overseas fi- nancial intelligence units that shared or requested informa- tion from the FRA. FRA director RJ Berry noted in the annual report that “the reporting period was particularly challenging, given the continued increase in the number of SARs received and the ongoing responsibilities of the 4th round mutual evalua- tion process” of Cayman anti- money laundering regime. The mutual evaluation re- port of the Caribbean Finan- cial Action Task Force heavily criticised the Financial Re- porting Authority, stating it did not have the tools to assist investigative authorities in the identification of cases. CFATF assessors said the FRA had not been able to ana- lyse and disclose the reports in time, nor did it have access to wider relevant information. As a result, FRA disclosures were hardly used to initiate or sup- plement investigations. The problems stemmed to a large extent from the authority grappling with a backlog of cases that had built up over years as the number of reported suspicious activi- ties increased. Since the CFATF anti-money laundering assess- ment, three financial analysts have joined the FRA, which ac- counted for a larger number of cases analysed and closed last year, the FRA said. The authority is also in the process of recruiting an addi- tional five staff members and are committed to addressing the shortcomings highlighted by the CFATF, the attorney general said. During 2018, the FRA per- formed an initial analysis on 719 suspicious activity reports and closed 602 cases. Of these, 283 were reported to local law enforcement and 206 cases were disclosed to overseas fi- nancial intelligence units. Banks continued to be the largest source of suspicious activity reports accounting for 41% of disclosures, followed by overseas financial intelligence units (14%), money services providers (10%), corporate ser- vices providers (7%), trust com- panies (6%), fund administra- tors (6%), insurance businesses (3%) and attorneys (2%). The most common rea- sons for filing a SAR out- side of general suspicious ac- tivity (31%), were suspected fraud (26%), corruption (12%), money laundering (9%) and tax evasion (7%). The suspicious activities analysed by Cayman’s finan- cial intelligence unit last year involved 1,034 legal entities and 1,358 natural persons. The majority of those were based in the Cayman Is- lands (494), followed by the United States (200), Russia (113), the UK (90), Canada (71), the British Virgin Islands (61), Argentina (60), Jamaica (51), India (50), Panama (47), Peru and Venezuela (46 each). OECD claims tax transparency initiative delivers ‘impressive results’ MICHAEL KLEIN mklein@pinnaclemedialtd.com The automatic exchange of tax information under the common reporting standard are improving tax compli- ance and delivering con- crete results for govern- ments worldwide, the OECD said, citing new data re- leased last week. More than 90 jurisdic- tions, including the Cayman Islands, are participating in the global tax transparency initiative through 4,500 bi- lateral relationships since 2018. They have now ex- changed information on 47 million offshore accounts with a total value of approx- imately 4.9 trillion euros. The automatic exchange of information initiative has thus resulted in the largest exchange of tax information in history. “The international com- munity has brought about an unprecedented level of transparency in tax mat- ters, which will bring con- crete results for government revenues and services in the years to come,” according to OECD Secretary-General Angel Gurria, who unveiled the data last week before the meeting of G-20 finance ministers in Fukuoka, Japan. “The transparency initia- tives we have designed and implemented through the G-20 have uncovered a deep pool of offshore funds that can now be effectively taxed by authorities worldwide,” Gurria said. “Continuing analysis of cross-border fi- nancial activity is already demonstrating the extent that international standards on automatic exchange of information have strength- ened tax compliance, and we expect to see even stronger results moving forward.” Voluntary disclosure of offshore accounts, finan- cial assets and income in the run-up to full imple- mentation of the AEOI ini- tiative had resulted in more than 95 billion euros in ad- ditional revenue in terms of tax, interest and penalties for OECD and G-20 coun- tries over the 10-year period from 2009 to 2019. This cu- mulative amount is higher by 2 billion euros since the last reporting by the organi- sation in November 2018. The OECD said the pre- liminary analysis, which draws on a methodology used in previous studies, showed the “very substan- tial impact AEOI is having on bank deposits in interna- tional financial centres”. Deposits held by compa- nies or individuals in more than 40 key international fi- nancial centres increased substantially over the 2000 to 2008 period, reaching a peak of US$1.6 trillion by mid-2008. But these de- posits had fallen by 34%, or US$551 billion, over the past ten years as countries ad- hered to tighter transpar- ency standards. The automatic exchange of tax information ac- counted for about two thirds of the decrease, the OECD said. It also caused a de- cline of 20% to 25% in bank deposits in international fi- nancial centres, according to preliminary data. The study, however, noted that the extent to which the decline can be attributed to decreased tax evasion in re- sponse to tax transparency and exchange of informa- tion, reduced base erosion and profit shifting activity, or other non-tax factors such as changes in financial regulation, cannot be estab- lished with precision. The study also focussed only on one kind of financial asset. Nevertheless, the authors said, the changes in finan- cial flows suggested that tax transparency and exchange of information mechanisms played a material role. “These impressive re- sults are only the first stock- taking of our collective ef- forts,” Gurria said. “Even more tax revenue is ex- pected as countries con- tinue to process the infor- mation received through data-matching and other in- vestigation tools. We really are moving closer to a world where there is nowhere left to hide.” The complete study is expected to be published later this year. CHANGES TO CAYMAN TRUSTS LAW TAKE EFFECT Amendments to the trusts law, which aim to provide greater certainty and clarity to clients by expanding the powers of the Grand Court to set aside mistakes by trustees without having to find a breach of fiduciary duty, are going to take effect on 14 June. The amendments also give more flexibility to the court to make changes to a trust on behalf of minors or un- born children. The amendments extend the definition of a trust corpora- tion with regard to STAR trusts to all trusts for the purpose of discharging a retiring trustee. The new clauses also pro- vide more protection against the adverse impact of foreign law by applying the provisions of the Trusts Law to a foreign law that is linked not only to the settlor but also the benefi- ciary. The Trust Law (2018 Re- vision) was passed in April and gazetted on 15 May. Amendments providing greater certainty and clarity to Cayman trusts law reaffirm the Cayman Islands’ position as a market-leading jurisdiction for the establishment and admin- istration of sophisticated trust arrangements. Ogier Partner Anthony Partridge said the changes will modernise funda- mental aspects of the law and reaffirm the Cayman Islands’ position as a market leading ju- risdiction for the establishment and administration of sophisti- cated trust arrangements. “Overall, these enhance- ments are a welcome addi- tion to the trust offering of the Cayman Islands. An increase in the flexibility of the Courts’ powers to vary trusts and con- firmation of its jurisdiction to correct mistakes is to be ap- plauded, further affirming the Cayman Islands’ world-class trust regime,” he said. “The modernisation of the firewall provisions is desirable and will likely reduce enforce- ment attempts, at least in the Cayman Islands, in connection with beneficiaries’ interests in Cayman discretionary trusts.” The changes came at the recommendation of the Law Reform Commission which in 2017 reviewed the Trusts Law and compared it with corre- sponding legislation in the UK, Jersey, Guernsey, Bermuda, the British Virgin Islands and the Bahamas. Cayman Islands 494 United States 200 Russia 113 UK 90 Canada 71 British Virgin Islands 61 60 Argentina 51 Jamaica 50 India 47 Panama 46 Peru 46 Venezuela Locations of 2018 suspicious activity reports8 BUSINESS WEDNESDAY, 12 JUNE 2019 • CAYMAN COMPASS Cayman delegation visits Hong Kong A joint team from the Gov- ernor’s Office and the new Ministry of International Trade, Investment, Mari- time and Aviation Affairs was in Hong Kong last week for talks with the authori- ties there. The delegation, led by Eric Bush, chief officer at the international trade min- istry, and Matthew Forbes, head of the Governor’s Of- fice, is meeting officials in the Hong Kong Special Adminis- trative Region government to agree plans for the opening of Cayman’s new trade office in the city. Bush and Forbes also met with the British Consul General Andy Heyn and his team, who are supporting the new initiative, as well as the heads of Invest Hong Kong, the British Chamber of Com- merce and representatives of Cayman Islands companies with offices in Hong Kong. In addition, the mission aimed to identify premises for the new office, which is expected to open in early October, according to a Cayman Islands government press release. The office will support Cayman companies not just in Hong Kong but also main- land China. The Hong Kong office is the first of several planned Cayman Islands gov- ernment offices in key mar- kets. Hong Kong was se- lected for its existing links to Cayman businesses and due to its location as a gateway to other Asian markets. Forbes, who was previ- ously deputy consul general in Shanghai, said China is an important marketplace for Cayman companies and Hong Kong can act as a spring- board for firms looking to do business there. “It is im- portant to establish relation- ships with the Hong Kong authorities and other part- ners who will be vital to the success of the office,” he said. Cayman’s Hong Kong of- fice will promote investment opportunities in Cayman and support financial services and tourism. It will also pro- vide real-time support ser- vices, such as certificates of good standing, dealing with immigration-related queries for Asian visitors, and po- tentially company incorpo- ration and funds registration on the same day and in the same time zone. As such, it is expected to add to Cayman- based firms already oper- ating in Hong Kong and Asia. Government has allocated an initial $3 million in its an- nual budget to staff the new ministry and Hong Kong of- fice and for promotional activities. Recruitment for the new head of the office is cur- rently under way. Chief Officer Bush said the trip had laid the foun- dations for a successful opening of Cayman’s new of- fice in Asia. “We are grateful for the support of the Hong Kong SAR Government and the British Consulate Gen- eral in this venture,” he said. “Having a physical presence in this fast-paced and com- plex part of the world will help Cayman companies achieve their full potential and develop new opportu- nities, in particular for our world-class financial ser- vices sector.” From left, Eric Bush, chief officer at the trade ministry; Esther Blythe, British deputy consul general; Derek Lee, deputy director of protocol, Hong Kong government; and Matthew Forbes, head of the Governor’s Office. BUSINESS IN BRIEF Kirk ISS recognised as 2019 Microsoft Country Partner of the Year Kirk Information So- lutions and Services has won the 2019 Micro- soft Country Partner of the Year Award for the Cayman Islands. Micro- soft awards the country partner of the year status to firms that have dem- onstrated business ex- cellence in delivering Microsoft solutions to multiple customers. “We are honoured to recognise Kirk ISS of the Cayman Islands as a Mi- crosoft Country Partner of the Year,” said Gavri- ella Schuster, corporate vice president, One Com- mercial Partner, Micro- soft Corp. “Kirk ISS has distinguished itself as an exemplary partner demonstrating remark- able expertise and inno- vation to help customers achieve more.” Awards were pre- sented in several catego- ries, with winners chosen from a set of more than 2,900 entrants from 115 countries worldwide. Kirk ISS was selected for pro- viding outstanding so- lutions and services, as well as representing ex- cellent subsidiary engage- ment in Cayman. “We couldn’t be hap- pier to be named Micro- soft Partner of the Year for the Cayman Islands,” said James Packer, man- ager of Kirk ISS. “We’re all very proud of what we’ve achieved working together with Microsoft.” Kirk ISS provides IT solutions in five areas: servers and storage, net- work security, VoIP com- munications, cloud so- lutions and professional IT services. Appleby attorney named private client lawyer of the year Appleby Partner Carlos de Serpa Pimentel has been named ‘Lawyer of the Year’ in Who’s Who Legal 2019 awards. As the Group Head of the Private Client and Trusts department of the Appleby Group, Pimentel specialises in all aspects of Cayman Islands trust law advice and trust liti- gation. He regularly ad- vises trustees and ultra- high net worth individuals on the establishment, re- structuring and adminis- tration of trusts, and the use of private trust com- panies, as well as pro- viding advice to protec- tors and beneficiaries on a variety of trust re- lated matters. “I am honoured to be recognised amongst global elite lawyers in the private client sector,” Pi- mentel said. Conyers welcomes new corporate attorney Conyers has appointed Associate Rory O’Connor in the firm’s corporate practice in Cayman. Before joining Co- nyers, O’Connor worked as a capital markets as- sociate in the London of- fice of Cadwalader Wick- ersham & Taft LLP and on the European CLO teams of two top-tier investment banks. He advises on a wide variety of corporate, banking, securitisation and regulatory matters. Lovett earns Associate Certified Coach credential Sondra Marie Lovett, a Cayman Islands-based business development professional, earned the designation of Associate Certified Coach from the International Coach Federation. Lovett is an active member of the Cayman Coaches Network, de- signed to bring more awareness and visibility to coaching. The mis- sion of network is to help regulate and for- malise coaching based in Cayman by promoting ex- cellence in the profession. Cayman Coaches Net- work representative Chanda Glidden said, “We’re really proud of Sondra for her amazing accomplishment. It’s a major feat and a great example of the highly trained and professional coaches that are based in the Cayman Islands.” “Members of the Cayman Coaches Network have all received formal coach training and are committed to continued professional development through our local network and organisations like the International Coach Fed- eration and Association of Coaching,” she added. The International Coach Federation defines coaching as partnering with clients in a thought- provoking and creative process that inspires them to maximise their personal and professional potential. Coaching is a distinct service and dif- fers greatly from therapy, consulting, mentoring or training, CCN said. Individuals who engage in a coaching relation- ship can expect to experi- ence fresh perspectives on personal challenges and opportunities, enhanced thinking and decision- making skills, enhanced interpersonal effective- ness, and increased confi- dence in carrying out their chosen work and life roles. New managing director of business develoment at SANNE Alternative asset and corporate business ser- vices firm SANNE has appointed a new man- aging director of business development and mar- keting. Based in SANNE’s London office, Malcolm Hassan will oversee busi- ness development to- gether with brand and market positioning across its global platform. With more than 23 years of industry ex- perience, Hassan joins SANNE from RBS where he was responsible for building and growing RBS’ Funds Banking busi- ness to be one of the leading banks supporting alternative funds and fund managers across Europe. Before joining RBS, where he held other senior roles in leverage finance, strategy and change, Hassan previously worked at several boutique M&A advisory houses. He is a qualified chartered accountant, having trained with Ernst & Young, and is a member of the Institute of Chartered Accountants of Scotland. Appleby Partner Carlos Pimentel Members of the Cayman Coaches Network, from left, Sara Jan, Heather Lockhart, Valerie Hoppe, Sondra Lovett, Helen Goodier, Monique Hather, Laura Watler and Chanda Glidden. Hong Kong was selected for its existing links to Cayman businesses and due to its location as a gateway to other Asian markets.9 BUSINESS CAYMAN COMPASS • WEDNESDAY, 12 JUNE 2019 Trump signals frustration with Fed’s independent policies UK labour market remains strong despite Brexit uncertainties U.S. EMPLOYERS HIRED RECORD NUMBER IN APRIL VIETNAM: CHINA COMPANIES USING FAKE ‘MADE IN VIETNAM’ LABELS LONDON (AP) – The out- look for the British economy may remain murky amid the Brexit impasse, yet the country continues to post im- pressive jobs growth, which is helping wages rise back to the levels they were be- fore the global financial crisis more than a decade ago. A raft of labour market figures released Tuesday highlighted that the labor market remains strong de- spite the lack of clarity over how Britain’s scheduled de- parture from the European Union will play out. The Office for National Statistics reported that the employment rate in April stood at 76.1%, its joint- highest level since records began in 1971 and unemploy- ment was at 3.8%, its lowest level since 1974. The jobs being created are largely full- time positions and are going primarily to women. The resilience in the la- bour market is helping to push up wage increases back towards the levels they were before the global finan- cial crisis. Average weekly earnings excluding bonuses were 3.4% higher in the three months to April compared with a year ago, about a per- centage point below the rate of growth before the crisis. Despite the Brexit un- certainty, rate-setters at the Bank of England are coming under pressure to raise in- terest rates again especially as the economy continues to grow, albeit fairly modestly. Two members of the Mon- etary Policy Committee, An- drew Haldane and Michael Saunders, have indicated that they could back another rate rise sooner than many in the markets think largely because of worries that rising pay will stoke inflation, which at an annual rate of 2.1% stands above the bank’s 2% target. “I want to stress that the MPC does not necessarily have to keep rates on hold until all Brexit uncertain- ties are resolved,” Saunders said Monday. “There would be costs if we delay tightening until all the potential warning signs across pay, capacity and prices are flashing red. Such an approach would make it less likely that tight- ening would be limited and gradual, and more likely that the economy would face a painful adjustment.” The pound rose somewhat on expectations that the cen- tral bank could support an- other quarter-point interest rate rise this summer to 1%. The currency was up 0.2% at $1.2710. The prevailing view in the markets is that the Bank of England will keep rates un- changed at its policy meeting next week, but that a majority of the nine-member panel may back an increase in Au- gust alongside the bank’s latest economic forecasts. Though Brexit uncertainty has weighed on business in- vestment since the country voted to leave the EU in June 2016, growth overall has re- mained solid. WASHINGTON (AP) – US employers hired the most people on record in April, while the number of open jobs was largely un- changed, evidence that the job market remains solid. The Labor Department said Monday that busi- nesses filled 5.9 million jobs that month, 4.2% more than in March and the most since records began in December 2000. Some of the increase in hiring simply reflects pop- ulation growth. As a per- centage of the workforce, new hires reached 3.9%, a strong reading but below the record of 4.3% reached in January 2001. The report shows em- ployers are confident enough about the economy to add staff. Still, there were warning signs: The number of job openings has declined from a record 7.6 million in November to 7.4 million in April. That suggests demand for labour is softening a bit. Growth also appears to be slowing, with most econ- omists forecasting that the economy will expand in the April-June quarter at about half the pace it did in the first three months of the year. Rising trade tensions with China, slowing growth in Europe and Asia, and the fading of stimulus from tax cuts and greater govern- ment spending last year are weighing on the economy. On Friday, the govern- ment said employers added just 75,000 jobs in May and 224,000 in April. “Today’s numbers con- firm that the labor market has lost some momentum,” said Nick Bunker, an econo- mist at the job listings web- site Indeed. “Slowdowns happen. Just because this year won’t be as strong as last year doesn’t mean a re- cession is looming.” There are still more jobs available than there are un- employed workers, a rare development and stark il- lustration of how low un- employment has fallen. Monday’s report, known as the Job Openings and Labor Turnover Survey, or JOLTS, also measures lay- offs, which ticked up in April to 1.75 million but re- mained at a low level. HANOI, Vietnam (AP) – Viet- nam’s government says it is taking more steps to pre- vent Chinese companies from using illegal “Made in Vi- etnam” labels to avoid high tariffs that have been im- posed by the United States on Chinese goods. The customs department says textiles, fisheries, farm products, tiles, honey, iron, steel and plywood are among the Chinese products that are most often being rela- belled and then exported to a third country. Vietnam’s government portal said the customs de- partment has ordered its of- fices to be more aggressive in checking the certificates of origin of products. In one case, US customs officials found a shipment of Chinese plywood had been relabelled to make it appear that it originated in Vietnam. Speaking at the national assembly last week, Foreign Minister Pham Binh Minh warned of serious conse- quences if such subterfuges cannot be controlled. “It will sabotage Viet- namese brands and prod- ucts and it will also af- fect consumers. We could even get tariff retribu- tion from other countries, and if that happens, it will hurt our economy,” the gov- ernment website quoted Minh as saying. WASHINGTON (AP) – President Donald Trump complained Monday that President Xi Jin- ping enjoys a major advantage in the US-China trade war in that he controls China’s cen- tral bank while Trump must deal with a Federal Reserve that is “very destructive to us”. Trump made clear in an interview with CNBC his frustration with a system that provides political inde- pendence for America’s cen- tral bank – something most economists see as vital to its credibility. Trump noted that China’s president, by con- trast, is essentially also head of the Chinese central bank. “He can do whatever he wants,” Trump said in the interview. Trump also complained that even though he selected four of the Fed’s five board members, including elevating Jerome Powell to chairman, “We have people on the Fed that really weren’t, you know, they’re not my people.” Speaking of the Fed’s pol- icymaking committee, the president expressed exasper- ation that the panel raised its key short-term rate four times last year and acted to reduce the Fed’s balance sheet – action that had the effect of tightening credit – despite his public warnings against it. “They certainly didn’t listen to me because they made a big mistake,” Trump said. Last week, Powell helped fuel a rally in the stock market by holding out the possibility that the Fed will soon cut rates to protect the economic recovery from any damage resulting from Trump’s trade wars. Many analysts think the Fed will cut rates more than once be- fore year’s end, perhaps be- ginning in July. In addition to choosing Powell, a Republican whom President Barack Obama had named to the Fed board, to be chairman, Trump has filled three other vacancies on the board in his first two years in office. Lael Brainard is the only Democrat on the board. There are still two vacan- cies on the seven-member board. Trump had earlier in- tended to nominate two polit- ical allies – Herman Cain and Stephen Moore – but both later withdrew in the face of sharp opposition from critics. On trade, Trump warned that if Xi chooses not to meet with him at the Group of 20 summit late this month in Osaka, Japan, he will move to impose tariffs on the $300 billion in imports from China that have not already been taxed. But Trump said he ex- pects Xi to meet with him. “If we do, that’s fine and if we don’t, that’s fine,” Trump said. Trump made his com- ments during a telephone in- terview with CNBC’s ‘Squawk Box’. Trump criticized the US Chamber of Commerce for objecting to his threat of tariffs to force Mexico to do more to halt the flow of Cen- tral American migrants into the United States. The presi- dent said he felt the chamber had its priorities wrong. “They have to start repre- senting the United States, not just the companies that are members of the US Chamber of Commerce,” he said. Trump made clear in an interview with CNBC his frustration with a system that provides political independence for America’s central bank – something most economists see as vital to its credibility. The resilience in the labour market is helping to push up wage increases back towards the levels they were before the global financial crisis. Rising trade tensions with China, slowing growth in Europe and Asia, and the fading of stimulus from tax cuts and greater government spending last year are weighing on the economy. Federal Reserve Chairman Jerome Powell, left, talks with US Treasury Secretary Steven Mnuchin during the G-20 Finance Ministers and Central Bank Governors Meeting, Saturday in Fukuoka, Japan. – PHOTO: APNext >