ESTABLISHED 1965 www.caymancompass.com – 50 CENTS – WEDNESDAY, 17 JULY 2019 High of 90 Low of 78 Slight to moderate with wave height of 2 to 4 feet. WORLD | PAGE 7 JOHNSON, HUNT RAISE BREXIT STAKES WITH IRISH BORDER VIEWS LOCAL | PAGE 3 OFREG DENIES WATER RATE INCREASE REQUEST BY CAYMAN WATER NiCE workers clear sargassum from beaches Seasonal workers in the Na- tional Community Enhancement programme have been removing sargassum seaweed from the local beaches over the past week. The seaweed is being taken to the George Town landfill, though some has been sent to the Depart- ment of Agriculture where it is being tested and trialled for use as fertiliser, according to officials. The Department of Environ- mental Health is coordinating the use of grab trucks to collect sar- gassum from South Sound, Coe Wood and New Cemetery Beach in Bodden Town; as well as from the Frank Sound Junction launch ramp. As part of the work project, 18 work teams are clearing beach ac- cesses, removing roadside vegeta- tion, installing road signage, re- painting markings and removing litter from parks and cemeteries. A crew of NiCE workers at the landfill is processing recyclables, tire shredding, clearing vegeta- tion and cleaning, stripping and painting equipment. “With the first week of the NiCE Summer Project 2019 now com- pleted, I am pleased to announce that the clean-up and enhancement initiatives have been successfully carried out so far,” said Minister for Commerce, Planning and Infrastruc- ture Joey Hew in a press release. “I will be touring to visit sev- eral of the work teams later this week, to talk to the NiCE operatives and to see firsthand some of the Men’s basketball team returns victorious KAYLA YOUNG kyoung@pinnaclemedialtd.com Cayman’s winning basketball team returned home Monday af- ternoon with their second con- secutive gold medal from the Island Games. With a 75-63 victory over the Estonian island of Saaremaa, the men’s team clenched one of 11 gold medals for team Cayman at the XVIII NatWest Interna- tional Island Games in Gibraltar. Overall, the Cayman Islands claimed 30 medals – 11 gold, 10 silver, and nine bronze – at the tournament. The basketball team previ- ously won gold at the 2017 Is- land Games in Gotland, Sweden. “It was a great experience. As the youngest player on the team, I didn’t really know what to expect. It was a great expe- rience and we won the gold, so I can’t complain,” said basket- ball player Kai Robinson upon the team’s return to Grand Cayman on Monday. The men’s basketball pro- gramme has medalled during six out of 10 appearances at the Islands Games, including four silver medals and two golds, ac- cording to the Cayman Islands Basketball Association. Sports Minister Juliana O’Connor-Connolly described Members and supporters of the men’s basketball team gather Monday at Owen Roberts International Airport. - PHOTO: ALVARO SEREY A team of NiCE workers clears sargassum from South Sound dock and the beach. PLEASE TURN TO PAGE 6 » PLEASE TURN TO PAGE 6 » CAYMAN TOPS LIST OF MOST EXPENSIVE PLACES TO LIVE MARK MUCKENFUSS mmuckenfuss@pinnaclemedialtd.com Forget Tokyo. Forget New York, San Fran- cisco and even Hong Kong. When it comes to expensive places to live, look no further than the ground be- neath your feet. According to the most recent worldwide ranking by Expatistan, Grand Cayman is the most costly place to live on the planet. Expatistan, a website designed to provide information on the cost of living for those living or planning to live in foreign coun- tries, puts Grand Cayman at the top of its list of 104 countries, as well as first among 318 ranked cities. Gerardo Robledillo, who has been com- piling the international rankings since 2009 when he established Expatistan, said Cay- man’s position is nothing new. “The Cayman Islands have been at the top of the rankings for a long time,” Ro- bledillo said. The crowd-sourced list is compiled using data from more than 300,000 contributors. Robledillo said 40 people provided informa- tion on Cayman. “The ranking is constantly updated and re- calculated as users enter new prices,” he said. “The positions in the rankings do not change much or often, though, as the price changes are just little adjustments normally.” In addition to the overall rating for cost of living, the website provides details on specific items and services for each country. PLEASE TURN TO PAGE 6 »2 LOCAL®IONAL WEDNESDAY, 17 JULY 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 10:30 (SAT ONLY) I 4:35 I 7:15 (NO SAT) 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) • 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) CRAWL (R) 4:25 | 6:55 | 9:30 SPIDER-MAN FAR (PG13) FROM HOME 12:40 VIP | 1:00 | 3:40 VIP | 4:00 | 6:40 VIP | 7:00 | 9:40 VIP | 10:00 TOY STORY 4 (G) 1:30 | 4:00 | 6:30 | 9:00 SUPER 30 (PG) 1:00 | 9:10 MEN IN BLACK (PG13) INTERNATIONAL 1:35 I 4:20 | 7:05 | 9:50 SECRET LIFE OF PETS 2 (PG) 2:15 | 4:30 | 6:45 Second RCIPS recruit class of 2019 in training Twenty-four recruits who make up the second Royal Cayman Islands Police Ser- vice Recruit Class of 2019 are now six weeks into their ini- tial recruit training. The class consists of 12 women and 12 men, ranging in age from 19 to 41, and also includes seven former aux- iliary constables who are making the transition to po- lice constable. According to the RCIPS, nine members of the class are Caymanian. The recruits were sworn in on 3 June in a ceremony led by members of the RCIPS Senior Command Team. Earlier this year, 23 candi- dates formed the first Class of 2019 and graduated to op- erational duty in May. The recruits were chosen following a local recruitment drive which concluded last August. After confirmation of minimum qualifications and passage of a written exam, interview, fitness test and vetting, candidates were offered places in the re- cruit class. The current group of 24 was chosen from the same pool. “Being able to graduate two classes of over twenty recruits in the same year is a great achievement, and will be an enormous boost to the service as we seek to bol- ster our ranks and add fresh ideas and more local perspec- tive to the organization,” said Commissioner of Police Derek Byrne in a press release. “In addition to graduating more recruits in a single year than we have done in years past, we will also be gradu- ating more Caymanians and more women,” added Com- missioner Byrne. “The in- creased gender diversity that this will bring to the organ- ization is important as we strive to accurately reflect the population that we serve. We look forward to their long and fruitful careers as they serve their communities and the Cayman Islands.” The recruits are now a little less than halfway through their 17-week in- tensive training course, and those who pass will graduate to operational duty in Sep- tember and then progress to on-the-job training during a two-year probationary period. Kanuga embarks on ultimate endurance test SPENCER FORDIN sfordin@pinnaclemedialtd.com Cayman Islands runner Kerri Kanuga em- barked on her fourth running of the Badwater 135 ultramarathon late Monday night. Kanuga was one of just 69 people to finish the 135-mile race in 2018, when the test of endurance took her more than 38 hours to complete. Kanuga finished the first leg of her race to Furnace Creek – a distance of 17.5 miles – in three hours, 31 minutes, and completed the 26.8-mile leg to Stovepipe Wells in five hours, 25 minutes. By press time Tuesday, she was on her way to the third checkpoint. Last year, she finished those two legs in nearly identical times (3:33 and 5:24 respectively.) START Badwater FINISH 135.0 Stovepipe Wells Furnace Creek Panamint Springs Kerri Kanuga was hurtling toward the third checkpoint of the Badwater 135 ultramarathon – Panamint Springs and the 72.7-mile marker – at press time on Tuesday. She’ll still have 62.3 miles – more that two full marathons – to go once she crosses that threshold. Kerri Kanuga, second from right, checks in for the Badwater 135 Monday, with her support team of Alexis Garcia, Marlene Guerra Garcia and Chris Clapp, in this photo posted to her Facebook page. In the second 2019 class of RCIPS recruits, there are 12 women and 12 men, ranging in age from 19 to 41. - PHOTO: RCIPS FORMER PERU PRESIDENT ARRESTED LIMA, Peru (AP) – Former Peruvian President Ale- jandro Toledo, who faces corruption charges in his homeland, was arrested in the United States Tuesday following an extradi- tion request. The ex-president is wanted in his home country on accusations of taking $20 million in bribes from Odebrecht, a Brazilian construction company at the centre of Latin America’s biggest corruption scandal. Odebrecht has admitted to paying $800 million to officials throughout the re- gion in exchange for lucra- tive public works contracts.3 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY, 17 JULY 2019 In keeping with the Company’s commitment to scholastic excellence, four young Caymanians recently received financial assistance towards furthering their education. Gabrielle Ramoutar and Natalia McCoy have been awarded scholarships to complete A level studies and Briony Gallegos and Sebastian Martinez were awarded scholarships to pursue university level studies. Gabrielle Ramoutar recently graduated from Cayman Prep & High School with nine IGCSE passes and is a Senior Model United Nations Club representative. Gabrielle will pursue A level studies at St. Ignatius Catholic High School with a focus on science and business classes. Natalia McCoy recently graduated from John Gray High School with six CXC/CSEC passes and one CXC/CAPE pass. She is also a graduate of Eminent Orators Toastmasters. Natalia will pursue A level studies at Cayman Prep & High School focussing on the sciences as her aspirations are to be an engineer. A past CUC Employee of the Year recipient, Briony Gallegos has worked with the Company since interning in 2012 whereafter she gained a permanent role in the Customer Services Department. She will be pursuing a Bachelor’s degree in Business Administration with a focus in Management in the United States. Upon graduating, she plans to return to CUC to further contribute to the Company’s success. Sebastian Martinez, a former professional footballer with Académica de Coimbra in Portugal, holds a BTEC Level 3 extended Diploma from New College Swindon in Swindon, England. Sebastian will be attending David Game College in London, England, and plans to pursue a career in engineering. CUC established its scholarship programme in 1989 and since then has awarded full and partial scholarships to over 50 current and past employees and high school students in the fields of mechanical and electrical engineering, information technology, systems operations, environmental management, occupational safety and health and financial services. In 2016, the Company further enhanced its scholarship programme by offering assistance for qualified students to pursue their A levels. Gabrielle Ramoutar, Natalia McCoy, Briony Gallegos and Sebastian Martinez Scholarships Awarded OfReg denies water rate increase request by Cayman Water EnviroWalk to be held next month A 5K walk organised by the Miss World Cayman Is- lands Committee to pro- mote the environment will be held on 11 Aug. The EnviroWalk was re- scheduled from 30 June be- cause of inclement weather. The walk will be held at SafeHaven, where Governor Martyn Roper and Miss World Cayman Islands Kelsie Woodman-Bodden will join this year’s pageant contest- ants on the walk, which be- gins at 7am. Funds raised from the EnviroWalk will go towards the Miss World Cayman Is- lands pageant and to en- vironmental projects. The committee also will make a donation to a local environ- mental non-profit organisa- tion. The beneficiary of the donation will be announced on the day of the walk. Entry is $25 for adults and $12 for those under 12. Group rates of $20 per person are available for 10 or more. Sign up online at www.caymanactive.com. MICHAEL KLEIN mklein@pinnaclemedialtd.com Utility regulator OfReg has rejected a request by Cayman Water Company to raise the price of water for customers in Grand Cayman, saying that there was no jus- tification for the rate increase. Cayman Water provides water to residents in West Bay and Seven Mile Beach. The company had requested to increase its rates in line with inflation. Cayman Water has been unable to negotiate a new li- censing deal with government for more than nine years. The company’s original retail li- cence was set to expire in July 2010, but has been ex- tended multiple times since then to give government and the company time to reach a new deal. OfReg assumed the ongoing negotiations since its inception in 2017. The water regulator said it assessed the request in good faith, even though the licensing negotiations are ongoing and, as a result, there was no legal basis for a rate hike. Gregg Anderson, executive director of Energy and Utili- ties, made his decision based on regulatory principles, in- cluding fairness to both the consumer and provider, OfReg said in a press release. Anderson said that in a competitive market, pro- viders battle for market share, which raises stand- ards and lowers prices. “In this instance, consumers do not have a choice of water supplier, so it is the job of the regulator to ensure that the rates are fair to the consumer, whilst also providing a suffi- cient return on investment for the provider,” he said. “There was no justifica- tion for Cayman Water to be granted their request to in- crease the water rates. I now look forward to focusing on getting the best deal for both consumers and Cayman Water in the ongoing licence negotiations.” The regulator said the negotiations will conclude when it is satisfied that the agreed licence conditions, which include water rates, strike the right balance be- tween the legitimate com- mercial interests of Cayman Water and consumers. The water company made a proposal to OfReg last year, but the regulator rejected that deal in November. Cayman Water officials had not responded to a request for comment by press time. Under its current licence regime, Cayman Water pays a 7.5% royalty to the govern- ment on its gross retail water sales revenues, excluding en- ergy cost adjustments. The retail water sales price is dependent on the type and location of the customer and the monthly volume of water purchased. Cayman Water has re- peatedly noted in its finan- cial statements that the resolution of the licence ne- gotiations could materially reduce the company’s oper- ating income and cash flows from retail operations. The 2019 Miss World Cayman contestants with the reigning Miss World Cayman Kelsie Woodman-Bodden. The Cayman Water Company provides water to residents in West Bay and Seven Mile Beach. - PHOTO: ALVARO SEREYIAN ADAMS AND PASHA MOORE Privacy concerns are at the forefront of the current so-called ‘Techlash’. Be it a social network, an insurance company, or a state, high-pro- file data breaches regularly lead to breathless headlines that dominate news cycles. As a result, privacy is now unsurprisingly one of the largest public concerns. Ac- cording to a recent Pew Re- search study, 61% of Ameri- cans would like to do more to protect their digital pri- vacy and approximately two- thirds believe current pri- vacy protection laws are not good enough. State and federal elected officials are taking note. Given the public outcry for a legislative privacy solution, it is critical that policymakers, particularly those who value personal freedom and free en- terprise, avoid rushing head- long into a quick – and dam- aging – fix. At the state level, the ability to act is greatest, and the need for caution in these ‘laboratories of democ- racy’ is most profound. There are three major problems with current state legislative responses to the privacy question: objective/ outcome mismatch, incon- sistency and overbreadth. First, legislation is tending to focus on regulating data collection without addressing any actual privacy harms, thereby mismatches objective and outcome. That approach does not actually protect pri- vacy; instead it treats ‘pri- vacy’ and ‘data collection’ as one and the same. Recently, California, in- spired by the European Un- ion’s General Data Protection Regulation (GDPR), adopted the California Consumer Pro- tection Act (CCPA). The CCPA purports to give California residents the right to con- trol their own data. It does so by, among other things, re- quiring organisations to have a ‘business purpose’ for their use of consumer personal information and requiring businesses to comply with consumer demands for ‘their’ data within 60 days. Ironically, each of these requirements puts businesses in the position of potentially diminishing a person’s pri- vacy in order to comply. The CCPA incentivises businesses to gather more information to ensure they have a ‘business purpose’ for holding data and creates a verification night- mare for producing data that has some nexus with a par- ticular person. Unintended personal privacy conse- quences aside, this approach places an extraordinary burden on businesses while flatly failing to address any of the harms caused by poor data management. Indeed, it is unclear how California consumers are actually pro- tected by these measures. CCPA represents a state- approach to consumer pro- tection that essentially treats all data collection as evil – in reality, data collection is neutral. Privacy harms stem from how data is used, not that it exists or is collected. Second, a staggering level of regulatory inconsistency is brewing as state-by-state regulation of data collection promises overlapping and mutually exclusive require- ments. For instance, the CCPA, although only a state act, af- fects all internet enterprises that have consumers in Cali- fornia. The very nature of the internet allows online busi- nesses to attract consumers from all over, meaning that the CCPA may essentially be- come the de facto privacy law for most US businesses once it goes into effect in 2020. Other states have at- tempted to pass their own pri- vacy legislation, and Nevada and Maine, to various extents, have. These developments are not confined to ‘blue’ states; the Texas House considered two different privacy bills (HB 4518), practically iden- tical to CCPA, and (HB 4390), a slightly watered down version. Though both of those bills were killed in committee, they highlight the spectre of a state-by-state approach to privacy regulation. Asking online enterprises to comply to every single state’s sepa- rate privacy laws will essen- tially make doing business online impossible. Third, states should steer clear of an overbroad ap- proach to the scope of their authority to avoid running afoul of the Constitution’s dormant commerce. The fed- eral government is authorised to deprive states and localities from regulating beyond their borders. After all, the last thing Texans want is to be subject to California’s stand- ards! By imposing disparate data collection standards on out-of-state consumers, states risk violating the dormant commerce clause. Understanding each of these shortcomings is key to developing effective state-level consumer privacy protections. That said, if state lawmakers want to pass meaningful pri- vacy legislation they should embrace a ‘harms-based’ ap- proach to privacy protection. A ‘harms-based’ approach fo- cuses on creating privacy reg- ulation that targets the spe- cific harms caused by poorly managed data collection – not data collection itself. Ian Adams is TechFreedom’s vice president of policy, where his research focusses on the disruptive impact of technology on law and regulation. Pasha Moore is Lincoln Network’s head of events, where she focuses on bridging the gap between Silicon Valley and Washington by bringing together leaders from both universes to converse, collaborate and effect change. The islands’ most-trusted news source 4 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” WEDNESDAY, 17 JULY 2019 • CAYMAN COMPASS People make it so hard to ditch plastic straws Only the right kind of ‘techlash’ will lead to privacy protection Rarely has a minor con- sumer product received more vilification than the plastic straw. As a symbol of human wastefulness and our care- less disregard for the en- vironment, straws are the near-perfect villain. You use a plastic straw once and toss it, but it stays with us forever, sitting in a landfill, floating in the sea or harming wildlife. That is why some local governments like that of New York City have stopped allowing them, along with other single-use plastics. This seems like a perfectly reason- able thing to do, even though plastic straws comprise only a small part of the total volume of plastic disposed of each year. But eliminating plastic straws offers a case study in how simple solutions can be devilishly tricky to imple- ment – and sometimes even worse than the problems they were meant to solve. For that, we can largely thank our- selves and our behavioural quirks. Let’s look at just one example: Some restaurants and bars have replaced their plastic straws with reusable metal variants. But there’s a hitch, as the New York Post recently reported: Customers keep taking the metal straws home with them. This leaves restaurants holding the short straw, so to speak. Metal straws are expensive – perhaps a dollar apiece (or more) versus a penny or two for the plastic version – and so replacement costs add up quickly. This might not be so prob- lematic if the metal straws that customers walk off with get reused frequently. But most probably go on display as novelties or sit forgotten in a utensil drawer. And this means the metal straws – which presumably required mining, plus large amounts of energy to convert into sheet metal and then fashion it into a cylindrical tube – do not provide the intended en- vironmental benefit. I’m not aware of any re- search on the relative envi- ronmental costs of producing different types of straws. But the evidence on reusable gro- cery bags is not heartening. Reusable bags take much more energy than single-use paper or plastic bags to make. As a result they become an environmental plus only after a large number of uses – es- timates suggest you need to use a reusable bag almost 40 times to break even in terms of environmental costs. Most reusable bags get lost, dis- carded or neglected in a closet before that milestone, under- mining the case for them. It would be surprising if the calculus for metal straws were any better. If metal straws get pilfered before they have been used enough, they may well be worse for the environment than their plastic peers. So what’s to be done? Eco- nomics offers a straightfor- ward answer: Instead of ban- ning single-use plastics, the right strategy is to tax them. Taxes force people to pay – or in econ-speak, internalise – their own environmental costs. This tends to lead people to change their behav- iour: With plastic taxes, eve- ryone reduces usage on the margin, with those who get relatively lower value from single-use plastics reducing their usage more. Even small taxes can change behaviour substantially: A 7 cent tax on all grocery bags in Chicago, for example, was associated with a 42% drop in usage. We can calibrate taxes to match actual estimates of en- vironmental harm. This helps make environmental con- cerns tangible, and in par- ticular makes people aware of which types of plastic are most harmful. Moreover, we can use the plastic tax rev- enue to support environ- mental causes, as Chicago and other cities have. So while it’s true that re- ducing plastic straw usage might be an easy way to limit the harm we do to the envi- ronment, we need to make sure the limitations we place really are providing solu- tions. And that means taxes may be better than bans. © 2019, Bloomberg Opinion There has been a global push to cut down on the use of plastic straws.5 LOCAL NEWS CAYMAN COMPASS • WEDNESDAY, 17 JULY 2019 Customer Service and Frontline Destination Training EASY AS ARE YOU working in a tourism-related field? ARE YOU trying to tap into the cruise passenger market? 1 2 DO YOU want to build a culture of service excellence in your organization? 3 To find out more and register for this COMPLIMENTARY training visit: If you answered YES to any of these questions, then AQUILA's Customer Service & Frontline Destination Training is for you! Breakfast and lunch are provided. Space is limited so book now! www.visitcaymanislands.com/pride Choose from two dates: Friday, 2 Aug 2019 or Monday, 5 Aug 2019. 123 Ruby seeks glory at action-packed Spartan Race SPENCER FORDIN sfordin@pinnaclemedialtd.com Scott Ruby’s dedication to phys- ical fitness is about to meet its sternest test. Ruby, who weighed more than 300 pounds a decade ago, is priming to compete in the North American championships of the Spartan Race on 24 Aug. If he shows well there, he will have a chance to compete in a world championship for the gruel- ling obstacle race on 29 Sept. His success in endurance events should come as no surprise, be- cause Ruby has been a fixture of marathons and triathlons for much of the last decade. But Ruby is a Spartan Race newbie who has only competed twice on the obstacle courses, once last September and again in April. “I’ve had real good luck,” said Ruby, who qualified for the national championship by finishing eighth in his age group in his very first race. “I’m way over my head in Spartan racing. When I look at the field and see the people I’m competing against, everybody is fit and after the same thing. “They’re all so much more expe- rienced than I am.” There are three varieties of Spartan Race – Sprint, Super and Beast. The shortest version, Sprint, is 3-to-5 miles and 20 obstacles, while Super is 8 miles and 25 obstacles. The final edition, Beast, means 13-to-15 miles and 30 obstacles in one exhausting day. Ruby competed in the Super race in Atlanta last September, and then he did the Sprint and the Super on back-to-back days in Charlotte in April. Now, he’s competing in the Beast for the first time, and if he finishes in the top 30 of his age group, he will have an opportunity to compete in September’s world championships. Ruby said that he missed just two obstacles in the Sprint and the Super, and those involved a barrier that required him to squat down and make use of rock-climbing handholds. Missing an obstacle, said Ruby, results in a penalty of 30 burpees, and he’s been working hard to make sure he hits every mark in August. “Some of these guys in the Spartan Race are in a class by them- selves,” he said. “I’ve been training really hard. And if I missed some- thing in training, I don’t know what I did.” Ruby will be competing in the 50-to-55 age group, which he de- scribed as “geezerly and slow”. But the amazing part is the distance he has already trav- elled. When he lines up in Bethel, West Virginia, for the North Amer- ican championships in August, he will be thinking about his ulti- mate journey. Ruby said he weighed 326 pounds in 2009 and that he was pre-diabetic. Sometimes, he smoked as much as two packs of cigarettes a day and it took a health scare for him to change his life. “I was a walking time bomb,” he said of the person he was before his fitness fixation. “I was a heavy drinker and I took pills to make me feel better, pills to make me feel nothing.” He first competed in the Pirates Week 5K race in 2010 and finished 93rd. A year later, as he continued to round himself into shape, he fin- ished fifth. Ruby has gone on to race marathons and duo races with Nikki Christian, who suffers from cerebral palsy, necessitating him to push a racing wheelchair. Helping Christian through many races has become the source of Ru- by’s greatest passion and joy, but now he’s on his own at the Spartan Race and hoping to bring a title back to Cayman. Even if he does not, he will find satisfaction and accom- plishment from competing among dozens of worthy challengers. “Everybody knows what’s good for you and what’s bad for you. You don’t need a doctor to tell you,” said Ruby. “When I started feeling better, I became a better me. I became a better husband, a better father and a better employee. I take care of my- self to take care of others.” He first competed in the Pirates Week 5K race in 2010 and finished 93rd. A year later, as he continued to round himself into shape, he finished fifth. Talent show raises funds for children’s home JEWEL LEVY jlevy@pinnaclemedialtd.com The Frances Bodden Chil- dren’s Home is this year’s beneficiary of the New Self- Help Community Foundation annual community devel- opment fund. The Foundation’s CEO JC Connor and member Jason DaCosta presented Denise Williams-Watson, the man- ager of the home, with a cheque for $1,500 from pro- ceeds raised through its flag- ship programme, the Talent Xposition of the Arts. The event showcased a variety of new and re- turning talent at the Har- quail Theatre in June. During the four-hour show, dancers, musicians, singers and poets took to the stage before an enthusi- astic audience. Williams-Watson said the donations came at a very im- portant time. “It’s summer. The chil- dren are looking forward to having a fun-filled summer break away from school and the [donation] will go a far way in helping us to achieve that for them,” she said. Currently there are 14 children at the home, she said. Connor said, “We are a non-profit organisation. It’s not about us making funds, but about us getting funds to assist within the commu- nity and for the betterment of society by empowering Cay- man’s youth through the cre- ative arts.” For more information about the New Self-Help Community Foundation, call 927-7273 or email tnshcommunityfoundation@candw.ky. Self-Help Foundation’s JC Connor, left, and Jason DaCosta present Denise Williams-Watson with a donation of $1,500 to assist the Frances Bodden Children’s Home. - PHOTO: JEWEL LEVY Scott Ruby has been working hard and preparing for the many muddy obstacles of the Spartan Race. A decade ago, Scott Ruby was at the nadir of physical fitness and he remembers how he’s come such a long way over the last 10 years.The islands’ most-trusted news source 6 WEDNESDAY, 17 JULY 2019 CAYMAN COMPASS their victory as a David versus Goliath match up. “But they put in that eq- uity sweat,” the minister said. “They were deter- mined that they were going to win, and win they did. I’m so excited. The whole country, indeed, is proud of their performance.” Now the men’s team has the upcoming Pan American Games in Lima, Peru, and the 2020 Car- ibbean Basketball Con- federation tournament to prepare for. “For the team, we’re just going to build upon this. We’re going out to CBC … and if we do that, we can qualify for the Olym- pics. We’re just building team chemistry and going to keep doing our thing,” Robinson said. Teammate Joshua O’Garro said his first time representing Cayman at the games was a special expe- rience that allowed him to deepen his appreciation of the sport. “You can’t take bas- ketball for granted. You can’t take what you have for granted,” O’Garro said. “Everyone works hard to get where they are and we worked really hard for this. So I’m very proud.” Cayman also claimed six gold medals in squash, two in athletics and two in swimming. outstanding beautification [and] remediation efforts they have accomplished.” “This has been a huge ef- fort to both coordinate and accomplish, and I want to take this opportunity to thank the Public Works De- partment, National Roads Authority and the Depart- ment of Environmental Health. This cross-agency ap- proach is a model we want to perpetuate throughout Gov- ernment,” he added. For the summer work pro- gramme, 486 unemployed Caymanians and spouses signed up to take part in the two-week paid initia- tive which will continue until Friday, 19 July. At the registration day, held last month, Depart- ment of Environment Sus- tainable Development Of- ficer Nathan Dack explained to the workers what was causing the large blooms of sargassum in Cayman waters and why they pose a threat to marine life. He also told them that raking and removal by hand was preferable to using heavy machinery on beaches. For instance, Cayman is listed as the most expensive place in the world when it comes to internet service and buying a tube of toothpaste. The country is the second most expensive for buying tomatoes, a Coke or a micro- wave. And there are only three other countries where toilet paper is more expensive. Housing, clothing and food are the major items that help push Cayman’s cost to the top, according to Roble- dillo’s data, and the differ- ences can be dramatic. Living in Delhi, India, is 68% cheaper than living in Cayman. Housing in Delhi is 78% cheaper than in Cayman, where the cost of a 900-square-foot apartment in a ‘normal’ area is listed as $1,800 per month. The list says it is 55% cheaper to live in King- ston, Jamaica, 63% cheaper to live in Cape Town, South Africa, and 45% cheaper to live in Rome. However, living in New York City, where housing is actually 3% higher, is only 7% cheaper than living in Cayman, the site says. If there is one area where Cayman residents can take some consolation, it is the price of gasoline. While fuel is 46% cheaper in Tampa, Florida, than it is here, most Europeans pay more, with gas costing 33% more in Brussels than it does in Cayman. And in New Zealand, the price is 21% higher. Robledillo said he is hoping more people from Cayman will add informa- tion, particularly in the areas of cars, expensive accommo- dations, electronics and fe- male clothing. As the website tells users, “the more data entered, the more accurate the index and the calculations will be”. CONTINUED FROM PAGE 1 Jefferson’s Beach in West Bay gets a clean-up from this crew of NiCE workers. NiCE workers clear sargassum from beaches Cayman tops list of most expensive places to liveMen’s basketball team returns victorious CONTINUED FROM PAGE 1 CONTINUED FROM PAGE 1 78 dead as floodwaters hit Nepal GAUHATI, India (AP) – Mon- soon flooding and landslides continued to cause havoc in South Asia on Tuesday, with the death toll rising to 78 in Nepal and authori- ties in neighbouring north- eastern India battling to provide relief to over 4 mil- lion people in Assam state, officials said. Nepal’s National Emer- gency Operation Center said more than 40,000 soldiers and police were using heli- copters and roads to rush food, tents and medicine to thousands of people hit by the annual flooding. Rescuers also were searching for 32 missing people. In Bangladesh, more than 100,000 people were affected by flooding in the north and forecasters warned that major rivers continued to swell across the country. Rivers burst their banks in the northern district of Lalmonirhat, marooning villages, news reports said, quoting local water board officials. In the Indian state of Assam, officials said flood- waters have killed at least 19 people and brought misery to some 4.5 million. More than 85,000 people have taken shelter in 187 state government-run camps in 30 of the state’s 33 districts, the state disaster management authority said in a statement. Atiqua Sultana, a dis- trict magistrate, said a flooded river washed away a 490 foot stretch of Assam’s border road with Bangla- desh, flooding 70 villages on the Indian side. Around 80% of Assam’s Kaziranga National Park, home to the endangered one- horn rhinoceros, has been flooded by the Brahmaputra river, which flows along the sanctuary, forest officer Ju- tika Borah said. After causing flooding and landslides in Nepal, three rivers have been overflowing in India, submerging parts of eastern Bihar state and killing at least 24 people, said Pratata Amrit, a state govern- ment official. More than 2.5 million people have been hit by the flooding in 12 of 38 districts of Bihar state, Amrit said. BUKELE DEFENDS EL SALVADOR ON MIGRATION, CRIME SAN SALVADOR, El Sal- vador (AP) – El Salvador’s new president said his country is trying to reduce irregular migration and fight crime and drug traf- ficking, and deserves to be treated differently than nearby countries. In remarks late Monday, Nayib Bukele called on Washington not to lump his country in with Hon- duras and Guatemala, the other two nations that make-up Central America’s so-called Northern Triangle. Honduras and Guate- mala “have not been an ex- ample, to put it one way, and sometimes a region is pun- ished for actions by govern- ments in which we have no involvement”, Bukele said. “I think it is a bit un- fair,” the president con- tinued, saying his country interdicts three-quarters of drug shipments through its land and sea territory. “I believe that here in El Salvador crime is fought head-on, we fight drug traf- ficking head-on.” Bukele noted that Hon- durans and Guatemalans have greatly outnumbered Salvadorans arriving at the US border. “It is clear that while the issue of migration is a very serious one … the great majority of emigrations are not being created by El Sal- vador but by Honduras and Guatemala,” Bukele said. He announced that of- ficials are working to ad- vocate for Salvadoran mi- grants detained at the US border and those already in the United States, and said in the coming days his gov- ernment will launch sev- eral programmes that aim to improve life conditions in El Salvador and ultimate reduce emigration. Villagers row near a submerged house in the floodwaters in Burha Burhi village east of Gauhati, India, Monday. – PHOTO: AP Cost of Living as compiled by Expatistan Cayman has ve of the most expensive items in the world: Internet service Italian dinner Brand name athletic shoes Potatoes Toothpaste (8 Mbps $71) ($113) ($158) (1 Kg $4.11) ($3.90) TOP FIVE CITIES (from left) TOP FIVE COUNTRIES Hong Kong Switzerland Iceland Norway Grand CaymanZurichNew YorkSan FranciscoGeneva Cayman Islands 1 3 5 2 4The islands’ most-trusted news source 7 CAYMAN COMPASS • WEDNESDAY, 17 JULY 2019 EU preparing more Venezuela sanctions European Union foreign policy chief Federica Mogherini said Tuesday the bloc is preparing to impose more sanctions on Venezuela, targeting officials who are accused of being involved in torture and other human rights violations. Leadership Cayman CONNECT. GROW. INSPIRE. Are you a leader in business? Would you like to share in our dynamic, interactive Leadership Cayman 2020 experience? Find out more about the programme at our information sessions. JULY 17 TH & JULY 24 TH | 6:00PM – 7:00PM Chamber of Commerce, Governors Square www.leadershipcayman.ky | +1(345)743-9129. Application Deadline July 31 st , 2019 Johnson, Hunt raise Brexit stakes with Irish border views US fears Iran seized UAE-based tanker in Strait of Hormuz DUBAI, United Arab Emirates (AP) – A small oil tanker from the United Arab Emirates trav- elling through the Strait of Hormuz entered Iranian wa- ters and turned off its tracker two days ago, leading the US to suspect Iran seized the vessel amid heightened tensions in the region, an American defence official said Tuesday. Iran offered no immediate comment on what happened to the Panamanian-flagged oil tanker Riah late Saturday night, though an Emirati offi- cial acknowledged the vessel sent out no distress call. Oil tankers previously have been targeted in the wider re- gion amid tensions between the US and Iran over its un- ravelling nuclear deal with world powers. The concern about the Riah comes as Iran con- tinues its own high-pressure campaign over its nuclear programme after President Donald Trump unilaterally withdrew America from the accord over a year ago. Recently, Iran has inched its uranium production and enrichment over the limits of its 2015 nuclear deal, trying to put more pressure on Eu- rope to offer it better terms and allow it to sell its crude oil abroad. However, those ten- sions also have seen the US send thousands of addi- tional troops, nuclear-capable B-52 bombers and advanced fighter jets into the Mideast. Mysterious attacks on oil tankers and Iran shooting down a US military surveil- lance drone has added to the fears of an armed conflict breaking out. The Riah, a 190 foot oil tanker, typically made trips from Dubai and Sharjah on the UAE’s west coast be- fore going through the strait and heading to Fujairah on the UAE’s east coast. How- ever, something happened to the vessel after 11pm on Saturday, according to tracking data. Capt. Ranjith Raja of the data firm Refinitiv told The Associated Press on Tuesday that the tanker had not switched off its tracking in three months of trips around the UAE. “That is a red flag,” Raja said. A US defence official later told the AP that the Riah was in Iranian territorial waters near Qeshm Island, which has a Revolutionary Guard base on it. “We certainly have suspi- cions that it was taken,” the official said. “Could it have broken down or been towed for assistance? That’s a possi- bility. But the longer there is a period of no contact … it’s going to be a concern.” The official spoke on con- dition of anonymity as the matter did not directly in- volve US interests. An Emirati official, speaking on condition of an- onymity to discuss an on- going security matter, said the vessel “did not emit a dis- tress call”. “We are monitoring the situation with our inter- national partners,” the of- ficial said. The ship’s registered owner, Dubai-based Prime Tankers LLC, told the AP it had sold the ship to another company called Mouj Al- Bahar. A man who answered a telephone number regis- tered to the firm told the AP it did not own any ships. The Emirati official said the ship was “neither UAE owned nor operated” and carried no Emirati personnel, without elaborating. Separately Tuesday, Iran’s Supreme Leader Ayatollah Ali Khamenei said his country will retaliate over the seizure of an Iranian supertanker carrying 2.1 million barrels of light crude oil. The vessel was seized with the help of British Royal Marines ear- lier this month off Gibraltar over suspicion it was heading to Syria in violation of Euro- pean Union sanctions, an op- eration Khamenei called “pi- racy” in a televised speech. “God willing, the Islamic Republic and its committed forces will not leave this evil without a response,” he said. He did not elaborate. British Foreign Secretary Jeremy Hunt said Saturday that Britain will facilitate the release of the ship if Iran can provide guarantees the vessel will not breach European sanctions on oil shipments to Syria. Iran previously has threatened to stop oil tankers passing through the strait, the narrow mouth of the Persian Gulf through which 20% of all crude oil passes, if it cannot sell its own oil abroad. Meanwhile, Iranian For- eign Minister Mohammad Javad Zarif seemed to sug- gest in a television interview that the Islamic Republic’s ballistic missile programme could be up for negotia- tions with the US, a possible opening for talks as ten- sions remain high between Tehran and Washington. Zarif suggested an initially high price for such negotiations – the halt of American arms sales to both Saudi Arabia and the United Arab Emir- ates, two key US allies in the Persian Gulf. LONDON (AP) – The two contenders to become Brit- ain’s next prime minister raised the Brexit stakes by saying they will discard a contentious part of the Eu- ropean Union divorce deal agreed by outgoing leader Theresa May. The pound fell to a 27-month low of $1.2408 Tuesday after Boris Johnson and Jeremy Hunt appeared to make it more likely that the UK will leave the EU without an agreement on the terms to smooth the way. Britain’s Parliament has repeatedly rejected May’s deal with the bloc, in large part because of a measure designed to keep goods and people flowing freely across the border between the UK’s Northern Ireland and EU member Ireland. Brexit supporters think the so-called backstop keeps Britain too closely bound to EU trade rules. Some have argued for an exit clause or time limit to ensure that Britain is not trapped in the backstop indefinitely. But during a leader- ship debate Monday, front- runner Boris Johnson rejected “time limits or uni- lateral escape hatches or all these elaborate devices” and said “the problem is very fundamental”. His rival, Jeremy Hunt, agreed that “the backstop, as it is, is dead”. Britain is due to leave the EU on 31 Oct., and the can- didates’ stance appeared to heighten the chance of a dis- ruptive ‘no-deal’ Brexit, be- cause EU leaders insist there can be no withdrawal agree- ment without the backstop. An invisible border is cru- cial to the regional economy, and also underpins the peace process that ended decades of violence in Northern Ireland. Conservative legislator Simon Hoare, who heads Parliament’s Northern Ire- land Committee, said “this is a very, very dangerous step that both men seem to have taken yesterday”. He told Sky News that the consequences of a hard border were “beyond contemplation”. Most economists say that leaving the EU without an agreement would disrupt trade and plunge Britain into recession. Polls suggest a ma- jority of Britons oppose a no- deal Brexit. But the 160,000 members of the Conservative Party who are choosing Brit- ain’s next leader are strongly in favour of a hard Brexit. Pro-EU. Conservative lawmaker Dominic Grieve, a key player in ongoing ef- forts by Parliament to rule out a no-deal exit from the EU, accused the two lead- ership candidates of giving in to “growing extremism” about Brexit. “The consequence of that is to make the choices starker and starker,” he said. Most economists say that leaving the EU without an agreement would disrupt trade and plunge Britain into recession. Iran offered no immediate comment on what happened to the Panamanian-flagged oil tanker Riah late Saturday night. Britain’s Conservative Party leadership candidates Boris Johnson, left, and Jeremy Hunt, during a live head-to-head TV debate in Salford, England, Tuesday. – PHOTO: ITV/AP8 WORLD®IONAL WEDNESDAY, 17 JULY 2019 CAYMAN COMPASS North Korea suggests it might lift weapons test moratorium Turkey: EU sanctions over gas drilling ‘worthless’ ANKARA, Turkey (AP) – Turkey on Tuesday rejected as “worthless” an initial set of sanctions approved by the European Union against An- kara, and vowed to send a new vessel to the eastern Mediterranean to rein- force its efforts to drill for hydrocarbons off the is- land of Cyprus. EU foreign ministers on Monday approved sanc- tions against Turkey over its drilling for gas in wa- ters where EU member Cy- prus has exclusive economic rights. They said they were suspending talks on an air transport agreement, as well as high-level Turkey-EU di- alogues, and would call on the European Investment Bank to review its lending to the country. They also backed a pro- posal by the EU’s executive branch to reduce financial assistance to Turkey for next year. The ministers warned that additional “targeted measures” were being worked on to penalize Turkey, which started negotiations to join the EU in 2005. The EU sanctions came as Turkey also faces pos- sible economic sanctions from the US over its pur- chase of a Russian-made missile defence system which Washington says is incompatible with NATO equipment and poses a threat to the US F-35 fighter jet programme. Turkey began taking delivery of the Russian S-400 system on Friday and planes carrying more components arrived in Turkey on Tuesday. Speaking at a news con- ference in North Macedonia, Turkish Foreign Minister Mevlut Cavusoglu said the EU sanctions aimed to “ap- pease” Cyprus and were of “no importance”. “The EU needs us con- cerning the migration issue or other issues,” he said. “They will come to us and hold contacts; there is no es- caping that.” “They know that the de- cisions they took cannot be applied,” he said. “They were forced to take the worthless decisions under pressure from the Greek Cypriots and Greece.” Cavusoglu added: “If you take such decisions against Turkey, we will increase our activities. We have three ships in the eastern Mediterranean, will with send a fourth.” Earlier, the Turkish For- eign Ministry criticised the EU for ignoring the rights of Turkish Cypriots and ac- cused the 28-nation bloc of “prejudice and bias”. It added that Turkey was determined to protect its rights and the rights of Turkish Cypriots. Two Turkish vessels es- corted by warships are drilling for gas on either end of ethnically divided Cy- prus. A third Turkish explora- tion ship is also in the area. Turkey insists that it has rights over certain offshore zones and that Turkish Cyp- riots have rights over others. Cyprus was split along ethnic lines in 1974 when Turkey invaded in the wake of a coup by supporters of union with Greece. A Turkish Cypriot declaration of in- dependence is recognised only by Turkey, which keeps more than 35,000 troops in the breakaway north. Cy- prus joined the EU in 2004, but only the internationally recognized south enjoys full membership benefits. Cypriot officials accuse Turkey of using the minority Turkish Cypriots in order to pursue its goal of exerting control over the eastern Mediterranean region. The Cypriot government says it will take legal ac- tion against any oil and gas companies supporting Turkish vessels in any re- peat attempt to drill for gas. Cyprus has already issued around 20 international ar- rest warrants against three international companies assisting one of the two Turkish vessels now drilling 42 miles off the island’s west coast. PYONGYANG, North Korea (AP) – North Korea on Tuesday sug- gested it might call off its 20- month suspension of nuclear and missile tests because of summertime US-South Ko- rean military drills that the North calls preparation for an eventual invasion. The statement by the North’s Foreign Ministry comes during a general dead- lock in nuclear talks, but after an extraordinary meeting of the US and North Korean leaders at the Korean border that raised hopes that nego- tiations would soon resume. The comments ramp up pressure on the United States ahead of any new talks. North Korea has had long- standing antipathy towards US-South Korean military co- operation, which the allies call defensive and routine but the North sees as hostile. At the dramatic 30 June meeting between North Ko- rean leader Kim Jong Un and US President Donald Trump, Trump crossed the border di- viding the North and South, becoming the first sitting US president to set foot in North Korean territory. The leaders agreed in closed-door talks to resume nuclear diplomacy that had been stalled since their failed second summit in Vietnam in February. Despite the seeming mini- breakthrough, there has been little public progress since. North Korea wants wide- spread relief from harsh US- led sanctions in return for pledging to give up parts of its weapons programme, but the United States is demanding greater steps towards disar- mament before it agrees to re- linquish the leverage provided by the sanctions. Amid the diplomatic jock- eying, North Korea said Tuesday that expected reg- ular summertime US-South Korean military drills are forcing it to rethink whether to remain committed to the promises it has made to the United States. It cited its moratorium on nuclear and missile tests and other steps aimed at improving ties with Washington. The statement said Trump vowed to suspend mili- tary drills with South Korea during his first and third meetings with Kim, but the expected summertime drills with Seoul and the deploy- ment of weapons in the South show that Washington is not fulfilling that promise. “With the US unilaterally reneging on its commitments, we are gradually losing our justifications to follow through on the commit- ments we made with the US as well,” said the statement, carried by the North’s official Korean Central News Agency. It also said it is not bound by any legal documents to suspend its nuclear and missile tests. Later Tuesday, North Ko- rea’s Foreign Ministry issued another statement warning that it will wait to see if the US-South Korea military drills take place to decide on the fate of North Korea-US nuclear diplomacy. Since the first Trump-Kim meeting in Singapore last year, the US and South Korea have suspended or down- sized their annual military drills. South Korea’s Foreign Ministry said Tuesday that the allies have decided to ter- minate their normal summer- time Freedom Guardian drills and are discussing holding other kinds of drills instead. The ministry said it hopes that talks between North Korea and the US will resume soon. Since it conducted the third of its three interconti- nental ballistic missile tests in November 2017, North Korea has not tested any long-range missiles potentially capable of reaching the US main- land. After entering talks with Washington, Kim suspended nuclear and long-range mis- sile tests, allowing Trump to boast of an achievement in his North Korea policy. South Korea’s National In- telligence Service, the coun- try’s main spy agency, told lawmakers in a private briefing Tuesday that there were no suspicious activities at North Korea’s main long- range rocket launch site in the northwest and at its mis- sile research centre on the outskirts of Pyongyang, ac- cording to Kim Min-ki, one of the lawmakers who attended the briefing. Outside experts say North Korea has suggested that it could further put off or cancel the resumption of nuclear talks if the United States does not offer to ac- cept its calls for a slow, step- by-step nuclear disarmament process or widespread sanc- tions relief. But some ana- lysts say North Korea will eventually return to the talks because Kim wants coopera- tion with outside powers as part of a plan to revive his country’s troubled economy. The comments ramp up pressure on the United States ahead of any new talks. EU foreign ministers on Monday approved sanctions against Turkey over its drilling for gas in waters where EU member Cyprus has exclusive economic rights. President Donald Trump, left, meets with North Korean leader Kim Jong Un on the North Korean side of the border at the village of Panmunjom in the Demilitarized Zone, 30 June 2019. – PHOTO: AP A helicopter flies near Turkey’s drilling ship, ‘Fatih’ dispatched near Cyprus in the eastern Mediterranean. – PHOTO: APThe islands’ most-trusted news source 9 Business CAYMAN COMPASS • WEDNESDAY, 17 JULY 2019 Goldman Sachs 2Q profit declines 6% Goldman Sachs said its second quarter profit fell 6% from a year earlier, as the Wall Street firm saw declines across most of its businesses. However the results were much better than analysts’ had forecast, pushing shares higher in premarket trading. Enjoy extra flights this Summer between JAMAICA & GRAND CAYMAN Book soon before seats sell out! Facebook’s new currency plan is under scrutiny in Congress Middleton Katz joins SMP Group MICHAEL KLEIN mklein@pinnaclemedialtd.com Isle of Man-based corpo- rate services provider Mid- dleton Katz has announced a deal to join global profes- sional and financial services firm SMP Group. The trans- action has been approved by the Isle of Man Financial Ser- vices Authority. Middleton Katz pro- vides corporate, tax and ac- counting services. It is SMP’s second acqui- sition since the group com- pleted its management buy- out on 14 June. Earlier this month SMP announced a deal to acquire independent trust and com- pany administrator Helm Trust Company Limited. The transaction is subject to reg- ulatory approval. This transaction and the Middleton Katz deal are un- dertaken with the support of Palatine Private Equity LLP, the UK mid-market pri- vate equity house that guided SMP through its management buyout, with additional debt funding from Apera Asset Management. Martin Katz, principal of Middleton Katz, said, “I am incredibly proud of the business and sense of com- munity we have built; as a small, close-knit team, we have consistently punched above our weight in terms of the services we deliver. However, joining a larger group gives us the back-of- fice support we need to ex- tend and improve the ser- vices we offer clients much farther than we could alone,” he said. Katz added that SMP was a clear candidate from the beginning for his firm. “We have dealt with them many times in the past and [have] always been treated fairly and respectfully, so we already have strong re- lationships with many of their team.” David Hudson, CEO of SMP Group, said, “Middleton Katz is an efficient and highly skilled company that is well- loved and respected by both clients and staff for its per- sonable and reliable service and culture. We know they will integrate very naturally into our business, and we be- lieve our shared history and ambitions will be hugely beneficial for their clients and staff.” In June, SMP Group se- cured the necessary regu- latory approvals in seven jurisdictions for a manage- ment buyout first announced in February. WASHINGTON (AP) – Face- book’s ambitious plan to create a financial ecosystem based on a digital currency faces questions from law- makers, as it’s shadowed by negative comments from President Donald Trump, his treasury secretary and the head of the Federal Reserve. Congress began two days of hearings Tuesday on the currency planned by Fa- cebook, to be called Libra, starting with the Senate Banking Committee. Mean- while, a House Judiciary sub- committee will extend its bi- partisan investigation of the market power of Facebook, Google, Amazon and Apple. Trump tweeted last week that the new currency, Libra, “will have little standing or dependability”. Both Treasury Secretary Steven Mnuchin and Fed Chair Jerome Powell have expressed se- rious concerns recently that Libra could be used for il- licit activity. The Treasury Department has “very serious concerns that Libra could be misused by money launderers and ter- rorist financers”, Mnuchin told reporters at the White House on Monday. “This is indeed a national secu- rity issue.” Facebook has “a lot of work to do before we get to the point where we’re comfortable with it”, Mnuchin said. Already under intense scrutiny from regulators and Congress over privacy and market dominance, Face- book stirred anger on Cap- itol Hill last month with the unveiling of its plan to create a financial ecosystem based on a digital currency. Senate and House hearings went on the calendar, and the Demo- cratic head of the House Fi- nancial Services Committee, which is holding Wednes- day’s hearing, called on Fa- cebook to suspend the plan until Congress and regulators could review it. Democratic representa- tive from California Maxine Waters said that Facebook, with some 2 billion users around the world, “is contin- uing its unchecked expansion and extending its reach into the lives of its users”. She called Libra “a new Swiss- based financial system” that potentially is too big to fail and could require a tax- payer bailout. David Marcus, the Fa- cebook executive leading the project, says in his tes- timony prepared for Tues- day’s hearing by the Senate Banking Committee that Libra “is about developing a safe, secure and low-cost way for people to move money ef- ficiently around the world. We believe that Libra can make real progress toward building a more inclusive fi- nancial infrastructure”. Facebook agrees with Powell’s view that the gov- ernment’s review of Libra must be “patient and thor- ough, rather than a sprint to implementation”, Marcus’ statement says. “The time between now and launch is designed to be an open process and subject to regu- latory oversight and review. In fact, I expect that this will be the broadest, most exten- sive and most careful pre- launch oversight by regu- lators and central banks in FinTech’s history. We know we need to take the time to get this right.” The planned digital cur- rency is billed as a “stable- coin” backed by deposits in sovereign currencies such as the dollar, euro and Japanese yen – unlike bitcoin, ether or other digital currencies. Prom- ising low fees, it could open online commerce to millions of people around the world who lack access to bank ac- counts and make it cheaper to send money across borders. But it also raises concerns over the privacy of users’ data and the potential for crimi- nals to use it for money laun- dering and fraud. To address privacy con- cerns, Facebook created a non-profit oversight associ- ation, with dozens of part- ners including PayPal, Uber, Spotify, Visa and Master- Card, to govern Libra. As one among many in the associa- tion, Facebook says it will not have any special rights or privileges. Mnuchin’s comments came a few days after Trump tweeted: “I am not a fan of Bitcoin and other Cryptocur- rencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful be- havior, including drug trade and other illegal activity.” If they want to get into the financial business, Facebook and its dozens of partner companies in the venture will have to accept the kind of tight regulation that banks are under, Trump said. Powell, a financial regu- lator who is independent of the Trump administration, told Congress last week that Facebook’s plan “raises a lot of serious concerns, and those would include around privacy, money laundering, consumer protection, finan- cial stability. Those are going to need to be thoroughly and publicly assessed and evalu- ated before this proceeds”. Both Treasury Secretary Steven Mnuchin and Fed Chair Jerome Powell have expressed serious concerns recently that Libra could be used for illicit activity. Treasury Secretary Steve Mnuchin speaks during a news briefing at the White House, Monday in Washington. – PHOTO: AP David Hudson, Group CEO of SMP Group, left, and Martin Katz, principal of Middleton Katz.Next >