By Austin Harris

Local attorney Peter Polack has questioned the government on payment of stamp duty on rental leases as required under the Stamp Duty Law (2013 Revision)

Local attorney Peter Polack continues to seek answers to a question first raised on 7 March, which he believes indentifies a critical failure in the manner in which stamp duty is collected in the Cayman Islands.

As has been reported by The Cayman Reporter, the primary question being asked is whether the Government is collecting the legally required stamp duty it is owed on all rented accommodations and unregistered leases. According to Mr Polack this represents a significant source of revenue for the Cayman Islands.

Mr Polack submitted his questions to at least two Chief Officers within the Ministry of Finance and Economic Development and also the Ministry of Planning, Lands, Agriculture, Housing and Infrastructure (PLAH & I).

While the Chief Officer for the Ministry of Finance, Kenneth Jefferson indicated more time was needed to reply to the request, Mr Polack asserted that the Ministry, and in particular the Chief Officers are in breach of the Public Service Management Law by not having this information readily available.

However, this week, Mr Polack received a detailed response from Jon Hall, Chief Valuation Officer at the Lands & Survey Department.

Mr Hall confirmed that the department is unable to provide a response to the question on stamp duty owed by either members of the RCIPS or other foreign employees within the Cayman Islands Government.

In his correspondence, obtained by The Cayman Reporter, Mr Hall stated, “under the Stamp Duty Law, duty is payable on all leases, however, the Law is silent as to whether it is the landlord or the tenant who has the liability to pay.”

Referring specifically to leases, he said, “the Law makes no differentiation between commercial or residential tenants, companies or individuals, Caymanian or non-Caymanian citizens. Likewise, no information is required as to employer, post or profession and consequently there has never been need to record the different category of payee.”

As such, the law does not enable the Planning Department to distinguish between the stamp duty payments of either employees of the RCIPS or any other Government department. He likewise asserts that “leasing details are private in nature, and as such, employees are under no obligation to provide details of these leases to their respective HR Managers,” thus making it impossible for the Planning Department to ascertain the payee in any case, be it the RCIPS or otherwise.

Mr Hall however did acknowledge that whilst there is a shared obligation on the lease-parties to present their lease(s) for stamping, under the Law as presently drafted, enforcement of this has been a challenge.

“Lands & Survey Department and the Valuation & Estates Office in particular is acutely aware of the Duty collection issue which you raise,” Mr Hall stated. However he added, “from 2009 a ‘Stamp Duty Chase’ programme was established regarding commercial leases. This somewhat laboriously involved writing to all business listed in the Yellow Pages, starting from letter ‘A’, requesting they provide evidence for the basis of occupation of their premises.”

This was a proactive collection strategy Mr Hall insists, however he acknowledged that “the programme has been temporarily suspended due to resourcing issues.”

Therefore it could be claimed that the legally required stamp duty obligations, under law, are not being followed by all. There is also no tracking system in place which provides empirical evidence that these payments are being made, again as required by law.

Presently, the prevailing rates of duty are five per cent of the annual rent on leases up to five years, 10 per cent on leases up to 10 years, 20 per cent on leases up to 30 years, with leases over 30 years treated the same as a freehold.

Because most Government employees contracts are negotiated on either an annual basis, or in some cases are multi-year contracts, the vast majority of all leases fall in to the five per cent duty rate category. However, because of the acknowledged limitations to the current system of tracking, coupled with issues relevant to employee privacy, this information is not readily available to Ministry officials.

This, according to Mr Polack is simply not good enough. He insists, “The more things change the more they remain the same. Police are arresting Caymanians who are unemployed or unable to afford car insurance, electricity or other portals to poverty. The poor and the powerless fill Northward to the brim while the powerful go unchecked in their open breach of the Stamp Duty Law depriving the Cayman Islands of necessary revenue. People who have paid fines for minor offences have to wait many years for a clean police record while those in breach of the law merrily travel about without a care. The electorate should retain these events in their collective memory for the 2017 election.”

The Ministry of Planning was however able to confirm at least one question raised by Mr Polack concerning the value of stamp duty collected for Government employees for the period between 2009 and 2015.

During this time, Mr Hall stated that the Government collected just over CI$5 million in stamp duty during this period, despite not being able to distinguish which Government employee or department the various payments came from.

The annual payments of Stamp Duty collected by the Government for all foreign employees is as follows: 2009 ($1.52m), 2010 ($353k), 2011 ($403k), 2012 ($438k), 2013 ($423k), 2014 ($551k) and 2015 ($1.34m).

Mr Hall confirmed that while enforcement and categorisation of stamp duty payments remain a subject of concern, he did acknowledge “a wide-ranging policy review of the present Stamp Duty Law is presently underway involving the Valuation & Estates Office, Ministry of Finance and the Legal Drafting Section.”

Once completed, these recommendations will be provided to Ministry officials for further review and/or policy changes.

The post Uncertainty surrounds stamp duty collection appeared first on The Cayman Reporter.

A snapshot taken of Ms Pauline Mullings’ phone. It shows a call to 911 at 20:29 (8:29pm) on 6 March 2016 that lasted three minutes.

There is a wide disparity between the time police said they received the first report of the missing five persons and the time the Mullings family said they reported their family members missing.

To back up their claims, the Mullings family has released to The Cayman Reporter photographic evidence and a statement through their lawyer, Amelia Fosuhene of Brady Attorneys-At-Law.

In their statement, the family of Gary Mullings, Nicholas Watler, Kamron Brown and Kanyi Brown, who are also friends to Edsell Haylock said they are devastated by the events that took place on the weekend their loved ones went missing.

“Our husbands, fathers, brothers, sons and nephews have been missing since last Sunday, the 6^th of March 2016. This feeling of absolute devastation in our family has been exacerbated by the conduct of the RCIPS (Royal Cayman Islands Police Service) which we believe have provided to us and to the public misleading and in some respects wholly untrue information,” said the family.

The family stated that with the help of friends they have been able to piece together a timeline that they believe will give a true picture to the public of “some of the police inaction” that Sunday night.

“It is our view that such actions potentially mean lives which could have been saved may now be lost,” the family said.

The police initially insisted that the first call to notify them of the missing persons was shortly before midnight.

In their first statement to the media about the incident the RCIPS said, “Around midnight (today), 7 March, police were informed of a vessel missing with two adults and two children on board. The persons had embarked on a fishing trip earlier in the day, Sunday, 6 March, at around 11am. They were reportedly sighted by another vessel between 3-4pm leaving 12-Mile Bank on track to George Town, with one engine operating.”

In an interview on Cayman 27 Chief Superintendent Kurt Walton specified the report was made at 11:57pm.

However, in the family’s account, the first call to the RCIPS was made more than three hours before the time the RCIPS gave to the media and the public.

A snapshot taken of Melody Mullings’ phone. It shows a call made to 911 at 10:42pm.

The family’s statement read, “Mr Mullings’ mother, Ms Pauline Mullings made a call to the police at 20:29 on 6 March, 2016. The police have stated publicly that a call was made at 8:30am the next day. We do not believe that is correct.”

To back up their claims, the family photographed the record of the phone call on the phone from which the call was made. This photograph shows the call to 911, the time of the said call, which was listed as 20:29 on Sunday 6 March, and the duration of the call, which was three minutes.

“There was no call back and from our perspective nothing was done about this. Within that call Ms Pauline pleaded with the police to find the babies who were in that boat, therefore, any suggestion that the first call to the RCIPS was at midnight is misleading,” the family’s statement read.

“Further calls were made by the family. Mrs Melody Mullings Brown the mother of the two missing boys Kanyi and Kamron also called the RCIPS on the 6^th March 2016 through the 911 system. The first call is at 10:42pm on the 6^th of March 2016 for just under 40 seconds and then there is a second call at 11:57pm which has been acknowledged,” the family statement said.

“It seems the RCIPS have only sought to acknowledge the call at 11:57pm. Evidence of the other call is available from her call log. It is befuddling to us, that the calls at 8:29pm and 10:42pm have not been acknowledged and further we query why those calls did not result in any police action. For misinformation to be disseminated to the public and the family is wrong,” the family further stated.

The Cayman Reporter reached out to the RCIPS for comment on this wide disparity between the times, however the RCIPS insisted no calls were received from Ms Mullings phone at the time the family stated.

A spokeswoman for the RCIPS told The Cayman Reporter, “I can state preliminarily that we looked into the report of a 911 call that allegedly occurred at 8:29pm on 6 Sunday from Ms Pauline Mullings’ phone. The DPSC (Department of Public Safety Communications) looked into this report, and determined that no calls were received at all from that phone on 6 Sunday to 911.

“However, a call was received the next morning, 7 March, after 8am. This is all I can preliminarily state…” the spokeswoman continued. She directed The Cayman Reporter to the 911 Communications Centre for confirmation regarding the calls adding that “911 is not part of the police”.

She also mentioned that information such as the phone numbers from which the calls were made and the times each phone call was made by the Mullings family had not been provided to the RCIPS or 911 as of mid-day on Tuesday 15 March.

Julian Lewis, Director at the Department of Public Safety Communications, was contacted by The Cayman Reporter about the 8:29pm phone call Ms Mullings says she made to report her family missing.

He responded, “A search has been conducted of the telephone system which manages incoming/outgoing 911 calls between 1900hrs and 2200hrs on Sunday, 6th March 2016. No call originated from the number or at the time provided by the family members.”

“We have however identified a call to 911 from the number provided by the family on Monday, 7th March, 2016 at about 08:29am. This call matches the call duration indicated by the family, which is about three (3) minutes and four (4) seconds,” said Mr Lewis.

The Cayman Reporter asked if it was possible to obtain a recording of Ms Mullings call made to 911. Mr Lewis replied, “Unfortunately we are not in a position to provide the voice data at this time.”

The post Mullings family says first 911 call was at 8:29pm appeared first on The Cayman Reporter.

The George Town Police Station. The RCIPS and DPSC are denying claims by the Mullings family that calls were made to 911 as early as 8:29pm on Sunday 6 March about their missing relatives.

In a joint press statement issued on Tuesday afternoon (15 March), the Department of Public Safety Communications (DPSC) and the Royal Cayman Islands Police Service refute claims by missing man Gary Mullings’ family that they made an emergency call to 911 more than three hours before the RCIPS said it received the first report.

The two entities also indirectly accused the Mullings family of falsifying data to misrepresent the actual times calls were made to 911.

“The 9-1-1 Communications Centre has the critical duty to receive and respond to all emergency calls from the public. It is critical that public confidence in the Centre is not undermined by misrepresentations or manipulation of technical equipment,” the joint DPSC/RCIPS statement said.

The RCIPS also “categorically” denied “allegations that it has failed to respond or withheld information regarding this tragic incident.”

The statement was referring to allegations made by the Mullings family that the police failed to act swiftly enough to save their relatives (Mr Mullings, his nephews Nicholas Watler (24), Kamron Brown (11) and Kanyi Brown (9) and family friend Edsell Haylock) when they went missing at sea on Sunday 6 March. The five have not been found and the search and rescue mission has now officially been reclassified as a search and recovery mission.

The Mullings family claimed on Tuesday 15 March, through a statement released to The Cayman Reporter by their lawyer, that the first call to 911 was made by Gary Mullings’ mother Pauline Mullings at 8:29pm on Sunday 6 March. They also allege that a second 911 call was made that night by Mr Mullings’ sister and the mother of Kamron and Kanyi, Melody Mullings Brown at 10:42pm.

The RCIPS has said publicly that the first report of the five people being missing at sea came in to them at 11:57pm that night.

The Mullings family provided screenshots of the call logs on their phones to The Cayman Reporter as evidence of their claims.

However, the RCIPS/DPSC refuted the Mullings’ allegations in no uncertain terms.

“The RCIPS and the 9-1-1 Communications Centre maintain what has been stated previously, that the first notification received by the RCIPS or 9-1-1 on this incident was at 11:57PM on Sunday, 6 March, from a parent of the minors on the boat,” the statement said.

The statement said that Mrs Mullings claim of making a call at 8:29pm had been investigated by the DPSC.

“A phone number was provided to the RCIPS and the DPSC last Friday of the family member who claims that a call was made from her phone at 8:29PM on Sunday, 6 March. This number was checked through the 9-1-1 call log systems, which determined definitively that no 9-1-1 calls were received from this number anytime on Sunday, 6 March,” the statement noted.

The two emergency agencies said that a call came in from her number the following day.

“However, a call was received by 9-1-1 from this number the following morning, Monday, 7 March at 8:29AM,” the statement said.

According to the RCIPS/DPSC statement, “The substance of that call, which was recorded as are all 9-1-1 calls, was that the family member was calling to state that her relative went out on a boat “yesterday” and was asking for an update on the search and rescue operation. The transcript of the call, which will be made public, indicates that this was a not an initial emergency communication to report 5 missing persons, but indeed is a follow-up conversation requesting an update following the first 9-1-1 call about this incident that had already taken place, as stated previously, at 11:57PM on Sunday, 6 March. During the call, the 9-1-1 operator calls the George Town Police Station and speaks with the inspector on duty, who advises the operator that the same family members have already been informed and thoroughly updated that morning.”

The RCIPS and DPSC also maintain that Ms Mulling Brown’s call at 10:42pm, although on  the night of  Sunday 6 March, was an open line call and not an emergency report.

“Further to the first alleged call that evening, another family member has stated to the press that a second call was placed to 9-1-1 at 10:42PM. Again a search has been conducted of 9-1-1 calls received that evening from numbers associated with this family member and a call from one of these numbers has been found around 10:42PM for a period of approximately 40 seconds. The recording of this call, a transcript of which will be made public, indicates that it is what can be referred to as an “open line” – that is, there is no substantive conversation, but instead just an open recording of 40 seconds of ambient sound in the proximity of the telephone. Throughout that recording, different voices can be heard,” the statement said.

The two agencies also revealed that the phone company of the family members has provided data which contradicts the family’s claims.

“Further, the RCIPS has obtained information from the phone provider which indicates that the times reflected on the screen shots provided to the media do not coincide with the information the provider has about these calls,” the statement said.

The four calls the family provided photographic evidence of are as follows:

Incoming from 9*****8 06/03/16 20:21

Out to 9*****0 06/03/16 20:25

Out to 911 06/03/16 20:29

Out to ‘family member – name redacted’ 06/03/16 20:31

However, the RCIPS/DPSC statement said, “These calls are actually identified as being 12 hours after the photo reflects, based upon provider toll data.”

Instead, the emergency agencies say, the phone service provider logs record the calls as being made as follows:

Incoming from 9*****8 07/03/16 08:20

Out to 9*****0 07/03/16 08:24

Out to 911 07/03/16 08:29

Out to ‘family member – name redacted’ 07/03/16 08:32

The post RCIPS & 911: Mullings family falsified call logs appeared first on The Cayman Reporter.

Grand Cayman Beach Suites has been purchase by Dart Realty and will close by September 2016.

Real estate investment company Embassy Investments Limited confirmed on Wednesday 16 March the sale of assets in Grand Cayman to Dart Realty (Cayman) Ltd including the former Hyatt Resort, Grand Cayman Beach Suites and Britannia Golf Course.

Embassy Investments Limited also today the closure of the Grand Cayman Beach Suites, effective 1 September 2016.

Embassy Investments Limited acquired the former Hyatt resort in 2003 and has operated the 53-room Grand Cayman Beach Suites since 2008, when the Management Agreement with Hyatt ended after 20 years. The 230-room Hyatt Regency Resort was not redeveloped following Hurricane Ivan in 2004.

“The decision to acquire the property comes after years of intermittent discussions with Embassy Investments Limited. We have no definitive redevelopment plans as yet; in the coming months we will carefully study the site, explore options and master plan its integration into Camana Bay,” said Mark VanDevelde, CEO of Dart Realty.

The partially demolished former Hyatt site.

Jan Bertelsen, spokesperson for Embassy Investments Limited commented, “We have a great team at the Grand Cayman Beach Suites and our main priority is making sure that they have opportunities when the property closes at the beginning of September. Severance packages will be offered to all employees and additional optional retirement packages are being developed for those of retirement age.”

“After Easter, Kimpton’s and Dart’s human resources teams will meet with each and every individual member of staff impacted by the closures to assess their interest in and suitability for new employment,” said Juliet Du Feu, SVP Human Resources at Dart. “I am pleased that the Grand Cayman Beach Suites staff, which includes many talented and long-serving Caymanians, will have the opportunity to be considered for employment with our group of companies, as well as with the 266-room Kimpton Seafire Resort + Spa, on schedule to open this November,” she added.

Mrs Du Feu (née Johnson) worked for nearly 10 years in human resources at the former Hyatt Resort and will know many of those long-serving employees at Grand Cayman Beach Suites, who were themselves former Hyatt employees.

The post Dart Realty buys former Hyatt properties appeared first on The Cayman Reporter.

By Austin Harris

The former Coutts & Co Cayman Islands headquarters on West Bay Road.

The curious case of Cause No. S0150 of 2015 – Andy Nicholas Blake v Coutts & Co is currently working its way through the Courts, as first reported in The Cayman Reporter on 29 February.

The matter has been adjourned, with no date yet set for its continuation. It is a case lawyers on both sides describe as a matter of law and legal interpretation and also is one that potentially could set legal precedent in the Cayman Islands, specifically in relation to redundancy.

As the matter is before the courts, no new details on the trial proceedings are yet available, however it is anticipated upon its return, the defense team for Coutts will have a further opportunity to present its case.

Prior to the adjournment, Martin Hall, head of Coutts’ International Trust Business sought to lay the basis of the defense claims that the mass redundancies occurring due to Coutts leaving the jurisdiction were done in accordance with company corporate policy.

This matter before the Courts represents a significant impact on at least 25 former staff of Coutts (Cayman) Limited, who announced to their staff in November 2013 the company was reducing its footprint in the Caribbean through the sale of the companies trust business to Appleby.

The case may also have implications on at least one other more recent, though un-related case, that of French bank BNP Paribas.  BNP Paribas, like Coutts, is said to also be reducing its footprint in the Cayman Islands and has begun by reducing its Caymanian staff, while retaining its work permit staff.

Behind Andy Blake in the Coutts matter, are at least another 25 former Coutts staffers who allege they had their employment terminated by the employer on the grounds of a redundancy policy that staff claim was never fully communicated to them and as such, are seeking compensation for their loss of employment and in particular their claim to benefits they say they are entitled to receive. The majority of these staff members were long-serving Caymanians with service ranging from 10 to 40 years of continuous employment with the firm.

This case however did not begin in the Courts. Sometime between 2013/14 at least 18 former Caymanian staff members of Coutts (Cayman) Ltd lodged a complaint with the Labour Department for which the case was afterwards referred to the Labour Tribunal.

However, shortly after arriving before the Tribunal it was discovered that the benefits being claimed by the former staff, were greater than the benefits provided under Cayman Islands Labour Law, which therefore left the Tribunal unable to arbitrate the matter.

It is unsure whether the complaint against Coutts was “stayed” or “withdrawn” all together. Like perhaps others within the financial services industry, perhaps the Labor Department is likewise waiting for the outcome within the Courts, before deciding if the matter should proceed.

It was also recently brought to the attention of The Cayman Reporter, in addition to the 18-25 former employees who are watching with interest, the outcome of the trial presently before the Courts, there may likewise be a further number of former staff, who resigned or retired prior to the closure of the Coutts (Cayman) office, but who joined the company prior to the 1996 introduction of mandatory pensions, who are also following the case closely.

The Cayman Reporter recently spoke with two former staff who “retired” from Coutts in July and October 1999 respectively. They commenced their employment in 1989 and 1991. Each former employee was told on the one-year anniversary of their commencement date, they would be enrolled in what the company called the “Non-Contributory Retirement Scheme”.

Upon their retirement they were provided with a summary of their retirement benefits which included a 25 per cent lump sum payment, with monthly dividend cheques to follow until their individual retirement fund was exhausted. These funds would become available to them once they attained the requisite retirement age.  According to information provided by each, they told The Cayman Reporter “in their minds, they had a little retirement nest egg coming to them.”

However, questions arose shortly after Coutts (Cayman) exited the territory. In 2014 and 2015, following the closure of the Coutts (Cayman) offices, the pair contacted Royal Bank of Scotland, the beneficial owners of Coutts (Cayman) and made inquires on this retirement plan.  At first they were advised that Company records indicated no proof that said employees were entitled to anything.  However, following the presentation by both former staff of proof of their enrollment is the “Non-Contributory Retirement Scheme”, which was provided in the “summary of benefits” following the end of their employment, the company then responded that research would be conducted and a reply would be forthcoming.  To date, neither former employee has received a response.

Both employees were told the Pension/Retirement fund was first managed in the Bahamas, and thereafter changed to RBS Securities in the UK. In what they claim was a “promissory note” provided to them by the actuarial firm, Towers Perrin.

The outcome of this trial is likely to be as precedent setting, though hopefully not as protracted as the six-year case commonly referred to as the Woolworths Redundancy case, which was brought to a close by The European Court of Justice (ECJ) in June 2015. In this case, when the Woolworths and Ethel Austin chains of stores became insolvent, the administrators implemented extensive redundancy exercises. No collective consultation was carried out and redundant employees brought claims for protective awards for failure to consult. The tribunal made protective awards only in respect of those employees who worked in stores employing 20 or more staff.

However, on appeal, the Employment Appeal Tribunal (EAT) held that UK law was not compliant and that the obligation to consult on collective redundancies arises whenever there are 20 or more redundancies anywhere in an employer’s business.

The post Coutts case could set legal precedent on redundancy appeared first on The Cayman Reporter.

It’s the middle of March, and we have yet to see a date for the calendar year’s first meeting of the Legislative Assembly.

The last meeting of the House was in November 2015. Since that time, as we have noted in a previous editorial, the Cayman Islands’ lawmakers have yet to met.

In our story on page 3 of this issue, both Opposition and Independent MLAs express their concern that important items they have for the LA agenda are languishing with no meeting date set.

Independent North Side MLA clearly voiced his frustration that he is being hamstrung in doing his job. He called the delay “ridiculous” and the explanations given as “unacceptable.”

We would have to agree with him. As Mr Miller noted, the non-Government members could force a meeting if seven of them banded together – however they would only be able to address the agenda items that they brought to the table.

The pending work of the Government bench would remain untouched.

And again, as Mr Miller noted, there are several important pieces of Government-led legislation that remain to be addressed.

These include changes to the Public Management and Finance Law (PMFL), the necessary changes to the Elections Law in order to effect One Man One Vote, and several other pieces of legislation including the revised Labour and Pensions Laws.

And despite the penchant in party politics to have everything decided in Caucus, laws cannot be changed or put into effect without a full reading and vote in the Legislative Assembly. Changes to regulations can be decided in Cabinet, but not laws.

And what about the numerous questions and motions from MLAs who do not sit on the government bench? Mr Miller noted that the LA’s Standing Orders allow each MLA to bring only three motions per sitting. So if there is only one more sitting of the LA for the rest of this fiscal year (which ends in July) then that effectively prevents Opposition and Independent MLAs from filing their motions.

Opposition Leader Hon McKeeva Bush also noted his concern regarding one of his motions, which deals with the recent search and rescue operation that some observers contend the RCIPS bungled. Mr Bush wants this dealt with and debated before memories fade.

These are all valid concerns. And as Mr Miller has noted, the voting public has received not a single word by way of explanation for the inordinate delay between meetings.

Two of the longest serving sitting members of the House, Mr Miller and Mr Bush, note that it is one of the longest breaks that they have ever seen in all of their years as legislators.

At risk of putting some government noses out of joint (again), we would have to say that we agree with Mr Miller. The explanation offered of “We’re not ready” is unacceptable.

If there is a valid reason for the delay between LA sessions, then by all means, share it with your constituents. There is always much lip service paid to transparency and good governance by all parties involved in local politics, but not as much effort put into practice.

Mr Miller observed that in order to get through all of the work involved and waiting in a timely fashion before the fiscal year ends in July, a full meeting of the LA should have taken place in February.

However, we are now midway through March with no date set. The only date currently set, is the gazetted one of 7 May, when the budget is scheduled to be presented.

And as Mr Miller noted, the budget presented will be an 18-month budget – taking the government past the May 2017 general elections.

Will a meeting date be set for April, or will everything have to be crammed into one meeting encompassing the budget presentation?

Just when are all of the important issues waiting to be addressed for the country, and its people, going to be addressed by our lawmakers?

To borrow a phrase from an American tabloid, “Enquiring minds want to know!”

The post Soon come? appeared first on The Cayman Reporter.

The Legislative Assembly has not been in session since November 2015.

The Legislative Assembly has not met since November 2015 and a date for its next meeting has not been scheduled or communicated to MLAs.

The Cayman Reporter was told in response to inquiries to the Premier’s Office that a firm date has not yet been set.

According to Opposition and Independent legislators, the lengthy break between sessions is hamstringing them in their work.

Opposition Leader Hon McKeeva Bush said the break between sessions may be “perhaps the longest in my 30 odd years” as a legislator.

Independent North Side MLA Ezzard Miller noted that the four-month break since the last sitting in November is the longest that he has ever seen, and is possibly the longest in Cayman’s democratic history.

Referring to Premier Hon Alden McLaughlin, Mr Bush said, “I have said that if he’s not ready then I guess he will call it when he is.”

However, the Opposition Leader noted that he had what he considers to be urgent motions to be dealt with.

Mr Bush said, “Nevertheless I do have an urgent motion before the House that should be debated with urgent dispatch. That is the motion for an independent enquiry into the way matters were handled with the lost souls at sea and the contradictions, more of which are arising every day, between the family and the police. There are other motions and questions which carry weight and ought to be dealt with, with some urgency. These are matters that government can deal with now.”

He added, “I’m hoping that the Premier moves to call the House of Assembly to meet. He is not only the Premier but also leads the government business in the Assembly.”

Mr Miller was more vocal in his displeasure with the current suspension of legislative business.

He said, “It’s a national disgrace. I cannot do my job. I have dozens of questions and three motions submitted that need to be dealt with. There is work to be done by government and non-government members, who have submitted questions and motions.”

The longtime North Side MLA said he was being hampered in seeing to the needs of his constituents.

“I can’t deal with my constituents’ needs and questions because there is no date set for the LA. It is ridiculous,” he said.

The veteran legislator also noted that according to the Standing Orders of the LA, he can only submit three motions per meeting, and he has at least nine to 12 waiting in reserve.

Mr Miller said that although the Constitution says only one session per year is required, the Standing Orders require four meetings per session. Thus far in the current session, there have been two meetings. The current session ends in June

As Mr Miller pointed out, the date of 7 May has been Gazetted as the date for the presentation of the budget.

“My great fear is that because of his [the Premier’s] fear of losing a vote, that there will be no meetings after the budget meeting and before the May 2017 elections,” Mr Miller said.

He contended that, “This delay means that there is little that the government can do. No laws can be changed without the House meeting. There is only what can be done in Cabinet, which is limited. Very little can be done to move the country forward, especially in terms of changes to legislation. “

Mr Miller explained that no meeting could now be called for March, and noted the large amount of work to be done at the next meeting, whenever it is called.

He said there are number of laws that the government itself has put forward that need to be circulated for review prior to a reading and vote. There are several Bills he said, that have been Gazetted that should be ready to go to the House.

He specifically mentioned the changes the Public Management and Finance Law that have been promised.

Mr Miller calculated that the budget work would take about four weeks, and that there are about two weeks’ worth of motions and questions to get through, for a total of six weeks work currently stockpiled for legislators.

“We only have 12 weeks left (in the fiscal year},” Mr Miller noted

“If the budget is presented on May 7^th, that leaves us only six weeks to the end of the financial year,” he said.

“What else can be added?” he asked.

Mr Miller noted that it takes at least a week or two for laws to be circulated for the next meeting.

“I have no idea what the problem is,” he said. “It is not acceptable to say they are not ready.”

Mr Miller said that in his opinion, “We should have had a meeting in February.”

He noted that non government members can call a meeting if seven of them agree; however, they can only deal with the agenda items that they submit – not the work required of the Government bench.

Bodden Town MLA Alva Suckoo, who is now an Independent member after leaving the Government bench at the end of last year, noted the delay’s impact on legislation but said he is staying busy in the meanwhile.

“I assume the Premier will call the meeting when the Government business is ready. I’m looking forward to getting back in the LA, but in the meanwhile the Independent members will continue to do our district work and ensure that constituents’ needs are top priority. We do have some important legislation coming up such as the Legal Practitioners Bill and the Employment Bill and I hope these are put on the agenda soon,” he said.

The post Legislators lament 4-month LA break appeared first on The Cayman Reporter.

Missing men Edsell Haylock (L) and Gary Mullings (R). The family of Mr Mullings is calling for an independent judicial inquiry in which the families of the missing are able to instruct their own legal representatives to ensure that the inquiry is fair and transparent.

In the wake of Commissioner of Police David Baines requesting a review under the auspices of HE Governor Helen Kilpatrick of RCIPS actions in the search for five missing boaters, the Mullings family is calling for an independent judicial inquiry for complete transparency.

Gary Mullings, along with his nephews Nicholas Watler (24), Kamron Brown (11) and Kanyi Brown (9) and family friend Edsell Haylock, disappeared on Sunday 6 March after a fishing trip to the 12 Mile Bank. The RCIPS has been publicly criticised by the Mullings family for delaying the search for their lost loved ones until the morning after the emergency was first reported.

Disagreement between the family and the police on the timing of the first report is ongoing, but all agree that it was reported on the night of Sunday 6 March. The search did not begin until Monday 7 March.

“We would like an independent judicial inquiry where the judge is selected from a shortlist provided by all parties involved and where the families are able to instruct their own legal representatives to ensure that the inquiry is fair and transparent,” the Mullings family said in a statement released earlier this week.

Though the family welcomed the request for a full and transparent public inquiry they expressed concerns about a police force attached to the Foreign and Commonwealth Office (FCO) investigating a fellow British Overseas Territory Police force. They doubted the transparency of such an investigation and said they will not be satisfied if this route is taken.

In their statement the family said their feeling of “absolute devastation” has been exacerbated by the conduct of the Royal Cayman Islands Police Service (RCIPS) which they believe has provided them and the public with “misleading and in some respects wholly untrue information”.

They alleged that the police’s “inaction” potentially meant lives that could have been saved may now be lost. They presented their own timeline of the events on Sunday night (6 March). They believe that it will give a true picture to the public of “some of the police inaction”.

“For misinformation to be disseminated to the public and the family is wrong. With independent scrutiny, if the timeline we are presenting is found to be true and if the issues we raise show significant failings on behalf of the RCIPS, then those responsible should have the fullest sanctions available brought against them,” the family said.

The Cayman Reporter reached out to the Governor’s Office and the FCO for more information with regard to the independent review but responses were not received at press time.

In light of public concerns about the RCIPS response to the report of the five people missing at sea, Mr Baines requested that the governor set up an independent review on Thursday 10 March.

Mr Baines said, “In order to be transparent about the RCIPS decisions and actions, there should be an independent and complete review of all the circumstances from the first report, to deployment and actions thereafter.”

Governor Kilpatrick responded, “I welcome the request from the commissioner of the police for an independent review of the RCIPS response to this tragic incident. All our thoughts are with the families of those who are missing. A suitably qualified person will be appointed to lead this review and to report to me on its outcome. I intend to make the report public in due course.”

The family said many people have assisted them and sent well wishes. In return they wanted to express their gratitude to the public and the members of the police force who assisted in the search for their family.

“We would like to take this time to thank the people of the Cayman Islands as well as the rank and file police officers who have been out looking for our loved ones. We would like to thank all of those who have kept us in their thoughts and prayers and have provided help and support in this difficult time,” the Mullings family stated.

“It is our sincere prayer that those who are currently lost may be found,” they added.

The family is requesting any person with any available information that might assist them to please contact the RCIPS or their lawyers, Brady Attorneys-at-law at 946-3203.

The post Mullings family calls for an independent judicial inquiry appeared first on The Cayman Reporter.

L-R: Ambassador Peter Wilson, Deputy Permanent Representative of the U.K. to the U.N; Minister Rivers; UK Minister of Gender and Equalities, Caroline Dinenage; Anguillan Minister for Gender Affairs, Cora Richardson-Hodge; Chief of the UN Treaty Section, Santiago Villalpando

Minister for Gender Affairs, Hon Tara Rivers was at the United Nations in New York on Wednesday, 16 March for the extension of the Convention on the Elimination of All Forms of Discrimination Against Women (CEDAW) to the Cayman Islands,

She was on hand when the formal instrument to extend CEDAW was deposited at the United Nations by the United Kingdom Minister for Gender and Equalities, Caroline Dinenage.

CEDAW is often described as an international Bill of Rights for women and was adopted in 1979 by the U.N. General Assembly and has been ratified by almost every single member of the United Nations.

The post Minister Rivers at United Nations appeared first on The Cayman Reporter.

A snapshot taken of Ms Pauline Mullings phone call to 911. It shows that she made a call to 911 at 20:29 (8:29pm) on Sunday 6 March 2016 that lasted three minutes.

The Mullings family denies all allegations of misrepresentations or manipulation of technical equipment posed by the Department of Public Safety Communications (DPSC) and Royal Cayman Islands Police Service (RCIPS) in a joint statement issued by the emergency services on Tuesday, 15 March.

In their statement the two government bodies maintained what has been stated previously, that the first notification received by the RCIPS or 911 about their missing family members was at 11:57pm on Sunday, 6 March, from a parent of the minors on the boat.

The Mullings family stands by their statement of the times members of their family made calls to 911. The family said the mother of the missing Gary Mullings, Pauline Mullings made the first call to 911 at 8:29pm on Sunday, 6 March pleading with the police to find the children who were on the boat. They accused the RCIPS of misleading the public to believe the first call was made at midnight.

The family added that another call by the missing children’s mother, Melody Mullings, was made to 911 at 10:42pm on Sunday. She made another call at 11:57pm.

“It seems the RCIPS have only sought to acknowledge the call at 11:57pm. Evidence of the other call is available from her call log. It is befuddling to us that the calls at 8:29pm and 10:42pm have not been acknowledged and further we query why those calls did not result in any police action,” the family stated.

A snapshot taken of Melody Mullings phone call to 911. It shows that she made the call at 10:42pm on Sunday 6 March 2016.

The DPSC and RCIPS said the number from which Pauline Mullings claimed to call 911 was checked through the 911 call log systems, which determined definitively that no such call was made at that the alleged time.

“However, a call was received by 9-1-1 from this number the following morning, Monday, 7 March at 8:29am. The substance of that call, which was recorded as are all 911 calls, was that the family member was calling to state that her relative went out on a boat “yesterday” and was asking for an update on the search and rescue operation,” the statement read.

“During the call, the 9-1-1 operator calls the George Town Police Station and speaks with the inspector on duty, who advises the operator that the same family members have already been informed and thoroughly updated that morning,” the statement added.

They notified the transcript of the call will be made public but did not specify when.

The DPSC and RCIPS said another search was conducted of 911 calls received that evening from numbers associated with Ms Melody Mullings’ number. The call was approximately 40 seconds.

“The recording of this call, a transcript of which will be made public, indicates that it is what can be referred to as an “open line” – that is, there is no substantive conversation, but instead just an open recording of 40 seconds of ambient sound in the proximity of the telephone. Throughout that recording, different voices can be heard,” the joint statement read.

Furthermore, the RCIPS claimed they have obtained information from the phone provider of Pauline Mullings which indicates that the times reflected on the screen shots provided to the media do not coincide with the information the provider has about these calls. They alleged that these calls are actually identified as being 12 hours after the screenshot the family provided reflects based.

The family told The Cayman Reporter that they will be requesting their phone records from their phone company as well.

Gary Mullings and his nephews Nicholas Watler, Kamron Brown and Kanyi Borwn went missing at sea on an ill-fated fishing trip to the 12 Mile Bank accompanied by family friend Edsell Haylock on Sunday 6 March. None of the three missing men or two missing children has been found. The RCIPS reclassified the search and rescue mission to a search and recovery effort on Friday 11 March.

The post Mullings family denies police allegations appeared first on The Cayman Reporter.

New security fencing has been installed in the rear yard of the George Town Police Station. Shown here are several confiscated dirt bikes.

On Wednesday 16 March, the Royal Cayman Islands Police Service (RCIPS) confirmed the theft of five dirt bikes from the rear yard of the George Town Police (GTPS). This brings the total of illegal dirt bikes stolen from GTPS to eight, following a similar break-in which occurred on 29 February, when three additional bikes were stolen.

This latest break-in also follows the highly publicised and criticised theft of 24 kilos of cocaine and 33 kilos of ganja stolen from a container in the same rear yard in 2015.

Chief Superintendent Kurt Walton, who recently invited the local press corps on a tour of the police yard following Wednesday’s break-in said, “This latest incident only underscores the deteriorating conditions in which officers work on a daily basis at the GTPS”, which he said” is not fit for purpose in terms of either security or design as a police compound.”

The bikes stolen were recently confiscated as part of police crackdown on off-road bikes around the island and were chained, with padlocks, in a fenced area in the rear yard that was originally built as kennels for the K-9 Unit. Thieves are said to have first gained access to the yard undetected, and then proceeded to cut through the chain and the fence locks, before departing from the scene with the stolen bikes.

“The rear yard of GTPS was originally intended as a car park, not a police evidence compound”, said Mr Walton. “And the security for this area has been a problem for us since the 1990’s.”

A padlock on one of the gates in the rear storage yard at the George Town Police Station.

He added that the police “continue to struggle with the limitations of providing 21st century policing with a building that has long exceeded its building life span”.

The GTPS was built in 1974 and has been the primary headquarters for police operations for over 40 years and has been condemned in certain areas due to what is called “concrete cancer” according to a 2010 structural engineering survey, which recommended that a new police station be built. According to police, the rear yard is crowded with confiscated property and police cars, and simply does not provide enough space for the variety of needs required by a contemporary police station.

When asked specifically about the CCTV systems that may have been in place, Mr Walton acknowledged that it was in place, but said the “system is inconsistent and sometimes works, while other times it doesn’t”. There was also the suggestion that the CCTV coverage area leaves the compound vulnerable, according to Deputy Police Commissioner, Anthony Ennis. He indicated that a replacement system has been identified, but will cost between $17-25 thousand dollars.

Chief Superintendent Walton spoke at some length about his concerns over security, but also indicated that several security measures had been undertaken over the past year. These include the addition of four feet of fencing atop a concrete wall that borders Elizabethan Square to the rear of GTPS. The latest security measures will include the installation of razor wire atop the fencing which will surround the overall 650-foot perimeter.

Walton said, “While we recognise some mistakes have been made in the past concerning the police lock-up, we must equally acknowledge that the current police station is simply no longer fit for purpose”.

As it relates to the scourge of illegal dirt bikes that continue to raise concerns not only of safety, but also noise complaints from the public, Deputy Commissioner Ennis called on the Government “to create legislation that would ban the importation of these types of bikes”.

There have been no arrests in this latest incident nor any arrests or suspensions of police officers from their jobs, concerning the 2015 drug theft, even though Commissioner of Police David Baines, at the time, admitted that serving officers may have been directly involved.

The post Another burglary at GTPS appeared first on The Cayman Reporter.

The group of ICCI students who completed the Pride training, along with instructor Janet Holness (seated).

Twenty International College of the Cayman Islands’ students earned Pride certificates after completing the “Know Your Cayman Islands” training sessions. The Pride workshop was part of an academic seminar course on the history and heritage of the Cayman Islands.

“I feel that it is important for not only college students to learn about Cayman’s history, but also students from the primary schools all the way to tertiary level. It is an exceptional seminar, Caymanian or not. Being Caymanian, there was a lot of history and recent events that I was not aware of, but was happy to learn about,” said Human and Social Services major Kristie Archer.

Students spent weeks completing readings, presentations, and making visits to important historical and cultural sites like Light House Park, The Queen Elizabeth II Botanic Park, The Legislative Assembly, and the National Museum.

Customer Service Standards Training Officer for the Cayman Islands Department of Tourism Janet Holness taught the seminar as well as conducted the Pride Workshops.

“It is very important for college students to do this workshop to have a better understanding of the Cayman Islands History, Heritage and Culture. Every student can be an ambassador of the Cayman Islands,” said Ms Holness.

The Cayman Islands Seminar is part of new curriculum changes designed to help enhance the competitiveness and work place value of ICCI graduates. Two years ago, the ICCI Board of Trustees approved a new policy requiring all ICCI students to complete a seminar on Cayman history and culture in order to earn a degree. Even though the new policy will not be fully enforced until September, 60 students have voluntarily completed the seminar course and also earned the Know Your Cayman Islands Pride certificates.

Students in traditional costume giving a presentation on local history and customs.

“For us, this is not just about history, heritage, and national pride, this requirement is also about producing graduates who are able to help the country succeed. How can you attract new business or become an entrepreneur in the Cayman Islands if you don’t understand the culture in which you are operating?” said ICCI President Dr David Marshall.

“The reality is anyone who lives and works in Cayman is a tourism ambassador, regardless of your industry. Making sure that our students understand this is an essential part of their ICCI education,” said Dr Marshall.

“I was amazed at how much information I never knew about my islands,” said Helen Winton who is working on a degree in Business.

“We had a fantastic teacher, and the general information gained from the seminar has really changed my life. I took so many things for granted. I now have a greater appreciation for our culture and heritage. I’m definitely putting this experience on my resume,” said Ms Winton.

The post ICCI students earn Pride certificates appeared first on The Cayman Reporter.

On 9 March US Attorney Preet Bharara for the Southern District of New York, Acting Deputy Assistant Attorney General Stuart Goldberg of the Justice Department’s Tax Division, and Chief Richard Weber for the Internal Revenue Service – Criminal Investigation, (IRS-CI), announced that two Cayman Islands financial institutions pled guilty in a Manhattan Federal Court that they “conspired to hide more than $130 million dollars in Cayman Islands bank accounts”.
According to a US Department of Justice press release, “Cayman National Securities Ltd. (CNS) and Cayman National Trust Co. Ltd. (CNT), two Cayman Island affiliates of Cayman National Corporation, which provided investment brokerage and trust management services to individuals and entities within and outside the Cayman Islands, including citizens and residents of the United States (U.S. taxpayers), conspired with many of their US taxpayer-clients to hide more than $130 million in offshore accounts from the U.S. Internal Revenue Service (IRS) and to evade US taxes on the income earned in those accounts.”
“The guilty pleas of these two Cayman Island companies today represent the first convictions of financial institutions outside Switzerland for conspiring with US taxpayers to evade their lawful and legitimate taxes,” said US Attorney Bharara. “The plea agreements require these Cayman entities to provide this office with the client files, because we are committed to finding and prosecuting not only banks that help US taxpayers evade taxes, but also individual taxpayers who find criminal ways not to pay their fair share. We will follow them no matter how far they go to hide their accounts, whether it is Switzerland, the Cayman Islands, or some other tax haven.”
This is the second time in the past year that the Cayman Islands have drawn the attention of US authorities. The US Securities and Exchange Commission (SEC) sued Caledonian and three other firms on 6 February 2015 claiming they sold worthless penny stocks in several pump-and-dump schemes, profiting from the illicit proceeds.
In a hearing that was kept secret from the defendants, the SEC argued that an asset freeze was necessary to prevent Caledonian and Verdmont Capital SA from transferring funds offshore. However, a US judge would later criticise the SEC for freezing assets of Caledonian Bank Ltd., a 45-year old Cayman Islands institution, causing its collapse.
The Cayman Reporter inquired with the Cayman Islands Monetary Authority (CIMA), who regulates the Cayman Islands financial services industry if any further action was planned or presently under investigation in Cayman in response to the recent guilty pleas. Their response was as follows:
“The Cayman Islands Monetary Authority (CIMA) is aware of the US$6 million settlement reached with the United States Department of Justice by Cayman National Trust Co. Ltd. and Cayman National Securities Ltd. The two companies are among the regulated subsidiaries of Cayman National Corporation in the Cayman Islands.”
“While the Authority is not at liberty to discuss publicly any specifics regarding the affairs of the licensees we supervise, we will of course consider the implications of the matters raised in the investigation by the US authorities as revealed in the Court proceedings within the scope of our regulatory mandate.”
“CIMA has been assured that the settlement by Cayman National Trust Co. Ltd. and Cayman National Securities Ltd. should have no adverse impact on the solvency of Cayman National Bank Ltd.”
Some observers, including the Head of the Cayman Islands Anti-Money Laundering (AML) Unit in the Attorney General’s Chambers, believe there is a weakness in supervision of the Islands’ financial services industry.
Speaking at a compliance and financial crime conference held in the Cayman Islands in September 2015 Francis Arna said, “The current laws and regulations, weakness in supervision and a lack of suitable sanctions, need to be addressed”.
Mr Arna, who is coordinating the Cayman Islands’ National Risk Assessment (NRA), which the Cayman Islands are obliged to complete as part of the new more stringent Financial Action Task Force (FATF) requirements introduced in 2012, has revealed that, “Cayman’s AML and other related laws and regulations are out of date, and there is insufficient legislation to cover charities and other business risk areas outside of the offshore sector, including the real estate industry and diamond merchants.”
He pointed out that the Government faced some serious challenges in addressing these gaps before the next FATF inspection happens in March 2017.
He went on to point out what he described as “insufficient supervision by the regulator and inadequate sanctions” as he explained that some threats apparent in the current environment are “not even mentioned in the current laws” as they were not considered threats at the time Cayman first drew up the AML legislative regime.
The Government is said to have already begun to address the shortcomings and is drafting relevant new legislation, as well as amendments to update existing AML laws.
However there is no date yet set for these amendments to come to the House. The last time the Legislative Assembly met was in November 2015, with no date yet set for its next meeting.

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Chrissie Tomlinson Memorial Hospital announced today that it has been acquired in a share acquisition by CTMH Holdings Ltd., the newly formed holding company for a group of Caymanian, international and local investors, among them many of the Hospital’s physicians.
The new holding company has also purchased land and buildings, and certain related companies to form a leading group of medical companies under the CTMH brand.
Chrissie Tomlinson Memorial Hospital was founded by the vendor, Dr Steve Tomlinson, and first opened in May 2000. Dr Tomlinson will remain at CTMH focused exclusively on his patients.
Dr Tomlinson’s daughter Nadine Brown-Tomlinson joins the newly appointed supervisory board of CTMH, sustaining the Tomlinson family’s connection with the hospital.
“Chrissie Tomlinson is an outstanding facility built on the vision to provide exceptional healthcare to the Cayman Islands, a legacy I remain incredibly passionate about.
I sincerely believe it is in the best interest of our Islands that the physicians and medical practitioners, all of whom are deeply attached to CTMH, are able to continue to grow the hospital.
I know the hospital has a strong future under the governance of this experienced CTMH team and I am proud to pass the baton to this new generation of leaders,” said Dr Tomlinson.
The new leadership will focus its efforts on developing the Hospital and meeting the increasing demand for high quality on-island medical services and patient-centred care, while at the same time working with the Hospital’s best in field practitioners and consultants.
The team has identified both opportunities for long-term growth and immediate improvements to the infrastructure and patient experience.
“We recognize the need to provide truly coherent care and support for our patients, placing them at the centre of all we do. CTMH’s success comes down to putting patients first and this remains at the heart of the new team’s philosophy,” said CTMH’s Radiologist, Dr Yaron Rado.
He continued, “We have some ambitious growth plans and now we have financial support; the next few years represent a tremendous opportunity to build on Chrissie Tomlinson’s history of exceptional healthcare. We’re delighted to have reached an agreement with the previous shareholders and founders of the hospital. We would also like to thank our employees, patients and partners for their loyal support over the past 16 years.”
CTMH offers a wide range of medical services including state-of-the-art diagnostic and imaging capabilities, including the most advanced MRI system in the Caribbean; family practice and paediatric medical care, ear nose and throat surgery, neurosurgery, laparoscopic and general surgery, bariatric surgery, thoracic surgery, obstetrics and gynaecology, podiatry, pain management, orthopaedic surgery and sports medicine.
The Hospital also regularly hosts a variety of visiting expert specialists offering care in many fields.
Legal advice for CTMH Holdings Ltd was provided by Stuarts Walker Hersant Humphries, James Smith and Simon Yard (acquisition, equity and financing documentation) and Buck Grizzel (real estate and local legal compliance matters).
The transaction was financed by RBC Royal Bank and is set to secure the business’ future as the Cayman Islands leading healthcare facility, and position the hospital for future expansion.
RBC provided a sophisticated finance structure combining mortgage and business funding, arranged by Dr Geza Toth-Feher, a corporate financier from London, who joins the board of the company as a non-executive director.
For more information visit: chrissietomlinson.com, facebook.com/CTMHCayman, Twitter: @CTMHCayman

The post Chrissie Tomlinson Memorial Hospital announces new ownership appeared first on The Cayman Reporter.

“The Governor is not yet in a position to answer these detailed questions, however she has committed to an independent review and to make the outcome of that public in due course.”
This is the response The Cayman Reporter got from the Governor’s Office when asking for details on the independent inquiry announced by HE Governor Helen Kilpatrick into the actions of the Royal Cayman Islands Police Service (RCIPS) during the search for five Caymanians who went missing at sea on Sunday 6 March.
The questions we asked were:
When will the independent review begin?
Has someone already been selected to lead the review? Who?
When do you expect the review to be completed and the outcome to be made public?
The family is calling for an Independent Judicial Inquiry rather than an investigation done by a police force attached to the Foreign and Commonwealth Office. Is the FCO considering this?
Now, we understand that some of these aspects may not yet be decided, but we were hoping for a more comprehensive and open response. Not expecting one, but hoping for one.
We say that we weren’t really expecting anything different, as there seems to be an ongoing policy of revealing and answering very little in the Governor’s Office.
Let’s have a look at other recent examples.
Consider the official complaint filed by West Bay MLA Bernie Bush against Commissioner of Police David Baines, who reports directly to the governor.
The Governor’s Office response in this case was:
“We are aware of the issues raised by Mr Bernie Bush and will consider these in due course.”
Regarding the investigation of the RCIPS by members of the Bermuda police force for individual police officers allegedly supplying illegal drugs to a Crown witness, the response was:
“We are not in the position to offer any response or comment on this issue as the matter is subject to judicial proceedings before the CI Court of Appeal.”
We are also seeing that the time frame of “in due course” is a well used one by the Governor’s Office. How, exactly, does one measure this course?
And then, of course, there is the case of the Governor’s Office three attempts to stifle the release of information via FOI request on the infamous Operation Tempura.
Each appeal to keep the information under wraps has been shot down. So what happens next? Will the Governor’s Office appeal for an unprecedented fourth time?
We have said before that it seems to be an awful lot of effort to keep information from the Caymanian public. The effort made to suppress it makes us think that the revelations must be explosive indeed.
Considering that the role of the Governor in the Cayman Islands is to protect UK interests, it also leads us to believe that those explosive revelations may just backfire on the FCO. But these are just suppositions.
Without any cold, hard facts coming from the Governor’s Office, conjecture is all we have left – along with silence.
We have to say that we also find it somewhat ironic that the proponents of good-governance and transparency on the part of our local political leaders do not seem to be practicing what they preach.
It seems that transparency is only required when it is regarding local interests, not those of the UK.
We suppose we will eventually learn more “in due course.”

The post Clear as mud appeared first on The Cayman Reporter.

A photo collage shared on Facebook by a family member shows missing brothers Kanyi and Kamron Brown, their cousin Nicholas Watler, uncle Gary Mullings and family friend Edsell Haylock.

In a statement issued to The Cayman Reporter earlier this week the family of four of the boaters who went missing on 6 March criticised the Royal Cayman Islands Police Service (RCIPS) response to the sighting of a flare off North West Point that evening.

The Mullings family lamented that the 15-20 minute flyover conducted by the police helicopter in the area should not be considered an appropriate response to a flare sighting, neither should it be considered a search for their family members.

The family stated that with the help of friends they have been able to piece together a timeline that they believe will give a true picture to the public of “some of the police inaction” that Sunday night.

Although the boaters were reported missing on Sunday night (the time of the first report is another point of contention between the family and the RCIPS), the official air and sea search did not begin until the morning of Monday 7 March.

“It is our understanding that the signal from one of the phones [belonging to the missing boaters] was received at the West Bay Tower situated at Cost You Less at 3:41pm. It is our understanding that this would put that cell phone at a maximum of approximately six miles off the North West Point shore. We also know that a flare was sighted at approximately 7pm in the area of Macabuca, and that a call was made to the RCIPS at approximately 7pm. It is our understanding that a call back was made at approximately 20 minutes later confirming what had been said by the caller as well as the caller’s details. We have also been told that as a result of a 911 call the police helicopter and Marine unit attended Starfish point at about 6:28pm to investigate a flare being set off. We would like an opportunity to hear that recording and speak with the caller who made that call,” the family said in their statement.

The Mullings family said based on the diagrams provided to them by the RCIPS, at no point does the helicopter appear to stay and hover over any area that night save for the area close to Governors Harbour. They believe that it is important for the imagery of the helicopter’s flight path and location at exact times to be made public.

The statement continued, “Further, we do not agree with the latest police statement that the purpose of the helicopter going to Northwest Point that night was to look for our family members. In an interview on Cayman 27 last week Steve Fitzgerald of the RCIPS plainly told Tammi Sulliman that the helicopter did a welfare flyover at North West Point. It is our understanding that the flyover happened in the 15-20 minutes shortly before the helicopter touched down at the airport at 7:45pm. Whatever is now stated, which purports to be that a search for our family was carried out is, in our view, untrue and we believe it was as originally stated, a Welfare Check.”

The family said that based on the information the RCIPS provided to them, at no point does the helicopter appear to stay and hover over any area on Sunday night except for the area close to Governors Harbour. They said it is important the imagery of the helicopter’s flight path and relevant locations at exact times is made public.

“We have been provided with information that prior to going to North West Point for the Welfare Check at approximately 7:25pm – 7:32pm, a boat captain was being spoken to in the Governor’s Harbour Channel. He was spoken to by RCIPS members of the Marine unit with the Helicopter hovering above. In the 15-20 or so minutes which follow, the police are now claiming they conducted a search before returning to their base at the airport. It is our belief that such a short flyover was not and could never constitute a search for our family and we as a family are also of the opinion that it is not an appropriate response to the call which was made at approximately 7pm of the sighting of a flare at Northwest Point,” the Mullings said.

Prior to the release of the family statement the RCIPS sent out a statement clarifying comments made by the Head of the RCIPS Air Support Unit Mr Fitzgerald on Cayman 27. Mr Fitzgerald had commented on the movement of the helicopter on Sunday evening and reports of flare reports received by 911. In this interview he mentioned the helicopter’s flight over North West Point as a “welfare check”. However, the RCIPS in their statement said it was not a welfare check.

The RCIPS statement confirmed the police helicopter deployed to a report of a flare at Starfish Point, which came into the 911 Communications Centre at 6:28pm.  Joint Marine Unit (JMU) officers also deployed to the area and spoke with boaters who reported that they had seen two flares in that vicinity.

“The police helicopter assisted from the air while the incident was investigated to a conclusion. While the police helicopter was near Governor’s Harbour assisting with this incident, another report came into the 911 Communications Centre at 19:09 regarding a flare seen off North West (NW) Point, which was relayed directly to the helicopter.  The police helicopter left Governor’s Harbour to look into this report.  The crew flew over NW Point and as far offshore as the weather permitted for them to investigate (a distance of 4 miles off shore was reached at 19:31). No subsequent flares were seen and no vessel was sighted during this check.  In addition, thermal imagery from the helicopter did not pick up any indication of persons in the water,” the RCIPS stated.

They added that due to the flare being reported directly to the helicopter crew during their deployment to the first incident and Mr Fitzgerald not being on the flight that evening he referred to it as “welfare check” instead of a 911 response.

In light of public criticism of the RCIPS response to reports of the five missing persons Commissioner of Police David Baines requested that HE Governor Helen Kilpatrick set up an independent review. Governor Kilpatrick announced the intention to initiate a review on 13 March.

When asked for an update on the review, such as when it will begin and who will be appointed to lead the review among other questions Gary Benham, the head of the Governor’s Office responded, “The governor is not yet in a position to answer these detailed questions, however she has committed to an independent review and to make the outcome of that public in due course.”

In a previous statement the governor mentioned that a “suitably qualified person will be appointed to lead” the review and report to her on its outcome.

The post Mullings family criticises RCIPS response to flare appeared first on The Cayman Reporter.

Renaldo Keanua Taylor, age 14.

Police are appealing to members of the public for help in tracing 14-year-old Renaldo Keanua Taylor who has been missing from his home address in North Side since Thursday evening (17 March.)

Reynaldo is described as being 5′ 10″ in height, with a slim build and dark complexion. His hair is in a plaited style.

Anyone with any information is asked to contact police on 949 4222.

The post Police appeal for help to find missing boy appeared first on The Cayman Reporter.

Renaldo Keanua Taylor, age 14.

Police advised at 3:05pm on Saturday 19 March that missing boy Renaldo Kenua Taylor, age 14, has been found safe and well, and has been returned to his family.

Renaldo had been missing from his home address in North Side since the evening of Thursday 17 March.

He was located by police. A public appeal for assistance in finding Renaldo was sent out by the RCIPS on Saturday morning.

RCIPS Chief Inspector Frank Owens thanked the media and public for their assistance.

The post Missing boy found appeared first on The Cayman Reporter.

Butterfield Bank may be the latest casualty in the US Department of Justice’s war on tax evasion. The bank has made provision for the payment of US$4.8 million against the possibility that it could be required to make a settlement payment as the result of an ongoing US federal investigation.

The investigation and prosecution of tax evasion has, in the last decade, grown from a specialised subcategory of law enforcement into a first-tier policy concern for the global community.Starting with the US government’s crackdown on Swiss bank UBS in 2008, there has been a steady drumbeat of news about prosecutions of financial institutions, bankers and taxpayers.

The Cayman Islands have proven no exception to this rule, particularly within the last 12-18 months.

The US government’s pursuit of financial institutions continues, with no signs of abating; Cayman National, Caledonian and Butterfield are only the most recent examples.

The current era of tax enforcement against banks began when the US government’s investigation of UBS became public in 2008. In February 2009, UBS entered into a deferred prosecution agreement with the US Department of Justice and agreed to cease its US cross-border business and pay a fine of $780 million.

While this ended UBS’s troubles with the US authorities over assisting US taxpayers in evading taxes (leaving aside the widely reported 2015 tax evasion investigation of UBS over bearer securities), it signaled the beginning of the US government’s attack on financial institutions that may have assisted their clients in violating US tax laws.

After UBS, the US government turned its attention to Wegelin & Co., Pictet & Cie, Neue Zuercher Bank, Credit Suisse Group AG, Basler Kantonalbank, Bank Julius Baer, Bank Frey, Bank Hapoalim, Bank Leumi, Bank Mizrahi-Tefahot, Liechtensteinische Landesbank AG, Swisspartners, CIBC FirstCaribbean, Cayman National Securities & Cayman National Trust Co., HSBC India and Bank of Butterfield.

Of these entities, local companies Cayman National Securities and Cayman National Trust Co have been prosecuted for allegedly assisting some US customers in tax evasion.

As reported locally, the Bank of N.T. Butterfield & Son Ltd. has made provision for the payment of US$4.8 million, recorded during its financial year which ended Dec. 31, 2015, against the possibility that it could be required to make a settlement payment as the result of an ongoing US federal investigation into tax evasion.

In November 2013, the US Attorney’s Office for the Southern District of New York announced the issuing of what were called the “John Doe summonses” to US financial institutions with which Butterfield Bank had correspondent bank relationships.

The John Doe summonses sought “to obtain information about possible tax fraud by individuals whose identities are unknown,” according to a US Department of Justice press release from Nov. 12, 2013.

The summonses required five banks operating in the US to produce that information in connection with undisclosed accounts at Butterfield Bank and its affiliates in the Bahamas, Barbados, the Cayman Islands, Guernsey, Hong Kong, Malta, Switzerland and the UK.

These “John Doe summonses” are similar to ordinary subpoenas that most people recognise, and can be served when the IRS does not know the identities or names of those persons that are potential violators of federal law, like individuals that may be moving money around to avoid taxes or to launder cash. Traditional summonses or subpoenas are of limited use in identifying unknown taxpayers with offshore bank accounts. This is because a traditional subpoena must identify the taxpayer whose conduct is at issue.

The John Doe summons is perfectly tailored to the IRS’s effort to identify account holders. They force the banks to produce bank records to the IRS that reveal the identities of owners of bank accounts held at their financial institutions. The John Doe summons makes the bank turn over the contact information in its files that corresponds to the bank accounts that the IRS is investigating. If the IRS finds bad things in that account, the result can be federal charges being brought not only against the account holder but also against the banker.

The court action marks federal investigators’ latest use of the special summonses to compel account disclosures by offshore banks suspected of helping wealthy American clients evade US taxes. In the last decade, the IRS has greatly increased its use of the so-called John Doe summons.

These special summonses have also proven successful at yielding fruit for prosecution. Since 2008, the US Department of Justice (DOJ) has publicly charged a few dozen bankers, lawyers and financial advisers. As of the end of 2015, more than half of them remain fugitives.  Being a fugitive means being unable to travel to or through any countries that extradite to the US for tax crimes.  For the majority of the fugitives, this means essentially being confined to Switzerland indefinitely.  The banks, lawyers and financial advisers that have answered their charges in the US have either pleaded guilty and cooperated with the US authorities or been convicted at trial.

Recognising the public’s growing discomfort with corporate prosecutions resulting in no one spending time in prison, Deputy Attorney General Sally Yates issued a memorandum to DOJ prosecutors on Sept. 9, 2015. In the so-called Yates memo, she emphasised the DOJ’s strong interest in holding individuals accountable for corporate crime, calling on the DOJ to “fully leverage its resources to identify culpable individuals at all levels in corporate cases.”

“International issues remain a major focus for the IRS, and we are continuing our efforts to fight tax evaders who use offshore accounts to skirt the law,” IRS Acting Commissioner Danny Werfel said in a statement. “These John Doe summonses for correspondent account records show our determination to pursue evaders using offshore accounts even if the person hiding money overseas chooses a bank that has no offices on US soil.”

US citizens are required to report all of their foreign financial accounts if the total value of the accounts exceeds $10,000 at any time during year. If someone withholds information on their foreign accounts, he can be fined up to 50 per cent of the amount in the account at the time of the violation, according to the IRS.

We have seen the effects of the US DOJ’s persistence locally in the collapse Caledonian Bank and in the recent guilty pleas recorded in US Federal Courts against Cayman National Securities & Cayman National Trust Co.

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On Monday morning, 7 March the Air Support Unit deployed the police helicopter at 8:30am to begin the search-and-rescue mission. The Joint Marine Unit police vessel Guardian also deployed at 9am.

The Mullings family claims the Royal Cayman Islands Police Service (RCIPS) did not immediately contact the United States Coast Guard (USCG) when asked to on Sunday night, 6 March.

The family of the missing persons Nicholas Watler, Gary Mullings, Kamron Brown and Kanyi Brown shared that it was a family friend who initially contacted the USCG, not the RCIPS thereby highlighting what they claim was the RCIPS’ refusal to act when alerted to their missing family members.

If it were not for this “inaction” of the police the family says they believe the USCG may have provided help at an earlier time than that provided by the RCIPS, which did not deploy until 8:30am for air support and 9:00am for marine support the following morning on Monday, 7 March.

“Between 1am and 2am on the 7^th of March 2016, a family friend made a call to the US coast guard. The US coast guard offered their assistance at that time. However, they informed the family that it was for the authorities in the Cayman Islands to give them permission to enter Cayman waters. As a family we appealed to the RCIPS for them to contact the US Coast Guard and allow them to assist. This did not happen in a timely manner, the Leader of Gold Command, is the Commissioner of Police. The call to speak to the US Coast Guard would have been his to make.  He did not make that call. Therefore, we believe significant help which could have been available at first light was then delayed for a day because the RCIPS or Governor’s office did not give their consent to the US Coast Guard becoming involved at the earliest available opportunity,” the family said in a statement released early last week.

“It is our understanding that a decision was made at about 9am on the 7^th March 2016 for the request of assistance to be made to the US Coast Guard. We are clearly confused and upset by the delay on the part of the responsible parties in requesting the assistance of the US coast Guard. Clearly, questions need to be answered as to why no effort was made prior to 9am on Monday the 7^th of March to engage the US Coast Guard who were willing to assist, and could  have started their search significantly earlier,” they added.

The Cayman Reporter reached out to the RCIPS for comment on when the Mullings family asked them to contact the USCG and when they actually made the call to the USCG. The RCIPS did not reply by press time.

The family further brought into question the RCIPS’ claims of bad weather contributing to the several hours’ delay between the time the emergency was reported to them and their deployment. They highlighted several cases in which the RCIPS has conducted search and rescue operations in weather conditions they believe were worse than those experienced the night they reported their family missing.

“This is a proud nation with a great sea fearing tradition. Other private captains, without hesitation took their boats out that night. Therefore, we ask why no experienced marine unit police officers were called out or deployed that night to look for our family? We know that officers have been deployed in Hurricane Mitch to search for Mr Ashton Ebanks, we know that in Hurricane Michelle two Honduran Gentlemen were rescued and we also know that the Minzette twins were rescued 72 miles out at sea and in 15 foot waves, in conditions we believe were significantly worse than those on Sunday night,” the Mullings family stated.

“Once the call was received that night it is our belief that the marine unit should have been deployed. It is also our understanding that funds have not been provided to the marine unit for the upkeep of boats which is why all suitable boats owned by the RCIPS for the purpose of seeking those lost at sea, were not available to be utilised that night,” the family alleged.

“We also understand that the experienced rescue officer who was attached to the marine unit is currently on fully paid suspension in relation to a driving matter. We query why his extensive experience was not sought that night? As a family we would like to know why nothing appears to have been done to engage all of the resources the RCIPS had in a timely manner. Why did they spend the night taking statements from family members instead of starting a search? Where was Gold Command at this time and what information was being passed to Gold Command about the urgency of this case?” they added.

The Mullings also questioned if the RCIPS would have delayed if their family members were from Seven Mile Beach and not Windsor Park.

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