Duty waivers still not monitored
(CNS): Four years after the auditor general first recommended that government introduce a duty waiver policy and find ways to manage, monitor and measure the concessions it gives away, a proposed policy is still in the very early stages, the Public Accounts Committee heard Wednesday. As senior civil servants appeared before the committee to answer questions raised in the report, Customs in the Cayman Islands, it was clear that officials still have no idea how much duty is given away, largely to developers, and what, if any, benefit that brings.
In her opening statement Auditor General Sue Winspear said that there is still only minimal progress on the management of concessions and waivers, which are still not being properly monitored, so the government does not know if the anticipated benefits of giving the concessions are being delivered.
But when Financial Secretary Ken Jefferson and his deputy, Micheal Nixon, appeared, the committee heard that the policy had just this week made it as far as caucus. Jefferson said that when it was presented it was well received; the only concern from the politicians was that Cabinet needed to retain some flexibility to grant concessions and the policy should not be too prescriptive.
But Jefferson admitted that historically there has been very little monitoring of concessions and waivers.
As far as he was aware, he said, no checks had ever been done on sites to see if developers on larger projects are employing as many Caymanians as they said they would. And while there had been an effort in the ministry to monitor the outcomes and timelines, the more detailed monitoring on the possible abuse of concessions was much more difficult, he said.
The financial secretary said that estimating how much the public purse actually gives away in concessions and what the benefits of that are was a challenge. “It is a problematic area to monitor concessions,” he said. “We have never gone to worksites to question or obtain evidence that Caymanians are being employed where it would have been a condition of the concessions as the ministry does not have the resources.”
But Jefferson suggested the new employment agency, WORC, once it is up and running, may be better able to monitor developers who have agreed to create a certain number of local jobs and assess whether or not they have reneged on those commitments.
Nixon told the committee that the new policy was extensive and the ministry was stepping up its due diligence on those offered concessions. He said the “key deliverables” were now being monitored, and where developers had not met agreed start dates or completed a project as required, the concessions could be change or cancelled altogether. He said the new policy has recommended that developers secure planning permission before they get the concessions.
Jefferson added that the policy will cover the criteria for granting waivers, such as the feasibility and whether it fits with government aims. It also covers the risks that a project could pose and what impact giving concessions will have on revenue, and also requires large waivers to have written agreements defining the concessions and where a developer would need to satisfy certain requirements.
But the two senior government bean counters both admitted that tracking the value of concessions is “a work in progress”, made more challenging by the systems in place at customs and how developers draw down on their waivers.
Wesley Howell, despite being on temporary secondment to the Elections Office in light of the impending referendum, is the chief officer in the premier’s ministry and responsible for the new Customs and Border Control (CBC) agency. This means he will ultimately oversee the concessions policy if and when it is implemented.
Howell welcomed the proposal, saying it would provide a more coordinated approach to concessions and their outcomes in longer term. He said that if people are aware of concession abuse, such as where developers have waivers for one project but are using the goods for others, they can report that to the government tip line or the whistle-blower lines or anyone in government that they feel comfortable talking to.
PAC Chair Ezzard Miller asked how Cabinet is granting waivers to hotel and condos aimed at the tourism sector, given that it breaches the Hotels Aid Law, but the question was not resolved. Jefferson said he was unaware whether or not the finance minister had taken advice about how the concessions, which he said Cabinet has a lawful right to grant under different legislation, conflicted with the laws relating to the relevant hotel legislation.
See Wednesday morning’s PAC session below:
- Fascinated
- Happy
- Sad
- Angry
- Bored
- Afraid
Category: Government Finance, Government oversight, Politics
I am surprised to hear this as the government seems to have the time to travel and attend overseas events.
Oh for f@&$’s sake let’s just stop pretending this is “incompetence” or an “opportunity for corruption” and say it like it is! We all know the waivers are handed out by politicians to their “friends” on the understanding they’ll be looked after in return. That is a serious crime and it’s happening right in front of us. The greedy sleaze-balls who are doing this (while receiving lavish salaries, pensions, unlimited expenses and luxury travel) should be in jail but nothing ever happens! No wonder so many stand for election here – it must be the greatest job in the world. Free money, no work and no consequences.
Ok people I know most of you renters and ravers get on ya morality horses and get some sweetness kicks whenever and whichever government does not perform a specific task or comply with a specific matter. In your rants most of the time and without “evidence” ( yours or someone elses) you cry out corruption.
Now think people think, the many times you have gotten on this soap box news service have you seen evidence of corruption published or have any of you provided such credible information that has resulted in conviction(s).
For Pete’s sake stop jacking with this “ corruption ting” if you can’t assist the process by showing it. Truth be told if it really going on y’all look so diam stupid and those who do it ,laughing all the way to yonder banks( and I don mean 12 mile bank either)
Anyone out there not surprised by this news? Duty waivers are thinly disguised kickbacks that work both ways – there’s no way they’ll ever be subject to proper public scrutiny.
“Whether it’s securing a vehicular inspection sticker [for a car that doesn’t pass], an exemption to development regulations, approval for work permits, the support of a particular block of voters, or, allegedly, millions of dollars in bribes in relation to sporting events – lurking behind the scenes are shadows of impropriety, influence, and inscrutability.” (from Compass editorial, 2015)
The Global Implications Of Corruption In The Caymans
https://www.forbes.com/sites/johntamny/2015/06/24/the-global-implications-of-corruption-in-the-caymans/#32abf6ede5f8
Where you at Anticorruption Committee? Your silence is deafening. What purpose do you serve if you’re not willing to tackle problems such as the one mentioned in the above article. You can’t make this shit up
Has the ACC tackled anything? I don’t envy them…where would one begin?
Well, let’s see. They could start with an investigation into the cabinet status grants, but….
@1:50 pm They’re still investigating Juliana’s spendings.
The auditor general revealed in his report [2015] that Ms. O’Connor-Connolly somehow managed to spend $34,000 in hotel charges on Cayman Brac, where she lives and has a home. He also raised questions (and eyebrows) when he referred to Ms. O’Connor-Connolly’s now infamous trip to Qatar, entourage in tow, to attend a postal conference where Cayman received a bronze award for the excellence of its postal service.
Speaker [Julianna O’Connor-Connolly] may face ACC probe [for a “breach of trust”]. https://caymannewsservice.com/2015/07/speaker-may-face-acc-probe/
Any comments from the Deputy Governor Franz Manderson?
Speak up Franz (and if Mr. Manderson does not, we expect to hear from you, Mr. Roper).
roper the joker…won’t say a word.
Our DG has nothing to do with making Government policy. A teenager should know this.
This is not a question of policy. This is a question of bad governance.
another glorious day for our ‘world class’ civil service…..zzzzzzzzz
Small note CNS, I think the deputy is Michael Nixon, not Dixon.
CNS: Thanks! Very much appreciated.
Does anyone know if there are any area(s) or ministry(ies) where this government does a good job? Genuinely curious.
The Gazette is pretty on point.
Wesley cannot handle what he has now and you going to give him more. This is just a paper shuffling mandate. As usual the Govt really does not want any accountability as it will expose their corruption
I have come to the conclusion that the Caymanian people enjoy being screwed. Can you imagine what its going to be like when we have 100,000 people living on this tiny Island. Can someone tell me why we need to give concessions?
Good question…………..! Why in the name of God, do we have to give concessions to developers? They develop for their own gain, not to benefit the Caymanian. They are making millions everytime they finish a project and all their condos etc., are sold. Why do we need to help them further? Just asking.
World Class, right “Linda”?
A deliberate failing by Cabinet and Ministry of Finance over many years. How can any person be held accountable if there are no rules guidelines and policies to follow? This is how the system has always worked by design. It is serious failing on this government and previous ones that do not want the concession deals monitored or there to be any paperwork that can be followed or audited. That sort of management or lack thereof facilitates side deals, abuse of office and potential corrupt activities.
What a hot mess. If we knew the numbers on how much they have given away to assist these people to fatten up their pay cheque we would all get a stroke. They are giving our money away and not even checking to see if they are hiring our people. This is mind boggling!
It is easy to determine the number of Caymanians employed by developers. The pensions office alone has the data. Is anyone going to check, and demand payment of the waived duties from those developers that did not fulfil their end of the bargain? Anyone? Anyone? ….. these punks are selling our future and our sustainability….
The scope for corruption is enormous! Incompetence reigns.
Incompetence reigns to make Corruption easier.
Methinks starting new Ministries yet again, should help? LOL
Roper – what do you do every day?
Drink tea. Work on marketing campaigns promising and assuring good governance. Go for a swim. Drink more tea. Congratulate everyone on a job well done. Have a glass of wine. Watch the sun set. Assure myself that everything is splendid. Go to bed.
3:15-3:20pm Steel drum practice
That was only on Thursdays.
CUC collects Gov’t Fuel Duty on every customer bill (subject to service cutoff if not paid), yet, according to Customs in Auditor General 2018 report, those duties on fuel have been waived and the amount collected is supposed to be funding the NRA Fund. If that’s the case, where does the $10mln/year in budgeted NRA allocation go? Why doesn’t it say NRA Fund contribution on our Bill? Who is keeping track?
Because it’s most likely not going there and because certain prominent MLA’s are stack holders in CUC no one is going to look into it… SFPL needs to begin immediately.
National Rifle Association?
National Roads Authority Fund.
Perhaps even more worrying, CUC’s public financials on SEDAR do not report that amount they are collecting and remitting-on to CIG, even as a pass-through payable on their balance sheet. Deliberately sloppy?