CIG rakes in near $447 million in just the first quarter
(CNS): The Cayman Islands Government earned a record $446,906,000 in the first three months of this year, the most it has ever collected, surpassing budget predictions and resulting in a whopping first-quarter surplus of almost $221 million. CIG collected over $73M more at the start of 2022 than in pre-pandemic 2019. As well as the increase in revenue, government managed to save significantly on expenditure, fattening out the public purse and putting PACT in a strong position for the economic uncertainties ahead.
While the first quarter is always government’s highest-earning period because of the money collected from offshore business fees, 2022 has had a bumper start with much of the extra cash due to those fees and the performance of Cayman’s financial sector, which is making up for all the lost tourism revenue. Government earnings for the first quarter of 2022 were not only the highest ever but also surpassed what the finance ministry had projected in the 2022 budget by almost $13M.
Although government is spending more than ever on public services, expenses for the first quarter were less than expected for this year, amounting to almost $226M, some $5.6M lower than forecast. However, this was still $67.6M more than in 2019, before the pandemic began changing the shape of the budgets. The government’s cash position has improved and is over $83.6M more than expected. Bank account balances on 31 March 2022 stood at over $535M and debt has fallen to a new low of just $218million.
The healthy public finances were welcomed by Finance Minister Chris Saunders, who said the detailed results reflected the strength of the financial industry. “When we examine the revenues driven by the financial services sector that are collected by the Registrar of Companies and CIMA, we see that the confidence in our financial services sector remains strong, despite the many global challenges.”
While the tourism sector is beginning to recover, it is well short of pre-pandemic levels, and duties on fuel and alcohol, which are charged by volume and not value, are also still below 2019 levels. “The silver lining in all of this is that overall confidence in our economy and our stewardship of government finances remains high. The results speak for themselves,” Saunders added in a press release about the results.
According to the unaudited report, while offshore fees dominate government’s earnings, providing around 64% of coercive revenue, import duty was the other big earner, as well as stamp duty and work permit fees.
The massive increase in earnings has covered the increase in public spending, which has been fueled by the growing demand for public services and the extra money government has had to spend as a direct result of the pandemic and on health care.
The ex gratia stipend added $12.1M dollars to the spending side of the balance sheet and the statutory authorities and government-owned companies collectively underperformed, recording a combined net operating deficit of $5.2M for first quarter of 2022. While some SAGCs did better than expected, including the Port and Water Authorities, others, such as the HSA, underperformed.
But the civil service payroll tab was much lower than expected, saving around $8.5M on predicted personnel costs, largely due to the number of vacant posts.
In the report’s conclusion, the government accountants said the first-quarter performance gives the CIG cause to be optimistic but over the remaining three quarters of 2022, costs will have to be diligently monitored to ensure spending is not incurred unnecessarily.
“It is anticipated that there will continue to be economic effects of the COVID-19 pandemic. The continued relaxation of international travel restrictions is likely to boost revenues in the economy in areas such as tourism over the coming months,” they added.
Premier Wayne Panton said the results reflected one of the first priorities of the PACT government, which was to stabilise the government’s financial position following the negative impact last year of the pandemic. Thanking Saunders for “his diligence in containing overall expenses… while simultaneously increasing our cash position”, he welcomed the surplus.
He also noted that government’s financial success is achieved in partnership with the civil service. “The positive results are a testament to civil service’s commitment to ensuring value for money, careful timing, and where possible, reducing expenses while maintaining or increasing standards of service,” the premier said.
Comparison of the Q1 financial performance over the last three years:
| 2019 | 2020 | 2021 | 2022 | |
| Revenues | $373,660,000 | $353,189,000 | $404,212,000 | $446,906,000 |
| Operating Expenses, Financing Costs and Non-Operating Costs | $158,256,000 | $180,898,000 | $207,981,000 | $225,941,000 |
| Operating Surplus of Central Government | $215,404,000 | $172,291,000 | $196,231,000 | $220,965,000 |
| Surplus/(Deficit) made by Statutory Authorities and Government Companies | $1,343,000 | $4,964,000 | $7,447,000 | $(5,247,000) |
| Surplus of the Entire Public Sector | $216,747,000 | $177,255,000 | $203,678,000 | $215,718,000 |
| Total Bank Account balances | $747,145,000 | $659,621,000 | $611,208,000 | $535,374,000 |
Summary of breakdown of revenues collected in several categories compared to prior years:
| 2019 | 2020 | 2021 | 2022 | |
| Import Duty Revenues | $51,758.000 | $50,445,000 | $45,110,000 | $53,677,000 |
| General Registry Fees | $131,627,000 | $126,454,000 | $139,288,000 | $151,231,000 |
| CIMA Fees | $86,635,000 | $78,792,000 | $125,885,000 | $138,890,000 |
| Work Permit Revenues | $21,409,000 | $20,212,000 | $17,974,000 | $26,694,000 |
| Property-related Revenues | $17,224,000 | $18,961,000 | $24,141,000 | $21,806,000 |
| Tourism-related Revenues | $15,302,000 | $11,638,000 | $169,000 | $3,186,000 |
| Other Coercive Revenues | $11,663,000 | $10,574,000 | $12,811,000 | $11,399,000 |
See the full report in the CNS Library.
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Category: Government Finance, Politics
I will vote for the party that builds the overpass at grand harbour for the rest of my life!
Orrie Merren, where can I sign the petition? Please publish a link or direct to a location where a hard copy exists.
Mr. Prentice Panton’s stores, specifically Reflections locations and Hemp & Tobacco store in George Town.
Behavior Health Associates Cayman (BHAC), which is Dr. Lockhart’s medical health practice, but only for patients with appointments.
Mr. Roger Freeman’s restaurant, Silverside, which is above Eden Rock dive facility on the waterfront.
And, in due course, there are going to more business locations that have Petitions for signing.
We will be making some announcements publicly in due course. We are doing work behind the scenes right now and getting ready for more formal things to come.
Also, if anyone wants me to bring the Petition personally for you to sign, feel free to contact me at 916-4947 and we can arrange a mutually convenient time and place.
God bless,
Orrie 🙏🏻🇰🇾
Roy, let me put a bow on this for you, parliamentary question to the Minister of Finance, are there any invoices for Statutory Authorities or Government Companies that the Government has not acknowledged or recorded in the books of the central Government when the first quarter results were reported? Saunders is hiding the true numbers I am telling you. I would do an FOI and put it on your windshield but I am not paying my taxes to do your job, wake up ffs.
How much did we spent on tourism stipend Q1 2022 divided by 3M of tourism revenue Q1 2022?
Do i want to know? Have a funny feeling the former is larger than the latter.
It was costing more a month – 3000 recipients @1500 – than government made in tourism revenue in 3 months. Before you factor in the infra costs of accommodating all those cruise tourists.
Ask the financial wiz Saunders exactly how that offsets the Cost of living Here ?? He is only doing what ppm Roy did boast about financial figures which translate to zilch for the average Caymanian who is a mortgage payment away from foreclosure. The wealthy elites and political minders could not care less about regular folk and their financial difficulties . The foreign investors and his immigration fees scam is top priorities here now. Who are we building for Cayman if we can’t afford to live here ?
Tell it like it is.
Maybe they should make an offer on Britannia?
Or gift title to the Hyatt Hotel complex and Britania golf course in lieu of per diem penalty or maybe sell at a discount to CIG, since both are in a state of disrepair.
It would be a fair compromise after showing true colors, would it not?
Where’s the money? The numbers say we’ve had a $200mio surplus for the past 4 years, roughly $800mio, yet the bank balances have gone down $200mio. That’s $1bn missing. I see debt has gone down to $218mio (from what?), how much of the $1bn went to reducing debt, and where’s the rest? I an NOT an accountant, so I’ve probably taken 2 and 2 and made 5 as usual, but what am I not getting? Also how do we have 2022 numbers, we are only 5 months into the year?
You dont say. CBA looking about the surplus, but its Q1 2022 numbers (not full year).
Tourism related revenue of $3m? Property less than 5% of government revenue? So remind me why we are overloading our infrastructure and destroying our environment for cruise and endless real estate development?
Keep in mind that where the government’s revenue comes from is not the same as where people’s revenue comes from. Real estate and tourism are important to lots of people who don’t live off government money.
Like what you said. Thought provoking.
Is tourism related revenue when the tourists had to take all those LFT’s on day 3, 5 and 7?
https://www.bbc.co.uk/news/uk-politics-61432498
I’m not sure which Government planted what seed or which is “reaping” but surely many of those revenues are from fees of some sort related to new businesses since the pandemic and our “bubble”. As an example, notice how many new rental car companies and “driving schools” have appeared on the roads.
It’s related to CIG requirements for persons seeking residency or some form of becoming “local” (sorry I’m not familiar, not ever having needed it). So, a lot of “businesses” are cropping up, requiring licenses, WPs..etc.
CIG’s revenues structures are created to be funded solely by fees! No forward thinking but to increase fees! No thoughts of diversifying the economy and at least get fees from other sources…regulated national lottery, de-criminalized ganja etc… Anyway, no rush!
Let me blaze-up my local-grown and calm down.
All these driving schools and I’m still seeing some of the worst driving I’ve ever seen in my life.
#whatisyieldinganyway #yolo
Maybe they’re new businesses people in tourism decided to open???
Now imagine what it would be if they were collecting agriculture fees from private ganja growers. $250 yearly fee and you are allowed to grow up to 6 plants for personal use. They were very open to ganja first few months of the election but cant hear a peep now
Sign the Cayman Cannabis Referendum Petition and, when the CCR referendum is triggered and successful, Parliament will have a mandate from the registered Caymanian voters to pass broaden medical cannabis laws, which is very narrow currently, and to introduce decriminalisation legislation, which is non-existent but is protected by fundamental human rights.
If that happens, the the Caymanian owned and controlled businesses would have another another economic pillar of financial sustainability, and CIG will benefit from fees generated by licenses issue by such future Cannabis Licensing Authority.
I signed and would encourage others to do the same. This be bring socio-economic benefits to Caymanians and residents.
🎄🎄 =💰💴 💵 and ⚖️ for 🇰🇾
Thank you.
Share da link
Thank you.
Why are a lawyer and the head of the Cayman Mental Health Commission advocating so strongly to legalize ganja? They never been to West Bay??
It’s time to set aside a couple hundred million to build another road into town from the east.
Where would it go? Over the North Sound? Do you mean separate and apart from the East-West Arterial? Or do you mean finishing the East-West Arterial?
Over the sound is the only option.
Post was sarcastic. They don’t care where it goes, just that it gets built ( or rather, spent). But like schools – doesn’t matter what the results are – be able to claim you have done something, and think of all the juicy contracts to be awarded.
The beauty of the financial sector. And they don’t take caymanian jobs. If the government improve education, caymanians will be the partners in the law firms and accounting firms in 20 years
There already are lots of Caymanian partners…..just not “15th generational”.
Bullshit. Bryan Hunter and Wayne Panton have retired. There are fewer now than there were 20 years ago.
There are plenty of true Caymanian partners in the accounting firms, if you must differentiate blood from paper.
True, but how many new Caymanian partners are there?
Not as many as previous years, but accounting firms have betters numbers of multi-generational Caymanians than law firms.
It seems that the accounting firms (especially the original big four) are more concerned about making money and will let Caymanians climb the ranks to equity partner based on merit.
However, law firms, with a majority of expat partners, do not have the same openness to letting multi-generational Caymanians become equity partners.
But, when they do, it usually is a token Caymanian as PR show piece or because of a strategic advantage stemming from who their parents or family are, which often brings that law firm an economic or some other advantage.
David Collins, Justin Hart, Nicholas Bullmore, Eric Bodden…
I could keep going if you’d like?
Only Eric Bodden has Caymanian roots dating back over 100 years, but it is true that all named individuals are indeed Caymanians.
The original comment was that there are lots of Caymanian Partners, just not 15th Generation ones.
The response was “Bullshit. Bryan Hunter and Wayne Panton have retired. There are fewer now than there were 20 years ago.”
That is to say, the list above does not need to include people with century long roots… there are plenty of people who are Caymanian, and indeed multi-generational Caymanians, who are partners at accounting and law firms. The notion that there are not is a myth.
Please explain? Asking for a friend.
9:43 am – Please do keep going, would like to know more? Who else you got?
The most exclusive club on the planet. More people have walked on the moon…
Yes, but generally, they are pretty hopeless and are just made Partners for optics. We have one Caymanian Partner at our accountancy firm who does nothing – takes a whopping salary – and is simply there is make up the numbers!!
A token Caymanian partner.
Funny. That was what they told me in law school. 20 years ago. Not true then, not true now.
You should have gone to a better law school, not that one in the Tower 20 years ago
The Truman Bodden Law School, which is an overseas campus of University of Liverpool’s law school is a good law school. Are you suggesting it’s not?
Hon. Premier Wayne Panton, Sir Alden McLaughlin QC and Eric Bodden all were graduates of the Truman Bodden Law School.
It served them and many other very well.
There are also other attorneys, who are far more intelligent and talented than them, that graduated from the Truman Bodden Law School as well.
True.
Time longer than rope.
Yes.
By the quality of the law graduates that I have met, the answer if ‘No”, it is not a good law school.
No but Caymanians should have elected a government that gave them priority in their own country…
10:18 pm, what law school did you go to? And was it better than the Truman Bodden Law School?
If so, please explain and enlighten us, so we can understand your viewpoint.
What, that you weren’t up to it then, and you are still not? Cry me a river. Law firms care about making money more than they do about your origin. If you have the talent and are prepared to do the long, long hours to make it, you get there. There are already more Caymanian partners in professional services firms than anyone could reasonably expect from a population of 35000 Caymanians.
No one would mainly dispute, as you noted, that “law firms care about making money”.
But, as to country of origin, that is different. There are a few token Caymanian partners, whose roots date back over 100 years or more.
Other Caymanian partners are mainly more recent status grantees, but Caymanian all the same.
No dispute there, except any that may have possibly been questionable 2003 massive status grant free for all form Mac’s UDP.
What a bunch of bs….there are many Caymanians not getting jobs and not being promoted in financial sector…..although qualified for positions.
REALLY? nah
👎
5.07pm Don’t take Caymanians jobs? Why then is Butterfield staffed by Canadians, Irish, Jamaicans, Hispanics etc. but laid off most Caymanian staff?
Tell them.
Whilst I agree that the financial services industry forms an important pillar of our economy. It is past time for the economy to be diversified. Make no mistake, the tax neutrality, National stability, and connection to the UK are some of the reasons we are a preferred jurisdiction. These financial companies can pick up and leave at any point. All it takes is for some factor (internal or external to the Cayman Islands) to make the cost of doing business here too high. Just look at what happened to the tourism industry over the past 2.5 years and the evolving regulatory environment. It is never too late to try to diversify, and we don’t have to generate a huge quantity of the alternative product, just enough to act as a contingency. It is never too late, so long as we have life, vision, and leaders that are committed to implement same.
Strongly agree, but we have a slim probability of the latter in your comment. Historically, proactive change without impetus is absent in Cayman.
Thank Alden and Roy they are the ones responsible for the financial Services reform that made this possible!
Sir Alden was the greatest Premier we ever had. He steered our country to strength that is still going strong even after he had to step down. Change the constitution and bring him back now as we desperately need his great guidance!
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That is really the BIGGEST pile of bullshit I have ever seen, heard or smelled concerning the Cayman Government. (And I’ve seen a lot of piles!)You need help. Do you know a good psychiatrist?
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Thanks to Joey Hew too who started the Technical programs at Public Works years ago. Persons callkng in to the talkshow seemed to think this was a PACT initiative.
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And Chris will take credit for it all.
So, no need then for the few shekels brought in by seafaring tourists? Get rid of the cruise ships and move the dock, pedestrianize and redevelop GT and the oceanfront. Compete with Dart to make GT the capital of the Cayman Islands it was always meant to be. CIG: USE YOUR IMAGINATION.
Who do you think bought up downtown George Town?
You’ll have to provide some evidence for this statement.
How about starting to apply immigration regulations to the Financial Sector now? Would love to have opportunity Roy and the old boys had.
SMH
Me too.
Thank god for the expats who bring their expertise in financial services!
Educate Caymanians properly!!
Do you think its possible?
Not really!
Sadly Caymanians will not allow this to happen.
Well, when changes are made, where Caymanians are favored, remember your anti Caymanian views. Inflicting self-induced harm.
Coexistence was thought to be possible, but not with people with your attitude and disposition. Choose words wisely.
Tell them.
Yet the kids coming out of school are uneducated.
Sweeping generalisation!
Only to be spent by greedy, selfish, and self-serving MP’s for their own political and personal gain while the poor man suffers in desperate and painful agony. CUC, gas, groceries, water, and interest rates have all gone up and we have yet to hear 1 single MP say anything about how this affects ALL citizens nor what they would bring to the table as some relief. You have 1 Minister in Jamaica for 1 entire week, at the PEOPLES’ expense. WHY DOES HE HAVE TO BE THERE FOR A WEEK. What kind of imports is he arranging??? What will the trip yield, other than the massive cost to the country? Hope the JA Air traffic Controllers remain on strike for 2 weeks so he has to remain there.
Honestly, this BS cannot be made up. Cayman needs a Union so that employees can shut it all down to shed light on the plight of many hopefully.
Agreed.
1 Minister? Big Mac, Jon Jon, Jay plus staff. Can somebody tell us what they are doing?
Wish I knew. Now I’m interested. Mac and Jay know what they’re doing, but not sure Jon Jon has the slightest clue.
9.31pm Partying!!
“The CI chit-show” – good points…..About the ATC strike, watch out. J’can ATCOs get fired for striking, meanwhile CI Airports Auth are advertising for ATCOs.
Can’t wait to see those dots connect! Another opportunity for a young local done up and gone!
You’re obviously an ill informed individual. Complaining about the expense of a Minister traveling but yet wishing for the existence of unions, so they can shut the economy down.
Yeah, you surely have your head screwed on right.
Read the last 8 words of the comment numb skull. It was an analogy in simple form.
Well then…with all this unexpected surplus…maybe the government can now do something about fuel prices…lower cost of living…or did fuel contribute to this surplus?
Our country owes a debt of gratitude to the pioneers of our financial services industry. Also to the current owners/stakeholders, industry leaders, quality service providers who are invaluable as they understand our role in global financial services. Having a sound regulatory agency e.g. CIMA and our status as a tax neutral jurisdiction helps to drive this economic miracle.
There can no longer be any debate about what is the primary driver of Cayman’s economy and government revenues which helps to pay for all government related services that are provided. The 2019-2022 COVID pandemic best illustrates the point.
For continued growth and future success government must protect, support the financial services industry, and allow for greater meaningful consultation with elected and non-elected government i.e. the Civil Service as the administrative arm of government at times seem disconnected or take a myopic view to the realities considering how some decisions are made and policies implemented which may and usually results in negative consequences for industry.
Cayman needs to have an accountable, responsible, transparent and consistently professional leadership at all levels in the governance model. These qualities are imperative for our continued collective success. These key factors has allowed successive governments to take credit for impressive balance sheets, revenue projections and credit ratings that make us the envy of the region.
There must be real accountability regarding how millions are spent and potential revenue is lost due to an ad hoc concessions process that is politically driven. During a boom in certain industries e.g. construction/development these giveaways to wealthy entities and stakeholders can be best described as government sponsored corporate welfare. This is no longer sustainable.
The beneficiaries are primarily political donors, financiers, friends and business associates. The current system currently has no guidelines, structure, tracking or justification. I maintain it is deliberate to avoid real accountability, transparency and tracking/management by multiple governments.
In closing, has the time arrived to start a Cayman Sovereign Wealth Fund? I hope the current administration will see the merits in doing so to help bolster our financial prospects long term.
Regards
Johann Moxam
So Johann you compliment then you discredit in the same breath or am I reading this wrong?
What ad hoc concessions are you referring to that are politically driven and is that past or present? Don’t make general statements and enlighten us please.
Are you saying that the PACT government is doing similar deals with developers and not being transparent?
Are you not on some politically appointed boards too?
You at least have the knowledge to serve the boards but others are questionable.
We have a surplus so let’s not get crazy. Focus on long term needs versus the next election.
We are watching.
You obviously do not follow the news in this country. See links below to better understand some of the critical issues.
https://caymannewsservice.com/2020/06/development-deals-to-remain-secret/
https://caymannewsservice.com/2021/03/four-development-deals-still-secret/
https://caymannewsservice.com/2021/10/pageant-beach-hotel-got-ci10m-duty-waiver/
https://caymannewsservice.com/2021/01/millionaire-condo-tower-gets-8-2m-waiver-deal/
https://caymannewsservice.com/2020/11/cig-gave-up-ci2-85m-duty-on-fin-project/
https://caymannewsservice.com/2019/01/tourism-ministry-refuses-foi/
Well said Mr. Moxam
Business is (still) here (for now) in spite of CIMA, not because of it.
You should have ceased writing after the full stop on your second sentence in the first paragraph.
Strong consideration should be given to a Cayman Sovereign Wealth Fund, which would be very positive if handled correctly.
Any unpaid bills helped make this surplus
I am glad I am not the only who knows that the cash surplus in the central Government is due to starving of the SAGCs with massive amounts owed. You would have thought that Roy McTaggart a qualified accountant would have been asking questions but it seems the opposition is asleep at the wheel.
Yep. All if a sudden, departments starting to pay bills now that was owed from last year. Now I know why my department was so behind in paying bills.
Obviously youre not an accountant. Accrual accounting recognises expenses when incurred not when they are paid.
I would have a surplus too if I did not pay any of my bills.
This surplus statement is not the all-inclusive picture.
It looks like propaganda to me. Don’t fool yourselves.
Time to reduce import duty on fresh fruits and vegetables that can’t be grown on island.
We need to help struggling Caymanian deal with the exorbitant cost of living costs by eliminate import duty on more food and clothing essentials.
It ain’t just struggling Caymanians my friend. The rest of us have to eat and clothe our families too.
And is this helping the people of Cayman who are struggling? His idea lets bring the Pension into effect July 1st, how is that going to help. The stock markets are crashing, people are barely able to feed their families and pay their bills, companies are struggling, and tourism is dripping and drabbing, no boom here…why not wait till Jan 2023 to give the island a chance to recooperate the two years it was closed. The US is heading for a recession, do you not think Cayman is going to feel this?
You understand that when markets are crashing IS EXACTLY the time to invest for the longer term, including for retirement?
Why? In my last pension statement, it was work $500 less than last year!!
Good suggestion but many items that are duty-free are still costing an arm and leg as we have no sort of Consumer Protections Agency.
Spot on, also invest in local farming in order for us to be more sustainable and healthier.
and imagine what we could do if we trimmed the waste in the civil service!
And the Sovereign Wealth Fund we should now be investing in and which could also be augmented by our pension contributions. Reducing costs and increasing gains.
And if we controlled NAU payments so that only needy Caymanians benefit.
Unfortunately, many Caymanians behaved irresponsibly and had children out of wedlock with foreigners that provide little if any financial assistance to the children. This contributes heavily to the demand for NAU funds. The solution is to keep your pants on or your panties on.
You would have to send them to NAU,which would’t help the situation.just saying…your idea dont make sense.
How about not charging us Caymanian stamp duty when purchasing a house for the second time in our life time? There’s circumstances where people no longer live in their first purchase and are in dire need to buy a house for the second time but can’t afford a down payment plus the ridiculous %7.5 govt stamp duty!
I would settle for 50% stamp duty..Government needs the revenue and I would be happy to pay my part..Nothing is ever for free..
lol so if you buy a house for $400K, you will happily pay the government $200K more on duty? boy stop trolling
And not pay property taxes ever? You betcha. That is a fantastic deal.
Stop trolling.
Think the poster meant 50% of the stamp duty due at the regular 7.5%. So 3.75%. At least I hope so.
Doubt it, but would hope so too.
@3;15pm..Are you serious? You do know that stamp duty is only 7.5% not 50%? Have you purchased land or a home before? Stamp duty is not 100% of the value..no one buys a house for $400k and pays $200k in stamp duty..
I replied to the post who said he will be happy to pay 50% stamp duty, i know well is %7.5
“7.5%”, not “%7.5”.
Read the room… many out there trying to buy “a” house much less saving on a second
This might spell a reduction in duty on essential items like food and fuel to offset high inflation but we’ll have non of that no Chris will we?
447 million and still no large public green space for exercise or recreation and no 400m track for the public to use (that 320m asphalt oval behind the middle school is a disgrace and cannot be described as fit for purpose). Childhood and young adult obesity rates are probably the highest in the Caribbean, yet where are our priorities? SAD.
go for a walk at the botanic park with the kids.
Nothing like commuting for an hour to go for a boring walk.
Pay to go in?’!! Pay $10 in petrol to get there?!? Or bus fares!!
It would be great if it was no cost too the public but then we would have to pay to go into turtle farm and Pedro castle….bigger sinkholes of government funds.
Beach. Enjoy it while you still can.
“Middle school”? Where that is?
You must be new to Grand Cayman. It was what our Government school was called for junior high students, before the went to High School. Both middle school and high school have now been renamed. I’m sure you know the new names though, right?
Ah yes. Look at the CIMA funds collections this year. Ridiculous.
That is good. If funds “use” our jurisdiction, they should contribute something.
Time to put some extra in the government pension fund.
In other words, confirmation that cruise ship tourism is not needed and we should focus on stay over tourism.
Always remarkable to see others always willing to sacrifice the income of others for their own perceived comforts.
Yes exactly. Cruise ship business was not a factor in this financial report. Proves we don’t need those floating septic tanks of ships
Agree we dont need them, however many do rely on them for thier income. We have all the leverage and need to take advantage of it, at a minimum we shouldnt bend to their demands, they need us more than we need them, and we should dictate the terms of how they are allowed to operate in this country, i.e. we set how many ships allowed on any given day, higher minimum percentage cut for our local tour operators etc, take it or leave it
Yes! …and invite the high end liners that have for years been repelled by politically tainted/misguided FCCA body count obsession.
THANK you to the accounting firm partners for their persistence in getting the Private Funds Act passed and amendments to the Mutual Funds Act.
NO THANK you to the law firm partners (led by the Maples and Walkers) and most fund directors for trying frustrate the process at every turn to try to limit the scope of these Acts.
Accountants won in the end; lawyers and fund directors lost. See, the sky didnt fall and the funds industry didnt collapse?
The audit partners don’t need any thanks. Their pockets are 100x heavier now than they ever were.
Not quite true. Because of the negligence of certain audit firms since the Mutual Funds law came about millions of dollars have been recovered through a multitude of lawsuits. This is good for investors.
The real problem lies in the contraversial indemnity clauses drafted by the lawyers in the Articles of Association. Whilst acting for the stakeholders they protect the directors by such drafting but fail to protect the stakeholders. Clearly this is a deep and inherent conflict of interest. In other words most of the time the directors cannot be sued because of their gross negligence.
Time for CIMA to wake up and stop this director protection which I have harped on about for the past 30 years.
That all goes to insurance?
Unfortunately.
Insurance companies, just like banks, feel they have a God given right to make a profit and consumers have to pay the costs. Insurance is now so high that it’s not affordable by most.
Not really accurate Chris.
The indemnification of directors is an industry standard that has grown up separately from lawyers in Cayman including it in the articles and, particularly for professional directors, these sit in arms length negotiated agreements. There is no conflict of interest inherent in this for legal professionals.
Add to that the fact that audit firms generally seek the very same sorts of exculpating provisions!
Thank you for sharing.
Don’t break your arm patting yourself on the back, the added cost has pushed several of my clients to choose other jurisdictions. Thankfully, there is literally nothing left for the audit firms to overcharge for local sign off. I am sure they will soon lobby for each local company with a T&B Licence to be audited.
Hmm I know someone who applied for a T&B who was unlawfully asked to provide audited accounts
…spoken by someone who is not in industry and certainly not in a senior management position…
10:38 – And thanks to former Premier Alden Mclaughlin and his Government for taking the decision to pass the Private Funds Act despite serious opposition from the lawers and even from Chris Saunders and others in the previous Opposition.
It is those monies and the income from development that are keeping us looking so good financially. That huge increase in import duty – comes mostly from building materials, furniture, appliances etc for the housing/development sector.
All of this is the gravy flowing from the work of the last two governments. This government is trying really hard to toss it all away. God help us.
So it WAS a shakedown then? Glad to see someone admit it.
No sensible person in the legal industry wanted to resist certain structures coming under the Private Funds regime, but everyone is well aware that the audit firms pushed to have entities within the legislation for no other reason than their own fees and where it offers investor NO protection at all.
Praising them for rank self interest, and failing to see that added costs will, in time, harm the jurisdiction is either dishonest or stupid. Or both.
to be bankrupted soon.
How about even a 4% COLA CIG? Too much to ask for Civil Servants being 30%+ behind?
I’m in the private sector & despite exemplary reviews & audits there’s been 2 pay rises in 5 years. Not close to COLA
To bad you work for such a shite company
CIMA and TIA are both performing a stellar job in killing the Financial sector so not much to jump up and down about Chris.
..the golden Financial Services goose is being strangled by the waaaaaaay over-kill regulators of CIMA…..
Lies, damn lies and statistics….the death thrashing cries of the Financial Services industry are masked by these CIMA figures, which are still driven by past glories, that are fast coming to an end, if not already so…..
Now watch how they waste it.
Maybe fix the longterm inoperational radar since the 2022 Hurricane Season is just weeks away.