OAG releases redacted version of leaked ReGen report
(CNS): Auditor General Sue Winspear has released a redacted version of a report conducted in 2021 examining the Cayman Islands Government’s failed ReGen deal with a Dart Consortium to tackle the country’s rubbish. However, an unredacted version of the report was leaked last summer, soon after the CIG announced it was pulling out of the agreement.
The catalogue of problems with the $1 billion deal, including the massive waste of public funds, has since been well-documented. Nevertheless, in its response to the OAG report, the administrative arm of government still believes that “adequate safeguards for most project risks” were in place.
In a press release about this redacted and slightly updated version of the report, Winsper said that her office will release an unredacted copy once the CIG ends the negotiations with Dart to exit the deal, which have dragged on for months.
She stressed the fundamental problem with public-private partnerships and their lack of value for money. While the current minority government has given no indication of what a new plan for Cayman’s growing garbage problem might look like, Winspear is making it clear that another PPP is a bad idea. Instead, it should seek an open and transparent contract with an expert in waste management.
ReGen would have been Cayman’s first public-private partnership (PPP) agreement, which generally offers the government a way to invest in public infrastructure without having to pay the upfront construction costs. However, such arrangements are still a form of borrowing, and governments must still pay contractors for operating the service or facility over the life of the contract.
“Most governments have moved away from PPPs as they generally do not provide value for money,” the auditor said.
This was clear in this instance, as the construction costs increased significantly after procurement because of a number of problems associated with it from the very beginning.
“The government increased the minimum amount of waste it planned to send to the facility and changed the scale of the energy recovery facility for generating electricity from the treatment of non-recyclable waste,” said Winspear. “Overall, ReGen’s estimated construction cost rose significantly after the preferred
bidder was selected. However, the Government did not review these cost increases to ensure they were
reasonable.”
The CIG did not reassess the deal’s value for money or whether a PPP was the best way to finance ReGen before signing the Project Agreement.
“In the case of ReGen, the Government would have paid the Contractor a monthly unitary charge for operating the facility over the 25-year contract period. This was estimated to be a significant amount of money in March 2021. However, my review found that the estimate was likely to be understated. I also noted that the Government had not assessed how the unitary charges would affect its future borrowing limits and financial ratios.”
Because the ReGen costs increased significantly between the procurement and the signing of the deal, the government should have done an updated value-for-money assessment. Winspear said that had it done so, it was very likely that this “would have shown that conventional funding or borrowing would provide better value for money than the PPP”.
Despite the numerous issues related to this project, the secrecy that has surrounded this deal from the start and the millions of dollars that have been wasted, there is still no solution in sight to one of Cayman’s biggest problems. However, the deputy governor’s office still thinks they got it largely right.
“We welcome the OAG’s report and take the findings seriously,” Deputy Governor Franz Maderson said. “Transparency and accountability are integral components of our approach, and we express our ongoing commitment to incorporate these insights into future projects.”
However, Manderson has implied that things could be different in future with the introduction of another senior figure in the civil service to manage risk. In accordance with the requirements of the 2024-2026 civil service strategic plan, a chief risk officer has been appointed and given the responsibility of developing a risk framework for the entire civil service as one of the primary accountabilities of the role.
“These efforts aim to enhance risk management, ensure alignment across government entities and protect public resources. They also signal government’s pledge to nurture sustainable development, public trust and resilience,” Manderson said.
Meanwhile, the Ministry of Sustainability, which has oversight of the negotiations, said it remains guided by the Cabinet and the “appointed advisors” on the project with regards to exiting the ReGen project agreement in accordance with the latest exit extension date granted by the Cabinet of 28 February.
However, the ministry stated that further comments may follow after all relevant parties have reviewed the report.
This redacted report just released and the unredacted version leaked in the summer are available in the
CNS Library.
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Category: Environmental Health, Government oversight, Health, Politics
Watching losers lose. Amazing that they are still relevant and have cash left after paying bills. Unless? I guess the big question is when CIG will default on it’s massive debt? Am I wrong?
On the face of it the OAG report appears to portray the project as a pyramid scheme where on Dart, politicians government cronies will benefit. The exit fees are significant but pail in comparison to the long term indenturing effect to Cayman’s economy if the project is realised. The government moron(s) that over saw and signed off on this deal need to be barred forever from public office and civil service in addition to paying restitution penalties back to a National Environment & Sustainability Fund for the rest of their natural lives and from their estates after death.
In other words, Cayman will figuratively and probably sink before it’s ever payed off.
This was written years ago. It’s still true:
Let’s review the record after decades of so-called ‘multigenerational* Caymanian politicians’ (* you’re all expats, some just arrived earlier than others). In no particular order:
– The dump.
– “Five-mile (and shrinking) Beach”.
– The public ‘transport system’.
– Saunders’ transparent attempt to introduce garrison politics.
– Kenneth Bryan’s new personal Cayman Airlines’ new route to his Caribbean tourist board meetings in Barbados.
– No restoration of the pre-covid evening Miami flights which used to be so useful for travellers coming home to Cayman.
– Government departments taking each other to court! (Fnarr, fnarr, roll up and watch the incompetence – perhaps we could sell tickets to replace rapidly failing revenue in other areas?!)
– The insane cost of living, which discourages both tourists and financial services workers, thus undermining both pillars of the islands’ revenue.
– 1 in 4 children in Cayman starting primary school overweight (https://www.caymancompass.com/2023/05/03/1-in-4-kids-begin-primary-school-overweight).
– The number of MLAs who have beaten women.
– Jon Jon’s ‘lamp post cover-up’.
– Bush’s persistent criminality.
– Persistent education failure. 2021: “Almost 60% of Year 11 students miss 2021 exam targets*, 2023: “Only 27% of all students…reached the expected standards in all three core subjects of reading, writing and maths.” https://caymannewsservice.com/2023/05/report-shows-school-leaver-results-drop-from-peak (https://caymannewsservice.com/2022/04/almost-60-of-year-11-students-miss-2021-exam-targets). (Severe educational failure has been the norm for decades. See this Cayman Compass article from back in 2016. Nothing has changed. https://www.caymancompass.com/2016/01/21/barlow-education-versus-protection)
– More competently-run jurisdictions (yes, I know, it doesn’t take much) are stealing Cayman’s revenue. See this Financial Times article, “Singapore and Hong Kong vie to be the Caymans (sic) of Asia” which notes:
“The two cities have set up new fund structures to lure wealth away from traditional offshore financial centres… Singapore established the Variable Capital Company, a fund structure that allows a wide range of potential users to shelter large pools of capital in discreet, lightly taxed wrappers domiciled in a well-regulated financial centre… Investor take-up, particularly in Singapore, has been rapid. The bankers, fund managers and lawyers involved in setting them up say their impact could be far more widespread and more disruptive than previously imagined, drawing assets and expertise into the region… The new vehicles represent a direct challenge to traditional offshore finance centres whose success has been built on privacy and low taxes and whose economies are heavily dependent on the revenue generated by financial services… Singaporean authorities, frustrated at the tendency of local fund managers to register investment vehicles offshore rather than in Singapore itself, launched the rival VCC in 2020. It made it easier for overseas and domestic entities to register an investment vehicle in Singapore… For Singapore the rush to establish the new structures has been especially pronounced. “Prior to 2020 the vast majority of Singaporean managers had their funds in offshore jurisdictions such as the Cayman Islands, Mauritius or Luxembourg. Now the tables have turned,” says Mahip Gupta, a partner at Singapore-based Dhruva Advisors.“ Since the Variable Capital Company structure was introduced, most have chosen Singapore as their fund domiciliation hub.”” https://www.ft.com/content/88e20280-bb6e-4209-ae76-d7183c60ff62, 20 March 2023.
– They are succeeding, heralding the start of the slow death of the financial services sector: Cayman’s own Economics and Statistics Office (ESO) August 2022 warning that banks and trusts are moving off island: “Banks & Trusts: The total value of international banking assets domiciled in the Cayman Islands declined by 12.9 percent… Similarly, international liabilities domiciled locally fell by 13.0 percent…” (https://www.eso.ky/UserFiles/page_docums/files/uploads/the_cayman_islands_annual_economic_repor-7.pdf, page 27).
Cayman is in a downward spiral and doom loop, due to its dysfunctional politicians. Many expats are preparing contingency plans for when the MLA Moron Mob eventually finish the place off. Sadly, because of the political system, it’s probably beyond salvage. Make your money, and prepare to get out in 5-10 years at most:
1. Expats can’t engage in politics: even those of us with status can’t stand for election. Colleagues without status can’t risk annoying people and losing their work permit by being openly critical (hence anonymous CNS comments are the only source of dissent).
2. It’s tragic, but no intelligent and honest Caymanian could ever be sensibly advised to go into politics, as that would trap them on this tiny, incompetently run spec of land in the middle of the Caribbean. Consequently, only bottom-feeders, knuckle-draggers and window lickers stand for election. Cayman’s best and brightest are busy developing the ability to work overseas, in proper careers. Anyone sensible is pursuing a profession which gives them global opportunities, e.g. IT or accountancy. By such choices the top e.g. 75% of Caymanians self-select out of politics. The bottom 25% of remaining oxygen thieves then engage in a race to the bottom to bribe people for ‘wotes’.
3. This is why Caymanian politicians are so uniquely awful (definitely incompetent, probably corrupt, often criminal). They have effectively excluded anyone decent from power. Every country has morons, criminals, thieves, and the congenitally dishonest among their politicians. Cayman’s problem is that political candidates seem to come *exclusively* from such people. This then exacerbates the problem identified at (2): capable, hardworking and intelligent Caymanians see the ‘death spiral’ direction of travel, and are determined to develop escape options focusing on global skills, not parochial, inbred local politics.
4. Cayman is presently incapable of self-government. PR and status holders should be allowed to both vote and stand for election. See comments under: https://caymannewsservice.com/2023/03/premier-admits-widening-of-caymans-economic-success-gap/comment-page-1. It won’t happen though, because the MLA Moron Mob know that (a) only idiots will vote for them; and (b) the current mob rely on there being no decent alternatives – they’re terrified by the idea of competition. PR/status voters and candidates would wreck the morons’ gravy train. As one person noted on this article, most Caymanian politicians wouldn’t be trusted with a mop and brush anywhere else in the world (or even in the private/expat sector here).
I don’t blame intelligent, honest and hard-working Caymanians for not getting involved in politics: I picked my job to look after my children, and any Caymanian with sense will do likewise, which means being internationally employable. That does, inevitably, however mean that you are led by the dregs. Ultimately, even though I have status, I can go home: most Caymanians aren’t as fortunate, which is why I highlight the problem.
If only there was a pool of intelligent, hard-working, well educated, highly-qualified and honest pool of people – who aren’t trapped in Cayman and thus disincentivised from politics – from whom better candidates could be identified…
. It’ll never happen, but you can’t say that you weren’t warned! ![🙂](https://s.w.org/images/core/emoji/15.0.3/svg/1f642.svg)
I really don’t care for doom sayers for the time they spend casting aspersions and doom and gloom shows they are either extremely jealous, conceited and yes a bag of BS. You keep being told it’s not going to happen and you still persist. Ya not going into Parliament. Your diatribe is nothing short of a gigantic head ache, which will soon have to be taken care of (X20 standby). Do for now continue with your superiority complex and obvious prejudicial thinking. We will overcome the issues we have as we have done for many years perhaps rvtnnlonger than you have been around. If you decide to leave before you are asked to remember you look better going than coming. Shalom.
“the Ministry of Sustainability, which has oversight of the negotiations, said it remains guided by the Cabinet and the “appointed advisors” on the project”
Guided by the Cabinet is one of biggest problems we have. Cabinet has no competence in anything other than choosing lunch.
We need fundamental change in the way we elect our representatives and in the amount of power we allow them to have
Of course all countries have politicians who are morons, criminals, thieves, the congenitally dishonest, and – my personal favourite – tractor porn aficionados.
Cayman’s problem is that political candidates come *exclusively* from such people (granted, except tractor porn aficionados).
It’s tragic, but no intelligent and honest Caymanian could ever be sensibly advised to go into politics, as that would trap them on this tiny, incompetently-run spec of land in the middle of the Caribbean. Consequently, only bottom-feeders, knuckle-draggers and window lickers stand for election. Cayman’s best and brightest are busy developing the ability to work overseas, in proper careers.
If only there was a pool of intelligent, hard-working, well educated, highly-qualified and honest pool of people – who aren’t trapped in Cayman and thus disincentivised from politics – from whom better candidates could be identified…![🤷♀️](https://s.w.org/images/core/emoji/15.0.3/svg/1f937-200d-2640-fe0f.svg)
Are you certain they can choose a good lunch? Lots of unhealthy looking people in there.
time for class action lawsuit against the incompetence of the civil service and cig.
Yeah great idea. If we the people win, the government pays, em…………
28 @ 11.24am – Absolutely! I’m one who would be in!
Please, some lawyer, take it on.
there is no-one in cig or civil service with expertise or qualifications to tackle the garabage crisis
civil service is filled with poorly educated people with zero ability to tackle these issues.
if we can’t be honest and face these facts we will never be closer to a solution.
“There is no one in CIG or the civil service with expertise or qualifications.”
This on top of the $1500 bonus and 5% COLA!
The Adeptus Ridiculous: “Welcome to Cayman’s Local Chernobyl – Glow-in-the-Dark Tourism!”
Ah, the Cayman Islands—a paradise of turquoise waters, powdery beaches, and soon-to-be home to the greatest environmental debacle masquerading as progress: ReGen. Or, as we should aptly rename it, the Energy-to-Waste Plant. Yes, citizens of Absurdistan, prepare yourselves for a glowing future, quite literally.
Let’s begin with the sheer genius of burning waste at high temperatures, including lithium batteries that, when combusted, generously release Lithium-3—a compound that no doubt pairs splendidly with the heavy metals and layered diesel soot already coating the island’s lungs, courtesy of CUC’s smoky generators. The filtration systems, we’re told, will be state-of-the-art—if by state-of-the-art, you mean the industrial equivalent of someone putting a handkerchief over their mouth and calling it an air purifier.
Picture this: families donning Level 4 Hazmat suits just to picnic at Camana Bay, oxygen tanks slung over their shoulders like designer accessories. Meanwhile, the nearby cruise ships belch out their own contributions, complementing Mount Trashmore’s toxic aroma. It’s not just a waste facility—it’s an ecosystem of catastrophe, where everything from diesel particulates to radioactive lithium byproducts are fused into one glorious cocktail of carcinogens.
But it gets better. Tourism! Who needs glow sticks for those famed boat parties when the tourists themselves will glow in the dark? Imagine the scene: bikini-clad revelers radiating a healthy neon green as they party under the stars. Forget luxury—this is innovation! We’ll sell it as a “once-in-a-lifetime luminous experience,” complete with a free Geiger counter in every travel package.
For those concerned about long-term effects, fear not! The bright fluorescence of your skin will make it easier for emergency services to spot you if you collapse from heavy-metal poisoning. And let’s not discount the economic impact—just think of the savings on electricity bills if the population emits its own light. Cayman: where sustainability meets profitability.
Meanwhile, the Adeptus Arbitrarius (our Governor) grins from her ivory tower, politely sipping tea as she witnesses this descent into madness. Smiling for photo ops and approving funding, she ensures her tenure ends without the inconvenience of dealing with the fallout—leaving that honor to her successor, who will no doubt find the glowing reviews hard to extinguish.
And then there’s the fiscal side: let’s not pretend this monumental money sink won’t surpass $1 billion—a testament to Cayman’s unyielding commitment to wastefulness. Fully funded vanity projects drain taxpayer coffers while basic needs like healthcare, education, and housing are left in the dark—though, ironically, everything else will be glowing.
Let’s not mince words. This so-called “Waste-to-Energy” facility, which might as well be called the “Energy-to-Waste” plant, has more red flags than a Necron invasion(Terminators whom slept 10 million years and woke us with a parsec deep hangover) . While the glossy brochures tout sustainability, the real picture looks more like an environmental horror story. Filtration systems will likely rival those of CUC’s diesel smokestack generators—so pristine that only someone utterly devoid of self-preservation instincts would dare venture near them. Imagine diesel soot laden with heavy metals, layered on every surface, turning Cayman into a respiratory therapist’s dream and an allergist’s retirement plan.
As for the actual cost of human health? A mere footnote, brushed aside with promises of “mitigation measures” and “advanced technology.” These are the same assurances that gave us Mount Trashmore, a literal monument to mismanagement, placed conveniently next to a school and a healthcare facility. It’s as if Cayman’s leaders are vying for a Darwin Award in urban planning.
The National Conservation Council tries its best to hold the line, but it’s hard to fight against a juggernaut fueled by shortsighted greed and decades of nepotism. Every logical argument is drowned out by cries of “progress!”—as though paving reefs and poisoning oceans are somehow the hallmarks of a brighter future.
But let’s not despair entirely. When the skies turn an ominous shade of yellow, when tourists book vacations not for the beaches but for the radioactive glow, when Chernobyl comparisons feel less like satire and more like prophecy—perhaps then the island’s leaders will realize the true cost of their decisions. Or, more likely, they’ll just hold another ribbon-cutting ceremony.
And so, the Adeptus Ridiculous calls for vigilance, logic, and sanity amidst this madness. For if the people of Cayman do not rise to challenge this absurdity, the cost will not just be financial—it will be the very essence of what makes this island paradise a paradise in the first place.
Let’s not mince words. This so-called “Waste-to-Energy” facility, which might as well be called the “Energy-to-Waste” plant, has more red flags than a Necron invasion(Terminators whom slept 10 million years and woke us with a parsec deep hangover) . While the glossy brochures tout sustainability, the real picture looks more like an environmental horror story. Filtration systems will likely rival those of CUC’s diesel smokestack generators—so pristine that only someone utterly devoid of self-preservation instincts would dare venture near them. Imagine diesel soot laden with heavy metals, layered on every surface, turning Cayman into a respiratory therapist’s dream and an allergist’s retirement plan.
Meanwhile, as Cayman’s own breed of Elon Musks (at least to the chickens and donkeys) pack their bags for greener pastures, they leave behind a glowing legacy for their electorate—a literal one.
Final Note: No bronze-cast iguanas, parking lots, Cayman parrots, or glow-in-the-dark sea life were harmed during this commentary.
ESRB Rating: Mature (Pending Glowstick Approval by Customs and Border Patrol)
I really would like some of what you’re taking, it must be much higher than high grade.
Bore off.
I sincerely hope that whoever they hired as the Chief Risk Officer is qualified and can remain neutral.
The civil service is already bloated with political hires.
The composition of the boards are a joke.
Who will the Chief Risk Officer report to and how will their policies be measured??