The reputation of the Cayman Islands is coming apart at the seams and the world press is watching like tigers ready to pounce on their prey.

At the heart of our problem is the increasing perception of corruption and cover ups involving our financial institutions. Much I have to say is exaggerated and blatantly in the majority of instances untrue.

However, this is not how the world’s public sees it.

You only have to go outside this country and watch a movie and judge the audiences reaction when “The Cayman Islands” name comes up regularly as a haven for financial crime. Nods and laughs are the order of the day.

Now the alleged crimes of Jeffery Webb and his partner Costas Takaas has fuelled a fire our premier and others have been trying to put out.

Two names, who have not been charged nor any allegations made against them, have been ‘mentioned’ in the media who are digging like starving coal miners. And there is a trail not only to Webb and Takaas but Fidelity Bank (Webb’s former employer and where Takaas held accounts), CONCACAF and the Cayman Islands Football Association.

My biggest concern is the trail leading to the body who are investigation any wrongful doing at Fidelity – the Cayman Islands Monetary Authority (CIMA).

CIMA Mission Statement
To protect and enhance the reputation of the Cayman Islands as an International Financial Centre by fully utilising a team of highly skilled professionals and current technology, to carry out appropriate, effective and efficient supervision and regulation in accordance with relevant international standards and by maintaining a stable currency, including the prudent management of the currency reserve.

CIMA Vision Statement
Committed to continually enhancing the Cayman Islands Monetary Authority’s position as a financial services regulator of EXCELLENCE, consistent with the jurisdiction’s standing as a leading International Financial Centre.

4 June 2015
Statement by the Board of Directors of the Cayman Islands Monetary Authority:
“Further to the Authority’s statement of June 1 2015, concerning allegations and investigations in relation to activities of a number of FIFA officials, the Board of Directors of the Cayman Islands Monetary Authority (CIMA) has been updated on the steps taken by Management in relation to alleged connections with certain Cayman Islands regulated entities.
“On becoming aware of these developments, CIMA began reviewing the available information and the Managing Director initiated the establishment of an internal group, which is headed by the Head of Banking Supervision, Mr. Charles Ilako; supported by the Head of Compliance, Mr. Robert Berry; and advised by Deputy General Counsel, Mr. André Mon Désir. The composition of this group was specifically structured with a view to avoiding any perceived conflicts of interest.
“The group is responsible for investigating and reporting exclusively to the non-executive Board on these matters.
“The Board is therefore confident that the proper principles and procedures have been adopted by CIMA as in the past, where there is a real or perceived conflict of interest. This would apply whether the conflict involves a member of the Board, Management or Staff of the Authority.
“It should be noted that CIMA is a statutory authority and as such is subject to the relevant provisions of the Monetary Authority Law and the Anti-Corruption Law relating to conflicts of interest.
“In addition, the Board of Directors, the Management and Staff of CIMA are subject to Codes of Conduct which include requirements and obligations concerning conflicts of interest. Therefore it should be evident that good governance is an entrenched part of the CIMA culture.
“The Board also takes this opportunity to affirm its confidence in the Managing Director and Management of the Authority in the work that they have done over the years and indeed continue to do in protecting the reputation of the Cayman Islands as an international financial centre.
“CIMA carefully guards its reputation as the primary regulator of the Cayman Islands financial services industry, and will take all necessary steps to ensure that it acts in accordance with good governance and best practices at all times.”

Very good.

No it is not.

The two men, who I also mentioned in yesterday’s Editorial, are close friends and business associates of Jeff Webb. One is Mark Scotland who was Minister of Sports in the former McKeeva Bush led government, is a Cayman Islands Football Association (CIFA) board member and was in Zurich at the time of Webb’s arrest. The other is former West Bay MLA and also Member of the Bush government, Cline Glidden. He also was at Zurich with Webb. Glidden is working in corporate law and has been asked by Webb to establish a dispute resolution court here in Cayman for CONCACAF. Webb was president of both CIFA and CONCACAF up until his arrest.

Mark Scotland is married to Cindy Scotland the CIMA Managing Director.

Cline Glidden is married to Gloria Glidden who currently serves as Deputy Head of CIMA’s banking division.
It is no use the CIMA saying their internal unit will report to the Board and not to Cindy Scotland.

Few people and especially overseas journalists are going to view this without sarcasm and suspicion. The CIMA has to be lilywhite and washing detergent bright to be able to convince everyone that their findings are not clouded by conflicts of interest. Especially if their conclusions find no evidence of wrong doing by Fidelity Bank.

Cindy Scotland and Gloria Glidden must recuse themselves. Send them both away to another island paradise whilst this probe is going on. Neither of them should be anywhere near the CIMA headquarters.

That Cindy Scotland has said she is not recusing herself is unfortunate.

Perhaps the government can persuade her otherwise.

If they don’t the investigation by CIMA will look like “another” cover up by the regulatory body and the world’s press will not be afraid to say it. And probably not by local media…..

RETRACTION & APOLOGY

In two recent Editorials I called for the accounts of the local CIFA to be audited and published. They have been just that apart from the 2014 accounts. I apologise for my error. Attached is the published accounts also showing the company who audited them: [What has been published is very limited, however, and they look more like budget forecasts. I am no accountant though but no one could audit what has been published.]