Cayman premier’s speech at UCCI Anti-Corruption conference
UCCI Caribbean Conference
Premier Hon. Alden McLaughlin, MBE, JP, MLA
The Ethical and Anti-Corruption Framework of the Cayman Islands Government: Lessons for the Caribbean
Good morning,
I thank President Roy Bodden and the leadership at the University College of the Cayman Islands for hosting this most important conference on a corruption-free Caribbean.
It is the second opportunity I have been afforded this year to speak to a distinguished group of people about corruption – be it real or perceived.
I was fortunate to have been invited to give one of two keynote speeches at the Chatham House Conference “Combatting Global Corruption” in London early last month.
It is right that we have these discussions on a global, regional and even local scale, which is why conferences such as this one are important and I thank the University and its staff for once again taking on the challenge. There is much to be done globally and even locally to educate everyone about and eradicate corruption. We will never completely wipe out corruption, but we must be ever vigilant against it on all levels; from local district councils to looming central governments, judiciaries the public service, the private sector and more. I believe the message being sent through these types of conferences, summits and talks will shine some light on corrupt practices and help bring them to an end.
Today I have been asked to speak about the Ethical and Anti-Corruption Framework of the Cayman Islands and lessons that other countries in the Caribbean can learn from us.
I will admit that while I do not believe that the level of corruption seen in other parts of the world exists in the Cayman Islands, I have no doubt that corruption is here. We are not perfect by any means. And because we are not perfect I appreciate that while there are things we can teach others, there are also things that we can learn and I look forward to being enlightened over the next few days on what are some of the experiences and success of our neighbours.
I guess the short answer to the question of how to end corruption would be to tell the ‘truth’ and avoid secrecy in the affairs of government. By taking the secrecy out of the way government works on the decisions it makes, the scope for corrupt practices is greatly diminished.
I firmly take to heart the words of American politician and statesman Adlai Ewing Stevenson II. “Government is more than the sum of all the interests; it is the paramount interest, the public interest. It must be the efficient, effective agent of a responsible citizenry, not the shelter of the incompetent and the corrupt.”
The Cayman Islands has gained an unfair reputation as a place where all sorts of crooks stash their loot. The facts are that in terms of due diligence and anti-money laundering legislation, we are a world leader. As I told the delegates at Chatham House, for some 15 years the Cayman Islands has been placed under an unfair microscope by the range of supranatural bodies charged with setting global standards with respect to anti-corruption, tax information exchanges and anti-money laundering measures, being poked and prodded, but we welcomed the scrutiny because each review has made our legislative and regulatory regimes more robust. We are always found to be in compliance and, in some areas, more so than developed countries.
Since taking office we have striven to restore confidence in government by subscribing to and practicing the principles of good governance. Through good governance in the public sector we are ensuring the people of the Cayman Islands, and indeed the world, that we are effectively using resources, improving on delivery of services and strengthening Government’s accountability.
In the Cayman Islands, the framework for good governance is found in our Constitution, the Public Management and Finance Law, which was recently amended for the Framework for Fiscal Responsibility, and the Public Service Management Law. Through this sound framework we achieve an extremely high standard of transparency and accountability for and in our Country.
Just this past February we charged Financial Services Councillor Roy McTaggart to set up a working group to develop a legal framework for the automatic exchange of tax information. The group is made up from the public and private sectors with an aim to provide recommendations for draft primary legislation that is slated to be considered by the Legislative Assembly in May this year. The group will also work on draft regulations and guidance notes for Cayman’s Financial Services Industry because its remit goes beyond FATCA and encompasses future international automatic exchange of information agreements.
Part of our efforts to fight corruption both, at home and globally, are through the signing of tax cooperation agreements. We are members of the Steering and Peer Review groups of the Global Forum on Transparency and Exchange of Information for Tax Purposes. We are also a member of the Global Forum’s newly formed AEOI group, which is examining how to effectively answer the G20’s call for the forum to monitor the implementation of AEOI as the new global standard.
I say all of that to say this; no Government can end corruption in a vacuum.
Much of combatting corruption comes through the adoption of an aggressive legislative agenda for both Government and businesses.
A key piece of legislation was passed in 2010, the Anti-Corruption law, supported by the Anti-Corruption Committee. We encourage anyone who does any business with public bodies to acquaint themselves with the law because it applies also to them; not just public officials.
The Law covers public offices from Justices of the Peace, to the Legislative Assembly and Cabinet. It also covers persons serving on all Statutory Board/Authorities, Tribunals and Commissions of Enquiry, as well as Jurors.
It covers a range of offences from bribery of public officers and members of the Legislative Assembly, frauds on government, contractors subscribing to election fund, breach of trust by public officials and members of the Legislative Assembly, abuse of office, bribing foreign public officials, and conflict of interests among others. We have an Anti-Corruption Commission that is charged with administering the law.
The Anti-Corruption Commission has broad reaching powers to investigate reports of corruption, liaise with overseas anti-corruption authorities and obtain Court Orders to freeze the assets of those suspected of committing corruption offences. The ACC is considered a vital body for investigating reports of corruption to help stimulate the accountability and public confidence in the Cayman Islands.
We do recognise that we cannot fight the scourge of corruption alone and thus work closely with countries and bodies regionally and further afield.
But all of our laws aren’t just for compliance globally. We know that to end corruption in the Caribbean, we have to begin at home.
As Matthew 7:5 says in the Gospels… “first take the plank out of your own eye and then you will see clearly to remove the speck from your brothers”.
Last month we pushed through the Standards in Public Life Law 2013 that requires anyone in public life – from lawmakers to board members – to make a declaration to the Commission for Standards in Public Life of income, assets and liabilities. Those who fail to do so could face hefty fines and possible imprisonment.
This is a very serious piece of legislation. We must ensure that conflicts of interest do not influence or colour the decisions that are taken. We believe that while the law has far-reaching consequences, it will be nothing but positive for the reputation of our Islands.
Recognising that having a solid transparent procurement process is a key part of combatting corruption, the process as outlined in the Framework for Fiscal Responsibility, which has been enshrined in our Public Management and Finance Law, seeks to ensure that best in class procedures are followed to ensure the correct outcomes. I speak mainly for our cruise berthing, airports and landfill projects. To avoid corruption and maintain transparency and good governance, we must create a Strategic Outline Case, which will provide an overview of the issue and identify and broadly assess the various options for the budget for each of these projects. The Strategic Outline Case will form the basis for an Outline Business Case, which will provide further evaluation of options and result in a better definition of the project for procurement. To further ensure transparency, there will be an Environmental Impact Assessment for each project and consultation with stakeholders.
While we recognise the need to end corruption in the day-to-day workings of Government, we also have to acknowledge that corruption exists in other areas throughout the region and the world, especially when it comes to elections, and especially in the Caribbean.
While we have an Elections Law that governs how the process is fair and free of corruption, last year we welcomed observers from the Commonwealth Parliamentary Association – despite objections from some candidates. The Observers said, “In our view, the 2013 general elections in the Cayman Islands met the international standards for democratic genuine and transparent elections and the results truly reflect the will of the people.”
Indeed, when asked to evaluate the Cayman Islands on a scale of one to 10, with 10 being the highest, The Cayman Islands received a nine out of 10 when it came to properly and fairly conducting public voting.
But even before the Election Observers arrived on our shores, our Election Office was working diligently to ensure the voting was free of corruption. They released two election workers for not complying with their oath of office and even Police Commissioner David Baines got in on the anti-corruption act when he advised political camps and voters to file complaints of voter bribery, which he said would be investigated and prosecuted.
If we are honest with ourselves – and we have to be if we want to develop a sustainable Ethical and Anti-Corruption Framework throughout the Region – we have to admit that election irregularities have occurred and continue in the Caribbean.
Time and again we have heard stories of election fraud, of vote buying – whether its cash in an envelope, a bottle of rum, a new washer or refrigerator – intimidation, threats and even acts of violence in elections the world over. We can’t keep ignoring election fraud if we are to truly going to stamp out corruption. Those who are guilty – both the candidate or party and the voter – must own up to it, admit it is wrong and help move their country, its people and the region forward.
I repeat, we cannot stop corruption locally, regionally or globally unless we are all on the same page. There will be those like the candidates who don’t want elections to be observed, who get into office using illegal means, trying to thwart anti-corruption initiatives, but it is they who must be brushed to the side so that good governance and transparency can thrive in all branches of government.
Working together is a lesson many in the Cayman Islands Government learned with the advent of Cayman’s Freedom of Information Law 2007, which has now been in effect for five years.
Getting the Legislation out the gate was no mean feat. At first many of those charged with dealing with FOI requests were unsure of what they could and could not produce, but eventually through training and working together, I believe we are getting there. Since the inception of FOI in the Cayman Islands more than 3,000 open record requests have been filed under the Law, which lets anyone anywhere in the world request public information from Cayman’s more than 90 government agencies.
The foresight of the then-PPM government – now the Progressives and of which I am the leader – in pushing through Freedom of Information in the early part of this century went a long way to combatting and even revealing corruption in this country. FOI provides an independent or unbiased source of information regarding real or perceived corruption. Too, we have a robust Auditor General’s operation with an internal audit unit that has been instrumental in getting information to the public. And that’s what it is really all about; getting pertinent information to the public about how government works and is functioning to put an end to real and perceived corruption.
Governments, their authorities and agencies must be forthcoming with information that is requested. Better yet, Government should be disseminating prudent information before media and the public request it. There is much information that should already be available to the public; that the public shouldn’t have to seek out.
So to return to my topic, the Ethical and Anti-Corruption Framework of the Cayman Islands and lessons that other countries in the Caribbean can learn from us, I hope I have made it clear that we as individual states and countries can’t stop corruption in our region on our own. We all have to work together to make sure the truth about our governments and who we work with is out in the open; that our actions are transparent. It takes a willingness to comply with and working together while ensuring that the floors of our own houses are swept clean of corruption.
I believe over the next two days the conversations and discussions that will take place will be a helpful start to making the improvements needed across our Region. The more we understand of the problems before us, the better equipped we can be to take decisive and effective action.
Thank you.
Related story:
Prime Minister Christie visits the Cayman Islands
From Bahamas Weekly
Nassau, Bahamas – Prime Minister the Rt. Hon Perry Christie greets students at the University College in the Cayman Islands following his lecture at the UCCI Caribbean Conference March 20, 2014. The aim of the conference is to raise awareness of the potential for corruption and the decline in ethical standards across all the various sectors of society, and the consequent damaging effects on economies and social harmony. Mr. Christie’s delegation includes Tourism Minister Obie Wilchcombe, Financial Services Minister Ryan Pinder and Sir Baltron Bethel. (BIS Photos/Peter Ramsay)
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