Cayman Government Accepts Commission's Recommendations On Governance

by Amanda Banks, Tax-News.com, London

07 August 2008

In a statement published on Wednesday, Governor of the Cayman Islands, Stuart Jack responded to the findings on governance recently unveiled by the Commission of Enquiry.

Mr Jack announced that:

"I believe that we in the Cayman Islands have generally good standards of governance by comparison with many other jurisdictions. But there is always much scope to improve. That applies to financial accountability: the delays over government accounts described in the recent report of the Auditor General cannot be allowed to continue."

He continued:

"Efforts are ongoing to address that issue and to make other improvements to governance. This week I have signed a tough new anti-corruption law and an amendment to the Elections Law that will also reduce the scope for any potential abuse. In January 2009 the Freedom of Information Law will come into effect. We are working to improve customer service and the handling of complaints across government, including the Royal Cayman Islands Police Service."

"All of this will further strengthen the transparency of government and the checks and balances which we already have in place, notably through a range of laws, the courts and tribunals, through the Auditor General and the Complaints Commissioner, the media, and ultimately the ballot box. In a parliamentary democracy a major role must be played by the country's elected representatives in the Legislative Assembly and in particular in the Public Accounts Committee which is there to scrutinise the use of public funds".

The Governor went on to state that:

"Good governance is about not only doing the right thing but being trusted to do so. There are, however, real limits to how quickly and how much we can say when matters are subject to often very complex investigations that must be allowed to proceed properly. The time investigations can take can be frustrating, including for me. But it is better to get things right than rush them. That also ensures that people are treated fairly, whoever they are and wherever they come from."

"Where a problem does arise - and there is adequate evidence, not just unsubstantiated allegations - we need in my view both to address that specific problem and then to learn general lessons to avoid a reoccurrence."

"That is how we have been dealing with the follow up to certain reports of the Auditor General, with the ongoing issues involving the police, and with the recent Commission of Enquiry."

"I am pleased to report that Cabinet has now looked at those recommendations of the Commission that require legislation and/or a decision by Cabinet, and has accepted five out of the seven."

The recommendations accepted by the Cabinet were that:

• MLAs, including Ministers, should not serve as directors of statutory authorities or government companies; and civil servants only in a non-voting role. Relevant laws and articles of association will be amended to enshrine what is already the policy of the present Government;
• Directors of statutory authorities and government companies should have clear written duties. Relevant laws and articles of association should be created to provide for this;
• Clear guidance should be given to directors and civil servants as to the status of, and their duties in respect of, documents. This should be included in the above written duties and in the Code of Conduct for civil servants;
• The FOI Unit should issue guidance on handling of confidential records, including "personal files"; and
• An amendment should be considered to the Public Service Management Law to make it compatible with the Freedom of Information Law in respect of whistle-blowers.

The Governor further revealed that the Chief Secretary - as Head of the Civil Service - in consultation with the Attorney General's Chambers will be acting on two further recommendations which do not require Cabinet approval, namely:

• To review the possible removal of the declaration of secrecy from the Personnel Regulations which duplicates an existing requirement in the law; and
• To clarify in Personnel Regulations rules on whistle-blowing.

Cabinet did not accept the recommendations that directors should have fixed three year appointments, or that senior civil servants should be ineligible to stand in a General Election for a period of time after resignation or retirement.

Mr Jack concluded:

"The changes we will now be making to laws and regulations in respect of the civil service should provide greater clarity and certainty on matters like confidentiality and whistle-blowing."

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