Tuesday, December 11, 2012

McKeeva arrested

Breaking news this morning is that McKeeva (Cayman's controversial Premier) was arrested at his home at 7 a.m. and is in Police custody. He has not been formally charged, but the arrest relates to accusations of corruption.

At this early stage it’s difficult to predict what effect the arrest will have on Cayman’s Offshore tax-haven sector, on which our prosperity rests. The most likely next step is the suspension of our Constitution and the imposition of direct rule by decree from London via the Governor lasting two or three years. That’s what happened to Turks & Caicos under similar circumstances.

This post is purely an interim report. A proper commentary will follow. The full story is on the CNS website http://www.caymannewsservice.com/ . It will be running hot for the next few days, I expect.

UPDATE 4th January: This interim report was followed by the posts titled Cayman's Uncertain Future and Trouble in Paradise. McKeeva has still not been formally charged, and any criminal trial may be years away. Our political representation will remain uncertain until the general elections scheduled for May, and it is anybody's guess what kind of government we will have after that. The Legislative Assembly will have three extra MLAs - making a total of 18 MLAs for an electorate of 18,000. Each of them draws a salary of over US$100,000 - an egregious extravagance for an Island government hasn't balanced its books for the past umpteen years.

Except for the several tribal loyalties, there is no confidence among the general public - and especially among the tax-haven expats - that the situation will be significantly better after the election. McKeeva is a very clever politician, and few of us would bet the farm against his regaining power sooner or later.