By Tad Stoner
tad@caymannetnews.com

Outgoing Chairman of the Cayman Islands Monetary Authority (CIMA) said on Tuesday, 30 June he had not been told of his replacement, despite the previous day’s Legislative Assembly announcement by the Leader of Government Business.

“I know nothing about this, at least as far as I know,” said outgoing CIMA Chairman Carlyle McLaughlin.

“I was in an executive meeting up until yesterday, meeting on potential legal matters. I was just at a CIMA conference in Vancouver. I have been involved right along, as usual,” he said.

On Monday afternoon, Leader of Government Business and Minister for Financial Services, Hon McKeeva Bush, announced that George McCarthy, who retired as Chief Secretary on 1 July, would replace Mr McLaughlin at CIMA. It will be Mr McCarthy’s second term as authority chairman.

Apparently, however, Mr Bush neglected to tell Mr McLaughlin of his ouster.

“I’ll be waiting to hear and to have someone explain something to me,” Mr McLaughlin said on Tuesday morning.

Mr Bush told Monday’s legislative session that Mr McCarthy’s skills and knowledge were too great to lose, and that too much work needed to be done to allow the former Financial Secretary to retire.

Mr McCarthy also headed the Cayman Islands team negotiating a series of tax-information agreements during Mr Bush’s 13-25 June US and European tour.

“I’m on a three-year term and have only done one year,” Mr McLaughlin told Cayman Net News, expressing concern that a sudden politically motivated change could damage CIMA’s international reputation.

“My rise last year had some issues,” he acknowledged, referring to public dismay at his surprise 27 July replacement of previous two-term Chairman Tim Ridley, who had gained solid reviews for his leadership.

“Mr Ridley should have had more time, but he was told in advance that his term would expire,” Mr McLaughlin said.

“When it’s a political appointment, [CIMA] actions may be deferred or otherwise, and the board members may not be independent,” he said.

“That’s why the Financial Secretary usually appoints our board. He provides consultations and ideas, and any particular decisions are made through him and not through any political channels.”

CIMA chiefs, he said, were normally appointed after serving on the organisation’s board, and both the chairman and deputy chairman were traditionally approved by the Governor after consultation with the directors.

Mr Bush, who could not be reached for comment on Tuesday, did not tell the House why he sought to replace Mr McLaughlin, despite Cayman’s efforts to achieve greater international accountability.

Addressing recent demands by the Organisation for Economic Cooperation and Development and the Group of 20 industrialised nations, Mr Bush recently signed two new tax information exchange agreements and concluded talks for five more

Chairman of the Cayman Islands Financial Services Association (CIFSA) Anthony Travers welcomed Mr McCarthy’s appointment without commenting on Mr McLaughlin’s departure.

“CIFSA welcomes the appointment of George McCarthy as the Chairman of CIMA. We have written privately to Mr McCarthy offering our congratulations and are delighted to add our endorsement publicly,” Mr Travers said.

“Mr McCarthy has a wealth of experience in relation to international initiatives gained from his long and successful career as Financial Secretary and Chief Secretary, most recently having spearheaded the tax information treaty negotiating team which has made significant and welcome progress.

“It is right that his expertise can now be brought to bear in guiding this important body through what will be challenging times,” he said.

Mr McLaughlin emphasised the required separation between the authority and government. “I have been 20-odd years in my career,” he said, “and I’ve never been a political animal. My role has been to make sure that government and industry are talking to each other, and that the laws are being obeyed in an appropriate manner. Both sides need to hold each other accountable.”