Bermuda has been likened to a “Police state” by Cayman Islands commentators reflecting on the arresting of Auditor General Larry Dennis.

Cayman Net News has urged its own Government not to “dare follow the Bermuda model” should events similar to the Bermuda Housing Corporation affair happen there.

They add that the Caymans stands to benefit by attracting new and existing international businesses put off by any damage to the Island’s reputation as an offshore financial centre.

In an editorial on Friday last week, Cayman Net News stated: “Our sister British Dependent Territory, Bermuda, is often held up as an example for the Cayman Islands . . . but recent events there have cast great doubt on the wisdom of such a proposition, and should serve as a lesson for the government and the voters here.”

The article refers to “bluster and threats” from Premier Ewart Brown towards Governor Sir John Vereker, before adding: “The Bermuda government has also reacted to the publication of embarrassing reports by raiding the offices of local media organisations and the offices of the auditor general.

“Even more astonishingly, in a move typical of a police state, the auditor general himself, whose office (as in the Cayman Islands) oversees the Government’s fiscal conduct, has been arrested.

“We hope that none of our own government officials would dare to follow the Bermuda model should similar events occur here.”

Police Commissioner George Jackson stated last week how Police have operational independence and the command and control of the service was his responsibility.

Premier Ewart Brown’s Press Secretary Glenn Jones echoed that point last night, saying: “It’s clear to most people that when the Cayman Islands speaks on this issue, it does so with a vested and biased interest.

“It would appear to me that the writer is not familiar with our constitutional order, which states it’s the Governor who is responsible for Police and not the Government.”

Last week, Bermuda International Business Association CEO Cheryl Packwood urged the Island’s leaders to find closure to the current events as quickly as possible to avoid any damage to Bermuda’s international reputation.

International finance expert David Marchant also warned the situation could lead to a gradual erosion of confidence in the Island and the Caymans was ready to capitalise.

He said international business had grown significantly in the Caymans in recent months, while some major companies based on the Island have strong ties there.

On this point, Cayman Net News said: “The dispute could damage its (Bermuda’s) reputation as an offshore financial centre and, typically, whenever this happens in the region, we stand to benefit from the subsequent flight of new and existing business.”

Mr. Dennis’ arrest and detention was reported to a worldwide audience by industry publication Global Reinsurance, which described the whole investigation as a “scandal that is rocking the island.”

“This is the latest in a series of political issues threatening the reinsurance paradise,” said the report.

Island likened to ‘Police state’