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Some findings of Assistance Grants audit are “deeply concerning”

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BVI Governor John Rankin delivering remarks at press conference

(STATEMENT) — The audit on Assistance Grants has now been tabled and discussed in the House of Assembly, and is now available to the public with appropriate redactions. The audit was conducted in response to Commission of Inquiry Recommendation B12, and covered Assistance Grants issued between January 2019 and May 2022.

A number of the findings in the report are deeply concerning. The funds were for the most part not governed by any financial rules or eligibility criteria and were hence not consistently distributed on the basis of need. All of the programmes were absent of documented objectives and the audit highlights that individuals “within the orbit of the political arena may have received preferential treatment in the awarding of assistance”.

Over the last three years, the Government awarded a total of $23m in Assistance Grants across three ministries and the House of Assembly. The Premier’s Office accounted for 47% of the total awards given from these programmes, while the thirteen members of the House of Assembly awarded 39%.

The audit concludes that these Assistance Grants Programmes lacked “controls that would promote equity, transparency and accountabilities” and that the programmes were allowed to “operate unabated at the whims and pleasure of elected officials”. “The operations of these programmes, for the most part, did not serve to resolve any socio-economic deficiencies” and were “largely utilized to satisfy individual wants and desires”.

The classes of persons who applied and received assistance from these programmes included Permanent Secretaries and other senior public officers, attorneys and entrepreneurs. Some instances were found where single applicants received in excess of $50,000 in a single payment. In one instance a senior public officer and their immediate family members received grants totally $217,900 over the period. The audit concludes that there is evidence of “abuse of discretionary authority by Members in awarding grants” as well as “abuse by applicants who have utilized the deficiencies to benefit themselves significantly”.

As the programmes lacked cross ministry communication and collaboration, some applicants made and received assistance from multiple programmes for the same purpose. In some cases, applicants received more funds than originally requested. The 149 page appendix to the audit report sets out the amounts received by each individual beneficiary, applicant or vendor.

The auditor found that the programmes operated by the Ministry of Communications and Works were specifically targeted towards things such as home repairs, and the programme operated by the Ministry of Education appeared to be intending to serve academic and cultural purposes. The programmes operated by the House of Assembly and Premier’s Office had no such limitations or focus and were utilised for an expansive array of purposes based on the Members’ or Ministers’ determination.

Let me assure the public that this audit in no way criticises those who were deserving of assistance and legitimately asked for support. Rather the audit exposes the lack of controls and criteria which appear to have allowed the system to be abused.

I will be forwarding the audit report on Assistance Grants to the Attorney General’s Office for the Attorney General to assess whether the Government should pursue recovery in any instances. I will also ask the Director of Public Prosecutions and the Police to assess if any offences were committed.

The wholesale review of the system of benefits and grants conducted in partnership with UNICEF has now been received and I am pleased that the Department of Social Security and Health are taking these recommendations forwards.

It should be noted that the payments considered for this Assistance Grants audit are separate from the $16m issued in Covid-19 Assistance Grants and are separate from funding for local district infrastructure projects. I am expecting to receive an audit on Covid-19 Assistance Grants by the end of March and I will cause it to be laid in the House of Assembly within three months, in accordance with the Audit Act 2003.

I welcome the commitment to reform which was expressed in the House of Assembly. It is vital that the necessary reforms are taken forward both before and after the forthcoming General Election, ensuring that public money is properly used to have a positive impact on people who find themselves in need.

Local News

Myron Walwyn Sworn in as Leader of the Opposition in the British Virgin Islands

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Sixth District Representative Honourable Myron V. Walwyn has officially been sworn in as Leader of His Majesty’s Loyal Opposition by Governor Daniel Pruce. The ceremony, which took place ahead of the House of Assembly (HoA) sitting on Monday, March 24, marks a significant shift in the political landscape of the British Virgin Islands.

Walwyn’s appointment follows a formal request submitted to the Governor on Friday, March 21, by members of the recently formed opposition faction known as “The Alliance.” The letter, signed by Walwyn, Second District Representative Honourable Melvin M. Turnbull, and Honourable Stacy R. Mather, called for Walwyn to replace Honourable Ronnie W. Skelton as Opposition Leader. The Governor accepted the request in accordance with Section 70(5) of the British Virgin Islands Constitution, which allows opposition members to determine their leader by majority vote.

With The Alliance holding a majority within the Opposition, surpassing Skelton of the Progressive Virgin Islands Movement (PVIM) and Eighth District Representative Honourable Marlon A. Penn of the National Democratic Party (NDP), the transition was all but assured. This realignment comes in the wake of internal disagreements within PVIM, particularly over a recent attempt by Skelton and Penn to dissolve PVIM and integrate its members into the NDP. That effort led to a rift within the Opposition, prompting Mather and Turnbull to shift their support away from Skelton.

The political maneuvering has raised speculation about potential challenges from Skelton or Penn in response to the change in leadership. However, for now, Walwyn assumes his role as Opposition Leader, with the responsibility of unifying the bloc amid ongoing internal divisions.

Meanwhile, the ruling Virgin Islands Party (VIP), led by Premier and Minister of Finance Dr. Natalio D. Wheatley, continues to maintain its eight-seat majority in the HoA. With the Opposition now under new leadership, political analysts will be watching closely to see how Walwyn steers his faction in the months ahead.

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`Alliance’ Moves to Unseat Skelton as Opposition Leader Ahead of HoA Sitting

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Yet another political shift about to take effect in the British Virgin Islands as the recently formed “Alliance” has made moves to have Sixth District representative Honourable Myron V. Walwyn unseat and replace Honourable Ronnie W. Skelton as Leader of the Opposition, just days before the House of Assembly (HoA) convenes on Monday, March 24.

On Friday, March 21, Alliance members Walwyn, Second District Representative Melvin M. Turnbull and Stacy R. Mather, submitted a letter to Governor Daniel Pruce requesting Walwyn’s appointment as Opposition Leader. It is our information that the Governor has accepted the request in accordance with Section 70 subsection 5 of the British Virgin Islands Constitution, which permits opposition members to elect their leader by majority vote.

PVIM At-Large Candidate Stacy 'Buddha' Mather

Hon. Stacy R. Mather,

The Alliance, holds a majority within the Opposition, surpassing the two remaining members—Skelton of the Progressive Virgin Islands Movement (PVIM) and Eighth District Representative Marlon A. Penn (R8) of the National Democratic Party (NDP). With this shift in alignment, Walwyn is expected to be sworn in as the new Opposition Leader during Monday’s HoA sitting, alongside the appointment of a new Deputy Speaker.

The leadership change follows recent attempts by Skelton and Penn to dissolve PVIM and integrate its members into the NDP. This move has deepened divisions within the Opposition, with Skelton losing the support of Mather and Turnbull, who were previously aligned with him under PVIM.

The development raises key questions: will Skelton and or Penn seek to challenge move of unseating Skelton?

The ruling Virgin Islands Party (VIP), led by Premier and Minister of Finance Dr. Natalio D. Wheatley, currently holds a solid eight-seat majority in the HoA. The new opposition bloc, now to be under Walwyn’s leadership, will need to address internal divisions and work to redefine its role in the territory’s governance.

The developments will be closely monitored when the HoA sits on Monday, as Walwyn is likely to assumes his new role amid a rapidly changing political landscape.

Minister for Natural Resources and Labour Melvin 'Mitch' Turnbull

Hon. Melvin ‘Mitch’ Turnbull

 

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BVI Premier Seeks Constitutional Amendment to Establish Minister of State Position

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Premier Hon. Natalio D. Wheatley has announced plans to pursue a constitutional amendment to formalise the appointment of a Minister of State, a position currently not recognised under the British Virgin Islands’ constitutional framework. The revelation came during an interview on The Big Story with JTV’s Cathy Richards on March 11, where the Premier addressed recent shifts within his administration, including the return of Hon. Lorna G. Smith to government and the reassignment of Hon. Karl Dawson.

The changes, announced earlier in the day, saw Dawson’s removal as Junior Minister for Agriculture and Fisheries, while Smith was designated as Minister of State. However, Wheatley acknowledged that the position does not yet legally exist, requiring approval from the United Kingdom to be formally established.

“In the Westminster system, there are different types of junior ministers, including Ministers of State and Parliamentary Under-Secretaries,” Wheatley explained. “While our current constitution allows for junior ministers, we would need an amendment to introduce the Minister of State designation.”

The Premier confirmed that he has informally raised the matter with the Governor and intends to discuss it further in an upcoming meeting with UK Minister for Overseas Territories, Steven Doughty. If successful, the amendment would provide the BVI government with additional flexibility in ministerial appointments.

Wheatley defended his decision to publicly designate Smith as Minister of State ahead of securing the constitutional amendment, stating that she was passionate about the role, particularly in relation to financial services—one of the territory’s key economic sectors. He emphasised that the move signals his administration’s commitment to expanding the governance framework to better reflect the needs of the territory.

“My point in communicating it is to let persons know that this is something we want to get done as quickly as possible,” he said.

While Smith is not a member of Cabinet, the Premier noted that she will be invited to Cabinet meetings as needed to discuss matters related to her portfolio. Under the current system, only five ministers can be full Cabinet members. Any expansion would require additional constitutional reforms, including a potential increase in the number of elected officials in the House of Assembly.

Should the UK approve the amendment, Smith’s position would become official, leaving a junior ministerial post open. Wheatley also indicated that his government may request an increase in the number of junior ministerial positions beyond the current limit of two.

“We would be asking for the ability to have different levels of junior ministers, and I believe it would be prudent for us to request more than just two,” he said.

As negotiations with the UK progress, the government’s ability to restructure its ministerial framework remains uncertain. However, Wheatley remains optimistic that changes can be implemented in a timely manner.

“We will see how quickly we can get it done,” he said, underscoring his administration’s push for constitutional reform.

The proposed changes come at a time when the BVI is preparing for broader constitutional negotiations with the UK. The discussions will not only address the Minister of State position but could also lead to wider governance reforms.

For now, Smith will continue to serve in one of the two existing junior ministerial roles until a formal decision is made.

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