The Director of Public Prosecutions (DPP) is formally challenging the decision by Senior Magistrate Tamia Richards to dismiss breach of trust charges against former Education and Culture Minister, Hon. Myron V. Walwyn, and his former assistant secretary, Ms. Lorna Stevens. The charges stemmed from alleged mismanagement and budgetary improprieties in the construction of a perimeter wall at the Elmore Stoutt High School.

On January 21, Senior Magistrate Richards ruled that there was insufficient evidence to proceed with the case, effectively bringing an end to the prosecution’s arguments. However, just two days later, on January 23, the DPP filed an appeal, contending that the magistrate exceeded her jurisdiction, improperly rejected substantial evidence, and delivered an unreasonable decision.

The case against Mr. Walwyn and Ms. Stevens was rooted in the controversial construction project, initiated in December 2014 during Mr. Walwyn’s tenure. The project, aimed at building a perimeter wall around the high school, has been marred by allegations of mismanagement and public funds misuse.

According to a 2018 Auditor General report by Sonia Webster, the project suffered from budget overruns, contract splitting into over 70 work orders, and the use of unlicensed contractors. The report highlighted that over $1 million was spent, yet the wall remained incomplete. Ms. Webster’s findings prompted a police investigation in 2019.

Both Mr. Walwyn and Ms. Stevens were arrested and charged with breach of trust in October 2022. Prosecutors alleged that the duo failed to exercise proper oversight, leading to unnecessary expenditures and diminished value for taxpayer dollars.

In her January 21 ruling, Magistrate Richards found that the prosecution’s evidence was insufficient to establish a case against the defendants. Legal experts noted that the decision posed significant questions about the strength of the prosecution’s strategy.

The appeal filed by the DPP argues that the magistrate disregarded critical evidence that impacted the merits of the case. The filing also suggests that the dismissal was unreasonable given the severity of the allegations.

The Elmore Stoutt High School perimeter wall project has been a flashpoint of public criticism for years. During the 2021 Commission of Inquiry (COI), led by Sir Gary Hickinbottom, the project was described as “extraordinary” in its mismanagement. The COI report echoed concerns raised by Ms. Webster, particularly regarding the use of multiple unlicensed contractors and the resulting inefficiencies.

Sir Gary’s report noted that the project’s structure increased costs and complexity, further delaying its completion. He recommended that the police investigation continue without interference, emphasizing the need for accountability in public spending.

The Virgin Islands government has reaffirmed its commitment to combating financial crime and enhancing its financial regulatory framework as it implements the Virgin Islands National Action Plan. Premier Dr. the Honourable Natalio D. Wheatley shared key updates during the first government press conference of 2025, held on January 24.

“The Virgin Islands underwent a mutual evaluation review conducted by the International Monetary Fund on behalf of the Caribbean Financial Action Task Force,” said Premier Wheatley. “This process culminated in a comprehensive report published in February 2024, which outlines 64 specific actions necessary to enhance our AML, CFT, and CPF frameworks and policies.”

The National Action Plan, developed in response to the findings of the mutual evaluation, highlights the territory’s efforts to align with international anti-money laundering (AML), countering the financing of terrorism (CFT), and countering proliferation financing (CPF) standards. Premier Wheatley credited government agencies, law enforcement, competent authorities, and private sector partners for their contributions in driving significant progress.

“We are encouraged by the progress made so far in implementing the National Action Plan,” Premier Wheatley said. “Their collaboration has been instrumental in driving meaningful change and addressin

g the findings of the mutual evaluation.”

Significant legislative reforms and the publication of extensive guidance for the financial services sector were key priorities in 2024, with further reforms slated for 2025. Premier Wheatley emphasized that these measures are essential to maintaining compliance and governance in the financial sector.

As part of its outreach efforts, the government has led a “Commitment and Collaboration” series in partnership with the BVI Association of Compliance Officers, the BVI Association of Registered Agents, and other supervisory bodies. The next session is scheduled for February 13, 2025.

In addition, the government is preparing to launch a public awareness campaign under the theme “Business Done RIGHT”. RIGHT represents Responsibility, Integrity, Global honesty, and Transparency. Premier Wheatley noted, “This campaign is an important step in engaging and educating the public, fostering a collective effort across all demographics to combat financial crime in the Virgin Islands.”

Premier Wheatley highlighted the importance of the Asia-Pacific region as a key market for the Virgin Islands’ financial services industry. “The region generates significant business for the BVI,” he said. “We have built some strong relationships there which we must continue to strengthen. It is also important for us to ensure that we create awareness of our offerings and remind players why the BVI is the best place to do business.”

As the post-observation period for the mutual evaluation draws to a close, Premier Wheatley underscored the need for continued efforts to fully implement the National Action Plan.

“While much has been accomplished, there is still more to do,” he stated. “We remain steadfast in our resolve to execute the road map set out in the National Action Plan. I will continue to provide updates on our progress as we work to fully remediate the recommendations from the mutual evaluation and further strengthen the Virgin Islands’ AML, CFT, and CPF framework.”

The Virgin Islands government has commenced a public consultation on the rights of access to beneficial ownership information, an initiative aimed at enhancing transparency and aligning with evolving international standards. Premier Hon. Natalio D. Wheatley announced the development during the first press conference of 2025 on January 24.

“Last Friday, the government of the Virgin Islands launched its consultation on the rights of access to beneficial ownership information, marking a significant step in our ongoing commitment to transparency and international collaboration,” stated Premier Wheatley.

The consultation comes in the context of global discussions about publicly accessible registers of beneficial ownership. These discussions, particularly between the United Kingdom, its overseas territories, and Crown dependencies, centre on balancing the need for transparency in addressing illicit financial activity with the protection of privacy and prevention of misuse of sensitive information.

Premier Wheatley referenced the recent European Court of Justice ruling, which highlighted the importance of protecting legitimate privacy rights while promoting global transparency efforts. In response, the Virgin Islands is considering a system of access based on legitimate interests, ensuring that access to sensitive information is proportionate and subject to stringent safeguards.

“This shift reflects an evolving understanding of the need to balance transparency and fairness while ensuring that access to sensitive information is purposeful, proportionate, and subject to stringent safeguards,” said Premier Wheatley.

The consultation represents a step towards refining the Virgin Islands’ framework for beneficial ownership information access, in line with international best practices and expectations. It aims to address the challenges associated with implementing a globally consistent approach to beneficial ownership registers.

Premier Wheatley called for stakeholder participation, stating, “Your insights will be vital in shaping a framework that not only addresses the concerns of the global community, but also upholds the integrity of our financial services sector.”

The financial services industry remains a significant contributor to the Virgin Islands’ economy.