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Premier Wheatley’s Allegations of Insufficient COI Support Lack Merit: Says Smith

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Lorna Smith OBE, dismissed as Deputy Premier by Premier Dr. Natalio Wheatley on Wednesday morning, has strongly refuted his allegations of her insufficient support for the administration’s Commission of Inquiry (CoI) obligations, stating they lack merit.

“The Premier in his letter to me cited a lack of support in relation to COI obligations as one of the reasons for my removal. However, if you have followed my work since being sworn in as Minister, it is evident that the accusations hold no merit,” Smith said at her October 23 press conference, held just hours after Wheatley announced via social media that former Virgin Islands Party (VIP) member Julian Fraser had been sworn in as Deputy Premier.

The former Minister for Financial Services, Labour and Trade revealed that she was notified of her dismissal via a letter received around 8 a.m. while she was at work in her office.

Smith, who won the Territorial-At-Large seat with the National Democratic Party (NDP) in the April 2023 elections, previously switched allegiance to give the Virgin Islands Party a majority to form a government.

A composed former First Lady emphasised that her “record speaks for itself,” noting, “under my leadership, my ministry, along with its hard working team, has met all COI deadlines, fulfilling every obligation within the required timeframe.”

“The Premier’s reasoning is simply untrue, and I believe that it is imperative that he be honest with the people about his true motives rather than fabricating baseless claims.”

Wheatley in his public statement thanked Smith for her service, adding that “I do so with a heavy heart. She did not give me the confidence that she would remain with my administration for the duration of this term.”

The head of the territory added: “This is a necessary change to the composition of the government that provides my administration with political stability and a wealth of knowledge and experience which will serve us well over the course of the remainder of this House of Assembly, political stability is critical at this time to ensure we finalise completion of governance reforms, effectively address the recommendations of the mutual evaluation report.”

At the end of August, Governor David Pruce announced that the government had missed the deadline for implementing key reforms outlined in the 2021 Commission of Inquiry Report, which exposed widespread corruption within the administration.

The CoI was initiated by former Governor Augustus Jaspert in January 2021, and a year later, Commissioner Sir Gary Hickinbottom presented a comprehensive 900-page report detailing significant corruption and recommending a partial constitutional suspension to facilitate essential governance reforms.

But Premier Wheatley in August assured the territory that 45 of the 48 proposed reforms had been completed, promising that the remaining changes would be finalised within a week.

Tensions continue regarding the territory’s political future, as the United Kingdom has warned that failure to implement the reforms could lead to the retention of the Order in Council, potentially resulting in a two-year constitutional suspension.

The former Deputy Premier shared that “despite the difficult economic challenges we face, my focus has always been on strengthening our economy while supporting the government in meeting its obligations.”

She made it clear to Premier Wheatley upon switching sides that “I was here to serve the people of the Virgin Islands, not to serve political interests.

“The truth is I have never wavered in my commitment to the Virgin Islands and its people. When I made the decision to join the government, my singular focus was the continued development of our territory. I was transparent about my intentions then, and I remain steadfast in that mission now.”

“It is exactly what I have done up until this point,” Smith said, highlighting several key achievements during her tenure as Minister, including a successful response to the Caribbean Financial Action Task Force (CFATF) mutual evaluation report, the launch of the Financial Services Solution Programme, and the establishment of the First Tomorrow’s Leaders Internship Programme.

She also led a trade mission to Guyana and Asia and co-chaired the UK Overseas Territories Economic Dialogue, the first of its kind.

“My recent efforts, particularly our successful response to the CFATF mutual evaluation report, have been recognised both locally and internationally, and I am proud of what we have achieved together,” Smith said.

Local News

Driver Suffers Seizure, Triggers Multi-Vehicle Accident in Road Town

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At least one person was hospitalized following a chaotic multi-vehicle accident in Road Town shortly before 11:00 a.m. on Saturday, January 25, 2025.

According to eyewitness accounts, a white truck lost control near the roundabout, barreling across the area before coming to a halt near Supa Value. The truck’s erratic movement caused significant damage to at least six vehicles in its path.

Reports indicate that the truck’s driver suffered a seizure, leading to the loss of control. Emergency services responded swiftly, and the injured individual was transported to the Dr. D. Orlando Smith Hospital for treatment. The extent of the injuries remains unknown at this time.

The Royal Virgin Islands Police Force was on the scene to assess the situation and coordinate recovery efforts. Investigations into the incident are ongoing.

Further updates will be provided as additional information becomes available.

 

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Crime/Police

DPP Appeals Dismissal of Breach of Trust Charges Against Walwyn and Stevens

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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.

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Business

Virgin Islands Advances Fight Against Financial Crime Through National Action Plan

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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.”

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