Walwyn Calls for Independent Investigation in Wake of $5M Bank Deposit Controversy

Hon. Myron V. Walwyn, Opposition Leader and Sixth District Representative, in an address to the Virgin Islands public on June 10, raised alarm bells over the apparent mismanagement of $5 million in public funds —monies deposited into a financially unstable bank that has since collapsed.

His remarks, delivered in a speech titled “The $5 Million Question: A Deep Dive into the Fate of Public Funds in the Bank of Asia’s Collapse,” outlined a timeline of events and decisions that he argued point to serious failures in oversight.

“I come to you to address a matter of serious concern, one that directly affects the trust and financial security of the people of this territory,” Walwyn said. “I’m referring to the recent revelations surrounding Bank of Asia BVI Limited, and the troubling discovery that $5 million of the people’s money was deposited into that bank—even after the public signs that it was failing.”

According to Walwyn, Premier and Minister of Finance Hon. Dr. Natalio Wheatley disclosed in the House of Assembly that as of December 31, 2024, the Government of the Virgin Islands held no funds in the bank. However, by April 30, 2025—after the bank’s parent company had filed for bankruptcy and assets were reportedly frozen—$5 million was deposited into a newly opened account.

Walwyn cited public reports from OffshoreAlert, a financial investigative outlet, which had flagged the bank’s financial troubles. He also pointed to Bank of Asia’s failure to submit audited financial statements for multiple years as a red flag.

With the bank now under liquidation, the government is considered an unsecured creditor. Under the protections offered by the Virgin Islands Deposit Insurance Corporation (VIDIC), only the first $100,000 of the deposit is insured, leaving $4.9 million potentially unrecoverable.

“In other words,” Walwyn said, “we are probably very likely to lose most, if not all, of that $5 million—while our people continue to struggle with the high cost of living, with roads that are crumbling, water shortages that have become a way of life, and local businesses barely staying afloat.”

He went on to raise broader concerns about what he described as fiscal mismanagement, including a $20 million shortfall in funding for civil service salary increases and alleged excessive government spending on entertainment, vehicles, and overseas travel.

In response to the controversy, Premier Wheatley issued an official statement on June 6, asserting that the decision to place the funds in Bank of Asia was made by designated public officers within the Ministry of Finance, not by elected officials. He emphasized that the deposit was part of a broader strategy to diversify the government’s financial portfolio, a common practice in public finance.

“As Premier, my priority is the stability and wellbeing of our Islands, guided by our strong institutions, whose independence and expertise uphold our banking sector’s integrity,” Premier Wheatley stated.

Premier Natalio Wheatley

He reaffirmed the Government’s commitment to transparency and announced he had requested an internal audit of the transaction. “To reassure taxpayers and ensure full transparency, I am requesting an internal audit to review this specific transaction. I hope this will offer clear insight, foster confidence, and bring greater understanding to all,” he said.

The Premier also expressed confidence in the Financial Services Commission (FSC) and VIDIC, which are overseeing the bank’s winding down process.

“These institutions, backed by professional expertise and international best practices, ensure that our regulatory framework remains strong, responsive, and trusted,” the statement continued. “The Government fully supports their work and appreciates their steadfast commitment to integrity and transparency.”

However, Walwyn challenged the Premier’s distancing from the decision. Citing the Public Finance Management Act of 2004, he said that the Minister of Finance bears ultimate legal and ethical responsibility for decisions involving public funds. He referenced Section 17, which assigns supervision of government finances to the Minister, and Section 29, which gives the Minister the authority to determine where funds from the Consolidated Fund are deposited.

“One of the most troubling signs of weak leadership is the tendency to shift blame onto subordinates when things go wrong,” Walwyn said. “True leaders take responsibility.”

He also raised doubts about the usefulness of an internal audit in addressing public concerns, noting that such audits are typically confidential. Instead, he called on the Governor to initiate an independent investigation into the matter.

“It is a fundamental principle of good governance that one cannot investigate or call an investigation into a matter in which they have personal or institutional involvement,” Walwyn said. “The people of this territory deserve no less.”