British Virgin Islands 2021 Commission of Inquiry

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BVI Commission of Inquiry Report (vol 1) BVICOICover.jpg
BVI Commission of Inquiry Report (vol 1)

The British Virgin Islands 2021 Commission of Inquiry was a public inquiry commissioned by the then Governor of the British Virgin Islands, Augustus Jaspert. [1] The terms of reference were to make "a full, faithful and impartial inquiry into whether there was information that corruption, abuse of office or other serious dishonesty in relation to officials, whether statutory, elected or public, may have taken place in recent years; if there were such information, to consider the conditions which allowed such conduct to take place and whether they may still exist; and, if appropriate, to make independent recommendations with a view to improving the standards of governance and the operation of the agencies of law enforcement and justice in the Territory". [2] [3]

Contents

A former judge of the English Court of Appeal, Sir Gary Hickinbottom was appointed as the commissioner. [4] The hearings and taking of evidence were conducted over several months in 2021 in different sittings, and the report was finally delivered on 4 April 2022 to Mr Jaspert's successor as Governor, John Rankin. [5] After the Governor reviewed it privately it was published on 29 April 2022. [6]

The report was 946 pages long (including appendices), and concluded that "[a]lmost everywhere, the principles of good governance, such as openness, transparency and even the rule of law, are ignored". [7] He described the governance as "appallingly bad", [8] and that it was "highly likely" that serious dishonesty had taken place. [9] The report also noted that various civil servants in the British Virgin Islands, including the Auditor General and the Director of Internal Audit had repeatedly drawn attention to these matters in a way that was "brave, forthright and clear" but that "they have been consistently ignored". [7] He expressed the view that "the people of the BVI have been badly served in recent years. Very badly indeed", and that "the people of the BVI deserve better ... [and] the UK Government owes them an obligation not only to protect them from such abuses but to assist them to achieve their aspirations for self government as a modern democratic state". [10]

The report made a total of 49 recommendations, including four overarching recommendations. Most significantly amongst them, the report recommended that the Territory's Constitution be suspended and reviewed, and that the United Kingdom should reimpose direct rule over the islands for an initial period of up to two years. The UK Foreign Secretary, Liz Truss, dispatched Overseas Minister Amanda Milling to the British Virgin Islands for urgent talks as a result. [11] The report recommended that direct rule be conducted in conjunction with an 'Advisory Council' of people from the Territory, referring to the "huge pool of talent and wisdom in the BVI". [10]

In an apparently unrelated incident, after the inquiry concluded and the report had been delivered, but before it was published, the Premier, Andrew Fahie, was arrested in Miami relating to charges of conspiracy to import drugs and money laundering. [12] [13]

Acting Premier Natalio Wheatley issued a statement saying he was "very concerned" by the recommendations, [14] and later confirmed that direct rule was "not acceptable". [15] On 8 June 2022, subordinate UK legislation was made allowing for direct rule for the islands. [16] However, the British government confirmed on that date that it would not in fact suspend the Territory's constitution, despite the recommendation by the Commission of Inquiry. [17] [18]

Background

In October 2017 Augustus Jaspert was appointed as Governor of the British Virgin Islands, and just over a year afterwards Andrew Fahie's Virgin Islands Party (VIP) won a general election and formed a government. From a relatively early stage there were reports of hostility between the two men. Although the VIP ran on an anti-corruption platform, the Governor continued to express concerns and reservations about governance and transparency. Andrew Fahie firmly blamed the personal relationship for the decision to appoint a commission of inquiry. [19] Jaspert did not respond to those specific allegations, but did speak warmly of the wider people of the BVI, saying that the "values of integrity, honesty and respect run deep in the BVI" and "We have an excellent financial services industry that is known worldwide for its strong regulations. We are one of the safest places in the Caribbean to come and visit and live and I don't want anything to jeopardise that". [20] Later, in his own evidence before the inquiry, Jaspert indicated that he felt: "the Premier had behaved on more than one occasion was not “befitting of a professional or courteous manner from an elected leader of government”." [21]

In 2021, shortly before his term as Governor ended, Jaspert used his powers to order a commission of inquiry into allegations of impropriety. The announcement was made by the Governor via Facebook on 18 January 2021. [22]

Some of these allegations related to specific incidents of impropriety which had been well documented in the press, such as the BVI Airways fiasco, and the contracts for the building of the wall for the Elmore Stoutt High School in Road Town. But other allegations related to a more general culture of impunity and disregard for processes and procedures. He also subsequently intimated concerns about links between the governments and drug gangs. [23]

Response of the BVI Government

Andrew Fahie Andrew Fahie.png
Andrew Fahie

The approach of the British Virgin Islands government to the commission was hostile from the outset. [24] [25] Sir Gary Hickinbottom noted that disclosure of government papers was "in shambolic order, and often incomplete". [7] The British Virgin Islands government retained former Attorney General of England and Wales, Sir Geoffrey Cox QC, to represent them at the inquiry. [26] In order to retain their lawyers the BVI government waived the tender process. [27] The Premier later estimated that $5 million of taxpayer money had spent on the government's defence. [28] In his report Sir Gary noted that although the various lawyers were theoretically retained to act for "the government" as a whole, the reality was that it was "impossible to avoid the conclusion that the primary role of Withers was to defend the interests of the elected Ministers, which was vigorously and fully done." [29]

The Speaker of the House, Julian Willock, also attempted to obtain an injunction privately against the commission's attorneys from acting in the Territory. [30] That claim was struck out and Willock was ordered to pay costs, [31] but the government indicated that it would indemnify him from public funds [32] prompting public protests. [33]

When the Commission wrote to each sitting member of the House of Assembly with an open invitation to provide the commission with any information and documents which they had in their possession or control and which might be relevant: "No substantive response was received: none of the Ministers or other Members provided any documents or other information pursuant to the request." [34]

The inquiry itself was also plagued with leaks on news website Virgin Islands News Online (VINO), a local news website associated with Julian Willock. [35]

Hearings

Hearings commenced on 22 January 2021 at the International Arbitration Centre in Road Town, Tortola. [36] The hearings took over 50 days in total over a period of six months. [37] The hearings were live streamed. [38] The hearings were extended on a number of occasions due to the COVID-19 pandemic and to allow further evidence to be taken.

The hearings were conducted in two main phases: firstly from 4 May to 19 July 2021 (days 1 to 28), and secondly from 6 September to 24 November 2021 (days 29 to 55). The evidence gathering concluded on 22 October 2021, [37] although a number of procedural matters and applications were resolved after that date.

In his report, Sir Gary noted "One substantial challenge was that some individuals who had information to divulge, expressed fear of discrimination or other forms of reprisal if they were seen to be assisting or even communicating with the COI." [39]

He also noted that, despite public perceptions: "It was never intended that the COI would conduct in depth financial investigations into particular projects, programmes or people; or “chase” bad money. The Terms of Reference did not require or expect it, and the time and resources I had were tailored accordingly." [39]

Report

The report was delivered to the Governor of the British Virgin Islands, John Rankin, on 4 April 2022. [5] After the Governor reviewed it privately it was published on 29 April 2022. [6] The Governor indicated that the subsequent arrest of Andrew Fahie in Miami caused him to accelerate the publication of the report to try to avoid any suggestion that the two matters were somehow connected.

The report was strongly critical of successive government administrations in the Territory. The report indicated that "[a]lmost everywhere, the principles of good governance, such as openness, transparency and even the rule of law, are ignored". [7] He described the governance as "appallingly bad", [8] and that it was "highly likely" that serious dishonesty had taken place. [9] The report also noted that various civil servants in the British Virgin Islands, including the Auditor General and the Director of Internal Audit had repeatedly drawn attention to these matters in a way that was "brave, forthright and clear" but that "they have been consistently ignored". [7]

Recommendations

Liz Truss Official portrait of Elizabeth Truss crop 2.jpg
Liz Truss

The report made four overarching recommendations, followed by 45 further recommendations. The overarching recommendations were:

...whilst I appreciate that the Governor and the UK Government will consider this only as a last resort, as do I, I have concluded that the only way – and I stress, the only way – in which the relevant issues can be addressed is for there to be a temporary suspension of those parts of the Constitution by which areas of government are assigned to elected representatives. It is only with the most anxious consideration that I have been driven to the conclusion that such a suspension is not only warranted but essential, if the abuses which I have identified – which are abuses against the people of the BVI – are to be tackled and brought to an end. [41]

The remaining recommendations fell into several broad headings:

Evidence and findings

Amanda Milling Official portrait of Amanda Milling MP crop 2.jpg
Amanda Milling

The commission made a wide range of findings based upon the evidence presented. These findings included:

Other Observations

The report noted that the Attorney General's chambers had 69% of its positions unfilled and was "overwhelmed". The Attorney General blamed low compensation levels and an "inexplicably long and opaque" recruitment process. [76]

The Complaints Commissioner noted that public complaints about the government had declined from a high of 135 (in 2011) to a low of just 16 (in 2018), before rising slightly to 30 (in 2020, the last year for which there were figures). The Commissioner thought this was for two reasons: firstly, the devastation of Hurricane Irma, and secondly, improvements in government service. [77]

The DPP gave evidence (on which no findings were made) that the criminal courts of the British Virgin Islands were "grossly understaffed and under-resourced". [78]

In relation to Customs and Immigration, Sir Gary held: "I cannot exclude the possibility that corruption may exist among officers in HM Customs and the Immigration Department. The environment in each – but particularly the former – is conducive to such". [79]

Response

A protest poster BVIProtestPoster2022.jpg
A protest poster

Acting Premier Natalio Wheatley did not reject the report, but did issue a statement saying he was "very concerned" by the recommendations, [14] and later made a public statement confirming that direct rule was "not acceptable". [15]

Leader of the Opposition, Marlon Penn, did not immediately comment directly on the report, but did say he was "shocked and embarrassed" in relation to the arrest of Fahie. [80]

The UK Foreign Secretary, Liz Truss, made an official statement saying "I have instructed the Minister for Overseas Territories to travel to the Territory immediately to speak to the Governor and key stakeholders. We will then announce a clear path forward." She added: "The Overseas Territories are a core part of the UK family. The UK Government is committed to the security and wellbeing of the people of the British Virgin Islands." [81] Amanda Milling subsequently travelled to the British Virgin Islands for urgent talks as a result. [11]

Local leaders moved swiftly to organise demonstrations against the proposed suspension of the Constitution. [82]

On 8 June 2022, subordinate UK legislation was made allowing for direct rule for the islands. [83] However, on that date the British government announced that it would not suspend the Territory's constitution as recommended by the Commission of Inquiry. [17] [18] The governor announced that the new "unity government" would be given time to enact reforms. [84]

Footnotes

  1. "British Virgin Islands corruption inquiry launched". BBC News. 18 January 2021.
  2. Commissions of Inquiry Act (Cap 237), instrument of appointment dated 18 January 2021 (Gazetted).
  3. COI Report, p. 91.
  4. "Who is the Commissioner of Inquiry?". BVI News. 21 January 2021.
  5. 1 2 "Governor receives COI report! Says he'll review before publicising". BVI News. 5 April 2022.
  6. 1 2 "Statement By His Excellency The Governor John Rankin CMG Regarding The Commission Of Inquiry Report". Government of the Virgin Islands. 29 April 2022.
  7. 1 2 3 4 5 COI Report, p. 7.
  8. 1 2 3 COI Report, p. 689.
  9. 1 2 COI Report, p. 9.
  10. 1 2 3 COI Report, p. 10.
  11. 1 2 "British Virgin Islands: UK minister dispatched for governance talks". BBC News. 29 April 2022.
  12. Durbin, Adam (29 April 2022). "British Virgin Islands: Premier Andrew Fahie arrested in US drug sting". BBC News. Retrieved 29 April 2022.
  13. "British Virgin Islands premier arrested on US drug charges". Miami Herald . 28 April 2022.
  14. 1 2 "Statement By Acting Premier Wheatley on the Commission Of Inquiry Report Recommendations". Government of the Virgin Islands. 29 April 2022.
  15. 1 2 "VIP seeks Fahie's resignation! Party backs Wheatley for premiership". BVI News. 1 May 2022. 'As I indicated on prior occasions, we will be communicating our position to the honourable [UK Overseas Territories Minister] Minister that direct rule is not an acceptable option to us'
  16. The Virgin Islands Constitution (Interim Amendment) Order 2022 - No. 627
  17. 1 2 "British Virgin Islands: UK decides against direct rule of territory". BBC News. 8 June 2022.
  18. 1 2 "UK will not impose direct rule on British Virgin Islands, Liz Truss says". The Guardian . 8 June 2022.
  19. "Bad relationship with Governor Jaspert led to COI". BVI News. 21 April 2021.
  20. "Amid negative int'l press, Jaspert tries to salvage BVI's reputation". BVI News. 25 January 2021.
  21. COI Report, p. 673.
  22. "Governor orders Commission of Inquiry to investigate BVI gov't". BVI News. 18 January 2021.
  23. "Top gov't officials' link to criminal gangs helped prompt COI – Jaspert". BVI News. 21 October 2021.
  24. "Commission of Inquiry 'attack' equals to 9/11, Irma, historic crises?". BVI News. 21 January 2021.
  25. "'Abusive' - Premier details former governor's alleged animus". BVI News. 22 October 2021.
  26. "Geoffrey Cox: Labour calls for probe into MP's work for British Virgin Islands". BBC News. 10 November 2021.
  27. "Tender waived as govt's COI law firm to get top-up of up to $1.2M". BVI News. 4 April 2022.
  28. "Premier says gov't spent roughly $5M on COI so far". BVI News. 28 March 2022.
  29. COI Report, p. 120.
  30. "Speaker files court injunction against COI legal team". BVI News. 18 August 2021.
  31. "Speaker ordered to pay legal fees for 'unreasonable' court action". BVI News. 30 September 2021.
  32. "Gov't wants HOA to exempt Speaker from paying legal fees". BVI News. 28 October 2021.
  33. "Protestors march on HOA ahead of debate on Willock's legal fees". BVI News. 1 November 2021.
  34. COI Report, p. 95.
  35. "Sir Gary calls for investigation as gov't statement to COI leaks". BVI News. 17 June 2021.
  36. "BVI's historic Commission of Inquiry now officially underway". BVI News. 22 January 2021.
  37. 1 2 "Evidence gathering stage of COI now concluded". BVI News. 22 October 2021.
  38. "First live-stream COI hearing to happen tomorrow". BVI News. 1 June 2021.
  39. 1 2 COI Report, p. 93.
  40. 1 2 COI Report, p. 13.
  41. COI Report, p. 690.
  42. 1 2 COI Report, p. 14.
  43. COI Report, p. 16.
  44. COI Report, p. 19.
  45. COI Report, p. 23.
  46. COI Report, p. 24.
  47. COI Report, p. 644.
  48. COI Report, p. 26.
  49. COI Report, p. 133.
  50. COI Report, p. 167.
  51. COI Report, p. 183.
  52. COI Report, p. 187.
  53. COI Report, p. 192.
  54. COI Report, p. 199.
  55. COI Report, p. 225.
  56. COI Report, p. 269.
  57. COI Report, p. 272.
  58. COI Report, p. 297.
  59. COI Report, p. 351.
  60. COI Report, p. 355.
  61. COI Report, p. 373.
  62. COI Report, p. 374.
  63. COI Report, p. 392.
  64. COI Report, p. 394.
  65. COI Report, p. 396.
  66. COI Report, p. 454.
  67. COI Report, p. 480.
  68. COI Report, p. 483.
  69. COI Report, p. 488.
  70. COI Report, p. 519.
  71. COI Report, p. 525.
  72. 1 2 COI Report, p. 572.
  73. COI Report, p. 650.
  74. COI Report, p. 680.
  75. COI Report, p. 677.
  76. COI Report, p. 55.
  77. COI Report, p. 67.
  78. COI Report, p. 638.
  79. COI Report, p. 643.
  80. "We're all shocked and embarrassed – Opposition Leader". BVI News. 29 April 2022.
  81. "Foreign Secretary statement on the British Virgin Islands: 29 April 2022". GOV.uk. 29 April 2022.
  82. "Bishop Cline organises protest against UK direct rule". BVI News. 1 May 2022.
  83. The Virgin Islands Constitution (Interim Amendment) Order 2022 - No. 627
  84. "UK decides not to partially suspend BVI constitution". BVI News. 8 June 2022.

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