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Activists rally outside the residence of Governor John Rankin in May calling for the British Virgin Islands to retain its autonomy. Photo: Reuters

Corruption-hit British Virgin Islands agrees to reforms, avoiding UK rule for now

  • An earlier official report had found systemic dishonesty in the British overseas territory and recommended that it be directly governed from London
  • While choosing not to do so, Britain retains the option of suspending BVI’s constitution and taking over rule if not enough progress is made with reforms
Britain

Britain on Wednesday said it had agreed to a comprehensive plan to reform the governance of the British Virgin Islands without direct rule from London at this stage after an official report found systemic dishonesty in the British overseas territory.

While an inquiry in April had recommended the BVI should have its constitution suspended, its elected government dissolved and effectively be ruled from London, Britain said it wanted to give a new government a chance to implement reforms.

However, Britain said it retained the option of a governor-led administration – effectively suspending BVI’s constitution and handing rule to the British government – if there was not enough progress in improving governance over the two-year plan.

“I believe, in the first instance, the new government should have an opportunity to demonstrate their commitment to reform through the implementation of the 48 [inquiry] recommendations and the further measures they have proposed,” Britain’s foreign minister, Liz Truss, said in a written statement.

Andrew Fahie, the premier of the British Virgin Islands, was removed after being arrested in Miami on money-laundering and cocaine charges. Photo: Government of the British Virgin Islands via TNS

“If it becomes clear that this approach is not delivering the reform the people of the BVI want and deserve we will take action. This may require the swift implementation of the final report recommendation.”

The scandal over the governance of the territory has seen the removal of ex-premier Andrew Fahie after he was arrested in Miami on charges of alleged money laundering and conspiracy to import cocaine in April.

He has pleaded not guilty to the charges.

The arrest came the day before the highly critical report into governance was published. Truss said Fahie’s removal and the creation of a new government marked “significant developments” since the publication of the report.

British Virgin Islands premier arrested in US for cocaine trafficking

Activists had protested against the idea of direct rule by London, and new premier Natalio Wheatley had said the territory could address its problems without suspending the constitution.

Wheatley gave a news conference alongside governor John Rankin and said that Wednesday’s announcement was “in everyone’s best interests”.

“What we’ve in essence done today is we have been able to have an opportunity to have democracy continue in the Virgin Islands and make reforms that we all know are correct,” Wheatley told reporters.

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