Direct rule will not be imposed on the British Virgin Islands (BVI) after the UK foreign secretary decided to give the territory’s emergency administration two years to implement reforms to tackle endemic corruption.
Last month the BVI’s premier, Andrew Fahie, faced charges of money laundering and conspiring to import cocaine after he was arrested in a sting operation by US agents posing as Mexican drug traffickers in Miami. He denies the charges.
An earlier inquiry had been launched into claims of corruption in the territory in recent years, with its findings recommending temporary direct rule be imposed on the BVI.
But in a written statement on Wednesday, Liz Truss said the recently sworn-in government of national unity in the BVI should have the opportunity to demonstrate their commitment to a programme of reform without direct rule being imposed.
Addressing a press conference online, John Rankin, the islands’ governor, said: “I know that the vast majority of the people of the British Virgin Islands are honest, hard working and caring.
“The reputation of the British Virgin Islands sits on the shoulders of these individuals and not on the small minority who wish to profit at their expense. It’s time the governance of the British Virgin Islands is as good as its people. They deserve no less.”
On 18 January 2021, the then BVI governor Gus Jaspert launched a commission of inquiry (COI) into claims that corruption, abuse of position and serious impropriety had taken place in public office.
On 4 April this year, Rankin received the report and announced his intention to publish the findings in June.
However, on 28 April, US authorities arrested Fahie, prompting Rankin to publish the report. It highlighted “serious impropriety” and said “gross failures of governance by elected officials through several administrations is highly likely to have taken place”.
The report, by the retired judge Sir Gary Hickinbottom, recommended that direct rule was temporarily imposed on the BVI to deliver the reforms needed.
However, a government of national unity (GNU) was swiftly formed and sworn in on 5 May with Natalio Wheatley taking up the mantle of premier and minister of finance. A GNU is typically a broad coalition government consisting of all or most parties in the legislature, usually at a time of national emergency.
In her written statement, Truss said since the Hickinbottom report was delivered “there have been a number of significant developments” including the removal of Fahie as premier through a vote of no confidence and the creation of the new GNU.
Rankin has also ordered a number of criminal investigations. A detailed implementation plan of reform will be published by the GNU.
Rankin said the administration would have two years to put the reforms in place but if there were any delays or if he was not satisfied with progress, direct rule would be imposed.
Truss said: “The people of the BVI want and deserve change and have made their desire for better governance clear. Elected officials know this. We want to support the new government in making this change and allow them the opportunity to reform.”
She added: “We have a duty to protect the people of BVI from corruption, criminality and poor governance. We will stand by them.”
• This article was amended on 8 June 2022. The commission of inquiry into corruption claims was launched by the former BVI governor Gus Jaspert, not David Archer as an earlier version said.