Britain has finally lifted its threat of imposing temporary direct rule on the Virgin Islands.
Premier Natalio “Sowande” Wheatley, who has long warned that any suspension of the VI Constitution would amount to an unacceptable colonial power-grab, welcomed the Monday announcement by United Kingdom Overseas Territories Minister Stephen Doughty.
The diplomatic move came as British Anti-Corruption Champion Baroness Margaret Hodge arrived in the territory after a long history of criticising the VI for a lack of financial transparency.
Mr. Doughty wrote the premier to inform him that the parliamentary device known as an order in council — which allowed the UK to implement direct rule if the VI government didn’t fully implement the recommendations in the 2022 Commission of Inquiry report — will be removed due to the territory’s progress in making those reforms over the past three years.
“While that progress has been slower than initially envisaged, many significant pieces of legislation have been passed and the agreed framework actioned,” the minister wrote.
However, he added that lifting the order in council will take “some months practically to take effect” and noted that “concerns” remain.
To encourage continued progress going forward, the minister has asked Governor Daniel Pruce to conduct reform assessments every six months and make his reports public.
“Fundamental and sustained change in the spirit and practice of governance, public and political life and administration in the Virgin Islands will be the only true safeguard against backsliding,” the minister wrote, adding, “I am also keen to continue to hear directly the views of the people and would suggest that we agree to conduct a joint annual survey on implementation and wider good governance to be made public.”
Premier pleased
The premier said he was pleased that the threat to temporarily suspend the VI Constitution is being lifted.
“I firstly want to express my thanks to God for granting us the strength and resilience to forge ahead under very challenging circumstances which required us to implement the recommendations of the Commission of Inquiry whilst at the same time delivering public services to the people of the Virgin Islands,” he said.
Mr. Wheatley also thanked the Caribbean Community, the Organisation of Eastern Caribbean States and the United States Virgin Islands for their support in resisting direct rule over the past three years.
“From the beginning, we as Virgin Islanders were adamant about protecting democratic governance and the hard-earned constitutional gains of our ancestors, who built this territory with courage, vision and fortitude,” the premier said.
Mr. Wheatley also extended thanks to UK Foreign Secretary Yvette Cooper, who succeeded David Lammy in the position in a Cabinet reshuffle early this month in London. At the time, the leadership change prompted fears that the COI decision would be delayed.
Security issues
Besides discussing the COI reforms and order in council, Mr. Doughty’s letter also noted security concerns. The minister wrote that he was troubled by the findings of a review of VI law enforcement agencies completed this year by His Majesty’s Inspectorate of Constabulary and Fire and Rescue Services.
“I remain deeply concerned about a number of issues identified in policing and customs,” Mr. Doughty wrote, stressing the need for a comprehensive vetting procedure for staff.
Mr. Doughty also noted his discussions with the premier last November about concerns over progress tackling illicit finance and ensuring financial transparency in the territory.
“I promised you that I would consider these separately from the specific scope of the COI and its implementation, but I would again emphasise the importance of urgent progress in this area,” the minister stated.
Company register
Such concerns are likely to cue up the VI’s next major power struggle with the UK.
The timing of Mr. Doughty’s announcement coincided with Lady Hodge’s much-anticipated visit to the territory, where she met government officials on Tuesday and yesterday regarding plans for the VI’s updated beneficial-ownership register.
Lady Hodge and other UK officials have called for overseas territories to allow unrestricted public access to their registers, and the VI government’s plan to require would-be viewers to demonstrate a “legitimate interest” has been a source of simmering tension.
Doubling down
Ahead of her arrival, Lady Hodge — who was scheduled to meet with members of the press yesterday after Beacon press time — appeared to double down.
“The UK is committed to transparency and the international fight against illicit finance,” she said. “Public beneficial-ownership registers are an essential tool that help us follow the money so that we can expose corruption and money laundering.”
The anti-corruption czar said she wanted “collaborative discussion” in the VI on strengthening financial transparency.
“In today’s global context, the secret corporate structures are not just used to launder money,” she said. “They are also used to undermine democracies, fund conflicts and engage in human rights abuses and terrorism. So transparency is vital for us.”
‘Engage constructively’
The veteran Labour Party politician said she wanted a “constructive” trip to the VI.
“This visit is an opportunity to engage constructively with leaders and stakeholders in the British Virgin Islands to better understand the challenges they perceive in implementing beneficial-ownership measures,” she said.
Referring to the VI stance on beneficial-ownership registration, a spokesperson for Lady Hodge acknowledged the VI’s commitments but maintained that “concerns remain about the pace of progress towards implementing registers that meet the UK’s minimum requirements.”
