UK Government Names Conditions for Providing Financial Support to BVI

The UK government has reiterated the conditions under which it is going to provide economic support to its Overseas Territories, including the British Virgin Islands. In the 2020 communique, which was published at the Joint Ministerial Council meeting for OTs, the UK government said it expects Territories to be financially independent as much as possible, as it will only offer financial aid in exceptional circumstances.

The UK government said that while OTs as small and open-island economies vulnerable to external threats, governments must manage public funds to make the economy resilient in times of disasters. It is stated in the communique: “In times of crisis, the UK stands ready to support the Overseas Territories, as happened following the hurricanes in 2017 and during the COVID-19 crisis. As a first step, the UK will look to the Overseas Territories to make full use of their financial resources to address their needs and will consider further requests for financial support on a case-by-case basis.”

The UK government also promised to help OTS increase their economic resilience through technical support and encouraging financial management, and to consult the Overseas Territories on a support programme for next financial year.

The UK pressured the OECD to give the British Virgin Islands loans which it didn’t originally qualify for, by staying as a guarantor for them. However, the BVI government was asked to set up the Recovery Development Agency (RDA) to ensure transparent managing of these funds.

BVI Re-elected for the Caribbean Development & Cooperation Committee

For the third consecutive two-year term, the British Virgin Islands has been re-elected on the Caribbean Development & Cooperation Committee (CDCC), which is a subsidiary body of the United Nations Economic Commission for Latin America and the Caribbean (ECLAC).

The BVI Premier Andrew Fahie will serve as a Vice-Chair on the board. He commented on this achievement, saying: “I am humbled by our region’s confidence in me, and the BVI as an Associate Member Country of ECLAC, to serve as a Vice-Chair of CDCC during these very challenging times in which we as SIDS (Small Islands Developing States) are all combatting COVID-19, facing an active hurricane season and under intense economic pressure.”

The Premier will also co-chair a proposed Summit of the Associate Members of ECLAC in 2021, where he will discuss the challenges faced by Associate Members, their progress and needed support, to implement the UN 2030 Sustainable Development Agenda that has been impacted by COVID-19 and other developments.

In addition to the BVI, Cuba and Dominica were also elected to serve as Vice-Chairs on the Caribbean Development and Cooperation Committee.

BVI Appears on EU “White List” of Jurisdictions

The British Virgin Islands became one of 16 countries placed on EU white list, which was revealed in the last weeks of February. The jurisdiction was whitelisted partially due to economic substance legislation enacted at the end of 2018, which allowed the BVI to be placed on the EU’s “Annex II” of jurisdictions with “pending commitments.” The deadline extensions were granted to give time to the British Virgin Islands to pass the needed reforms to fully comply with co-operation standards. Thus, the country avoided being placed on “Annex I” (the blacklist).

BVI Premier Andrew Fahie welcomed the decision of the European Union, having said in his statement: “This is as a result of close cooperation and positive dialogue with the EU and demonstrates the BVI’s commitment to meeting and surpassing international standards.” He also added that he and his government “remain completely focused on ensuring the continued success of our international business and finance centre and its role in the global economy. We believe there will be significant opportunity for our territory and our people as we enhance our economic substance yet further.”

The 16 new whitelisted jurisdictions, along with the Virgin Islands, are Antigua and Barbuda, Armenia, the Bahamas, Barbados, Belize, Bermuda, Cabo Verde, Cook Islands, Curaçao, Marshall Islands, Montenegro, Nauru, Niue, St. Kitts and Nevis and Vietnam.

BVI Financial Management Agreement with UK Considered to be Amended

BVI Premier Andrew Fahie said that it is possible that borrowing restrictions placed on the territory in the Protocols for Effective Financial Management agreement between the BVI and the UK could be waived in case the BVI territory suffers from major natural disaster or catastrophe. The financial agreement, which was signed in 2012 and is currently in force, prohibits the BVI government from borrowing more than 80 per cent of its recurring revenue, but the UK is prepared to consider this through a “natural disaster clause”.

Andrew Fahie noted that making provisions in the agreement for disasters was one of of the things the BVI wanted to discuss, during recent negotiations with the UK about its loan guarantee offer. The Premier commented on the raised concerns: “The UK government stated to us that it is prepared to consider including a reference to natural disasters and catastrophic events in the debt section of the Protocols for Effective Financial Management.” 

In his speech addressing members of the media, Premier Fahie said that, based on the territory’s geographical location, the BVI is not only susceptible to hurricanes, but also to other disasters such as earthquakes, and in case they impact the territory to a high degree, the BVI might need to borrow extensively to rebuild, like in case of hurricanes Irma and Maria.

BVI Urged UK Government to Back Modern Partnership with OTs

At the recent meeting at the House of Commons with Andrew Rosindell, MP, chairman of the the Overseas Territories All Party Parliamentary Group in the UK government, the special representative of the British Virgin Islands urged to support the renewal of partnership with Overseas Territories including BVI.

Benito Wheatley welcomed the position of the UK government stated by the Foreign and Commonwealth Office not to force the OTs to adopt the UK decisions on the Territories in areas of governance “constitutionally devolved to them without their consent”. He added: “It is now time for the UK Parliament to support a renewal of the modern partnership between the UK and Overseas Territories based on the principle of self-governance and we hope there will be no further parliamentary moves to undermine the UK Government position that rejects the use of Orders in Council against the Territories.” 

Wheatley also praised Rosindell for his long-standing support to the Overseas Territories including BVI and for respecting their constitutions. It is known that the UK government is taking steps to mitigate possible adverse effects that Brexit, which is now planned on October 31, can have on the British Virgin Islands. Governor Augustus Jaspert stated that many of the benefits that the BVI currently receives from its association with the EU, including EU funding and trade benefits, would go unchanged when Brexit is finalised - among them.

BVI Premier Initiates Forensic Audit of Finances

BVI Premier Andrew Fahie announced that a forensic audit on the finances of the government is expected to be done within the first 100 days of the VIP government, the completion date would be in June 2019. The audit which will be conducted by an unspecified firm is not exclusive to the finances of the territory, but has the purpose to reveal the “overall status” of the government of the British Virgin Islands.

In his speech at the House of Assembly on March 12 during the swearing ceremony, Premier Fahie said that the “comprehensive forensic audit… will allow us an accurate assessment of where we are so that we can better manage the expectations [of residents] and build a strong foundation on which to build upon as your new government.”

New Ministers Appointed by BVI Premier

During the ceremony to swear in the new government ministers, which was held in the Government House, the new BVI Premier Andrew Fahie announced extensive ministerial reshuffling. Mr. Fahie is minister of finance, the portfolio of minister of health and social development is given to Carvin Malone, Kye Rymer is the newly appointed minister of transportation, works and utilities, Vincent Wheatley is minister of education, culture, youth affairs, fisheries and agriculture, Sharie de Castro is junior minister of trade and economic development, and Shereen Flax-Charles is junior minister of tourism; Neville Smith will serve as deputy speaker in the House of Assembly, and will occasionally fill in as a junior minister or minister.

The BVI government announced that Dr. Wheatley was sworn in as deputy premier for a period of three months. During the first year, every three months Mr. Fahie will appoint different minister to this position to provide necessary experience to the leaders. According to the government press release, after the first year someone will take this post permanently. 

Reorganization also includes the responsibility for telecommunications, ports and airports taken by the Premier’s Office, and responsibility for immigration taken by the newly formed Ministry of Natural Resources, Labour and Immigration. Among other changes there is moving of the Department of Agriculture and the Conservation and Fisheries Department from the Ministry of Natural Resources and Labour to the newly renamed Ministry of Education, Culture, Youth affairs, Fisheries and Agriculture.

General Elections Won by VIP, Andrew Fahie Sworn as New Premier

Andrew Fahie has become the new Premier of the British Virgin Islands, after the Virgin Islands Party (VIP) has won the majority 8 of the 13 seats at the 2019 General Elections. On Tuesday, BVI Governor Augustus Jaspert officially swore in the Virgin Islands Party (VIP) leader as the Premier; now he is to appoint five elective representatives as government ministers.

The Virgin Islands Party won four district seats and four Territorial At-large seats. Those who received the seats from the party are Andrew Fahie, Kye Rymer, Dr Natalio Wheatley, Vincent Wheatley, Sharie de Castro, Neville ‘Sheep’ Smith, Shereen Flax-Charles, and Carvin Malone. Progressive Virgin Islands Movement candidate Melvin ‘Mitch’ Turnbull, Progressives United leader Julian Fraser, and the NDP’s three elected candidates Mark Vanterpool, Alvera Maduro-Caines, and Marlon Penn received the other five seats.

BVI will Choose New Premier, Political Parties are to Adhere to Code of Conduct

Political parties which will participate in the general elections in the British Virgin Islands on February 25, 2019, as well as the general public, are asked to strictly adhere to the provisions of the Code of Conduct. According to the statement of the BVI government, “The Code of Conduct now exists for political parties and candidates with the 2019 amendment to the Elections Act now in force. The purpose of the code is to promote conditions that are conducive to free and fair elections, and a climate of tolerance in which electioneering activity may take place without fear or coercion, intimidation or reprisals.”

The code consisting of 11 clauses covers the following areas: politically-motivated violence or intimidation, prohibited conduct: conduct during polling period, announcements of results of elections and respect for media and journalists. 

During the elections, the new political leader will be chosen for the BVI, as Orlando Smith has retired from his post of the territory’s premier. Mr. Smith’s National Democratic Party (NDP) has fractured, opening the possibility for a new party, the Progressive Virgin Islands Movement, to enter the government after long years of the NDP and the Virgin Islands Party domination. The VIP also fractured after the 2015 elections: Andrew Fahie will lead the VIP, while Julian Fraser split to form his own party, the Progressives United.

The new BVI government will face many issues, including the BVI financial sector challenges and the possibility of being potentially blacklisted by the European Union and being subject to the recently implemented UK beneficial ownership rules.

CPA British Islands & Mediterranean Region Invited to Conduct Election Observation Mission in BVI

The Commonwealth Parliamentary Association British Islands and Mediterranean Region (CPA BIMR) was invited by the BVI Governor with approval of the BVI Premier and Leader of the Opposition to conduct an Election Observation Mission (EOM) to the British Virgin Islands in 2019. 

The Mission will observe political campaign, electoral administration, polling and other aspects of BVI elections against international standards, commitments and obligations, as well as BVI legislation. It will issue a preliminary report with initial results within two days upon the elections, and the closing result, which will include recommendations for possible electoral reform, within two months after the elections.

The mission will consist of six members, all of them from different countries, and will be supported by a core team of an election coordinator and two election specialist analysts.

CPA BIMR is one of the nine regions of the network, with its headquarters based in the UK Branch of the Commonwealth Parliamentary Association. Since 2011, the association has been organising short-term Election Observer Missions across the UK Overseas Territories including the British Virgin Islands, Anguilla, Montserrat, Turks and Caicos Islands, Cayman Islands and Jersey. It was also involved in election assessment during the UK General Elections.

UK Government Extending Deadline for Public Registers in BVI

The UK government has given its Overseas Territories including the British Virgin Islands an allowance to continue without implementing the public registers of company beneficial ownership until the year 2023. In fact this is a 3 year extension to the initial deadline set by the United Kingdom in its Sanctions and Anti-Money Laundering Act, which was forcing to implement public registers by the year 2020.

UK Minister responsible for OTs, Lord Tariq Ahmad, gave his comments about the deadline extension: “It is our intention that if by 2020 there is no public register, for whatever territory, we will then issue an Order in Council, which will then have a requirement for an operational public register by 2023.” By his words, the 2023 deadline will give the UK time to advance its mission of making public registers become a global standard. 

The public registers mean that the BVI along with other Overseas Territories will be required to disclose the names of beneficial owners of offshore companies registered in the jurisdictions. The BVI is objecting the implementation of public registers before they become a global standard, as it would place the territory in a disadvantageous position to other countries providing financial services.

Premier Announced New Ministerial Appointments in BVI Government

This week, BVI Premier Dr Orlando Smith appointed honourable Marlon Penn as the new Minister of Health and Social Development, and Honourable Hubert O’Neal as the new Junior Minister of Tourism. This happened after Ronnie Skelton was revoked from his post as Minister of Health and Social Development, and Archibald Christian lost his post of Junior Minister of Tourism.

Ronnie Skelton was terminated in his post after he reportedly told to local media that his was the leader of the breakaway political party known as the Progressive Virgin Islands Movement. This was named by Premier as a ‘clear conflict of interest’, as it is impossible to stay a member of Cabinet and form own party at the same time. The similar reason was for firing Archibald Christian from his post. 

Also, Second District Representative Melvin Turnbull, who wrote to the Speaker of the House of Assembly last week requesting to be seated on the Opposition side of parliament, left the NDP government. Christian and Turnbull have already announced their alliance with Progressive Virgin Islands Movement.

Director for Overseas Territories Paying Visit to BVI

The director for Overseas Territories in Britain’s Foreign and Commonwealth Office Ben Merrick made a four day visit to the British Virgin Islands, during which he was focusing on governance, financial services of the territory, and the post-hurricane recovery. He was talking with the BVI Premier and Minister of Finance Dr Orlando Smith, the Cabinet, the leader of the opposition and representatives of the financial services industry.

One of the main purposes of the visit is to evaluate the influence of financial and technical support from the UK to the BVI after hurricanes, and to discuss further funding and loan guarantees for BVI recovery and development. Government departments and agencies visited by Merrick include the Royal Virgin Islands Police Force, the Department of Disaster Management, the BVI Ports Authority, the BVI Airports Authority and the Recovery and Development Agency.

BVI Premier and Opposition Speak about UK Amendments

After the discussions with the UK parliamentarians concerning the controversial amendments to the Sanctions and Anti-Money Laundering Bill, BVI Premier Dr Orlando Smith made the statement where he said: “Be in no doubt, that if the UK Parliament proceeds with seeking to impose public registers on the British Virgin Islands, this could fundamentally alter our relationship with the UK and we will take all necessary steps to protect our constitutional rights.”

In his turn, the Opposition Leader Andrew Fahie agreed that this is a “constitutional overreach”, and said that the Opposition and Premier “stand united on protecting the constitutional rights of the British Virgin Islands.” 

The UK amendments impose the requirement for its Overseas Territories including the British Virgin Islands to make public the names of beneficial owners of offshore companies incorporated in the jurisdictions. This could bring harm to the financial services sector which is so important to the BVI, comprising about 60 percent of its annual revenue.

In another press release, the BVI Premier noted that the BVI will not impose public registers unless they are a global standard.

Opposition Leader Speaks to Public

The parliamentary opposition of the British Virgin Islands has been criticized for keeping silence since it lost the general elections in June, but this week opposition leader Julian Frazer said to the public that they will start working soon. He added that the PAC (Public Accounts Committee) will be on track soon, and “the budget time coming up.”

After the defeat of the opposition led by Frazer, he and Andrew Fahie remained the only members of the Opposition Virgin Islands Party in the House of Assembly – the two other seats the party had were lost. However, when choosing between two members, Frazer was selected again as the leader of the opposition. NDP returned to government for the second term, with eleven seats in the House.

British Overseas Territories are Offered to Have Representation in UK Parliament

The UK Parliament MP from Conservatives, chairing the Parliamentary British Overseas Territories Committee, has said that the overseas territories should be represented in the UK Parliament, based on the fact that some UK territories including Scotland have less autonomy but have their representation in Westminster. He also stated that the French, Dutch, and Danish overseas territories had elected representation in the national parliaments. He said that it is worth to consider allowing British Overseas Territories and crown dependency members in the House of Lords.

British MP was speaking on the fringe meeting that was hosted by the Friends of the British Overseas Territories, meant to bring together all the 16 of them. Overseas territories have mixed opinions about full Westminster representation, but, by his words, at last the discussion was initiated on the issue.

Regarding the future referendum on the EU membership, he said that it will definitely have an impact on the UK territories, as many of them have their business in the European Union.

Final Report Issued by Observer Mission on BVI 2015 General Election

Final report was issued on the 2015 general election held in the BVI in June, including an overview of the election observer mission, advance polling day, elections day, counting of votes, complaints and appeals, and participation of women and young people in the elections. The report, published by the Commonwealth Parliamentary Association British Islands and Mediterranean Region, also observes the legal framework of the British Virgin Islands, election administration in the territory, candidate and voter registration, the campaign and the media, and ends with the list of eight recommendations.

The election observer mission recommended the introduction of fixed-term parliaments, and the code of conduct to be signed by candidates. It also offered to create a permanent independent Elections Commission which would provide democratic oversight of the Office of the Supervisor of Elections. Some recommendations related to the BVI legal framework, offering to consolidate various legal acts into a single piece of legislation, and to amend it to include the establishment, registration and regulation of political parties. The mission also provided recommendations on the introduction of finance regulations, on party and candidate advertising, voting process, the closing of the polls and the counting of votes.

Head of the mission stated that the BVI 2015 general election was genuine, vibrant and competitive, “providing the voters an opportunity to cast their votes in secret and express their will in a transparent, peaceful and orderly manner.”

General Elections 2015: 42 Candidates

In the 2015 general elections in BVI, which will take place on June 8, 42 candidates were nominated in total, of them 13 candidates from the National Democratic Party and the Virgin Islands Party, 5 candidates from the People’s Empowerment Party, 3 candidates from the People’s Progressive Coalition.

At the district level, 6 persons were nominated as independent candidates, and at the territorial at-large lecvel, there are 2 independent candidates nominated.

On Friday, June 5, there will be advance polling day, followed by polling day on Monday.

General Elections in BVI to be Held in June

The next general election in the British Virgin Islands is set on June 8, a proclamation was published in the Gazette on May 7. The House of Assembly was dissolved on May 1, 2015.

During the general elections, National Democratic Party (NDP), together with its leader Premier Dr Orlando Smith, will try to defend its majority in the House and, in case of success, it will be the first political party in the jurisdiction ruling for 16 years consecutively.

The main opposition will be represented by Virgin Islands Party (VIP), which is led by Julian Fraser. Former premier and leader of the opposition Ralph O’Neal will not participate in the election 2015. There is also a party, newly launched in March 2014, which can change the final results and the political scene of the country, for the first time since 1995 – the People’s Empowerment Party (PEP), led by sitting member of the House, Alvin Christopher.

British Virgin Islands Host EU Meetings

BVI will host three high level European Union meetings, which are scheduled this week with participation of senior EU officials from UK, France, Denmark and Netherlands, as well as OT’s political leaders. By words of Premier and Minister of Finance, Hon. Dr. D. Orlando Smith, the meetings are the culmination of hard work over the past months. The Premier will co-chair with the European Commission a Caribbean Regional Conference for OTs that will focus on how the territories can work together to achieve sustainable development.

Hon. Orlando Smith will also be the chairman of the OCTA Ministerial Conference where the heads of Government and political leaders will participate in a number of discussions; he will also be the participant of the 13th OCT-EU Forum which is the main vehicle for political dialogue between the European Union and the Overseas Territories. An important part of the talks will be the future of the Overseas Countries and Territories in the European Union.

The British Virgin Islands also manage the project for small and medium sized enterprises on behalf of the Caribbean OTs, which is funded by European Union, and is expected to benefit local small business sector.