UK investigating possible theft of taxpayers’ cash in ‘rampantly’ corrupt British Virgin Islands

'The UK is extremely concerned about the state of good governance in the British Virgin Islands. We have a constitutional and moral duty to protect the interests of the people of BVI. We cannot ignore such serious allegations,' said Foreign Secretary Dominic Raab

Credit: Toby Melville/REUTERS

Millions of pounds of UK taxpayers’ cash may have been stolen in a “rampantly” corrupt British territory, with the Foreign Office dispatching a judge to investigate the allegations.

Foreign Secretary Dominic Raab has announced the move amid fears that the money to help the British Virgin Islands (BVI) after it was devastated by Hurricane Irma may have been pocketed by corrupt officials and their associates.

The UK gave more than £50 million to support the BVI and neighbouring Anguilla in the wake of the hurricane.

However, the Foreign Office believes endemic corruption and rampant cronyism has seen money, including emergency funds to help in the island’s Covid-19 response, skimmed off from over-price projects or diverted into the pockets of political allies.

Critics are said to have faced bullying and intimidation, with officials who tried to prevent the abuses forced out of office. There are also claims of "political interference and coercion" in public appointments, the criminal justice system, and individual criminal cases.

August Jaspert, the governor of the BVI, is alleged to have faced a campaign of harassment and abuse, including hostile briefings and repeated attempts to frustrate his constitutional duties.

Announcing a six-month judicial commission into the alleged corruption, Mr Raab said it had been alleged that public servants, community leaders and people in the media had been intimidated to such a degree they spoke of living in a "climate of fear".

The BVI remain an British Overseas Territory in the Caribbean, with a population of around 30,000

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He said government contracts had been awarded without any proper procurement process and there were concerns over the misuse of taxpayers’ money on infrastructure projects, and about the "potential vulnerability" of the islands to serious organised crime.

Those worries were underlined last November with the seizure of more than two tones of cocaine worth almost £190 million.

"The UK is extremely concerned about the state of good governance in the British Virgin Islands," Mr Raab said. "We have a constitutional and moral duty to protect the interests of the people of BVI. We cannot ignore such serious allegations.

"The commission will inquire into whether there is information to substantiate claims that corruption, abuse of position and serious impropriety has taken place in public office in recent years, and it will make recommendations."

The commission will be headed by Sir Gary Hickinbottom who will have powers to summon any islander and demand its government hand over crucial documentation.