By Jay Tavares-
The leader of the British Virgin Islands (BVI) has been arrested for alleged drug smuggling and money laundering in the US.
Premier Andrew Fahie was detained in Miami by US agents posing as cocaine traffickers from a Mexican drug cartel.
He agreed a $700,000 (£560,000) payment to allow traffickers to use BVI ports with an undercover informant, charges filed in the US said.
An inquiry after concluded that the British Virgin Islands should have its constitution suspended, elected government dissolved, and effectively be returned to direct rule from London.
The report, released on Friday, recommends that governor John Rankin, an appointee of Queen Elizabeth II on advice from the British government, should take direct rule of the territory for two years.
The BVI’s governor John Rankin ordered the report to investigate “the corruption, abuse of office, and other serious dishonesty” in the British overseas territory’s governance.
Launched in 2021, it was led by British judge Gary Hickinbottom.
“He has concluded with a particularly heavy heart that unless the most drastic and urgent steps are taken, the current situation with elected officials deliberately ignoring the tenets of good governance will go on indefinitely,” said Mr Rankin, who is the Queen’s representative on the BVI.
“He notes that the people of the BVI deserve better, and that the UK government owes them an obligation to protect them from such abuses and assist them to achieve their aspirations for self government as a modern democratic state.” The report recommended any new administrative arrangement should last two years, but also that ministerial government should resume “as soon as practicable”.
If London accepts the inquiry’s central recommendation, one of more than 40 in the 946-page report, Mr Rankin – a career British diplomat – would take over the day-to-day running of the BVI.
And in a statement he said: “I pledge that the best interests of the people of BVI will continue to be my overriding concern, ensuring transparent, honest and open governance in accordance with the rule of law to strengthen the foundations of the British Virgin Islands.
“I believe that the COI Report is a vital and hugely valuable contribution towards the achievement of better governance in the BVI in the interest of the people of the territory.”
The report, led by British judge Sir Gary Hickinbottom, described the state of governance in the BVI as “appallingly bad”.
The inquiry was commissioned in 2021 amid claims about corruption and misuse of taxpayers’ money but is not directly connected to the arrest of the BVI Premier Andrew Fahie.
Elected public officials shunned the basic principles of good governance, it says, giving rise to an environment in which dishonesty can flourish.
In his conclusions he called for a two-year suspension of the constitution, cessation of the elected ministerial government and the direct rule of the UK appointed governor.
Ms Truss said she had instructed the minister for overseas territories, Amanda Milling, to travel to the territory immediately to speak to the governor and key stakeholders before the government would announce “a clear path forward”.
She said the inquiry by the governor of the territory showed “clearly that substantial legislative and constitutional change is required to restore the standards of governance”.
In a statement, she said the report had been launched in January 2021 to address “significant concerns about the deteriorating state of governance in the British Virgin Islands, as well as the potential vulnerability of the islands to serious organised crime”.
In a televised statement BVI governor John Rankin, who it is recommended should take over the rule of the territory, pledged that his overriding concern would be the best interests of the people of the BVI – “ensuring transparent, honest and open governance”.
The BVI is a British overseas territory made up of more than 40 islands, located in the Caribbean to the east of Puerto Rico.
It operates as a parliamentary democracy, with the premier acting as the head of the elected government alongside the governor, John Rankin, who is appointed by the UK government.
Leaks of documents known as the “Panama Papers” and “Paradise Papers” revealed the islands to be a popular tax haven.
Mr Fahie was detained in Miami on Thursday alongside senior port official Oleanvine Maynard, whose son was also arrested in connection with the case, on suspicion of drug smuggling and money laundering.
Mr Fahie and Ms Maynard appeared by video link at a Florida court on Friday and will both remain in custody until a bond hearing on Wednesday.
In Mr Fahie’s absence the acting premier, Natalio Wheatley, said that the territory could address governance problems without suspending its constitution despite the recommendation of the report.
He told BBC Radio 4’s The World Tonight he did not believe the people of the British Virgin Islands wanted to see the constitution suspended because they supported democracy.
“Every country in the world has challenges with governance, including the UK,” he said.
Mr Wheatley said he had had productive talks with Ms Milling and was expecting those to continue when she arrived in the territory on Saturday, although he admitted some conversations may be “uncomfortable”.
He added Mr Fahie needed to have due process and that his thoughts and prayers were with him.