A tale of corruption, deception, no regard for Cabinet decisions: BVI Airways Report
The Auditor General, Sonia M. Webster in her report titled ‘Government’s Financing of BVI Airways’ Direct Flight to Miami’, now a public document, sets out a tale of corruption, deception, lies, disregard for Cabinet decisions, pressure from the Operator Parties of BVI Airways and lack of information among other irregularities.
The BVI Airways’ direct flight to Miami project was engaged under the National Democratic Party (NDP) regime headed by former Premier Dr. D. Orlando Smith. At the time of the project, the Financial Secretary was Neil M. Smith.
It was to give the Territory direct flights from Terrance B. Lettsome International Airport on Beef Island to Miami, Florida, USA, in exchange for taxpayers $7.2M; however, the deal collapsed and not a dime of taxpayers funds have been returned.
Who are the players?
The Operator parties were headed by Jerry D. Willoughby, President and CEO of BVI Airways and Pauline E. Jones, the Executive Vice President—a United Kingdom resident—among many others, including Lester S. Hyman, a former Virgin Islands’ Washington DC lobbyist, and local Ryan R. E Geluk, who are both listed as Directors.
On page 1, E-10 of the report, Ms Webster stated: “The Government failed to secure evidence that the operator parties were financially able to provide the additional financing needed for the success of the venture and to incorporate the provisions in the Framework Agreement to require and quantify the operator parties’ proposed investment”.
Where is our $7.2 M?
The report shows a pattern of deception, including on page 2, E-11, where it is stated, “The Government made full cash payment of the guaranteed amounts of $7.0 million to the operator parties in advance of the approved schedule and before launching of the contractual flight operations. An additional sum of $200,000 requested by the operator parties was also paid out by Government”.
In addition, the report noted that the Government of the former Premier, Dr Smith, engaged the local accounting firm BDO in January 2015 to assess the merits of the BVI Airways airlift.
The BDO study concluded that the proposal outline in the MOU was “inequitable, because it required the government to bear the cost and risks while the operator parties were guaranteed the returns".
The BDO report “advised that the operational concerns needed to be addressed and the financial terms renegotiated to more appropriately apportion risk and reward.”
Cabinet deceived?
However, in what some described as corruption and deception, “the BDO financial assessment report that recommended changes for a more equitable arrangement was not included amongst papers presented to Cabinet," according to page 8, number 39 of the Auditor General's report.
Editor’s Note: This is the first of 5 articles breaking down the Auditor General’s Report on the Government‘s Financing of BVI Airways’ Direct Flights to Miami.
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24 Responses to “A tale of corruption, deception, no regard for Cabinet decisions: BVI Airways Report”
Look **** face he already know the criminal activity he involved in.
However, in what some described as corruption and deception, “the BDO financial assessment report that recommended changes for a more equitable arrangement was not included amount papers presented to Cabinet," according to page 8, number 39 of the Auditor General's report.”
Who deceived the cabinet? Who left out the BDO vital information to make an effective decision to give BVI Airways the $7.2M? Who? Who did BDO sent the information to? Who presented to the cabinet the information without the BDO report? Connect these 2 dots please and find the person or persons pronto. Is it that hard?
stimulant plan
Nevertheless, based on the information in the public domain, a few issues jump out. First, it seems that BVI Airways was not responsible, ie, it didn’t have the financial capacity to execute the agreement. Second, the agreement was front loaded, ie, BVI Airways was funded $7.2M upfront. Instead, the funding should have been performance based; seems as if a system of progressive payments were absent. And third, it seems as if taxpayers(government) did all of the heavy lifting but BVI Airways pick the fruit.
Moreover, was this agreement between BVI government and BVI Airways to deliver nonstop air services from MIA to TBLIA a well-intentioned project that went awry? Did the elation about the prospect of a nonstop flight clouded judgment?
G****is a bully and untrustworthy. Why nothing decrying George Flloyds murder? Or even acknowledge it? Only cares about himself and his image. Not about us black people. He is scandalous and must go and his office must be inspected.
How different is it than the ongoing genocide and mistreatmentof Haitians by the neighboring DR ,bosom buddies friends of the VI in yo backyard. Right in your face and you silent and couldnt give a tit. Go hide your face for chrissake.