VI played a role in FIFA corruption scandal- US Justice Dept
According to the US Department of Justice, the ‘overseas tax havens’ of the (British) Virgin Islands, Caymans and Turks & Caicos played a key role in what US authorities have called “rampant, systemic and deep-rooted” corruption in the world of football.
The guardian.com on Saturday May 30, 2015 alleged that the 164-page US Department of Justice indictment, outlining the case against the 14 football officials and marketing executives who were arrested last week, shows that three of Britain’s overseas territories - the British Virgin Islands (BVI), the Cayman Islands and the Turks and Caicos - allegedly played a part in masking kickbacks between officials and executives.
“The revelation has intensified calls for a clampdown on the offshore banking sector, where campaigners say a lack of transparency and oversight allows bribery and corruption to thrive, the Observer reported.
According to the indictment, Costas Takkas, a UK citizen who acted as attaché to Fifa’s vice-president, Jeffrey Webb, used a firm called Kosson Ventures, registered in the VI and with bank accounts in the Cayman Islands, to allegedly facilitate illegal payments between a South American sports marketing agency, Traffic, and Fifa officials.
The indictment, according to the Observer, raises questions about whether the banks in the tax havens should have flagged the transactions to the authorities as a potential concern. The indictment states: “On or about November 21, 2012, two wire transfers, of $750,000 and $250,000, were sent from Front Company A’s account at HSBC bank in Hong Kong to a correspondent account at Standard Chartered Bank in New York for credit to an account in the name of Kosson Ventures, controlled by Takkas, at Fidelity Bank in the Cayman Islands”.
VI remains on France’s blacklist
The reputation of the Virgin Islands financial services sector, one of the pillars of economic growth in the territory, has already come in for much criticism from international media and in late 2013 France included the Virgin Islands on its blacklist.
The Virgin Islands Party (VIP) has heavily criticised the National Democratic Party (NDP) of being reckless and allowing the country to be blacklisted by France. The NDP, in its defence, cast the blame on the VIP.
Financial Secretary Mr Neil M. Smith confirmed during a press conference on April 23, 2015 that the VI remains blacklisted although the territory has been working to get itself removed.
“To answer the question which I guess everybody wants to hear, what I can say is that on a technical level the French are really pleased with us. But I cannot advise you on the other level that we need to get to in order to get off the list which is the political level,” said Smith.
He had said that out of 119 requests that the VI has received, “We have answered about 116 and we are in the process of answering others.”
Who to blame?
Honourable Julian Fraser RA (R3) had rejected the assertion by the National Democratic Party (NDP) that the Virgin Islands Party Government was responsible for the blacklist on the territory, citing that the French sanctioned the VI in 2013, two years after the VIP left office.
Hon Fraser stated: “Also keeping in mind that the VIP was the only party to sign tax information exchange agreements, over two administrations from 1999 to 2003 and 2007 to 2011, while the NDP signed none in their first administration from 2003 to 2007 and signed none in their second administration from 2011 to the time the French blacklisted us in 2013. The French detected this careless and irresponsible approach that the NDP Government had towards our financial services and they took action. They made 43 requests for information from our Government and I think they got something like 21. What do you expect? And they could look to blame us?”
However, the NDP countered, claiming that the issues raised by France came up during the 2007 to 2011 administration of the VIP.
How to act?
Nevertheless, the FIFA corruption has once against put the spotlight on the Virgin Islands off shore sector and will surely create some sleepless nights for whichever party gains power at the June 8, 2015 elections as all would agree that everything must be done to protect one of the main revenue earners of the territory.
In the UK, for instance, two banks have launched internal reviews into whether Fifa officials used them for corrupt payments. The two banks are Barclays and Standard Chartered, who were named in last week's FBI indictment.
Whether a similar inquiry will be done here in the Virgin Islands to clear its name remains to be seen.
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45 Responses to “VI played a role in FIFA corruption scandal- US Justice Dept”
Although it appears opportunistic and overly zealous for the US to say, "Aha, let us see how we can wrap the UK Overseas Territories in this now", our territory's leaders should have kept a keener eye on possible FIFA pass-through transactions and endorsement of projects, especially after the scandals of 2011 and subsequent years. It is no secret that the bigger countries like the US and France are obsessed with going after financial centres such as the BVI, even though often we are better regulated.
It is now for the BVI to take charge of this situation. The FSC needs to look into the alleged links in the US indictment and take necessary action. The government also has to rethink its acceptance of the FIFA pledge to the Greenland project; perhaps, request the new FIFA head to sanction the go-ahead of the disbursement of FIFA funds for this purpose, and provide requisite oversight. The recent endorsement and photo op by a candidate for FIFA's top post was a bit too convenient and improper for comfort. Although public/private partnerships and sponsorship by bespoke international bodies are to be encouraged, our leaders must be careful not to compromise the territory's integrity for short-term political gain.
Then along comes FIFA wanting to build a world class stadium for Tortola that have neither the infrastructure or population to support such a facility. But the politician here licked their chops at the opportunity of potential kick backs.
This is dead issue FIFA not going to be able to build stadium too many questions yo be answered first.
Nothing new, all countries and parties take part cause the financial business sector must go on either way so it don't matter who in $h1t will happen
Fifa is going to tell all so 8th district man you better come clean other wise its trouble to come the pr****r knows all about this but Maro will have to take the blame, what was the conservation between pico Marlo and the fifa people held in the dead of night what was the deal take a good look at Pico he really look so tired and worn out because his consience is killing him but he cannot speak or else he will be up for grabs Sleep deprived as for r**nee he has to keep quiet his heart he hiding behing the sheets ans keeping a low profile because the chineese have him in a deep hole which he cannot really peep out from Mark where is the money borrowed from social security was it used for the roads or it was and is used for campaganing you almost knocjk Dr, smith over his head for the premier ship and also to borrow the money from sdocial security
VIP =OBOMA GOVERMENT----BLACK PEOPLE SUCCESS
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