Beautiful Virgin Islands

Tuesday, Jun 24, 2025

Auditor General's report indicates that former FS Neil Smith acted negligently in BVI Airways deal

Auditor General's report indicates that former FS Neil Smith acted negligently in BVI Airways deal

Former Financial Secretary under the NDP administration Neil Smith, who was the government’s official liaison in the controversial BVI Airways deal, has been accused of acting negligently in his decision-making on a number of instances.

The Office of the Auditor General levelled these accusations in its special report about the former government’s failed $7.2 million deal with the airline.

The report revealed that Smith broke protocol on several occasions and failed to properly ventilate significant matters before making decisions.

The Auditor General’s report further said Smith facilitated for the airline’s operator parties – which included investor Bruce Bradley, Jerry Willoughby of BVI Airways and Scott Weisman of Colchester Aviation – to have ongoing high-level access and support from within the government.


Conflict of interest

According to the report, the decision to have Smith as government’s official liaison while still serving as the Financial Secretary clashed with the necessary checks and balances that were needed in the oversight of the deal.

This, the report said, led to unilateral decisions being made on important matters.

“The assignment of the Financial Secretary to facilitate the venture eliminated an important check that should exist between project execution and project financing. This created a conflict whereby the Financial Secretary’ s obligation to ensure the successful launching of the project may have obscured his public duty as the primary custodian of government’s finances,” the report stated.

It added: “The acute level of scrutiny that should have been applied to the financial and other issues of risk presented by the operator parties was replaced with insistent action to accommodate their requests.”


Instances identified with $6.8 million spent prematurely

The Auditor General’s report pointed to some of the decisions made by Smith after the government failed to obtain what is known as a ‘letter of credit’, which was requested by the operator parties.

A letter of credit is a document from a bank that guarantees payment (of the $7.2 million).

“That failure [to get the letter of credit] was followed by early payment of $4.8 million to the operator parties, the release of the escrow payment of $2.0 million without Cabinet authorization in January 2017, and active pursuit of a public loan guarantee and compensation payments requested by the operating parties. These were decisions made by the Financial Secretary as project liaison rather than public custodian,” the report said.


Government’s nominated director left in the dark

Additionally, Ryan Geluk, who was nominated by government to sit on the Board of Directors of the BVI Airways, said besides attending one meeting with the former Financial Secretary, he was not provided with any information regarding the airline’s operations.

“The only set of financial statements received were unaudited and for the 15 months pre-operational period from the commencement of the venture to 31 March 2017,” Geluk stated in the report.

After almost three years, a full criminal investigation has been launched into the failed BVI Airways deal which cost taxpayers $7.2 million.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
×