Beautiful Virgin Islands

Tuesday, Jun 03, 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
Dutch government falls as far-right leader Wilders quits coalition
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
×