Beautiful Virgin Islands

Tuesday, Jul 15, 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
Ghislaine Maxwell Says She’s Ready to Testify Before Congress on Epstein’s Criminal Empire
Bal des Pompiers: A Celebration of Community and Firefighter Culture in France
FBI Chief Kash Patel Denies Resignation Speculations Amid Epstein List Controversy
Air India Pilot’s Mental Health Records Under Scrutiny
Google Secures Windsurf AI Coding Team in $2.4 Billion Licence Deal
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
South African Police Minister Suspended Amid Organised Crime Allegations
Nvidia CEO Claims Chinese Military Reluctance to Use US AI Technology
Hong Kong Advances Digital Asset Strategy to Address Economic Challenges
Australia Rules Out Pre‑commitment of Troops, Reinforces Defence Posture Amid US‑China Tensions
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
U.S. Resumes Deportations to Third Countries After Supreme Court Ruling
Excavation Begins at Site of Mass Grave for Children at Former Irish Institution
Iranian President Reportedly Injured During Israeli Strike on Secret Facility
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Defends Attorney General Pam Bondi Amid Epstein Memo Backlash
Renault Shares Drop as CEO Luca de Meo Announces Departure Amid Reports of Move to Kering
Senior Aides for King Charles and Prince Harry Hold Secret Peace Summit
Anti‑Semitism ‘Normalised’ in Middle‑Class Britain, Says Commission Co‑Chair
King Charles Meets David Beckham at Chelsea Flower Show
If the Department is Really About Justice: Ghislaine Maxwell Should Be Freed Now
NYC Candidate Zohran Mamdani’s ‘Antifada’ Remarks Spark National Debate on Political Language and Economic Policy
President Trump Visits Flood-Ravaged Texas, Praises Community Strength and First Responders
From Mystery to Meltdown, Crisis Within the Trump Administration: Epstein Files Ignite A Deepening Rift at the Highest Levels of Government Reveals Chaos, Leaks, and Growing MAGA Backlash
Trump Slams Putin Over War Death Toll, Teases Major Russia Announcement
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
×