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COI Report: Former FS was in conflict-of-interest spot with BVIA project

Photo by BVI Airways

Former Financial Secretary (FS) Neil Smith found himself in a position of apparent conflict of interest in relation to the BVI Airways project, the Commission of Inquiry (COI) report has shown.

The report found this to be one of several noteworthy issues relating to the implementation of the framework agreement associated with the project.

According to the report, the agreement required the then governing National Democratic Party (NDP) to appoint a representative to serve as “special liaison officer“ for the project.

Smith, who was appointed as that officer, had an obligation, on the one hand, to ensure the success of the project but on the other hand, as Financial Secretary, he was the relevant accounting officer with obligations as custodian of the public purse, the report pointed out.

My integrity saw me through

In his evidence before the COI, Smith accepted that this constituted a conflict of interest. However, he told the COI this was “a conflict that Financial Secretaries and Treasury Secretaries around the world deal with all the time”.

Smith, who at one point told Commission that the BVI Airways partners were ‘decent people’, said he managed the apparent conflict through “basic, simple integrity“, and that he was not “wedded personally to the success of the venture“.

Smith also pointed out to the COI that Cabinet (including the Attorney General) “must have been aware of the conflict of interest [but] obviously felt that it was acceptable”.

I didn’t allow my roles to be conflicted

The former Financial Secretary related that it was perhaps his credibility, professionalism, abilities and ethical standards that allowed Cabinet to feel comfortable in giving him the assignment in light of the accepted conflict of interest.

Smith told the COI, “… I am very confused as to the rationale for; and [I] vehemently reject any determination that I allowed my roles to be conflicted. In fact I did not place myself in the conflicting roles but was carrying out duties assigned to me by the Cabinet who must have been fully aware of those conflicts and my abilities to act responsibly even in view of those conflicts”.

The project was brought to an end before BVI Airways ever made any direct commercial flights to Miami but not before the BVI government had paid some $7.2 million of public money over to the airline.

The issue continues to be the subject of litigation with former Premier Dr Orlando Smith expressing that he felt vindicated after the BVI government defeated a $10 million claim made by BVI Airways for alleged breaches of the framework agreement, among other things.

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17 Comments

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  1. D**b says:

    This man could not see a conflict of interest if it bit him on the neck. Enjoy your time …

    Like 27
    Dislike 3
  2. Slim Jim says:

    Mr. Smith is a good man who found himself in an untenable situation which he was ill-prepared to navigate. The way that government is presently set up is that the Minister mandates what he wants, and the civil servants have to find a way to make it happen… right or wrong.

    The system must CHANGE and we as a country must be BRAVE enough to acknowledge that and don’t just elect the same type of people with the same old mindsets and practices to office. The measures recommended by the COI are so transparently right that only those blinded by self interest cannot see how they would IMPROVE our governance issues.

    Country above self!

    Shall we begin? Or do we continue to bury our heads in the sand and say that all is well?

    Like 48
    Dislike 4
    • @Slim Jim says:

      Everyone is good once they thiefing for you but the minute they not with you, send them to jail!

      Everyone of them corrupt!

      Like 12
  3. Cato says:

    Mr Smith had the right answers for those conducting the COI. He is a descent person. I do not think the investment with BVI Airways was a wilfull act, but a very very bad investment. Cannot say the same for the stimulus grants.

    Like 20
    Dislike 5
  4. Resident says:

    where is our money, someone needs to go to jail for this

    Like 15
  5. WEW says:

    Lock him up ! Oh that’s right there’s no law against conflict of interest. (one that’s enforced anyway)

    Like 9
    Dislike 1
  6. Rubber duck says:

    Both … need jail time

  7. GTFOH says:

    “Smith also pointed out to the COI that Cabinet (including the Attorney General) “must have been aware of the conflict of interest [but] obviously felt that it was acceptable”.

    With all due respect Mr. Smith please GTFOH with that B.S., Cabinet was made up of certified yes men who were members of NDP. Who amongst Mark, Dr Pickering, Myron and Ronnie would stop the wheels that Dr Smith put into motion from rolling. When has any member of Cabinet stood up for the people against their own special interest?

    You know very well that once a decision was made Cabinet would “hold one head” and none would challenge any aspect of the project. You also had another issue of conflict considering your close family ties to Dr. Smith.

    Like 22
  8. thieves says:

    Just lock them up and put us out of our misery. Why hasn’t the UK stepped in to stop this cluster phuc?

    Like 11
    Dislike 2
  9. Swordfish says:

    He “felt vindicated?” He invested $7.2M with “decent people” who were doing the same scam in New York. All he had to do was google their names to see their association with Baltia Airlines whose largest shareholder had been arrested on financial fraud charges.

    We need a new generation of leaders.

    Like 18
  10. GTFOH says:

    The biggest disappointment about the whole BVIAirways scandal is even an alleged money laundering, drug dealing b**tard googled these folks and brought up the shadiness of the people involved before we lost the full $7.2 million. Dr. Smith was h**l-bent on moving forward with the project regardless of what anybody said. His excuse in the HOA was always he dont want to prejudice the negotiations. How could he have missed these people’s history if he did even some brief due diligence.

    Like 15
  11. J Ton says:

    Do you think they would have given this money to these men if they were black? White criminals come to this country and most of them get whatever they want because some of our black leaders and our very own people feel if they are white they are good people. Total BS.

  12. Flash Folly! says:

    Couldn’t they have gone for something a little cheaper, a little more modest than that flashy jet aircraft? Could have probably bought two or three alternatives for the price of that single folly.

    Like 1
    Dislike 1
  13. True says:

    Neil Smith continues to act as in the financial position for RDA.
    I can’t understand how the government and UK allow him to have that position.
    The BVI Airways is a scandalous and people involved shouldn’t be acting in public position.
    He invested $7.2M with people who were doing the same scam in New York without a previous check? A simple Google search can show who they are.

  14. Don’t forget says:

    There is more than NS and Dr S don’t forget RH from tourism…. don’t forget him this time and met someone else take the full fall

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