British Virgin Islands: UK Minister dispatched for governance talks

A minister has been sent to the British Virgin Islands (BVI) after its leader was charged with drug smuggling and an inquiry called for a return of UK rule.

Amanda Milling has travelled for talks with officials, following a turbulent few days in the overseas territory.

On Thursday, Premier Andrew Fahie was arrested in the US for alleged drug trafficking and money laundering.

The next day, a report said the elected government should be dissolved over corruption and governance concerns.

Foreign Secretary Liz Truss said the UK government will outline the next steps for the island's governance, following talks between overseas territories minister Ms Milling, BVI governor James Rankin and other senior figures on Saturday.

Mr Rankin, who it is recommended should take over the rule of the territory, has said his main concern would be the best interests of the BVI's population.

However, acting premier Natalio Wheatley has said the territory opposes efforts by London to impose direct rule.

The crisis facing the islands was brought to a head when it emerged Mr Fahie had been arrested by the US Drug Enforcement Agency (DEA) in Miami on Thursday.

He was detained alongside the head of the BVI's ports Oleanvine Maynard, whose son was also arrested in connection with the case.

They have been charged with cocaine trafficking and money-laundering conspiracies after appearing by video link at a Florida court on Friday, US prosecutors confirmed.

They will remain in custody until a bond hearing on Wednesday.

According to US court documents, Mr Fahie agreed a $700,000 (£560,000) payment to allow traffickers to use BVI ports with an undercover informant, charges filed in the US said.

The arrests were made after an undercover DEA sting operation, where agents pretended to be cocaine traffickers from Mexico's Sinaloa Cartel - said to be the largest supplier of illegal drugs to the US market and formerly run by now-imprisoned drug lord Joaquín "El Chapo" Guzmán.

Questions about governance in the territory pre-dated the arrests, with long-standing concerns of state corruption and misuse of taxpayers' money, but the news expedited the release of an inquiry about how best to address them.

The report, commissioned in 2021 and led by British judge Sir Gary Hickinbottom, described the state of governance in the BVI as "appallingly bad", but is not directly connected to the arrest of the premier.

It recommended the UK government suspend the overseas territory's constriction and implement home rule for at least two years, meaning the islands would effectively be returned to direct rule from London.

After instructing Ms Milling to travel to the BVI, Ms Truss described the arrests as "extremely concerning" and argued they demonstrated the need for "urgent action".

She said the inquiry showed "clearly that substantial legislative and constitutional change is required to restore the standards of governance".

Ms Truss added that overseas territories form a "core part of the UK family" and the government is "committed to the security and wellbeing of the people of the British Virgin Islands."

In a televised statement on Friday, Mr Rankin pledged that his overriding concern would be the best interests of the people of the BVI - "ensuring transparent, honest and open governance".

However, acting premier Natalio Wheatley said that the territory could address governance problems without suspending its constitution despite the recommendation of the report.

He told BBC Radio 4's The World Tonight he did not believe the BVI's people wanted to see the constitution suspended because they supported democracy.

"Every country in the world has challenges with governance, including the UK," he said.

Mr Wheatley said he had had productive talks with Ms Milling and was expecting those to continue when she arrived in the territory on Saturday, although he said some conversations may be "uncomfortable".

The BVI is a British overseas territory home to more than 35,000 people and made up of more than 40 islands, located in the Caribbean to the east of Puerto Rico.

It operates as a parliamentary democracy, with the premier acting as the head of the elected government alongside the governor, who is appointed by the UK government.

Leaks of documents known as the "Panama Papers" and "Paradise Papers" revealed the islands to be a popular tax haven.

British overseas territories are territories which have retained a constitutional and historical link to the UK - these include Gibraltar and the Falkland Islands.

Most are largely self-autonomous with their own governments but the UK retains responsibility for their defence and foreign relations.