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Opposition slams 7% fee on money transfers

- As bill entitled 'Financing & Money Services (Amendment) Act, 2020' passes in HoA
Opposition Leader Hon Marlon A. Penn (R8) had proposed that Government looks at other avenues to fund various initiatives, rather than charging a fee for money transfers. Photo: YouTube/HoA
The Premier Andrew A. Fahie (R1) in his justification for the amendments to the bill said 20% of the monies collected will each go into funds to support Education, Seniors, Land Bank, Agriculture and Fishing initiatives. Photo: Youtube/HoA
The Premier Andrew A. Fahie (R1) in his justification for the amendments to the bill said 20% of the monies collected will each go into funds to support Education, Seniors, Land Bank, Agriculture and Fishing initiatives. Photo: Youtube/HoA
Opposition Member Hon Melvin M. Turnbull (R2) said persons are already subjected to fees in order to send monies and that they pay taxes. Photo: VINO/File
Opposition Member Hon Melvin M. Turnbull (R2) said persons are already subjected to fees in order to send monies and that they pay taxes. Photo: VINO/File
DUFFS BOTTOM, Tortola, VI – Having its First, Second and Third Readings at the Friday, April 17, 2020, Seventh Sitting of the Second session of the Fourth House of Assembly (HoA), the 'Financing and Money Services (Amendment) Act, 2020' has now been passed amidst brutal Opposition criticism.

This means that when the bill is assented by Governor of the Virgin Islands, His Excellency Augustus J. U. Jaspert, persons will now have to pay 7% fee on remittances sent through money transfer services like Moneygram or Western Union.

Strong Opposition disapproval  

Ahead of the bill debate stage, Senior Opposition Member, Hon Julian Fraser RA (R3) was the first to voice his disapproval, asking what relationship the bill had with COVID-19. The emergency sitting of the HoA was initially earmarked to handle matters relating to the virus and how the Territory responds through legislation, he said.

Hon Fraser also had an issue with a part of the Bill that he interpreted as authorising the Minister of Finance to revise the fee without debate from the House of Assembly (HoA).

Premier and Minister of Finance, Hon Andrew A. Fahie (R1), in his justification for the amendments to the bill, said 20% of the monies collected will each go into funds to support Education, Seniors, Land Bank, Agriculture and Fishing initiatives, with the aim of generating maximum returns for the improvement of the socio-economic wellbeing of the Territory.

“I stand by this initiative, this is not a tax on the poor,” Premier Fahie said, citing that the Territory should get a percentage of millions sent annually through money transfer services.

Opposition Members; however, shared a difference in opinion, with the majority saying the fee will cripple the poorest of the working class in the Territory, especially amidst the COVID-19 crisis.

Millions leave VI through banks - Hon Penn

“I am proposing that we look at other avenues to fund these instruments, not on the backs of what I call the most vulnerable amongst us,” Opposition Leader, Hon Marlon A. Penn (R8) said, calling the fee a tax on the working class.

Urging the Fahie administration to find another way to earn revenue, Hon Penn further said between $1.1 and $1.6B leaves the Territory on an annual basis through the banking system and other avenues like the trust industry and yet, he said, the Government was going after the working-class persons, “most of them make $7 an hour.”

Hon Fahie said that in 2019 close to $89M left the Territory and in 2018 the figure was $88M. He said during 2017, and in the midst of the Hurricane Irma devastation, approximately $57-58M left the Territory, and the Government received $0.

Hon Penn also reiterated that the approach needs to be rethought, "The train of thought is correct but we need to figure out a way that the monies that leave this country stay and invest and develop the country.”

“We have to find ways to make that happen, but not on the backs of persons who struggle, who all they want to do is take care of their family that they left behind,” the Opposition Leader said.

Double taxation – Hon Turnbull

Second District Representative, Hon Melvin M. Turnbull said persons are already subjected to fees in order to send monies and that they pay taxes.

He said the new proposal is crippling and akin to double taxation and urged the Fahie administration to reconsider.

56 Responses to “Opposition slams 7% fee on money transfers”

  • Challenger (20/04/2020, 17:01) Like (37) Dislike (4) Reply
    agreed. this is a double taxation. why should governmeny receive a fee on our hard earned money if we choose to send some overseas. what it that money is being sent overseas to purchase items to be aent down to BVI. what is wrong with choosing to send monies to loved ones...whay should government tax this. it is wrong.
    • Split it (20/04/2020, 17:22) Like (13) Dislike (3) Reply
      We already paying about 10% to send money.. Split the 7% in half let the Westrrn union and money gram pay 3.5% and the sender 3.5%...How about that, that would show fairness.. Is there any tax for receiving..
    • Citizen (21/04/2020, 08:21) Like (3) Dislike (3) Reply
      Father in the name of Jesus, I pray for the British Virgin Islands and its people. Please Lord, remove their Heart of stone and instill a heart of love. Remove hate and instill Love, give them the opportunity to repent from their wicked ways Lord. Father let no disaster come upon them again for they cannot change but instill wisdom, and knowledge amongst the leaders. Punish those leaders who fail to honor you and let them know there is a God in Heaven who see all their wicked and spiteful ways. However, forgive the ignorance of some citizens, even those churchgoers (hypocrites). Amen!! Don't take this pray lightly, you will see what will happen this year, try not to forget this pray on the Leaders.
    • @Challenger (21/04/2020, 13:47) Like (3) Dislike (0) Reply
      As was stated, because you have to contribute to the school system etc. Why be just a taker, especially around these times? No conscience!
  • lord o. (20/04/2020, 17:17) Like (8) Dislike (29) Reply
    More money in westrrn union and money gram pocket... We really think government would get all that due to them... hmmm.. When u in another man land the land of the enemy u have to take all the crap they throw at u..... We have two choices 1/ Send and pay. Or 2/ Dont send dont pay...
    • WHAT!!! (21/04/2020, 08:32) Like (2) Dislike (5) Reply
      Don't worry the ungrateful will be punished, said the Lord, Premier Andrew Fiahe May God Judge you accordingly, even those who advise you wrong willingly may God judge them also and avenge the innocent who labors all his days and robbed of his inheritance. Lord hear my prayer!!! Amen
      Instead of posting negative comments, I am calling on all Islanders to put the Premier and his ministers to the Lord in prayer, nothing more powerful than the God we serve... God will answer if you fast and pray.
      • @What!!!! (21/04/2020, 13:55) Like (0) Dislike (1) Reply
        Who God bless, no man curse! Take that back to the demons you follow.
  • trrefdrfds (20/04/2020, 17:59) Like (2) Dislike (5) Reply
    Open a bank and support the local community.
  • Landlord (20/04/2020, 18:29) Like (9) Dislike (21) Reply
    Charge them yes they have money to send home as money gram and western union open but none to pay them rent. Charge them government
  • tretretrete (20/04/2020, 18:30) Like (4) Dislike (13) Reply
    I disagree govt go as plan they come here and get US dollars and send it back down island.
    • BVIslander (20/04/2020, 19:16) Like (21) Dislike (1) Reply
      They worked their @$$€$ for it and should be able to spend how They want. Shrupesssssss
      • enough (21/04/2020, 00:54) Like (6) Dislike (7) Reply
        This vilander agree, how much do they already spend in this country leave them alone with what they have
  • WOWW (20/04/2020, 18:31) Like (16) Dislike (6) Reply
    If we was in other Caribbean countries they would’ve done charged us a fee for sending out money.
    • @wow (21/04/2020, 00:49) Like (2) Dislike (1) Reply
      Which country ?
      In my country we gave Venezuelan 16,000 work permits and I/we don’t give ah f... how they spend

      Don’t affect us seeing them at western or money G

      Don’t affect us seeing them loading up boats with food to send back vene

      We are happy for those receiving families

      I don’t know when u all will learn
      I don’t think u will either

      That’s ur one way down island man this that send them home yada yada I born here umhmm we know we all born somewhere but rem no man’s land

      Oh he’s coming ur Gona see the ruler he’s coming to put a stop to all
      This

      Half of y’all go church Pray dress in those big @$$ hats watching around to c who watching u
      Ur soo holy yet ur heart is as wicked as the devil

      Church on Sunday
      Devil on Monday
    • BVIlander (22/04/2020, 00:18) Like (0) Dislike (0) Reply
      That's not true no fee is not collecting from all u so called eastern Caribbean people country for government to send out money
  • lol (20/04/2020, 18:31) Like (4) Dislike (19) Reply
    Shame on you Marlon who side you on locals or island people?
    • tretretrete (20/04/2020, 21:32) Like (8) Dislike (2) Reply
      This isn’t about sides this is unfair to the expats as funds sent through these remittance services are for school fees, mortgages, simply to assist family members home. The real funds are transferred through the banks. And remember these are funds already taxed with NHI and Income tax I think this is unfair.
      • smh (21/04/2020, 14:07) Like (0) Dislike (5) Reply
        Don’t they have to contribute to the school system here as well? Many people like to say that they help built the BVI, now when asked to contribute just a small fraction, they crying! Selfish people! Now you will have a reason to boast, forced on you!
    • Strups (21/04/2020, 10:14) Like (1) Dislike (0) Reply
      I wasn't aware that locals were exempt from this charge.
  • Happy (20/04/2020, 18:32) Like (2) Dislike (14) Reply
    They need a fee for being in the bvi too with exception of our family island USVI.
  • Lord (20/04/2020, 18:32) Like (8) Dislike (15) Reply
    We locals agree with the government move to charge a fee
    • Concerned man (21/04/2020, 08:52) Like (0) Dislike (0) Reply
      I am surprised of Hon. Fraser because he was the first one to fight for this tax a few years ago, and would not give up on the fight! I guess now he is with the opposition so he must go against the government.. puppet mentality
  • gee (20/04/2020, 18:35) Like (3) Dislike (18) Reply
    Sick of them island people here charge all
  • trrefdrfds (20/04/2020, 18:36) Like (2) Dislike (10) Reply
    If they not from St Thomas, St John & St Croix where most our local families from take the fee out the money them sending down island
  • Tolian (20/04/2020, 18:38) Like (1) Dislike (16) Reply
    Marlon you gone crazy I know them penns rocking in them graves
    • @Tolian (21/04/2020, 00:52) Like (0) Dislike (0) Reply
      If only that was possible unfortunately the dead knows nothing

      Y’all wicked must be the blood..
  • upset (20/04/2020, 18:39) Like (4) Dislike (12) Reply
    Marlon penn trying to be relevant. Myron telling him what to do and we all know myron from the island so he don’t want that.
    • @upset (21/04/2020, 00:55) Like (0) Dislike (0) Reply
      Which island is that he’s from?
      This island ?
      Antigua ?
      Anguilla ?
      Plz specify which island
      We all live and it from
      An island dear .
  • oh boy (20/04/2020, 18:40) Like (4) Dislike (3) Reply
    MYRON FROM ANTIGUA not from the BVI
  • SHAME (20/04/2020, 18:41) Like (3) Dislike (12) Reply
    Every person in the house of Assembly should of agree to the fee charge without any problems if they are true locals and for the locals
  • vip (20/04/2020, 18:42) Like (3) Dislike (12) Reply
    nDP don’t want it because most them family from down island.
  • thank god (20/04/2020, 18:43) Like (5) Dislike (8) Reply
    Good thing alvera switch sides from among them idiots we have in the opposition side. Marlon the biggest
  • usa (20/04/2020, 18:55) Like (14) Dislike (0) Reply
    Thank you BVI. Please remit all the fees collected on outgoing US dollar transactions from the BVI to the US Treasury Dept., Washington, DC, USA. We look forward to your cooperation for instituting this fee on our US currency printed in the USA.
  • two cents (20/04/2020, 19:26) Like (9) Dislike (2) Reply
    I agree with the Government charging a fee, but I personally feel 7% is too high, it should be more like 3%. In the U.S. you pay Federal tax, State tax, Social Security and most, pay some kind of union dues and retirement funds therefore the Government imposing a tax on money leaving the county is not an issue. Some countries impose a tax on money entering their country. My point is the majority of people coming to the Virgin Islands are coming to make a better living and provide for their family overseas. We do not want to penalize them for that. What we need is to take a serious look at how work permits are approved and create serious legislation guiding the approval of work permits. This is the gateway that is populating the Territory with many that are not an asset to the Territory.
  • Charley Rose (20/04/2020, 19:28) Like (6) Dislike (7) Reply
    I am disappointed with Hon. Marlon Penn's and Hon. Turnbull remarks in the House of Assembly. I wonder weather some of these politicians have the interest of the territory at heart or they are trying to score political points. This Financial Amendment Act is not for the Premier, rather it is a measure the government is introducing to generate revenue for the territory that will benefit ALL the people.

    What else do we want the Premier to do. If Hon. Penn and Turnbull are against this Amendment to generate revenue, then they should suggest alternative or alternatives. I think that they are politically bankrupt. From my research, I found out that the Bahamas charges a fee for money transfer. What is more astonishing is that Barbados charges a fee for exchange of currencies. That is, if someone wants to change their monies into United States dollar or other currencies, they will have to pay a fee for the service.
  • Amazing (20/04/2020, 19:41) Like (4) Dislike (2) Reply
    It was quite shameful listening to HOA where elected officials are talking about millions leaving BVI via banks, what banks? The BVI Business Companies do NOT bank in the BVI but overseas so that's where the monies are. The companies are only registered here, the bank accounts are NOT here. How can elected officials be so illiterate to our own bread and butter industry? If you are talking about senior professionals being paid big money and transferring elsewhere via the bank yes fine but what does that have to do with anything? They pay their respective wire fees and transfer monies where and when they want, no matter how much money one makes. The 7% tax is a low hanging fruit that the Government couldn't resist and they will quickly realize that it will hurt the money services as persons will figure out 'get around' alternatives to get their monies out. Instead of being lazy they should review fees that haven't been changed for decades and ensure people pay their fair share. Question, can Government tax online money services? NO!
  • Most Disapointed (20/04/2020, 21:55) Like (3) Dislike (6) Reply
    Guess what is happening now? these same people who are saying that the Government is evil for imposing 7% percent tax for sending out monies are now benefiting even before locals from the Government food delivery services. This will be the same 7% that will help feed you in times like these. Imagine deliveries were made in my area and outsiders are eating while we are in need also. So Hon. Turnbull and Hon. Penn you have proven to us all that you are not for your own people.
  • Interesting 11 (20/04/2020, 21:57) Like (4) Dislike (1) Reply
    What a thing to tell the King!!! All this wickedness y’all wanna do to the same “island people” slaving to do the jobs YOUR locals run from. Well sah!!!! Tax upon tax upon tax. Settaaa skumsss. Time longer than twine. Don’t know y you’ll think is ONLY BVI ppl can come to make a $$$. You’ll sickening. By the way..... break down where my 16% tax going monthly. Hope when you’ll done freak ayo self and England come thru like a real bumpy special ayo leave disgraceful comments such as the ones you’ll leaving now. Anyway island ppl, pay ayo tax. Just remember wants all gets none. Leave them!!!! #Born and raised. #fairisfair #wrongiswrong
  • Strolling scribbler (20/04/2020, 22:08) Like (5) Dislike (3) Reply
    I heard all.of you who spoke about island people working and sending their money down island so charge them. This bill is not discriminatory. So just to remind all you small minded people from the continent of the BVI. All the local parents who have children overseas and those with relatives and side chicks and the likes would have to pay the same 7% . There is always a way to beat this unreasonable system and it is simple as 123. I am a step ahead of the game so if I want to send money overseas my system is already in place and I don't pay a cent.
  • The long view (20/04/2020, 22:18) Like (0) Dislike (2) Reply
    This tax is the wrong call.

    It is a slippery slope.

    The BVIslander has long expected that the rest of the world will pay for his or her wellbeing.

    Wake up.

    This will not be the case for much longer.

    Financial services will die. The gap it has filled will be closed. Once that goes, everything else can’t be paid for.

    Who pays for all the civil servants and their pensions.

    Good luck BVI. Glad you reopened the right to fish. That’s going to be important in 20 years’ time.

    There will be a reckoning.
  • COVID (20/04/2020, 22:55) Like (2) Dislike (1) Reply
    As quoted from the Premier and Minister of Finance, Hon. Andrew A. Fahie, "20% of the monies collected will each go into FUNDS to support Education, Seniors, Land banks, agriculture and Fishing initiatives". Which one of these support me!!
    " I stand by this initiative, this is not a tax on the POOR". WhoTF pocket you think you hitting the RICH.
    1. What FUNDS?
    People from the BVI and other countries live and work together, with the cost of living here everyone values every dollar they work for, they pay NHI(Mandatory),SS, payroll Tax, MASA,etc. We send monies to our loved ones at home to take care of our elderlies, to pay our mortages we attained way before coming here to work, to pay bills back home, you pay a fee to send your hard earned monies and now an additional 7% tax.
    What FUNDS list them please, and who is going to ensure these monies not going into FUNDS to pay back stupid decision you and your previous administration have made.
    Presently there is a global Pandemic COVID 19, don't you think apart from paying the landlord, elect. water, dish, internet bill, school fees even though school closed, from a salary not received as YET as a FRONT LINE WORKER, wearing a mask every day, being on call 24 hours, 7% tax on monies I send home to make sure my elderly parents and family are ok, is fair.
    Show me a FRONT LINE BVIlander who are exposed every %$*& day to COVID 19 with no salary increase, only to the selected few, who kissed the previous administration ass, or are relatives to them, Increments I aint see that in years, and them fools rationing PPE's. 7 % tax on top of all the BS we endure in the BVI is fair.
    Pass this bill soon alot of landlords will not be able to pay their mortages, make sure there is a FUND to seek future ESSENTIAL WORKERS, who are will willing do the work, and sacrifice their LIVES and being away from their loved ones.
    Whomever pocket you wish to fatten, bill you wish to pay back, or balance an unbalanced financial account, find another way that EVERYONE living in the BVI will have to pay, it must be fair across the board.
  • home (21/04/2020, 01:05) Like (2) Dislike (2) Reply
    Pay the people them taxes, fees and any other mandatory bills and your food. Leave the entertainment, support of anything local and hob nobbing with them. Dont volunteer nor support any ventures that is for benefits or here. Don't try to he inclusive. Don't go to their festivals, shows, or support anything that is owned by them if you can. They called you a name, show them what you are then.
    • @ home (21/04/2020, 14:23) Like (1) Dislike (1) Reply
      Why go through all of that?? Here is the better alternative, if you don’t like the status quo in the country you reside? Then go Home!
  • You see (21/04/2020, 01:17) Like (0) Dislike (1) Reply
    Anything that is needed or required to say support locally consider it the 7% that I paid for sending money home to my family. I already supported. No community venture where I'm accustom to throw some money to not even the kids selling the water on the street will I be supporting. That's part of the 7% the government wants. That additional $14 is what would have taken to go buy local and support local... thank you
  • Maverick (21/04/2020, 01:18) Like (3) Dislike (1) Reply
    God neither sleep nor slumber, vengeance belongs to God and He will repay.
  • Political Observer (PO) (21/04/2020, 05:09) Like (4) Dislike (0) Reply
    Undoubtedly, this proposed decision to charge a 7% fee on remittances and other money transfer is controversial. In every locale where it is proposed or imposed, it is controversial. It is seen as double taxation and a burden being borne only by immigrants. Opposing the 7% tax is smart politics. Nonetheless, increasingly, there is a demand by both locals and expats for more services but everyone wants someone else to pay for it. It is a NIMBY (Not in My Back Yard)attitude. It reminds me of some Americans attitude and dislike of government-provided healthcare, especially Obama Care(Affordable Care Act). Though they dislike government-provided healthcare, World War III would erupt if government even dream of touching Medicare, Veterans healthcare.....etc, government healthcare. By the way, they like Obama Care if it is called by another name.

    Anyway, government is expected to provide services, ie, healthcare, education, economic growth and development, social services, infrastructure (roads, electricity, water, sewage, drainage, telecommunications), transportation, public safety (police, fire, security), public health and safety........etc. Most if not all of these services are non-rivaled and non-excludable, ie, one person consumption does not diminish another person’s ability to consume it and they cannot be withheld even in one does not pay, respectively.

    Moreover, though government is expected to deliver these services, it has limited means of raising revenue. The economy is service-based and its revenue streams are tax, fees, fines, penalties.....etc. It does not get grant aid from the UK. And when needs exceed available funding, it borrows money, ie, Dr. D. Orlando Smith Hospital, Elmore Stoutt High School renovation project, Tortola Pier Park, road projects (what road you say?)......etc. It also enters into Public Private Ventures/Public Private Partbeships(Bi-water water project). As such, for government to deliver and continue to deliver high quality services, both locals and expats benefit and must contribute. Assessing a nominal fee on remittances seems to be reasonable means of raising some revenue. Should the fee be 7%, 6%, 5%.....etc? HOA should debate the pros and cons.

    Further, per government information, on average $89M leaves the territory via remittances. In a small economy (GDP ~$1B, and average $400M O&M budget),$89M taken out of the economy is a huge leakage. Typically, to grow and sustain an economy, money must circulate in the economy as many times as practical. The VI/BVI imports practically everything it needs so there is a huge leakage in the economy with millions of dollars circulating only once. In other locales, money circulates 3-4 times up to 7 times. Virgin Islanders understand that expats travelled long distances from their homelands away from their families to the VI for better economic opportunities to help their families in their homelands. Virgin Islanders also are not averse to expats sending money home to their families. In fact, I’m confident that they support and encourages it. Nevertheless, to grow and sustain the economy requires everyone contributing his/her commensurate share. Covid-19 is not a hoax or a scam and is real so be safe.
  • john smith (21/04/2020, 05:56) Like (1) Dislike (0) Reply

    Well, if there is nowhere else to take money and these 20% of the money raised will go to funds to support initiatives in the field of education, retirees, the land bank, agriculture and fisheries in order to maximize profits to improve the socio-economic well-being of the territory. Then maybe this is a positive decision ...
    http://www.confiduss.com/en/jurisdictions/the-british-virgin-islands/
  • stupidness (21/04/2020, 14:05) Like (1) Dislike (0) Reply

    All you ignorant @$$ Vilanders who keep spouting about Island person, where the hell are you from a damn island one of the smallest in the caribbean, fortunate to be located where you arelocated and allowed to spend another country's currency.

    Sign VIlander with sense!

  • Just saying (21/04/2020, 20:20) Like (0) Dislike (0) Reply
    I am in strong disagreement with this move. I had suggested years ago that 1 dollar extra should be charged to each incorporation and spread over areas such as Education, Recreation, Seniors and Health Care. Not placing the collection of revenue squarely on the backs of those who have already paid into for most parts all the standard governmental and Social security fee structures.
    It's not right.
  • Tadow (21/04/2020, 23:36) Like (0) Dislike (0) Reply
    Cousin Marlon let me say this to you. You went in green land and allowed FIFA to come in here and built a soccer field that does not benefit the local. That is what you should have opposed. Within the parameter of that field there should have been a basket ball court, valley ball court, net ball court, a mini track and if a baseball diamond could have fit, that should have happen. You come now with your BS opposing a good thing for the country. A lot more of you politicians need to grow some balls on stand up for this country. My question to you cousin marlon and the rest of you politician who is opposing this. Do you all think that we can go down to any of the caribbean countries and establish a baseball diamond that has little or no benefit to them and that can fly. Think again you set of coward A$$ politcians. STAND UP, STAND UP AND FIGHT FOR THE PEOPLE AND THIS COUNTRY.
  • BVIlander (22/04/2020, 00:31) Like (2) Dislike (0) Reply
    Shame on all u tortolians u all pretending to be the most praying people in the world but all u heart are as black as tar the bible say love your neighbors as yourself if u all hate people from other countries so much how can u love God u not seeing and expect to enter in his kingdom anyway remember God is a God of love he neither sleep nor stumble
  • up set (22/04/2020, 07:57) Like (0) Dislike (0) Reply
    Marlon wife is not from here he stands neatrul can't u see and a next thing where u send d virus test down island u all should be a sham of your self
  • tell me (22/04/2020, 08:21) Like (0) Dislike (0) Reply
    Where is the country that call down island I'm still looking I can't find it on the map
  • Forward ever Backward never (22/04/2020, 13:09) Like (2) Dislike (0) Reply
    First let me make it clear, I am a born Bvislander. In my opinion our Caribbean brothers and sisters who reside and work here are mostly minimum wage workers. They have families and children back in their home countries that they are obligated to assist financially. When those people send home money it's not no large amounts money. Why put a 7% tax on that already stressed segment of our society. Government should go after the people who make the big bucks and transfer most of it under the radar by a hit on the transfer switch. That's my opinion and I don't really care about any backlash.
  • Lb (23/04/2020, 08:20) Like (0) Dislike (0) Reply
    These the same ones who were suggesting it when they were in power. Steupes


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