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Opposition to continue seeking answers on BVI Airways scandal in HoA

- Opposition Member Hon Julian Fraser RA to ask questions of Premier & Minister of Finance, Hon Andrew A. Fahie
February 20th, 2020 | Tags: BVI Airways scandal failed airline HOA lawsuit
The scandalous topic of the BVI Airways deal between the ousted National Democratic Party (NDP) will once again resurface in the form of questions by the Opposition when the Fifth Sitting of the Second Session of the Fourth House of Assembly commences today, Thursday, February 20, 2020. Photo: BVI Airways
The questions surrounding the BVI Airways deal will be asked by Opposition Member Honourable Julian Fraser, RA (R3) when the Fifth Sitting of the Second Session of the Fourth House of Assembly commences today, Thursday, February 20, 2020. Photo: VINO/File
The questions surrounding the BVI Airways deal will be asked by Opposition Member Honourable Julian Fraser, RA (R3) when the Fifth Sitting of the Second Session of the Fourth House of Assembly commences today, Thursday, February 20, 2020. Photo: VINO/File
Documents presented to a USA court of law by the Government of the Virgin Islands (VI) alleges that former Government Lawyer, Lester Hyman personally profited from the failed BVI Airways, a dereliction of his professional obligations as the Governments' Attorney. Photo: Facebook/Internet Source
Documents presented to a USA court of law by the Government of the Virgin Islands (VI) alleges that former Government Lawyer, Lester Hyman personally profited from the failed BVI Airways, a dereliction of his professional obligations as the Governments' Attorney. Photo: Facebook/Internet Source
ROAD TOWN, Tortola, VI- The scandalous topic of the BVI Airways deal between the ousted National Democratic Party (NDP) will once again resurface in the form of questions to Premier and Minister of Finance Honourable Andrew A. Fahie (R1) by Opposition Member Honourable Julian Fraser, RA (R3) when the Fifth Sitting of the Second Session of the Fourth House of Assembly (HoA) commences today, Thursday, February 20, 2020.

Hon Fraser will ask: "Mr Speaker, for several years across this and last administration, the Opposition has been stonewalled, and at times downright refused answers relating to BVI Airways and an associated missing $7.2 million of Government funds. Could the Premier and Minister of Finance please: a) Provide this Honourable House with the breakdown of those funds disbursements to BVI Airways, and to whom they were given? b) Provide this Honourable House with the breakdown of BVI Airways disposal of said funds, giving the purpose; and c) An inventory of goods and services acquired by the said $7.2 million of Government money."

The Order Paper said the second question would be "Mr Speaker, the former Premier and Minister of Finance told this Honourable House that he had issued instructions to the Attorney General (AG) to initiate proceedings with the recovery of the $7.2 million from BVI Airways. Could the Premier and Minister of Finance please: a) Present this Honourable House with a copy of those instructions? And b) Inform this Honourable House as to the actions taken by the AG?"  

Hon Fraser will also ask the Hon Premier the names of the directors and shareholders or the airline, and the fees that each director received.

He also wants the Hon Premier to provide the names of the individuals serving on the BVI Airways Board as representatives of the Government of the Virgin Islands.

The BVI Airways saga was taken to a US court by the Government of the Virgin Islands.

The crux of the lawsuit alleges that the former attorney for the VI Government, Lester Hyman personally profited from the failed BVI Airways, a dereliction of his professional obligations as the Governments' Attorney.

When questioned, Premier Hon Fahie (R1) declined to speak on the matter in detail as he was advised to do by legal minds.

The case was filed by the Office of the Attorney General on behalf of the VI Government.

Public Documents 

An application that has since been made in the United States District Court for the District of Columbia seeks assistance to obtain evidence for use in a foreign (VI Eastern Caribbean Supreme Court) proceeding.

According to sections of the case filed, within the scope of his legal representation to the Government, Hyman, in late 2013 or early 2014, introduced certain business promoters from the United States to the Virgin Islands Government.

These promoters proposed to start an airline that would operate, for the first time, nonstop commercial flights between Miami and the VI and in conjunction with the proposed investment by the promoters, the Virgin Islands Government was to invest $7,000,000 in the airline.

Court documents state that although the Government provided the agreed investment (and an additional $200,000), the airline never went into operation, and the investors apparently never invested any money in the venture before burning up the investment provided by the VI Government.

"Investigations by the BVIG [British Virgin Islands Government] have revealed indicia that, in dereliction of his professional obligations as its Attorney to act in the best interest of his client and be free from even the appearance of (let alone actual) conflict of interest, Mr Hyman personally profited from this failed airline venture by, inter alia, being a paid Director of the failed airline to the tune of an undisclosed $10,000 director's fee, $2500 for each in-person meeting, and stock options," the VI government alleged.

It is the VI's case that Hyman was also likely being a paid Director of at least one of the companies that were shareholders of the airline.

"It also appears that Mr Hyman secretly received a $200,000 "finder's fee" from the airline and/or its promoters for putting the deal together with the BVIG. All this undisclosed improper activity incentivized Mr Hyman to influence the BVIG to invest what ultimately totalled $7,200,000 into the failed airline venture," the document details.

Hyman shifting roles 

As he was being terminated by the VI Government, in an email to the then Premier of the VI [Dr D. Orlando Smith], Mr Hyman attempted to characterise his role from that of attorney to one as "honest mediator", a role, to which he acknowledged, in hindsight, but the then Premier Smith never agreed.

However, in an email two years later to the VI Government's current attorneys, Mr Hyman seemingly contradicted himself by saying, "by Premier Smith's request, I worked with the BVI Government and BVI Air."

It is the government's case that while Hyman admitted to working with both sides on the transaction, he falsely claimed that it was at the then Premier's request, which is easily refuted by simply reading Mr Hyman's own "contemporaneous email" to the then Premier Smith.

Further, it is alleged, "Mr Hyman's emails from 2014 to 2017 to the then Premier concerning the failed airline venture reveal an Attorney who lost sight of his role as an advocate for his client's interest."

"Instead, they contain statements of rancour and upset directed to his client in a tone and content calculated to shame, browbeat, and push his client into investing ultimately $7,200,000 of public money in a venture fraught with risk and with parties that the most cursory of due diligence would have revealed red flags that, at a minimum, should have been disclosed to his client since they indicated that the parties were unsuitable for the proposed venture," court documents revealed. 

More Red Flags 

The document further states that in June 2019, when asked by the VI Government's current counsel about the due diligence undertaken and the red flags that current counsel had uncovered, without addressing the red flags, Mr Hyman responded that his due diligence on one of the primary promoters, Bruce Bradley, consisted of 'asking around' and his ability to judge people.

What was not included in Mr Hyman's response, however, is how in an email two years earlier to the then Premier, Mr Hyman referred to Mr Bradley as a "close friend of many years."

Further, the court document says, rather than advising his client or advocating his client's position, Mr Hyman sent emails to the then Premier Smith that included, "Frankly, it is very embarrassing to me that, having brought Bruce Bradley to the table, he now receives no reply to his numerous email messages."

He further noted that the VI Government's draft agreement "is unacceptable," after the VI Government removed the promoters' proposed language that included a sovereign immunity waiver and an anti-competitive restriction on the provision of subsidies to the proposed airline's competitors.

12 Responses to “Opposition to continue seeking answers on BVI Airways scandal in HoA”

  • yeah (20/02/2020, 08:36) Like (6) Dislike (3) Reply
    keep the heat on them fraser
  • rio (20/02/2020, 08:45) Like (5) Dislike (0) Reply
    What a nasty drama.
  • BVI PA STAFF (20/02/2020, 09:28) Like (10) Dislike (1) Reply
    them need to go find out why the staff of the BVI PA don't trust the in-effective BVI PA board members and the fat lady. If the board members them say it raining outside u got to go outside and check before u listen to them. pure lies and evilness them spreading on the staff.
    • Thing to talk (24/02/2020, 16:06) Like (1) Dislike (0) Reply
      BVI PA board is the pits! Seems like all they know to do is terminate. They still owe us the increment they promised us. Word on the street is John resign and the fat lady will soon be in charge once again.
  • NezRez (20/02/2020, 09:43) Like (8) Dislike (3) Reply

    They come here in the disguise of helping our small islands, when their only intention was to steal from us. They have professional Pirate and Scoundrels working everywhere. This guy Hyman looks very much like that dead guy Epstein who owned PEDO ISLAND in St. Thomas.

  • True (20/02/2020, 09:45) Like (23) Dislike (1) Reply
    surely the oppisition should know more as they were the ones who gave away the $7.2 million
    • Exactly (20/02/2020, 12:12) Like (7) Dislike (0) Reply
      He should ask the leader of the opposition.
    • Yess.. (20/02/2020, 15:53) Like (2) Dislike (0) Reply
      I want to know if he forgot its NDP who squandered the money not VIP. They are trying their best to get answers also but Fraser you pointing fingers and asking the wrong ppl questions. Blame your opposition partner
  • Nice (20/02/2020, 09:45) Like (7) Dislike (3) Reply
    Fraser is a balanced leader. Good for him. A much better person to be opposition leader.
  • Feeling N Sad. (20/02/2020, 10:39) Like (6) Dislike (0) Reply
    What more questions.... Stop it. The only more questions we need should come from Scotland Yard...
  • Told ya (20/02/2020, 15:43) Like (5) Dislike (0) Reply
    So about 4 years ago i was posting exactly this!..... finally somebody is going after these crooks. This entire deal stank from day one and nobody wanted to listen. Now finally the heads have come out of the sand.
    There are 3 people that need to be jailed over this. One has finally been identified in public. 2 more to go.
  • lol (23/02/2020, 07:43) Like (0) Dislike (0) Reply
    Lol lol lol


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