1 Background
1. In July 2007, we resolved to undertake an inquiry
into the United Kingdom's Overseas Territories. This was the first
Foreign Affairs Committee inquiry into the Territories (with the
exception of Gibraltar) for over a decade.[1]
The inquiry focused on the FCO's exercise of its responsibilities
in relation to the Territories and its achievements against its
then Strategic Priority No. 10, "the security and good governance
of the Overseas Territories".[2]
2. Our Report, which was published on 6 July 2008,
contained conclusions and recommendations relating to all the
Territories.[3] One matter
of particular concern to us was the very serious allegations of
corruption we had received in relation to the Turks and Caicos
Islands (TCI). Members of the Committee visited TCI in March 2008
and had been disturbed to encounter a "climate of fear".
In our Report we commented that "alarmingly for a British
Overseas Territory, many individuals expressed great concern about
being seen to be talking to British parliamentarians and some
individuals declined to meet us altogether for this reason".[4]
3. We concluded that the allegations of corruption
were:
already damaging TCI's reputation, and there
are signs that they may soon begin to affect the Islands' tourism
industry. There is also a great risk that they will damage the
UK's own reputation for promoting good governance. Unlike the
Cayman Islands, where the Governor has taken the initiative in
investigations, the onus has been placed on local people to substantiate
allegations in TCI. This approach is entirely inappropriate given
the palpable climate of fear on TCI. In such an environment, people
will be afraid to publicly come forward with evidence. We conclude
that the UK Government must find a way to assure people that a
formal process with safeguards is underway and therefore recommend
that it announces a Commission of Inquiry, with full protection
for witnesses. The change in Governor occurring in August presents
an opportunity to restore trust and we recommend that the Commission
of Inquiry should be announced before the new Governor takes up
his post.[5]
4. In reviewing the Government's overall record of
discharging its responsibilities for the Territories, we commented
that:
the Government has acted decisively in some Overseas
Territories, for example in the investigations and prosecutions
that took place on the Pitcairn Islands. However, in other cases
which should also cause grave concern, in particular, allegations
of corruption on the Turks and Caicos Islands, its approach has
been too hands off. The Government must take its oversight responsibility
for the Overseas Territories more seriously—consulting across
all Overseas Territories more on the one hand while demonstrating
a greater willingness to step in and use reserve powers when necessary
on the other.[6]
5. Although the Government's formal response to our
Report was published in September 2008,[7]
it had taken earlier action in direct response to our representations
about alleged corruption in TCI. In May 2008 we sought a private
meeting with the then FCO Minister for the Overseas Territories,
Meg Munn MP, and impressed upon her our deep sense of unease about
the situation in TCI and our belief that urgent action was required.
On 10 July the outgoing Governor of TCI, Richard Tauwhare, announced
the appointment of a Commission of Inquiry. The Commissioner was
the Rt Hon Sir Robin Auld, a retired Lord Justice of Appeal. His
remit was to inquire into whether there was "any information
that corruption or other serious dishonesty in relation to past
and present elected members of the House of Assembly (previously
known as the Legislative Council) may have taken place in recent
years".[8]
6. The new Governor, Gordon Wetherell, published
the Commissioner's interim Report on 16 March 2009. On the same
day, in a statement to the House, the then FCO Minister with responsibility
for the Overseas Territories, Gillian Merron MP, stated that the
Commissioner had identified:
a high probability of systemic corruption or
serious dishonesty. In his view, this, together with 'clear signs
of political amorality and immaturity and of general administrative
incompetence, have demonstrated a need for urgent suspension in
whole or in part of the Constitution and for other legislative
and administrative reforms', and change in other related matters.[9]
7. On the basis of Sir Robin's interim report and
the "accumulation of evidence in relation to the TCI over
the past year or so", the Government accepted the Commission's
view that it was necessary to suspend parts of the TCI Constitution.[10]
The Turks and Caicos Islands Constitution (Interim Amendment)
Order 2009 was laid before Parliament on 25 March 2009, with the
intention that its provisions would be brought into force after
Sir Robin's final report was received.[11]
That report was delivered to the Governor on 31 May 2009[12]
and published on 18 July. The report identified a need for "urgent
and wide-ranging systemic change".[13]
8. On 14 August 2009, the UK Government partially
suspended parts of the TCI Constitution, for a period of two years.[14]
The Order in Council left in place important elements of the Constitution,
including the fundamental rights chapter and provisions relating
to the Governor, the courts and the public service. It removed
the provisions relating to the Cabinet and House of Assembly,
and references to ministerial and related powers. It made provision
for an interim Government, so that powers currently exercised
by Ministers would be exercised by the Governor, acting at his
discretion, including in relation to public finances, legislation
and necessary regulatory reform. Gillian Merron MP described this
as an "act of constitutional significance in order to restore
the principles of good governance".[15]
The interim Government took office on the same day.[16]
9. In addition to the partial suspension of the Constitution,
a Special Investigation and Prosecution Team (SIPT) has since
been established in accordance with Sir Robin Auld's recommendation
that provision be made for a special criminal process and civil
recovery of assets arising out of any criminal or other investigations
prompted by the final report. On 10 August 2009 Ms Helen Garlick
was appointed by the Governor as Special Prosecutor, heading the
SIPT.
10. In a statement to the House on 2 July 2009, the
present Minister for the Overseas Territories, Chris Bryant MP,
outlined other steps taken by the Government in response to the
Commission's report.[17]
He acknowledged the help and support provided by the "keen
eye of the FAC" in highlighting the situation in TCI.[18]
11. When the interim Government took office on 14
August 2009, it faced a daunting task. It inherited a national
debt of US$135 million, and a huge challenge in implementing proper
financial management and maintaining the provision of public services
to the residents of the TCI. At the same time it has been attempting
to implement the political and economic reforms required to address
the systemic corruption identified by the Auld Commission. The
Governor has set out his account of progress to date in quarterly
reports, the first two of which were published in November 2009
and February 2010.[19]
12. We have closely monitored subsequent development
in the Islands. We have received regular briefings from the Governor
and the Special Prosecutor, as well as from a number of other
interested parties. We have continued to receive a significant
amount of correspondence in relation to TCI. We have raised some
particular issues of concern with Ministers, and print their responses
with this Report.[20]
13. We welcome the actions that the Government
has taken to address the serious concerns we expressed in 2008
about alleged corruption in the Turks and Caicos Islands. These
actions include the appointment of a Commission of Inquiry, the
subsequent suspension of parts of the TCI Constitution, and the
creation of a Special Investigation and Prosecution Team (SIPT).
However, in recent months significant concerns about the speed
and effectiveness of the Government's plans to reform and "clean
up" the political system in TCI have been brought to our
attention. This brief Report focuses specifically on those concerns.
14. Although this Report deals specifically with
issues relating to TCI, a number of concerns have been brought
to our attention in relation to allegations of corruption and
poor governance in other Overseas Territories—for example,
in Anguilla. We recommend that the Government should supply us
with a memorandum setting out in detail what support is provided
by the UK Government to each of the individual Territory governments
to assist them in tackling corruption and maintaining standards
of good governance. In the event that it is not possible to supply
this information to us before the dissolution of the present Parliament,
we recommend that the Government should make it available to our
successor Committee in the next Parliament when it begins its
work.
1 Foreign Affairs Committee, Seventh Report of Session
2007-08, Overseas Territories, HC 147-I, para 2 Back
2
Ibid., para 3 Back
3
Foreign Affairs Committee, Seventh Report of Session 2007-08,
Overseas Territories, HC 147-I Back
4
Ibid., para 174 Back
5
Ibid., para 196 Back
6
Foreign Affairs Committee, Seventh Report of Session 2007-08,
Overseas Territories, HC 147, para 437 Back
7
Seventh Report of the Foreign Affairs Committee, Session 2007-08,
Overseas Territories: Response of the Secretary of State for Foreign
and Commonwealth Affairs, Cm 7473 Back
8
Governor Richard Tauwhare's Press Statement, 10 July 2008, www.tci-inquiry.org/tci_inquiry.html Back
9
HC Deb, 16 March 2009, col 40WS Back
10
Ibid. Back
11
The Turks and Caicos Islands Constitution (Interim Amendment)
Order 2009 Back
12
HC Deb, 2 July 2009, col 25WS Back
13
Report of the Commissioner, the Right Honourable Sir Robin Auld,
Turks & Caicos Islands Commission of Inquiry 2008-09,
18 July 2009, para 5.12 Back
14
FCO country profile, via www.fco.gov.uk Back
15
HC Deb, 16 March 2009, col 40WS Back
16
First Quarterly Statement from His Excellency Gordon Wetherell,
Governor, Turks and Caicos Islands, 30 November 2009, via http://turksandcaicosislands.fco.gov.uk Back
17
This included the appointment of a number of Advisers in the areas
of public service, public financial management, economics, good
governance and Crown Land. Back
18
HC Deb, 2 July 2009, col 25WS Back
19
First Quarterly Statement from His Excellency Gordon Wetherell,
Governor, Turks and Caicos Islands, 30 November 2009; Second Quarterly
Statement from His Excellency Gordon Wetherell, Governor, Turks
and Caicos Islands, 28 February 2010, via http://turksandcaicosislands.fco.gov.uk Back
20
Ev 1-2; Ev 7-10 Back
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