Britain suspends Turks and Caicos government

LONDON, (Reuters) – Britain ordered the suspension  of the government of its Caribbean territory of Turks and Caicos yesterday and imposed direct rule after an investigation  found evidence of widespread corruption.

The move means Britain will take day-to-day control of the  island group, a British overseas territory with a population of  about 32,000 located in the Atlantic between the southern  Bahamas and the north coast of Haiti.

British authorities said the step was needed to restore  good governance and sound management in the territory, which  has unspoiled beaches and coral reefs and is striving to become  a leading offshore financial center  .

The former premier removed by the British measure, Galmo  Williams, condemned the suspension of the constitution and  government as a coup d’etat that he said put Britain “on the  wrong side of history.”

Britain began investigating alleged corruption last year  and found “clear signs of political amorality and general administrative incompetence.”
“After careful consideration, I have instructed the  Governor to bring into force today an Order in Council which  will suspend ministerial government and the House of Assembly  for a period of up to two years, to allow the Governor to put  the Islands’ affairs back in good order,” Foreign Office  minister Chris Bryant said in a statement.

Williams, who was appointed premier in March, 2009, issued  a statement accusing the British authorities of “dismantling a  duly elected government and legislature and replacing it with a  one man dictatorship.” He said the territory was being “invaded and recolonized” by Britain.

Britain announced plans to remove the cabinet and elected  assembly of the Caribbean colony in March. The Court of Appeal  dismissed a legal challenge to these plans on Wednesday,  allowing Britain to impose direct rule.

Governor of the territory Gordon Wetherell said the move  did not amount to a “British takeover.”
“Public services will continue to be run by people of the  Turks and Caicos islands, as indeed they should be,” he said.
“I believe most people in the Turks and Caicos will join me  in welcoming these changes.”

In his address, Wetherell said he and the British  government were committed to working toward holding free and  fair elections by July 2011.
“We have much to do and public expectations are high …  People need to feel safe from crime and we need to clean up  public life and start to develop a fairer, more open society,”  he said.

A top financial regulator in the territory said the  suspension of the government would not affect the operation of  its offshore finance sector, which has about 16,000 companies  registered, including many specializing in warranty insurance.

“There is no change in the status of the regulatory body or  in the day-to-day running of the finance sector,” J. Kevin  Higgins, managing director of the Turks and Caicos Finance  Services Commission, told Reuters by telephone.

He said the Turks and Caicos offshore finance sector had  “not been in any way tarnished” by the corruption probe, saying  this had focused more on tourism and real estate activities.