Roadtown, Tortola - The House of Assembly has approved a resolution to set up a special fund for the disbursement of more than $22 million from money forfeited in the IPOC International Growth Fund Limited case.

The motion, which was moved by Premier and Minister of Finance Honourable Ralph T. O’Neal, OBE on July 24, was approved on the condition that the money received by the Government in the amount of $22,727,741. 41 be transferred from the consolidated fund to a special fund and disbursed as follows: up to 20 percent for law enforcement purposes; up to 15 percent for the legal sector; up to 20 percent for the education sector; up to 35 percent for the health sector; and up to twenty percent to be placed in the reserve fund.

The Finance Minister said there is a reason why each area states ‘up to’ because when the percentages are added, they do not total 100 percent.  “What will happen is that if it is found that a sector needs a little more than what was allocated, it can be increased by a small percentage and the other sectors will have to be adjusted and fall into line,” he explained.

Honourable O’Neal said the British Virgin Islands laid some of the legal infrastructure years ago, to help in the ongoing combat against illicit activities.  “It was in 1997 that the Criminal Code was passed and we have been trying to keep our legislation up to date,” he added.

He said  that in 1997 they knew certain things were occurring  and were confident that one day,- “we will catch a big king fish”.

The Finance Minister added, “this is why we have to keep our lamps all trim and bright because these people who are in this trade, they are always on the move and always improving their side of things so that they can get away.”

The procedures followed are in accordance with recommendation 38 of the 40 recommendations of the Financial Action Task Force which  encourage countries to establish an asset forfeiture fund into which all or a portion of confiscated property will be deposited for law enforcement, health, education or other appropriate purposes.

In accordance with Section 11 of the Public Finance Management Act, 2004 (No. 2 of 2004), the Minister of  Finance may, with the approval of the House of Assembly establish a special fund for a specific purpose and the money in the fund shall be expended only for the specific purpose for which the fund is established.  Section 11(2) of the same act states that money for the establishment of the special fund shall be money appropriated for that purpose by a supply vote and revenue exclusively relating to or derived from the subject matter of the fund.

The Government of the Virgin Islands transmitted the amount of $22, 727,741. 41 to the Government of Bermuda, pursuant to the Memorandum of Understanding signed between the two jurisdictions in July 2007. 

Criminal charges were filed against the companies involved on April 21, 2008 and the defendants were committed to the High Court on April 25, 2008. The committal was carried out under the Committal for Sentence Act, which allows matters to be committed to an ongoing Criminal Assize when the defendants have indicated they are likely to plead guilty.

A High Court final judgment on August 20, 2008 in the case of the Queen versus IPOC International Growth Fund Limited and three others (Criminal Case No. 12 of 2008), forfeited to the Crown, as proceeds from money laundering, an amount of $45,455,430.82.