Government officials should have known that Bank of Asia (BVI) Limited was failing when they deposited more than $5 million of taxpayer money in it earlier this year, Opposition Leader Myron Walwyn claimed Tuesday.
Now, he said, most of that money will probably be lost.
In a blistering statement read on ZBVI Radio, Mr. Walwyn urged Governor Daniel Pruce to launch an independent investigation and accused Premier Natalio “Sowande” Wheatley of a “disingenuous” attempt to dodge responsibility by blaming public officers for a money transfer that was his responsibility as minister of finance.
“When a leader blames public officers or technical staff for critical failures — especially in matters where the law clearly places responsibility on the minister — it reflects not only poor leadership but also a lack of accountability and integrity,” Mr. Walwyn said.
Mr. Walwyn’s statement came as the premier and financial regulators sought to reassure the public following the surprise announcement on May 29 that the Virgin Islands Deposit Insurance Corporation had started winding down the bank with the support of the Financial Services Commission.
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Premier’s perspective
In recent days, the premier has denied making the decision to deposit more than $5 million of taxpayers’ money in the Bank of Asia.
“All decisions related to the placement of public funds are made within the framework of established financial practices and are executed by designated public officers under the Ministry of Finance,” he said in a June 6 statement. “Government ministers play no part in these decisions.”
He added that such deposits are “strategies to diversify the government’s financial portfolio” in a manner that is commonplace around the world.
“Funds diversification helps improve liquidity management and secure interest income in the public interest,” he explained in the statement.
“To reassure taxpayers and ensure full transparency, I am requesting an internal audit to review this specific transaction. I hope this will offer clear insight, foster confidence, and bring greater understanding to all.”
‘Weak leadership’
But Mr. Walwyn took issue with the premier’s account, claiming on Tuesday that the Public Finance Management Act, 2004, gives the finance minister the responsibility for deciding where to deposit money from the consolidated fund.
“One of the most troubling signs of weak leadership is the tendency to shift blame onto subordinates when things go wrong,” Mr. Walwyn said. “True leaders take responsibility for the actions and outcomes of their administration.”
Mr. Walwyn added that the internal audit the premier promised won’t be sufficient to get to the bottom of the matter.
“The premier fully well knows that internal audits are not available for public scrutiny,” Mr. Walwyn said.
“This is yet another attempt to run from the consequences of his actions and hide from public scrutiny. It is a fundamental principle of good governance that one cannot investigate or call for an investigation into a matter in which they have personal or institutional involvement.”
HOA meeting
In making his case, Mr. Walwyn said he learned about the timing of the controversial deposit from information the premier provided in response to his questions during a June 3 House of Assembly meeting.
“The premier responded by providing figures as at December 2024 and [April 30, 2025],” Mr. Walwyn said. “What was particularly alarming with his response was that in December 2024, there was no government account at the Bank of Asia, but by the end of April 2025 an account had been opened with $5 million deposited.”
This timing, he claimed, meant that the deposit was made during the later stages of a protracted legal battle playing out in the Commercial Court between Bank of Asia stakeholders.
In January, the court declared Bank of Asia founder Carson Wen and his wife Julia Yuet Shan Fung bankrupt as they tried unsuccessfully to overturn a global asset freeze order made against them in 2023. These developments, Mr. Walwyn noted, were reported in the financial publication Offshore Alert.
“This means that the government, on behalf of the people, deposited $5 million into this bank that they knew, or ought to have known, was failing and has now become an unsecured creditor — waiting in line behind insured depositors and secured creditors to receive their payout,” Mr. Walwyn said. “In other words, we are probably very likely to lose most, if not all, of that $5 million.”
Mr. Wheatley told the Beacon on Tuesday night that he will respond to Mr. Walwyn “at the appropriate time,” but he had not issued a response as of Beacon press time yesterday afternoon.
He and other government officials have not responded to questions about the government’s chances of recovering the $5 million, and on June 3 he declined to speculate on the matter in response to related questions from Mr. Walwyn in the HOA.
The FSC told the Beacon this week that the deposit matter falls outside its jurisdiction, and attempts to interview VIDIC officials were not successful.
Lorna Smith
Last week, Financial Services and Economic Development Junior Minister Lorna Smith also denied directing the government funds into the Bank of Asia.
“I had no such authority, gave no such instruction, and I categorically deny the claim,” she noted in a June 6 statement she said was released in response to “speculative and misleading reporting” concerning the bank’s closure. “I welcome any independent investigation that may help bring clarity to the facts.”
Ms. Smith also provided more information about her role at the bank, noting that she served as a non-executive director “beginning in or around 2019” and was appointed deputy chairman of the board “circa 2020.”
She resigned from the board in April 2023 before assuming public office after that month’s election, according to the statement.
“I was never involved in the day-to-day management or operations of the bank,” she said. “My role was governance-based, and I was one of several directors appointed to oversee strategic direction and compliance.”
She also denied receiving a monthly salary of $15,000 as claimed in a published report.
“All directors were approved to receive quarterly compensation,” she stated, though she did not say how much she earned quarterly.
‘Entirely false’
Ms. Smith, who served as deputy premier and minister of financial services from April 2023 until last October, also denied any conflict of interest or improper influence in her role as a public official.
“As minister with responsibility for financial services, I have always respected and upheld the statutory independence of the [FSC and VIDIC],” she stated. “I have never issued instructions to either regulator concerning the Bank of Asia or any other regulated entity.”
She added that the VIDIC — which was established in January 2024 and launched its operations about six months later with the appointment of CEO Lisa Violet — falls under the premier’s portfolio.
“Assertions that I interfered with regulatory decisions, delayed action or influenced personnel are entirely false,” she stated. “In fact, I met the current CEO of VIDIC, Ms. Lisa Violet, on only two occasions — once during a courtesy call in late 2024 and once in a virtual group meeting launched last June.”
Ms. Smith also called on the media to report responsibly on the Bank of Asia matter.
“The publication of false, exaggerated or speculative claims undermines our jurisdiction and disrespects the dedicated work of our public servants, regulators and financial professionals,” she warned.
Provisional liquidation
Following the court’s May 28 appointment of joint provisional liquidators, Bank of Asia (BVI) Limited is currently in provisional liquidation, which starts its formal wind-down process, according to regulators.
“The effect of the provisional liquidation is to allow independently appointed, experienced professionals — in this case from the financial advisory firm Teneo — to take control of the bank, securing assets, collecting and reviewing information necessary to ultimately support the payout to depositor holders and other creditors,” the VIDIC and Teneo stated in a recent list of “Frequently Asked Questions” about the situation.
The list noted that bank deposits are protected up to $100,000.
“However, it is also part of the liquidators’ role to determine whether there are any viable overall solutions for the bank such that deposits over $100,000 becoming fully or partially protected,” the statement added.
“Should no viable solutions be found, then it is currently expected that the bank will move into a full liquidation process. At that time, it is further expected that the bank will be formally determined to have failed and the process for the issuance of fund payments under the deposit insurance scheme will commence.”
Teneo told the Beacon that its role involves taking steps “to protect the assets of the company, preserve its records, and gain an understanding of the situation facing Bank of Asia in order to ultimately achieve a result that is the best possible for depositors (and other creditors) given the circumstances the company faces.”
The firm declined to provide further updates.
“It is currently too early in the process to provide more detailed information,” it stated. “However, we do note that we are of course working closely with VIDIC, the FSC and existing management.”
Bank stays quiet
Amid the turmoil, Bank of Asia has stayed quiet.
Calls to the phone number listed on its website rang out, and Mr. Wen did not respond to requests for comment made through his lawyer.
Kenneth Morgan and Meade Malone — who in the past have been listed as directors on the Bank of Asia website, which no longer lists any directors — did not respond to messages from the Beacon.
Attempts to reach Deon Vanterpool, who the website lists as the bank’s vice president, were unsuccessful.
The FSC deferred several questions about the situation to the VIDIC or to the government. It responded to other questions — including a query about whether it is conducting an internal investigation of its own handling of Bank of Asia — by saying that it is “bound by confidentiality obligations in relation to licensees that it regulates and does not therefore discuss individual cases.”
Governor Daniel Pruce declined to comment, and BVI Finance CEO Elise Donovan did not respond to requests for comment.
2018 launch
When Bank of Asia (BVI) Limited launched publicly in mid-2018, it was described as the territory’s first digital bank.
Since then, officials have frequently described the bank as a solution to the de-risking that has affected banking services across the Caribbean in recent years.
At the time of its launch, the bank said it employed about 70 people in Asia and the VI, with a 24/7 customer call centre in Manila.
“Bank of Asia was licensed in the BVI in March 2017 to address the growing needs of offshore companies, their owners, individuals and families, providing core banking services to offshore companies as well as trusts and high-net-worth individuals and families from around the world,” the bank stated in a press release announcing a launch ceremony in July 2018 at Charlie’s Courtyard at The Moorings.
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