Turks and Caicos atop CARICOM agenda

David Jessop, Contributor

When CARICOM heads of government meet in Grenada towards the end of February, among the issues they are expected to consider is how to respond to the situation in the Turks and Caicos Islands.

As is well known, Britain suspended parts of the Turks and Caicos constitution in August 2009 and took direct control through the governor's office following serious allegations of corruption against the former premier and others around him. They did so because they suspected systemic corruption. A subsequent commission of enquiry demonstrated that this involved, among other practices, huge payments by investors to ministers for land deals involving the sale and resale of crown lands on a startling scale.

In suspending the constitution, the UK government was criticised by CARICOM. Last October, CARICOM heads renewed their concern, saying that London's decision to postpone elections was "totally at odds with the development of good governance, including improved fiscal and administrative management. That objective", they commented "cannot be handed down but must be moulded by the people of the territory".

Since that time, there has been some progress towards the restoration of local control as the UK has given the process greater attention and direction.

As matters now stand, the UK is expected to return the Turks and Caicos to constitutional rule and elections in 2012, a process that will probably follow from the indictment of those in and around the previous administration alleged to be corrupt.

In the islands themselves, moving the process forward is having to be funded out of the territories' own depleted financial resources with the consequence that economic activity is in decline and the public sector, a major employer, has seen salary reductions and job losses that touch almost every family.

The consequence is that the longer it takes to clean out those who are corrupt, deliver a new constitution, establish a new system of governance and financial management, and restore a locally elected government, the more domestic politics is becoming polarised and volatile.

In this, one of the challenges for any responsible political party in the islands is to know when and how to engage with London and when to disagree. Equally, there is an important balance to be struck by London in understanding that the issues are more than administrative and require great political sensitivity as they touch directly on family and personal relationships

Unfortunately, the issue has become a UK party political football with attendant biased media coverage as a wide range of political figures, seeing overseas territories as a subject to use for their personal and political vendettas, ignore the fact that the issue is about the interests of islanders not touched by the allegations who want again to see good government and their rights restored.

Progress being made

The consequence has been that islanders from both of the two main political parties have found themselves caught in arguments not of their making, and trying to find solutions in a UK environment that is on one hand not politically sensitive enough to what is happening within their territory, and on the other, is in danger of becoming overpolitical in a UK domestic context.

Over the last week, it has become clear that some progress is being made towards the eventual creation of a new constitution, the holding of elections, and the restoration of local control.

Central to the process has been the matter of gathering evidence to bring prosecutions against those who were involved in corrupt practices. This process has been slow, and it is unclear how wide the net will be drawn. That is to say, whether it will also include lower-ranking officials, and the extent to which the investors involved will also be prosecuted.

The concern in the islands is that if the prosecutions extend too far, they will not only touch indirectly almost everyone, but will continue, for many years to come, at enormous cost to Government, undermining the urgent need for restoring economic development and confidence.

New constitution

Just as complicated is the matter of a new constitution, which is expected to be made public in March. There is a sense among islanders that this is being drafted from London without the full involvement of either the representatives of the two main political parties or the people. The matter is made more complex by the fact that in the absence of any elected island government, there cannot be a formal constitutional conference. The consequence is that there is a danger that the new constitution, if not introduced in conjunction with some endorsement of local representatives from both of the main political parties, may come to be regarded as imposed and lacking in legitimacy.

A fact not helped by the unfounded but perhaps understandable suspicion among many islanders, that London is in some way acting in a manner that is racist, a view fostered, some believe, by racial perceptions more commonly held in the US.

Also at issue is when elections will be held. Until a new constitution is in place and top-line prosecutions announced, this is unlikely, leaving a huge uncertainty as to the timetable for the restoration of self-government.

There is concern, too, that the islands are not experiencing much needed investment and growth for as long as there is uncertainty about where the islands are headed.

The UK Government has provided, pending the approval of the UK Parliament, a loan guarantee for bank lending to the islands of up to US$260 million, the funding necessary to help turn government finances around to achieve a balanced budget by March 2013. But this is linked to the possibility of new forms of taxes, which are expected to be the subject of intense discussion in the near future following a report setting out options intended to address the island's spiralling debt.