In a recent development out of the USVI, a legal opinion sought by lawmakers regarding the Executive Branch’s decision to transfer millions of dollars from the Virgin Islands (US) General Fund, without the requisite permissions, found that the act carries a possible jail time penalty and a $10,000 fine.
Members of the 35th Legislature’s Committee on Budget, Appropriations, and Finance were outraged when they discovered that Governor Albert Bryan Jr.’s finance team withdrew a substantial sum, $45 million, from the General Fund without obtaining legislative approval.
This money was utilised to make a payment in a settlement negotiated by the V.I. Water and Power Authority with energy trading firm Vitol.
The legal opinion, issued by the Senate’s Legal Office, addressed two crucial questions: the extent of the Governor’s authority to reallocate government funds without legislative approval and the potential penalties associated with the unauthorised use of public funds.
Regarding the Governor’s authority, Act 8701, which was considered during a special session of the Legislature, was found to lack provisions granting the Governor, through the Commissioner of Finance, the power to reprogram or transfer funds from the General Fund without the Legislature’s consent. The original bill proposed by the Governor initially included such authority, but subsequent amendments to Act 8701 eliminated this ability.
In terms of penalties, the legal opinion highlighted that the Virgin Islands Code explicitly prohibits drawing directly from the public purse or creating obligations upon it without lawful authorization. Violation of this provision carries potential administrative discipline. Furthermore, willful violations could lead to fines of up to $10,000 and imprisonment for up to five years, as outlined in Section 3109 of the Code.
However, it is important to note that the discretion to impose these penalties rests with the Governor and the Attorney General. The Legislature does not possess the authority to directly impose administrative or criminal penalties. Nevertheless, the Legislature can demand relevant information and reports on any actions taken by the executive branch.
As the Governor’s team recently closed on a $100 million line of credit and completed or is about to complete the $45 million repayment to the general fund, all eyes now turn to the potential censure the Governor may face for venturing beyond the boundaries set by the Virgin Islands Code.