Britain bails out scandal-hit Turks and Caicos Islands
Friday 02 July 2010
The Government is dipping into its aid budget to provide a £10m bailout to the scandal-hit Turks and Caicos Islands, the Caribbean paradise where it imposed direct rule last year. The International Development Secretary, Andrew Mitchell, said it would extend a short-term loan so that the British governor in the islands would be able to pay the salaries of teachers, police and health workers.
The Independent reported in May that local politicians and legal officers were pleading for economic assistance, arguing that the takeover by the Foreign Office last August meant Britain had a moral responsibility to help.
The Foreign Office suspended the Turks and Caicos Islands' (TCI) constitution after a group of visiting MPs uncovered evidence of widespread corruption in the territory, one of 14 colonial outposts for which the UK still has responsibility.
The previous government refused to offer loans or loan guarantees to the islands, insisting that there should be no UK taxpayer bailout for problems caused by the TCI's own politicians and business leaders.
The cash crisis in the islands was threatening to undermine support for the anti-corruption investigation into members of the ousted government, including the former prime minister, Michael Misick, and their business supporters. The expensive investigation, which has not yet led to prosecutions, was draining funds from other government services.
Full details of the package have yet to be confirmed, but Mr Mitchell said the cost to the UK would be "at or near zero... over the medium-term". The Government is to try to quickly replace the package with commercial loans from private banks.
- 1 Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
- 2 Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
- 3 Nick Kyrgios calls former Olympian Dawn Fraser a 'blatant racist' after she tells Wimbledon star to 'go back where their parents came from'
- 4 World learns of app that shows you who unfriended you on Facebook, app promptly crashes
- 5 Chris Moyles reportedly set to make radio comeback with new breakfast show on XFM
Florida man sentenced to two-and-a-half years for having sex on the beach in front of a child
Autistic teenager beaten up by bullies makes them watch 20-minute video about autism
Man who was struck and killed by lightning in Brecon Beacons 'was carrying a selfie stick'
Greece debt crisis as it happened: EU chiefs at loggerheads hours before Alexis Tsipras’s last ditch deal proposals
Bakery sends 'horrific' version of Frozen-themed birthday cake to unsuspecting customer
More Britons believe that multiculturalism makes the country worse - not better, says poll
Osborne to cap family benefits at £23,000 – announced ahead of his post-election Budget
Nathan Collier: Montana man inspired by same-sex marriage ruling requests right to wed two wives
Sickness and disability benefits could be reduced by £30 a week as part of £12bn welfare cuts
Greece debt crisis: Angela Merkel and Francois Hollande issue Athens with 24-hour ultimatum to avoid crashing out of the euro
Greece crisis: Referendum exposes a gaping hole at the heart of the European Union – its lack of genuine legitimacy
£23000 - £27000 per annum: Recruitment Genius: A Business Analyst is required ...
£16000 - £23000 per annum: Recruitment Genius: To succeed, you will need to ha...
£8 per hour: Recruitment Genius: This is an opportunity to join an award winni...
£7 - £9 per hour: Recruitment Genius: Are you outgoing? Do you want to work in...