Smith rejects ‘misleading’ claims about Bank of Asia involvement

Smith

Junior Minister for Financial Services, Labour & Trade, Hon. Lorna Smith, OBE, has categorically rubbished what she described as “speculative and misleading reporting” concerning alleged gross misconduct linked to her former role at Bank of Asia (BVI) Limited, which is facing imminent closure.

The reporting referred to by Smith stems from a June 4 article by Guava Berry Media, owned by Cindy Rosan, titled “Possible Cover Up in Bank of Asia Demise, Bank Mishandled? Can It Still Be Saved?” The piece made several damning allegations, including claims that the Junior Minister leveraged her political office to influence the bank’s operations for personal financial gain.

In a detailed public statement issued Friday evening, June 6, Smith — who previously served as a director at the bank — pushed back strongly against the assertions, branding them false, exaggerated, and defamatory.

“I served as a non-executive director of the Bank of Asia (BVI) Limited beginning in or around 2019, and was appointed Deputy Chairman of the Board circa 2020. I was never involved in the day-to-day management or operations of the bank. My role was governance-based, and I was one of several directors appointed to oversee strategic direction and compliance,” Smith clarified.

She also dismissed claims that she earned a monthly salary of $15,000 during her tenure, stating, “Contrary to published claims, I did not receive a monthly salary of $15,000. All Directors were approved to receive quarterly compensation. I resigned from the Board in April 2023, before assuming public office.”

Addressing allegations of conflict of interest and abuse of public office, Smith maintained that she has always respected the statutory independence of regulatory agencies such as the Financial Services Commission (FSC) and the Virgin Islands Deposit Insurance Corporation (VIDIC). She emphasized that VIDIC falls under the portfolio of the Premier and Minister of Finance—not her ministry.

“I have never issued instructions to either regulator concerning the Bank of Asia or any other regulated entity,” she said. “Assertions that I interfered with regulatory decisions, delayed action, or influenced personnel are entirely false.”

Minimal interaction with VIDIC

Smith further noted that her interaction with VIDIC’s current CEO, Lisa Violet, has been minimal — limited to one courtesy call in late 2024 and a separate virtual group meeting.

On perhaps the most serious claim — that she directed Government funds to be deposited into Bank of Asia while acting as Premier — Smith was unequivocal: “The allegation that I directed the deposit of Government funds into the Bank of Asia is patently false. I had no such authority, gave no such instruction, and I categorically deny the claim.”

She said she welcomes any independent investigation that may help clarify the facts and reiterated that any suggestion of personal enrichment or misuse of public office is “defamatory and wholly unsubstantiated.”

Smith concluded her statement with a call for responsible journalism and a warning to those publishing unverified or false claims.

“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 said. “Should the authors of these reports persist in publishing defamatory statements without correction, I reserve all legal rights and remedies available to me.”