Walwyn rejects gov’t internal audit, writes governor to probe $5M deposit

Opposition Leader Myron Walwyn has formally written to Governor Daniel Pruce to, among other things, ascertain whether the government did its due diligence in assessing potential risks to public funds before depositing five million dollars into the failing Bank of Asia.

The deposit was reportedly made sometime between December 2024 and April 2025 — after the bank’s owners had filed for bankruptcy in January 2025 and their assets were globally frozen due to a legal dispute with a former business partner.

In a two-page letter dated June 23, 2025, Walwyn called for “an immediate and thorough investigation” into the matter, citing concerns over the timing of the transaction and the financial state of the institution at the time the funds were deposited.

The Opposition Leader raised questions about the bank’s regulatory compliance, noting allegations that it had failed to submit audited financial statements for several years. This, he argued, raises serious doubts about whether appropriate checks were carried out before the deposit was made.

“Given the gravity of this matter and the potential implications for public trust and the integrity of financial management within our jurisdiction, we believe it is imperative to ascertain” what assessments were made by the government prior to the transaction, Walwyn wrote.

He urged the Governor to investigate several specific issues, including what due diligence was undertaken before the deposit, the nature of the legal proceedings against the bank’s owners, whether any warnings were issued to government officials about the risks involved, what steps were taken to protect the $5 million, and the rationale for opening a new account amid the bank’s ongoing legal and financial troubles.

Premier shouldn’t be involved in any internal audit

While Premier Wheatley has said that the Internal Audit Department has been tasked with investigating the matter, Walwyn argued that any probe must be conducted independently and not under the direction of the Premier, who also serves as Minister of Finance.

“The Premier, being the Minister of Finance, should not be involved in any audit or investigation into this matter,” he stated. “For the sake of good governance, accountability, and transparency, any investigation should be completely independent.”

Walwyn said the public deserves a “fair and unbiased explanation” of how public funds ended up in a bank already in financial distress and possibly beyond recovery. He has asked the Governor to ensure the findings of any investigation are made public.

The government has maintained that an internal audit is underway and has rejected claims of wrongdoing. Premier Wheatley has insisted that many of the allegations circulating in the media and political sphere are inaccurate or misleading.