My Fellow Virgin Islanders,
I am Gustav James, currently your Independent Candidate for Governor of these Virgin Islands. It is imperative that I address you today because we are now facing a major financial crisis of our own making.
The U.S. Department of Housing and Urban Development has decided to suspend all funding to the Virgin Islands Housing Finance Authority. The amount impacted is more than $1.3 billion. For perspective, note that the local portion of our Government’s budget for one year is just under $1 billion. Therefore, the money that is suspended exceeds our annual budget.
This suspension is effective immediately, pending investigation. The areas directly impacted are hurricane disaster recovery and disaster mitigation funds. These funds were awarded following Hurricanes Irma and Maria in 2017 and were intended for immediate use.
The suspension notice states that the allocated funds include $68 million for WAPA, of which less than $2 million has been spent to date.
Obviously, we failed to expend the funds in a timely manner. Additionally, it is now alleged by the federal government that a substantial portion of the funds that were expended were handled improperly. The suspension letter repeatedly cites that the former Chief Operating Officer of the Virgin Islands Housing Finance Authority has recently been convicted of fraud and corruption.
Only the people responsible can tell you how and why they failed so dramatically. Right now I am prepared to talk to you about what needs to be done as soon as possible.
1. We must respond to all allegations promptly and factually.
2. We must remind the federal government that Virgin Islanders are still in need of this assistance and that the people in need are not the ones responsible for these failures.
3. We must commit to replacing all management personnel responsible for this failure. They must resign now or face immediate termination.
4. We must present a new management team and structure with best-practice procedures outlined and staffed.
5. We must be 100% transparent.
I am Gustav James — and as your Governor, I give you my solemn commitment: every public dollar will be managed with transparency and accountability, and every Virgin Islander will have a government that truly works for them.
Because our vision is clear — A Paradise for All.
The time for excuses is over. The time for action is now. Together, we will rise.
