In her biweekly column, “State of the Territory,” former Sen. Janelle K. Sarauw delves deeper into issues of concern for V.I. residents.
The courts have already ruled that the West Indian Company Limited (WICO) is a public entity. Its sole shareholder is the Public Finance Authority, which itself is an instrumentality of the Government of the Virgin Islands. There is no gray area here. WICO belongs to the people, and with that comes an obligation of transparency, accountability, and adherence to the law.
Yet, in recent weeks, WICO has tried to blur this reality. The Governor has called it private, board members have echoed that view, and only recently did the chair of the board concede that it is public. Such contradictions are not only confusing but deliberate distractions from the real issue, which is WICO’s ongoing refusal to operate in the open.
One of the most glaring problems is WICO’s failure to consistently pay its required Payment in Lieu of Taxes (PILOT). This 700,000 dollar obligation was established in place of corporate income tax. Yet, apart from a single payment in 2019 under then CEO Clifford Graham, WICO has ignored this requirement for years. If the company believes the amount is too steep due to declining revenues or shortfalls in its operations, then it should formally request an adjustment. What it cannot do is unilaterally decide to flout the law and pay nothing at all.
Even more troubling is WICO’s budgeting practices. During recent hearings before the Legislature, its interim CEO was unable to provide even the most basic financial details, such as the total amount of passenger fees collected annually. Lawmakers were left in the dark, and rightly so, they demanded WICO return with real answers. Particularly alarming is the budget line called “Other Services and Charges.” This category has become a catch-all that conceals discretionary spending, questionable contracts, and generous stipends to board members. These stipends, which exceed 1,000 dollars per member per meeting and 2,000 dollars for the chair, are paid at a time when Virgin Islanders are struggling with high costs of living, failing infrastructure, and underfunded hospitals and schools.
The Senate must act decisively. WICO should be required to provide a line-by-line accounting of every expense in “Other Services and Charges.” The Legislature should also examine the stipend structure, which is out of touch with the fiscal reality of our territory and offensive to taxpayers. WICO cannot continue to live in the shadows, benefitting from public ownership while behaving like a private club.
For too long, WICO has been allowed to drift, hiding behind contradictions, ignoring its legal obligations, and prioritizing insiders over the community it exists to serve. But the financial moment we face leaves no room for business as usual. Families cannot meet their basic needs. The government is scrambling to balance its books. Every entity tied to public funds must be accountable, and WICO is no exception.
It is time for WICO to finally step into the light, to pay what it owes, to end its culture of discretionary excess, and to operate with the transparency the people deserve. The Legislature must not relent until this is achieved. The shadows where WICO has long operated can no longer be tolerated.
Editor’s Note: Opinion articles do not represent the views of the Virgin Islands Source newsroom and are the sole expressed opinion of the writer. Submissions can be made to visource@gmail.com.
