Direct rule will not be imposed on the British Virgin Islands (BVI) after the UK foreign secretary Liz Truss decided to give the territory's emergency national government of unity two years to implement reforms to tackle endemic corruption.

In a joint press statement on 8 June, Governor John J. Rankin, CMG and Premier and Minister of Finance Natalio D. Wheatley said the the ‘Framework for the Implementation of the Recommendations of the Commission of Inquiry Report and Other Reforms' proposed by the Government of National Unity has been accepted by the Government of the United Kingdom.

In May, the BVI's premier, Andrew Fahie, faced charges of money laundering and conspiring to import cocaine after he was arrested in a sting operation by US agents posing as Mexican drug traffickers in Miami. He denies the charges.

An earlier inquiry had been launched into claims of corruption in the territory in recent years, with its findings recommending temporary direct rule be imposed on the BVI.

But in a written statement on Wednesday, Liz Truss said the recently sworn-in government of national unity in the BVI should have the opportunity to demonstrate their commitment to a programme of reform without direct rule being imposed.

Truss said since the Hickinbottom report was delivered "there have been a number of significant developments" including the removal of Fahie as premier through a vote of no confidence and the creation of the new GNU.

She further said: "The people of the BVI want and deserve change and have made their desire for better governance clear. Elected officials know this. We want to support the new government in making this change and allow them the opportunity to reform."

She added: "We have a duty to protect the people of BVI from corruption, criminality and poor governance. We will stand by them."

Governor Rankin said in the separate Wednesday joint statement with Wheatley: "I am pleased the Government of National Unity has made its firm commitment to carry out far-reaching reforms, including going beyond the COI Report, to fix the failings of governance.  I welcome the detailed plan the Government has set out to implement the COI recommendations."  

"The Premier and Government of National Unity have shown the will and commitment to improve governance in the BVI and therefore it is right that elected officials here should have the opportunity to implement the COI recommendations."

Rankin described the final proposal to the UK Government as "clearly outlining with clear timelines, how [the Government of National Unity] will deliver the COI recommendations but without the need for a temporary partial suspension of the Constitution."

But Rankin also warned that while administration would have two years to put the reforms in place, if there were any delays or if he was not satisfied with progress, direct rule would be imposed.

Wheatley said his government welcomed the UK Ministers' agreement with its proposal for the implementation of the COI Report recommendations and other reforms."

The Premier further said that the Government will work closely with Governor Rankin, and "in the spirit of partnership with the United Kingdom, to deliver for the people of the Virgin Islands."

Wheatley added, "Our success will be the result of doing the hard work of reforming our institutions and systems of Government and engendering a new culture in the handling of the peoples' business."

The Commission of Inquiry Report contains 49 recommendations to improve good governance, accountability, transparency and the rule of law in the Virgin Islands.