Prime Minister of the British Virgin Islands arrested on suspicion of drug smuggling and money laundering in the United States. The British Virgin Islands is one of the world’s major offshores, traditionally featured in leaked financial documents about secret deals of politicians, officials and oligarchs.

Andrew Fahey, the elected head of government of the British Overseas Territory, was detained in Miami by the US Drug Enforcement Agency.

Agents posing as cocaine dealers from a Mexican drug cartel offered Fahy $700,000 in exchange for permission to use ports in the British Virgin Islands to smuggle drugs.

Together with Fahy, the director of the Port Authority of the Virgin Islands, Oleanwina Maynard, was also arrested along with her son Kadim.

Drug Enforcement Administration agents posed as cocaine dealers from the Mexican Sinaloa cartel, which is believed to be the largest supplier of drugs to the US market. The cartel was previously run by drug lord Joaquin “El Chapo” Guzmán , now serving time in a US prison.

US authorities accuse those arrested of plotting to bring more than 5 kg of cocaine into the US and money laundering.

The DEA launched an investigation in October based on information provided by the whistleblower.

In meetings with Fahy, the informant claimed that the cartel was going to smuggle thousands of kilograms of Colombian cocaine worth tens of millions of dollars through the British Virgin Islands. The drugs were supposed to be sent to Puerto Rico, and then to Miami and New York.

Fahy and the Agency informant also discussed setting up prearranged arrests and seizing specially prepared low-quality drugs to give the impression that the British Virgin Islands was actively fighting the drug trade.

During one of the meetings, Fahy told a source that the UK government had been trying to remove him from office for years, the documents say.

The British Virgin Islands is a British Overseas Territory of over 40 islands located in the Caribbean Sea east of Puerto Rico.

Offshore companies in the Virgin Islands have been mentioned in all the latest leaks of financial documents that shed light on secret financial schemes, including those of Russian officials, celebrities and businessmen. Most of these schemes are legitimate, but anti-corruption activists believe that offshore secrecy is the main reason for the massive flow of corrupt and criminal proceeds into the Western financial system.

In January 2021, the UK launched its own investigation into corruption in the islands.

By form of government, the British Virgin Islands is a parliamentary democracy, where the prime minister is elected by vote, and the governor is appointed by the British government.

In a statement, British Virgin Islands Governor John Rankin confirmed that the arrest was unrelated to the UK’s ongoing investigation.

He declined to comment further, but added: “In order to avoid unnecessary speculation, I intend to urgently publish the investigation report so that the people of the British Virgin Islands can familiarize themselves with its contents and recommendations.”

According to Rankin, Deputy Prime Minister of the British Virgin Islands Natalio Whitley will temporarily act as head of government.

Andrew Fahey’s office and officials from the British Virgin Islands Ports Authority have not yet responded to requests for comment.

Foreign Secretary Liz Truss said she was “appalled” by the allegations.

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