St Kitts & Nevis Launches Expansive Probe into CIP Irregularities Pre-Dating Reforms

The government of St Kitts and Nevis has initiated a comprehensive investigation into alleged irregularities within its Citizenship by Investment (CBI) program, focusing on activities that occurred under the previous administration.

The Director of Public Prosecutions’ Office (DPPO) will spearhead the probe.

Prime Minister Dr. Terrance Drew fully supports the investigation, highlighting its alignment with the administration’s continuous efforts to enact “significant CBI reforms in St Kitts and Nevis—including making underselling of citizenships illegal.”

These efforts resulted in a Memorandum of Agreement (MoA) among the five members of the Organisation of Eastern Caribbean States that offer CBI programs, establishing reforms and putting “OECS members on equal footing regarding CBI activities.”

Dr. Drew acknowledged the program’s past shortcomings, noting it “has attracted significant criticism for its lack of transparency and its seeming disregard for rules that were supposed to govern its operation.”

As recent reforms take effect, Dr. Drew emphasizes that the administration now turns its attention to irregularities that “allegedly occurred with the CBI program prior to the reforms we enacted.”

Dr. Drew had previously affirmed his willingness to take the necessary statutory steps under the Citizenship Act to “protect our Federation’s good name and revoke citizenships obtained by fraud.”

The Prime Minister emphasized the CBI program’s importance, describing it as “a vital asset for the citizens of St Kitts and Nevis.” He expressed his commitment to ensuring that the investigation “is administered properly and that anyone who improperly takes advantage of it is held to account.”

The DPPO underscored “the importance of ensuring a fair and independent inquiry,” particularly in light of the “potential political implications of the investigation.”

To maintain objectivity, they plan to appoint a Special Prosecutor from a foreign jurisdiction to lead the inquiry, with the assistance of a team of outside investigators. This team will include at least one local investigator, in whom the DPPO has “full confidence,” to ensure collaboration and local oversight.

The Federal Administration has assured the DPPO of their “full support for an independent and impartial process,” allowing the investigation to proceed without interference.

The Prime Minister, however, had already stressed the importance of due process, stating he would only act “on the basis of facts and evidence, as every citizen of this country has the right to due process.”

The investigation will examine the CBI program’s administration during the previous government’s tenure. Public discourse surrounding the investigation has mentioned former Citizenship by Investment Unit CEO Les Khan and Caribbean Galaxy. The DPPO, however, has not officially named any specific targets of the investigation.

Recent reforms have established a minimum donation threshold of $250,000 or a minimum investment of $400,000 in approved projects, aiming to address longstanding concerns about transparency and financial accountability.

The investigation comes as a response to reports of major underselling of applications during the previous government’s tenure and a RICO lawsuit. These irregularities have raised concerns about the program’s transparency and accountability, prompting the current administration’s actions.