PLM would tap annual surpluses to build sovereign wealth fund

People's Leadership Movement founder Mark Vanterpool has pledged to create a Sovereign Wealth Fund if his party wins the next election, framing the move as a way for the BVI to accumulate savings while borrowing against those reserves to pay for development work.

Speaking on the Talking Points radio programme, Vanterpool noted that the government receives roughly $50 million each year in surplus recurrent revenue, money that typically goes toward capital projects. His plan would shelter that income in a protected fund instead, allowing it to grow through investment over time.

Vanterpool illustrated the concept with a concrete example: "Put your $50M in a sovereign fund, in 10 years time you have 500 million. During that period of time, every year, you can be borrowing 50M against it or 100M against it to do projects." He drew a parallel to how successful business owners build reserves and then leverage those reserves to obtain financing for expansion.

The approach mirrors how the Social Security fund operates, Vanterpool said, and would let government continue building roads and infrastructure while simultaneously accumulating wealth for the future.

Host Elvin Grant pressed Vanterpool on whether the territory should first tackle persistent financial problems, including downgraded ratings in the financial services sector and the absence of audited accounts from various government agencies. Vanterpool rejected that argument. "Sometimes you wait to have all of the things in place and you never start," he responded, adding that he has championed the idea since 2012.

Vanterpool's proposal echoes calls from political commentator Claude Skelton Cline, who has similarly advocated for establishing such a fund and has proposed inviting wealthy individuals with ties to the BVI to contribute to it.

The Cayman Islands has recently put in place a sovereign wealth fund framework, providing a working model within the region for safeguarding public resources through investment in essential infrastructure.