TAXI CHAOS: 13 missing medallions, unlicensed drivers, $286K lost

The V.I. Taxicab Commission faced tough questioning from territorial lawmakers Monday over serious administrative problems documented in a March audit by the Inspector General, including 13 missing medallions worth roughly $286,000 and taxi licenses handed to people who failed or never took required exams.

Executive Director Melissa Smith testified before the Committee on Government Operations, Veterans Affairs and Consumer Protection. She acknowledged the audit, which examined the period from 2018 through 2022, before she took the helm, revealed substantial work ahead for her administration, though she stressed the issues originated under previous leadership.

The Inspector General's review found that seven people received licenses despite failing a written exam, while three others had no documented evidence of ever taking one. More troubling: 12 of the 13 missing St. Thomas medallions had already been flagged as missing in a 2005 audit, showing the agency has cycled through the same problems for over two decades.

Other findings painted a picture of systemic breakdown. Required inspections of vehicles for hire had not happened since at least 2008, leaving the Commission at least $170,310 in uncollected fees. Citation fines plummeted 94 percent during the audit window. The agency also struggled with money management: $258,342 in revenue went unrecorded in the government's financial system, and auditors found an $18,587 gap between what was deposited and what the books showed.

Physical records were in poor shape. Auditors discovered that parts of the St. Thomas-St. John medallion registry were mold-damaged, torn or missing, with pages mixed in with unrelated files. Of 70 medallions examined, 44 contained incomplete, missing or conflicting information.

Ms. Smith told senators the Commission is undergoing "significant transition and rebuilding." She said new safeguards now protect medallion sales and tighter checks verify taxi licenses. But she told lawmakers the agency has not set a deadline for tracking down the missing medallions, citing other priorities.

Committee Chairman Avery Lewis pushed back, telling Ms. Smith: "You may not have been there in the past, but you're the new person to the helm. So this is definitely something you would inherit."

Staffing and enforcement also dominated the discussion. Ms. Smith said field operations have largely stalled while awaiting an Attorney General ruling on whether inspectors can use marked vehicles. The Commission is trying to hire another inspector for St. Croix but acknowledged one extra officer would barely scratch the surface of violations across the territory. She requested funding for six officers but has not received it.

The Legislature approved a $554,637 appropriation for the Commission in fiscal year 2027. Senator Kenneth Gittens called for shutting the agency down entirely, saying it has "demonstrated nothing but a long-standing pattern of total ineffectiveness," and noted that a colleague is drafting legislation to move the Commission's duties elsewhere.