Outgoing Gov. Roy L. Schneider "willfully worsened" the territory's already-disastrous financial situation through "last-minute midnight raids on the treasury," Gov. Charles W. Turnbull charged Monday night in his first State of the Territory address.
In a no-holds-barred attack on Schneider, Turnbull said that from Nov. 3, 1998, to Jan. 4, 1999, Schneider and his staff bypassed normal procedures to give departing officials lump-sum payments ranging from $17,000 to $24,000.
Turnbull said that in the last days of the former administration, certain personnel who resigned or retired got substantial payments in a manner that circumvented payment of Social Security and income taxes.
He called these actions "without precedent" and said they were "clearly disapproved in an advisory memorandum by his own attorney general."
Turnbull said he has asked the attorney general — Julio A. Brady, a holdover from the Schneider administration now serving in an acting capacity — and the acting director of the Internal Revenue Bureau to look into the matter "with a view towards taking all necessary actions to protect and safeguard and public treasury from such abuse." He did not elaborate.
Turnbull also said that in an effort "to safeguard favored individuals" at the end of his administration, Schneider placed certain exempt employees in classified positions in direct conflict with Virgin Island law.
He said he has assigned the acting director of personnel to review this and vowed to reverse any personnel actions made since the election that violated the law.
