Business

Senate Committee Approves $1 Million For GVI/HOVENSA Court Battle

The Senate Committee on Finance, chaired by Sen. Clifford Graham, Tuesday approved $1 million for the Government of the Virgin Islands to battle HOVENSA in court for the $40 million the refinery owes the government from a previous court settlement. Furthermore, the money is expected to be used for litigation pertaining to the government's intent to foreclose on the refinery and other environmental issues at the site. Gov. Mapp has proposed that funds to fight HOVENSA be taken from the government's Insurance Guaranty Fund, which exists to cover Virgin Islanders against insurance companies that fail. The Fund pays the remaining length of eligible residents' insurance terms if an insurance company becomes insolvent. The Fund, which originally had a threshold of $50 million before 2011, is supplied by monies collected through a five percent gross receipt tax paid on all insurance policies in the territory -- with $15 - $20 million being collected each year. In 2011, the thre...