Britain has imposed direct rule on the Turks and Caicos Islands after an inquiry commissioned by the Foreign Office found evidence of government corruption and incompetence.

TCI's administration has been suspended for up to two years, with power transferred to British-appointed Governor Gordon Wetherell — a friend of Bermuda Governor Sir Richard Gozney.

Sir Richard told The Royal Gazette yesterday: "I think that the announcement speaks for itself: my colleague and close friend, Governor Gordon Wetherell, is keen to rebuild stability and confidence in Turks and Caicos as soon as possible."

The British Government has been threatening action for several months amid allegations that politicians had been selling Crown land for personal gain.

The report examined the actions of the Turks' Cabinet and Assembly and found "information in abundance pointing to a high probability of systematic corruption or serious dishonesty".

It also concluded there were "clear signs of political amorality and immaturity and of a general administrative incompetence".

Former Premier Michael Misick is alleged to have built up a multimillion dollar fortune since coming to power in 2003; Mr. Misick has denied the allegations and said he had attracted valuable foreign investment to the islands.

Foreign Office Minister Chris Bryant said: "This is a serious constitutional step which the UK Government has not taken lightly, but these measures are essential in order to restore good governance and sound financial management.

"It remains our intentions that elections should be held by July 2011, if not sooner."

Mr. Wetherell issued a statement confirming Ministerial government and the House of Assembly had been suspended; Cabinet no longer exists; the House of Assembly is dissolved with all members' seats vacated; and the constitutional right to trial by jury is also suspended.

He said he would appoint an advisory council and consultative forum made up of locals.

"Our goal is to make a clean break from the mistakes of the past by establishing a durable path towards good governance, sound financial management and sustainable development. Our guiding principles will be those of transparency, accountability and responsibility," stated Mr. Wetherell.