Fraud probe leads to Isle of Man chief's resignation

Friday, 3 December 2004 12:00 AM

The Chief Minister of the Isle of Man has resigned after his arrest on Thursday in connection with fraud charges.

The allegations relate to the operation of his family business and accusations that grants from the tourist board were diverted into personal property improvements.

Richard Corkill though believes he will be fully cleared by the police investigation and asserts that the allegations have no basis or substance.

The Isle of Man, which sits off the north west coast of UK in the Irish Sea, is a Crown territory but is not part of the UK. As such, it has control of its own internal affairs, including fiscal and domestic policy. It is a low tax island and consequently is a significant off-shore banking centre.

Announcing his resignation last night, Mr Corkill said he was "stepping down to safeguard the integrity of the office of Chief Minister of the Isle of Man."

Emphasising that the arrest was "pre-arranged" and that he was released without charge, Mr Corkill went on to say: "However, it is clear that this development increases the pressure of public suspicion and speculation to a point where I have to step aside to protect the good name and credibility of the Isle of Man Government.

"My decision does not mean that allegations against myself and my wife have any more substance than they had before. Indeed, we remain completely confident that due process will confirm that allegations against us are false, and that we are innocent of any wrongdoing."

Mr Corkill had been in the job since 2001. His role will be taken over on a temporary basis by Treasury Minister Allan Bell, until the island's parliament - the Tynwald - elects a successor.

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