Public information being withheld -- Newspaper threatens legal action against firm's administrators
The Royal Gazette has threatened legal action against the corporate administrators of a security firm after it refused to make public its register of directors and shareholders.
Attorney Kieron Unwin was instructed by Editor Bill Zuill to contact Quorum International Ltd. after it repeatedly withheld the register of Guardwell Security Services.
Since April 26, the newspaper has visited the corporate administrators' office in Church Street twice, and has telephoned three times, but has never got past the receptionist.
On each occasion, the receptionist said she had been instructed to take messages for any query regarding Guardwell. However, not one call or visit has been returned.
She refused to explain why the company was withholding information, or who had made the decision to put a block on the Register of Members and Directors.
By law, Quorum International Ltd., as the registered address for the firm, has a statutory obligation under sections 66 and 92 (A) of the Companies Act 1981 to make this register available to the public.
The information must be available for public inspection during business hours for no less than two hours in each day.
A failure to comply with the law could result in proceedings and a fine against the corporate administrators.
The letter sent from Mr. Unwin to Quorum yesterday read: "Our clients have since April 26 been attempting to inspect the Register of Members and Directors. On each occasion, whether it be by telephone or a visit to your offices, they have been fobbed off.
"Your failure to respond promptly will result in proceedings being taken against you to compel you to comply with the Act.'' The Royal Gazette has been trying to ascertain who is involved with Guardwell Security Services after it was alleged in the electronic media that "nepotism'' played a part in it being awarded the $3 million airport security contract.
Transport Minister Dr. Ewart Brown has categorically denied that allegation and said he was not involved in any business linked to his Ministry.
However, any attempt by the media to find out who is involved in the company has been obstructed.
General manager of Guardwell, Roland Pearman, has refused to talk to the Press, and on the first occasion The Royal Gazette called him, he even refused to give his name.
Yesterday, when the newspaper asked him why the registers were being withheld, he said: "I have no comment to make. You can take me to court, if you want to.'' Yesterday, Mr. Zuill said: "We are pursuing this matter because the public is entitled under law to know who the shareholders and directors of any limited liability company are.
"Because Guardwell is set to receive $3 million of public funds, we think the public has the right to know who the beneficiaries will be.
"In my 20 years as a journalist in Bermuda, I have never encountered a case where a company has refused outright to disclose who its owners are, and I'm astounded by this blatant flouting of the law.
"Unfortunately, their refusal to open the register only gives credence to suspicions that they are hiding something.'' Mr. Pearman was also a founding director and a shareholder of the firm.
And United Bermuda Party official Oliver Bain was also a director of Guardwell, along with former tennis professional Leslie Lynch, but they both left the company about four years ago.
The fourth shareholder was a man named Dennis Moore.
The four men were equal shareholders when it was founded in September, 1995, but three years later it expanded its share capital from 12,000 to 48,000 shares, and at least one new director was appointed. But he cannot be identified from the available information at the Register of Companies.