Lister will review Bermuda Emissions Control contract
Transport Minister Terry Lister will look into a private contract the director of TCD claimed Government could do for a million dollars less.As previously reported TCD director Randy Rochester estimated Government could run the emissions testing facility for $1 million less than it pays Bermuda Emissions Control Limited [BECL].On Friday at the Budget press conference Mr Lister announced his ministry had trimmed $8 million in expenses for the upcoming fiscal year. He outlined some of the ways they had done this, adding: “We have looked throughout the ministry and talking with our outside contractors and made significant reductions in two cases.“Contracts that had time to run we sat down with the partners and looked at how they, like us, can deliver more for less. We’re expecting an increase in quality of service but pay less for it.”When asked if he was referring to BECL he said he was not, but added: “I was surprised by what Mr Rochester said, whether it is correct or not, we will be looking at the contract.”Two weeks ago Mr Rochester spoke with the Parliamentary Accounts Committee, which is investigating a special report by Auditor General Heather Jacobs Matthews into the project.The report states the Ministry of Transport took over control of the construction of the TCD emissions testing building, and two satellite sites, and there was ministerial interference from the outset.The cost of the development eventually tripled from $5.3 million to $15.2 million. The report states this happened after control was “relinquished” to BECL and Corriea Construction Company Limited; a common shareholder linked the companies. Ms Matthews found there was inadequate documentation to explain the increases.In addition to building the facility BECL was given a contract to operate the emissions testing until 2014, the company is paid approximately $2.4 million a year.BECL is part owned by former Transport Minister Ewart Brown’s cousin Donal Smith and good friend Dennis Correia a circumstance which led the United Bermuda Party to suggest cronyism was at play.When the PAC asked Mr Rochester if TCD could run the facility cheaper than BECL, he said: “Sure. We could run it for $1.4 million less.”He added Government has been paying for the utility bills, maintenance fees and repairs for the equipment at the TCD emissions testing centre for the past two years despite the fact that the contract stipulates BECL should be paying for these costs.Mr Rochester explained one of the reasons Government was paying the electricity bill was that the two entities were on the same electricity meter. He added that TCD would rectify the situation as soon as possible.He also estimated BECL was receiving approximately $400,000 $600,000 in profits a year from the contract.Committee Chairman Bob Richards said this meant not only was Government paying more for the service than it should have, it was actually paying for it twice in some instances.