The Corporation of Hamilton has agreed to pay a US organisation $100,000 to send delegates to a conference in the city — even though representatives for the group say it is unaware of any conference taking place.

Mayor Graeme Outerbridge said the municipality agreed to hand over the sum to the US National Conference of Black Mayors at its last budget meeting.

The funding was approved even though the Atlanta-based organisation, which represents about 650 mayors across the US, is currently embroiled in an internal power struggle following the election of a new president.

The conference, scheduled to take place in October, is believed to be the brainchild of Deputy Mayor Donal Smith, who was introduced to NCBM Executive Director Vanessa Williams at an international conference of mayors in Colombia last September.

Miss Williams has since visited Bermuda at Corporation expense to assess the Island’s suitability as a conference venue.

But last month The Royal Gazette revealed that Ms Williams was fired from the NCBM last September, just days before she met up with Deputy Mayor Smith in Colombia.

Ms Williams was dumped by the NCBM amid allegations she spent hundreds of thousands of NCBM dollars on personal expenses.

She is also accused of failing to cooperate with an internal audit called by NCBM President Kevin Johnson shortly after his election last May.

Mayor Johnson filed a writ demanding that Ms Williams hand over NCBM financial records and now faces a counter claim by Ms Williams questioning the validity of his election.

Those matters are now before a US court and a ruling is expected later this month.

Ms Williams also maintains she is still Executive Director of the organisation, although lawyers for Mr Johnson claim she has acted independently in her negotiations with City Hall and does not have any authority to represent the NCBM leadership, which is unaware of any conference being held on the Island.

Informed of those developments last month, Mayor Outerbridge said he was surprised by the news, and that City Hall would carry out due diligence to establish which faction was now running NCBM.

Despite those assurances, last night the mayor confirmed that the Corporation board had now voted to give NCBM $100,000 to cover its costs.

He pointed out that the money had been set aside and would not be handed over until City Hall was satisfied that the NCBM was “in good standing”.

He added that no payment could be made without approval from Home Affairs Minister Michael Fahy.

Government has taken over control of the municipality’s finances following an Ombudsman probe which found widespread mismanagement at City Hall.

Asked why the Corporation was effectively paying the NCBM to attend the conference and use Corporation facilities, Mr Outerbridge replied: “It’s a bit like the Olympics — you have to spend money to host these things.

“It was earmarked in the last budget — I think $100,000 was the amount the NCBM was asking for, but it’s not an exact amount — it came out of the discussions in South America.

“I think it was for organisational expenses and printed matter but nothing has been signed off.

“We are doing our due diligence, and we are not going to sign up with an organisation that is not in good standing.

“We are working to make sure that things are done properly and that we’re dealing with a creditable group.”

Mr Outerbridge added that, while the NCBM had around 650 members, it was hoped that as many as 1,200 delegates will attend the conference, including a party from China.

Defending the cost of the conference, he said: “With Bermuda as a venue there’s a lot of interest. If we can bring in 1,200 people, there’s going to be uplift for Hamilton and Bermuda.”

But last night councillor Larry Scott condemned the proposed payment, claiming that the NCBM was heavily in debt.

Mr Scott, who did not attend the budget meeting, also said he believed $2,500 of the fund was to pay for the Corporation to become a member of the NCBM. The remaining $97,500 will be used to cover “incidentals” and will come out of the municipality’s Entertainment Budget, he said.

“The NCBM is insolvent - is it any wounder they need us to fork out $100,000 - they can’t afford to come to Bermuda,” Mr Scott said.

“The NCBM is as divided as the Corporation of Hamilton at the moment and the Deputy Mayor is proceeding on the basis of one side’s word - Vanessa Williams - and not the actual elected body. That is why I want no association with that body at the moment - nothing is decided until the judgment is given.

“I don’t think it will come off. If it does, we are going to have to foot a whopping bill. They will come here, run up credit, get on a plane and leave us with the bill. That is what they did in the US and that is part of the reason they are insolvent. What a mess.”