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Minister says $274,000 of payments to businesses ‘were processed in error’

Government is failing to protect taxpayer’s money by glossing over the previous mistakes of the Bermuda Small Business Development Corporation, according to Opposition politicians.Community Development Minister Michael Weeks said he was attempting to “bring some clarity” with three amendments to a controversial bill, which was given semi-approval by MPs last month.The revised bill to give more powers to the BSBDC was eventually passed but not until One Bermuda Alliance MPs called it “laughable” and “Mickey Mouse legislation”.Under the Bermuda Small Business Development Corporation Amendment Act, the body will now also be able to help medium sized businesses and will be renamed the Bermuda Economic Development Corporation. A succession of complaints focused on the new validation clause, clause 15, which states that any BSBDC grant is “deemed to have been lawfully issued.”Mr Weeks explained $274,000 had been given to a 35 businesses in North Hamilton Economic Empowerment Zone and “all payments were processed in error”.Shadow Public Works and Housing Minister Mark Pettingill said it was “laughable” as this amendment would be “shot down in a court of law in an instance”.He said: “We cannot as legislators let a clause like number 15 to be passed and become part of law in Bermuda. I can assure you if we start passing laws with classes titled validation we are going to do nothing for our reputation. This is a banana republic clause”.Mr Pettingill said it was like the amendment was “giving out a pass” instead of admitting a mistake had been made. He said mistakes have to be rectified by “paying compensation, paying a fine or going to jail as that’s what the law is for”.Mr Pettingill said: “It’s like we are saying carte blanche that whatever we did, it doesn’t matter because it’s unlawful now.”Opposition leader John Barritt said clause 15 was like Government was trying to make something lawful after an unlawful practice had been discovered. He said he appreciated what Government was trying to do after the last debate, but said: “This doesn’t cut the mustard.”Mr Barritt said: “These things are usually defined in legislation. Things should be done precisely, particularly when giving away taxpayer’s money.“If they make it (clause 15) wide enough, everything will qualify. It seems wide enough to drive a truck through it. It should be far tighter than this so everyone can follow the money”.Mr Barritt said the country had the right to know “all the details,” including what grants had been dished out and to what sums. He said: “It’s incumbent for Government to explain what’s been going on and what’s going on now”.Shadow Education Minister Grant Gibbons accused Government of “trying to shut the stable door after the horse had bolted”.He said: “The problem is that even with the added criteria, this is completely inadequate in protecting the public purse. We have heard that we cannot trust the Bermuda Small Business Development Corporation. They dished out half a million dollars without authority. The amendment is insufficient … this is simply inadequate.”Dr Gibbons questioned whether the BSBDC staff involved in giving out the money had been either terminated or disciplined.Shadow Finance Minister Bob Richards said lending entrepreneur money was legitimate, but giving them money was not. He said: “In principle it’s wrong, it’s ultra vires. now we’re trying to fix it. This is not remotely acceptable, Government need to go back and tidy things up even more. Giving away money is wrong. This is a business, this is not a charity.”Opposition Whip Shawn Crockwell said the “Mickey Mouse legislation” had no place in the House.He said: “This Amendment Bill has been a mess from the beginning. The rectifying amendments are a mess. This is certainly not an example of good governance, the legislation must be clear”.Shadow Business, Tourism and Transport Minister Patricia Gordon-Pamplin said the law was creating an uneven playing field.She said: “We must be fair; fair to everyone not just a select few. I think this needs to be withdrawn and I think Government needs to go back and have a re-think. It’s wrong and there’s no way that we on this side can possible support it”.PLP MP Wayne Furbert said he could see Opposition members were “getting all excited” but he didn’t understand why.He said: “I don’t see why you are jumping up and bursting bubbles and veins as well as everything else.”Mr Furbert said although he was “just a simple country boy from Hamilton Parish,” he understood the amendments needed to be passed so “Government and the Small Business Development Corporation can help other entrepreneurs in the future”.Attorney General Michael Scott said he was surprised to hear all the resistance as he saw it as “real entrepreneurship assistance”.Mr Scott described clause 15 as a “standard, common, clause”, which is frequently used in Bermuda, adding: “I cannot abide the remonstration directed at clause 15.United Bermuda Party MP Charlie Swan put forward a motion to have clause 15 removed from the amendments, but was voted down by the Progressive Labour Party.His party colleague Kim Swan explained the concerns over clause 15 were because we live in a climate where good governance legislation and whistle-blower legislation is required.Premier Paula Cox warned of the dangers of using terms like ‘ultra vires’, adding that Government rose to report progress on the previous occasion because it wanted to be sure there was no ambiguity in the legislation.Mr Weeks responded to the Opposition’s complaints by saying the administrative error in the first place had empowered and revitalised North Hamilton, which had been run down under the UBP Government.The amendments were passed by 14 votes to ten.