Public Accounts Committee chairman Bob Richards has resisted calls from the head of the Civil Service to withdraw a report criticising the Department of Tourism.

Shadow Finance Minister Mr. Richards told Kenneth Dill in a letter that the committee stood by the document and insisted it contained valid fault-finding with civil servants, including Tourism permanent secretary Cherie Whitter.

"There has been no careless interpretation of facts in our report," wrote Mr. Richards. "We recognise that the operations of the Bermuda Government can be a complex and an onerous responsibility; a responsibility that, to a very significant extent, falls on the shoulders of members of the Civil Service.

"It is not the intent of the Public Accounts Committee to have an adversarial relationship with the Civil Service. I operate on the initial assumption that we are all here to promote the betterment of Bermuda and I would hope that you receive this response in that spirit."

Major Dill wrote to Mr. Richards last month on behalf of the Civil Service executive after the PAC — the parliamentary committee which scrutinises government spending — tabled a report in the House of Assembly for the financial years ending March 2007 and March 2008.

The damning report highlighted the Department of Tourism's controversial relationship with US advertising agency GlobalHue, concluding that a contract between the two was rolled over without a tender process and that Ms Whitter was responsible for a failure to follow Government's financial instructions.

Major Dill defended the permanent secretary in his letter, arguing it was Cabinet, not her, which decided to renew the deal and pointing out she was not permanent secretary when the original contract was awarded.

He claimed the PAC report contained "errors and misleading information" and asked for its immediate withdrawal and amendment.

Mr. Richards replied that the committee had duties which included the "oversight of the workings of the Government from a perspective of value for money, efficiency and adherence to proper procedures".

He added: "Therefore our work, by necessity, will involve observations and assessments of the activities of members of the Civil Service, particularly senior members."

He said the initial contract with GlobalHue did not constitute open tendering and it was rolled over without three bids being obtained, as required.

"Financial Instructions are not discretionary or guidelines, they are mandatory procedures for civil servants."

The Opposition MP reiterated that the GlobalHue contract was not vetted by the Attorney General, according to the Auditor General, as it should have been.

"If this were the case, then perhaps the Attorney General would have noticed the clause that solely indemnified GlobalHue from any damages, regardless of their actions," wrote Mr. Richards.

Major Dill said yesterday: "I have nothing further to add and the Civil Service executive now considers the matter closed."