A longstanding bone of contention over the airport redevelopment project resurfaced as Curtis Stovell, the Accountant-General, addressed the matter before the Commission of Inquiry.

Mr Stovell, who has appeared before the Public Account Committee on several occasions to explain his role in the project, explained his issuing of waivers for financial instructions, saying he had been approached by the Ministry of Finance in 2014 in relation to the transaction and how it would be able to comply with policy.

Asked if his waiver had been granted just for the Bermuda Government’s agreement with Canadian Commercial Corporation, and not for any further contracts, Mr Stovell said it was “precisely what I was saying”.

Narinder Hargun, counsel for the commission, questioned whether the arrangement would be settled on the basis of avoiding increasing government debt, to which he replied: “I wouldn’t go as far as that — I think it’s highly desirable.” Once the “go/no-go” decision had been settled over the new terminal for L.F. Wade International Airport, his understanding had been that “further agreements flow from that”.

Mr Stovell said he could not have given consent for the Canadian contractor Aecon to be taken on as the company of choice, because he had not known at the time that such a contract existed. A May 2015 memo to Anthony Manders, the Financial Secretary, covered his expectation for further information to be supplied — as well as his belief that the selection of Aecon would require his approval.

A March 2016 memo to Mr Manders had the Accountant-General explaining that initially he had believed that CCC had introduced Aecon to the project and not the other way around — and Mr Stovell agreed with Mr Hargun’s query that he could thus understand how the Minister of Finance, “rightly or wrongly”, had taken the waiver to apply to “any and all contracts”, including the selection of Aecon for the project.

That point has been fiercely disputed by finance minister Bob Richards and shadow minister David Burt ever since it emerged before the PAC.

The subject then changed to the Port Royal Golf Course, whose board of trustees had the ability to regulate its own financial proceedings.

The inquiry questioned Mr Stovell, who was financial controller for the Department of Tourism at the time of the Port Royal redevelopment, about the financial instructions process. The Auditor-General’s report issued in October 2014 criticised the $24.5 million project which saw its budget increase by $10m.

Mr Stovell said that steps had been taken since his appointment as Accountant-General to improve compliance.

He pointed out that while the situation had improved there were factors to consider, including the fact that there had been far fewer capital projects during that time and the magnitude of any capital projects had decreased.

“That would be the primary factors so there is less chance for these Heritage Wharf and Port Royal Golf Course type incidents that have been identified.”

However, he added that in his experience he had seen an improvement in “actual compliance”.

“What I have seen since I have been there has been an increased approach to the AG department in terms of insuring that permissions are being gained, increased and heightened awareness in terms of Cabinet approval and increased cases of things being sent back from Cabinet. I can’t speak to the years before but what I can say from my experience since I have been there is that is has improved greatly.”

Mr Stovell had some difficulty answering a question from commissioner Fiona Luck who questioned him about breaches in self-reporting. She asked who decides on sanctions imposed on those who violate the procedures once he and the financial secretary had been informed to which he answered: “Good question — the only way I can answer that is to say I will look to the department and ministry to effect some kind of satisfactory sanction.”

Earlier yesterday the commission heard from Lucia Peniston, the tax commissioner, on tax arrears that had yet to be paid to the government.

Compliance by businesses has improved, she said, but co-operation could be enhanced — such as by having the issuing of a licence contingent on agreeing to a payment plan. Ms Peniston said there was never any pressure applied on her department to “go easy” on any particular taxpayer. The latest figure for the Government’s doubtful debts stands at $81.6 million, the commission heard — a substantial increase, which Ms Peniston ascribed to a new calculation method including land taxes previously been left off the books.

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