Five Brown projects referred to police
Ewart Brown, the former premier, was today named in five Government contracts where a Commission of Inquiry found evidence of “possible criminal activity”.
Commissioners cited the former Progressive Labour Party politician, the premier from 2006 to 2010, in contracts involving Global Hue, Ambling, TCD emissions testing, revamp of Port Royal Golf Course and Dockyard Heritage Wharf cruise ship pier.
Dr Brown, who was also Minister of Tourism and Transport, was singled out in a further contract, for the building of the Magistrates’ Court and Hamilton Police Station, where the Commission “cannot agree re possible criminal activity”.
The Commissioners stressed that a finding of possible criminal activity should not indicate evidence of guilt and that “the naming of an individual does not imply any finding of guilt”.
But the Commission has referred all five contracts to the Bermuda Police Service “to continue ongoing criminal investigation”.
Former works and engineering minister Derrick Burgess was named in three contracts where there was evidence of possible criminal activity.
And One Bermuda Alliance Senator Vic Ball, a former civil servant who was appointed to the Upper House after he retired, was criticised for failure to disclose “a clear conflict of interest” in the award of a contract for sand and rock where his father was a principal in the firm awarded the contract. The Commissioners found “evidence of possible criminal activity” and referred the case to police for investigation.
But a number of other senior Civil Servants were slammed for failing to follow rules on awarding contracts, although no disciplinary action was recommended.
Dennis Lister, who was succeeded by Mr Burgess in the works and engineering portfolio, was listed in two contracts, but the Commission, headed by Sir Anthony Evans, found no evidence of possible criminal activity.
Ministers listed as “noted but not criticised directly” included Paula Cox, Dr Brown’s successor as premier.
Finance minister Bob Richards, OBA Senator Michael Fahy, as Acting Attorney-General, and Attorney-General Trevor Moniz, were listed alongside Ms Cox for actions during the controversial public-private partnership deal with the Canadian Crown Corporation and Canadian developer Aecon, although the Commission found that there no evidence of possible criminal activity.
The Commission of Inquiry was set up by Michael Dunkley, the Premier, to investigate issues raised in the Auditor-General’s report into the fiscal years 2009 to 2012.
Commissioners said the Global Hue advertising contract should have tendered and that it had been recommended to Cabinet as a “straightforward renewal with no evident concern over the serious criticism” raised in an Auditor-General’s report.
The CoI said a new contract had been agreed after the 2008 financial crash and that the Commission believed “that environment would have been conducive for a competitive tender among advertising agencies, likely enhancing value for money”.
Commissioners added that contracts with consultancy Ambling in 2008 and 2010 had not been tendered.
They said: “It appears that the Premier negotiated the contract directly with Ambling with no input from the Cabinet Secretary or Permanent Secretary.”
And the CoI pointed out that “substantial sums were paid to Ambling but there are no coherent records of any services they performed”.
They added: “This is another contact that should sensibly reside in the Ministry of Works and Engineering but was moved by the premier to Tourism and Transport.”
The 200-page report from the CoI said that Bermuda Emissions Control Ltd was selected to build and run vehicle emission testing stations as “the personal choice” of Dr Brown and that assurances and contracts were given to the firm without a tender process.
And the report said the delegation of the project from Works and Engineering to Transport and Tourism was “unclear and inappropriately documented”.
The same was said of the Port Royal Golf Course redevelopment and that “no documented financial procedures were adopted and followed by Port Royal Golf Course trustees” while there had been an “inappropriate level of financial oversight”.
The Heritage Wharf cruise ship pier, also shifted from Works and Engineering to Dr Brown’s Tourism and Transport Ministry, was also said to be “unclear, unsatisfactory and inappropriately documented”.
The Commissioners added: “Final terms of the construction contract were not submitted for approval to Cabinet by the premier, although Cabinet did apparently approve the selection of the vendor. The contract did not allow the right to audit nor did it require a performance bond.”
And they said: “Selecting a contract without a bid price did not allow the right to audit nor did it require a performance bond.”
Mr Burgess was also named in the Heritage Wharf project. The Commissioners said: “Delegation of this project from Works and Engineering to Transport and Tourism was unclear, unsatisfactory and inappropriately documented.”
In the Magistrates’ Court and police station development, Commissioners noted that Winters Burgess, said to be called “uncle” by Derrick Burgess, was a principal.
The CoI report said any relationship to the principals, who also included Dr Brown’s half-brother Vincent Hollinsid, had not been disclosed and that the “Commission does not accept that Burgess did not know of their involvement”.
The report added: “The level of compensation for providing collateral by Messrs (Winters) Burgess and Hollinsid appears on its face to be excessive.”
Mr Burgess was also named in the Port Royal Golf Course redevelopment project, where “delegation of responsibility for this major capital expenditure was unclear, unsatisfactory and inappropriately documented” while golf course trustees had not adopted documented financial procedures and there had been “an inappropriate level of financial oversight”.
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