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Extra $13m 'not the full story'

SHADOW Works & Engineering Minister Pat Gordon-Pamplin yesterday said the $13 million extra paid to Berkeley contractors "was not the full story".

She suggested an investigation might be needed into whether there had been "fraud and corruption".

And she defended past United Bermuda Party (UBP) administrations of having failed similarly on major construction projects.

"This is also only part of the story," said Mrs. Gordon-Pamplin in response to the Government statement on Berkeley yesterday.

"The Minister very carefully omitted in his press release of February 19 that the $13 million to which he referred was not the whole story.

"Government is today boasting that their incompetence has only cost the taxpayer an extra $13 million, when it could have been $20 million extra.

"So, the Bermudian public should perhaps think themselves lucky. Also, that it's not just a year late (given that the original expected date of completion was September 2003), but a year and 26 days, but the 26 days are free!

"Notwithstanding protestations to the contrary, now Premier Alex Scott, former Works & Engineering Minister, the PLP Government and Pro-Active collectively have failed the Bermudian people.

"Pro-Active must have known, or ought to have known that they were not capable of completion of this project within the time specified when the contract was bid. Government owes them an apology for misleading them into believing that they could do it.

"The public will be aware that the initial authorised funding for this project from the 2000/01 Budget was $71.2 million, with a completion date of September 2003. This has escalated to $102m and still counting, and a completion date of September 30, 2004."

The agreement between Pro-Active and the Government did not include two items that will now go to arbitration.

Pro-Active is claiming compensation for an insurance policy and adjustments made to the Bill of Quantities.

Mrs. Gordon-Pamplin said: "How could the Bill of Quantities be so seriously misstated as to warrant cost overruns of such a substantial amount?

"This is a stark admission that the information that was put out to the bidding contractors was erroneous, and that the contract was granted under false pretences.

"What favourable terms have Government provided such that the people have to pay insurance premiums for what clearly appears to be a contractor's responsibility ? a cost of doing business?

"In light of the lack of evidence of the payment of the last premium for the bond, Government's record of reimbursing for expenditure without supporting evidence that the expenditure has in fact taken place, is not exactly stellar."

Premier Scott slammed the UBP yesterday for two past projects that ran well over budget ? Tynes Bay (from $26 million to $73.7 million) and Westgate (from $20 million to $38.8 million).

Mrs. Gordon-Pamplin said: "The Minister indicates that large projects often have cost overruns. We concede that fact. Even the best managed projects may have unforeseen expenditure.

"We have heard repeatedly about the $2 million overpayment on Westgate where a decision was made to ensure that the sub-contractors were paid.

"In addition, the Premier is attempting to deflect responsibility of his incompetence by referring to over-budget of Tynes Bay, which came after years of delays dealing with environmental challenges, and the change of the entire project to a facility that was more sophisticated than initially planned or budgeted.

"By contrast, the new Senior Secondary School had defined plans, a site already acquired for the specific purpose, and needed only to be built. The two sites are incomparable.

"However, when the ultimate cost of any specific project is higher by 50 per cent of the original cost, they are not running, they are galloping ? and they are galloping with the public money in tow.

"There appears to be not just incompetence and mismanagement, but we might need to investigate whether there is even fraud and corruption."