Log In

Reset Password
BERMUDA | RSS PODCAST

Allen had `legal right' to join insurance scheme - AG

Accountant General Kenneth Joaquin said yesterday that there was nothing illegal or improper in the way former Tourism Minister David Allen was enrolled in a civil service health scheme shortly before he died last year.

The Royal Gazette reported yesterday that Finance Minister Eugene Cox intervened to get Mr. Allen into the scheme at the last minute.

MPs were given the option of joining the civil service Government Employee Health Insurance Scheme (GEHI) from March 2000, but Mr. Allen chose not to do so.

When he fell seriously ill in August last year suffering from abdomen cancer - eventually being airlifted to Boston for treatment - Mr. Allen was allowed into the scheme.

Mr. Cox pushed for the late Minister to join the scheme, which several authoritative sources said led to a series of heated GEHI committee meetings over how the issue was handled.

Royal Gazette editor Bill Zuill said last night the report did not suggest Mr. Allen was enrolled illegally, but the newspaper stood by its story that there was deep controversy at the time about the issue.

The well-placed sources informed the newspaperthat GEHI chairman Dr.Bert McPhee threatened to resign over the way the issue was handled, but both he and Mr. Joaquin have denied this.

The sources also said concern was raised in the GEHI committee that Mr. Allen's political connections may have played a part in his enrolling and that the correct protocol was not followed.

Auditor General Larry Dennis has written a report on the matter, but it is not known when it will be tabled in the House of Assembly.

Yesterday, Mr. Joaquin said neither the GEHI committee nor Mr. Cox "has any role to play in who can or cannot enrol in the scheme".

"The legislation is the sole arbiter," he said. "The late Minister had a legal right to join the scheme and exercised his rights under the legislation."

His statement did not say whether Mr. Cox had been involved in getting Mr. Allen into the scheme.

"The (Finance) Ministry wishes to state categorically that there was nothing illegal or improper in the handling of the late Minister Allen's enrolment into the insurance scheme."

Mr. Joaquin said GEHI "was not an insurance scheme in the traditional sense" as it was governed by legislation and administered through the Accountant General's Department.

Senators and MPs could join "at any time", therefore it was "untrue and mischievous" to suggest the late Minister was allowed in because of political connections.

And there was no reference in the legislation, said Mr. Joaquin, to pre-existing illnesses preventing people from joining.

"The entire matter of Minister Allen's enrolment in the GEHI scheme was handled according to the letter and spirit of the legislation," said Mr. Joaquin, adding the suggestions of political influence were "false".

The newspaper was told by the sources they had heard Mr. Allen's bill was around $100,000, leading to concerns that premiums may go up. Mr. Joaquin said premiums would not go up as a result of Mr. Allen's bills.

The Royal Gazette did not name the sources used in the story. Mr. Joaquin said it was "unfortunate" the unnamed sources had "hidden under a cloak of anonymity and misrepresented the actions of a Cabinet Minister".