A charity that provides services for former prisoners has closed down for lack of financial support after its landlord, the Bermuda Land Development Company (BLDC), gave notice of a $3,000 rent hike.

But, despite some concerns from Government about governance, the door is still open for Work Inc to receive government funding provided it meets Ministry of Health requirements.

Work Inc's chairman, Charles Vaucrosson, said yesterday that the final straw for the struggling charity was when it received notice from the Bermuda Land Development Company that rent for premises it occupied at Southside was going to be increased from a nominal $1 a year to $3,000 a month.

"It was closed down end of August," Mr. Vaucrosson said.

"All the equipment had been supplied by us but their view is they want to make it an economical and viable piece of property and that was the last straw that broke the camel's back."

He said the future of the organisation's programmes for those trying to find their feet after time behind bars now depends on Health Minister Patrice Minors.

"Either the Government will pay the rent and finance the ATI proposal - we don't have enough money to do that - so it's all in the Minister's hands."

The Ministry of Health funded the programme with a $125,000 grant last year.

This week Mrs. Minors confirmed broadcast media reports that she had concerns about the program's governance. She said that her concerns centred around the fact that a private business was being run out of Work Inc's Southside premises and asked Mr. Vaucrosson to look into the matter to ensure that public funds were not being misused.

She said that Mr. Vaucrosson had reported back that he was "shocked" to find that there was indeed a private business being run from the premises.

But yesterday Mr. Vaucrosson said that Work Inc's executive director Shaun Crockwell had later shown him documentation showing that the business was above board and that the Ministry had been aware of it.

He confirmed that Island Ice, a relatively new concern, was operating out of Work Inc premises as part of a programme to help former prisoners get into business.

"I told her I was shocked because I hadn't heard that name before. When I checked, it had been before the Ministry. If the Minister had only read her files and checked with the previous people she would have known about the whole thing," he said.

And the business had not benefited from Work Inc's funds, he added.

"No money was contributed by Work Inc, no money was contributed by the ATI programme."

Island Ice owner Warren Vincent said that he had been appalled at what he saw as a suggestion in a report yesterday that his business had received Work Inc funds.

Instead, he said, the business was so successful that it paid Work Inc's electricity bills for a spell.

And he said Mr. Vaucrosson must have known about the arrangements he had made with Work Inc.

"I let Work Inc know every step of the way what was going on and they worked very closely to help the business started _ this was all under the entrepreneurship programme," he said.

"I started this business out of my own money and two other partners of mine," he said.

Shaun Crockwell is a partner of Island Ice as well as a Board member.

"I had personally asked him to come on board because of his administrative skills," Mr. Vincent said.

"I'm pretty sure the board members communicated with him (Mr. Vaucrosson) because at one point one of the board members asked me for ice to be delivered down to her," he continued.

"This is a business that I started up working weekends, public holidays and even nights for a very long period of time. I understand it was the only successful programme that Work Inc had. At one point in time I was asked to pay the utilities because Work Inc did not have the money to pay. And Island Ice was paying all the utilities."

Mr. Vaucrosson, for his part defended Mr. Crockwell, Mr. Vincent and another partner who worked at the business making and selling ice.

"They worked the sweat of their brow to get that thing going. At no time did they ever take any money from Work Inc. Work Inc did not contribute one dime to that business. And we were told we could not rent the premises out because we were only paying $1 a year. My only feeling is once they saw one successful business running there they thought they could make money."

He said they were informed in July that the rent was going to be increased and the Board made a decision to leave.

"Why run up bills if you can't pay for it ?"

He said they had been unsuccessful in persuading Government to give Work Inc any contracts. "We wanted to clean the railway right of way, do some painting for Bermuda Housing Corporation and some construction at the Prison Farm. We said why can't we get on that, they said they had to use ordinary contractors. But we are ordinary too."

Asked why a private business would be allowed to operate out of Work Inc premises, he said that a main aim of Work Inc was to help former prisoners set themselves up in business.

"That was the only place they could use at the time to set things up. We have different groups of inmates that have set up businesses - these three were successful and when the Minister complained about it they had to close it down."

As chairman of Work Inc's Board, Mr. Vaucrosson should have known of the venture operating out of its premises, the Minister insisted yesterday.

She said he had requested a meeting but had not responded to her request for a written account of the issues to be discussed.

Asked the chances of Work Inc getting further funding from her Department, she said : "For Work Inc and any other entity, there is a process for being considered for annual funding. Those that receive grants from this Ministry are required to render the appropriate documents."

BLDC manager Patrick Jones could not be reached for comment by Press time last night.