Dr. Green should pay — PAC
The president of Bermuda College should pay back thousands of taxpayers’ dollars spent on his utility bills and membership of an exclusive members’ club, a damning report by a Government committee has concluded.
The Public Accounts Committee (PAC) document — presented to the Speaker of the House of Assembly on Wednesday and made public yesterday — reveals that Charles Green’s membership at the Royal Bermuda Yacht Club was never agreed in his contract and nor was payment of electricity bills at his campus home, as reported by The Royal Gazette weeks ago.
The report “strongly recommends” that he repay more than $20,000 to the college — and it makes a raft of other recommendations for improving financial procedures at the publicly-funded quango, which received a $17.2 million grant from Government this year.
Yesterday, requests for comment on the findings from the college, its board of governors and former board chairmen were met with a wall of silence.
Finance Minister Paula Cox said she would make a formal response in the House of Assembly and Education Minister Randy Horton is off the Island.
The Public Accounts Committee — comprised of Opposition MPs Patricia Gordon-Pamplin and Grant Gibbons and Government backbenchers George Scott and Glenn Blakeney — launched an investigation last year after concerns were raised about perks enjoyed by Dr. Green.
The inquiry probed the spiralling cost of renovations at Shamrock Cottage, the president’s college-provided Paget home, and whether his other perks were properly approved by the college board.
It found that about $400,000 was spent on Shamrock Cottage but that the board did not minute the cost, put a cap on spending or seek competitive bids for the work.
The PAC report reveals that during its deliberations certain situations occurred that “resulted in ministerial interference”.
The report does not state which minister or ministers interfered but one of its 16 recommendations is that ministers be reminded that such meddling is inappropriate because the PAC operates independently of Cabinet.
The PAC’s probe confirms that the college has not been adhering to the Government’s Financial Instructions, which as a quango it is expected to do in the absence of its own internal rules.
According to the report, Dr. Green gave evidence at a hearing of the PAC on October 10 this year that he requested membership of the yacht club “as a means for him to liase with and solicit funding donations for the college from persons who might frequent such an establishment” and that the board agreed to this.
Former acting board chairman Pandora Wright told the committee she believed the board discussed the matter but it may not have been formally minuted.
“No minute has been provided to your committee subsequent to the meeting,” said the report to the Speaker.
Former board chairman Nalton Brangman and Chief Financial and Operations Officer (CFOO) Lloyd Christopher both told the PAC on November 16 that there had been “little, if any, financial benefit” to the college as a result of the membership.
Mr. Christopher admitted to the committee on the same day that he should have exercised stricter controls and ensured documented board approval before exposing himself to criticism for not adhering to generally accepted accounting practices.
He had earlier told the board that the club membership was agreed in Dr. Green’s contract - but scrutiny of the contract by the PAC found that was not the case.
The report says the committee “noted that Government’s Financial Instructions expressly prohibit such payments”.
Mr. Christopher told members of the PAC that the college board, under former chairman Raymond Tannock, discussed but did not document payment of Dr. Green’s club membership and utility bills.
He said Mr. Tannock, a former PLP Senator, requested that some payments be made but did not recall any requests directly from the president.
The report says: “The CFOO indicated that, notwithstanding the absence of evidence to authorise payments on behalf of the president, he believed that he acted appropriately.”
It added that he accepted the payments were ultra vires — or not in line with — Government’s Financial Instructions but did not feel constrained to settle the bills because he believed there was implied authorisation by Mr. Tannock.
Dr. Green admitted to the PAC that Mr. Christopher may have been “overwhelmed by his responsibilities”.
Another recommendation by the PAC was that the college board assesses the CFOO position and considers splitting it into two roles.
The report says Mr. Christopher’s inability to prioritise and complete important tasks had resulted in compromised standards of fiscal responsibility.
Mr. Christopher told the committee on November 16 that proposed new College Financial Instructions were still not in place.
The report reveals that Mr. Brangman questioned why Mr. Christopher was given a performance merit award — or bonus — when “it was evident that a basic responsibility of adhering to financial instructions was not being followed”.
Mr. Brangman said in evidence at a PAC hearing that he gave the CFOO a directive to stop making further payments on behalf of Dr. Green in June this year.
One of the recommendations of the report is that bonuses are approved by the board and linked to effective performance.