The Corporation of Hamilton has renewed its controversial contract with an overseas public relations consultancy at a cost of $100,000 to ratepayers.

The municipality initially recruited New York-based Marston Webb International on a short-term contract last October after ditching local agency The Stratford Group.

The appointment was questioned by some councillors after it was revealed that Deputy Mayor Donal Smith and councillor Keith Davis had set up a business with Marston Webb president Victor Webb. Their company, Nevis Energy Limited, has been contracted to develop a multimillion dollar geothermal energy project with the Nevis government.

Critics claimed that Mr Smith and Mr Davis pressed colleagues to hire the firm while failing to reveal their business relationship with Mr Webb, who later admitted that he was “friends” with both elected officials and Hamilton mayor Graeme Outerbridge.

Quizzed about the appointment at the time, Mr Outerbridge insisted that the contract was only temporary, and not “set in stone”.

“We haven’t formalised anything — we’re seeing how it will work over a three-month period and we’ll assess the positive marketing of Bermuda and Hamilton in terms of attracting new business,” he said.

But The Royal Gazette has been told that a new 12-month contract with Marston Webb was inked last week, with the agency picking up $100,000. The move was approved by six of the Corporation’s nine councillors, with Larry Scott, RoseAnn Edwards and John Holdipp objecting.

Under financial instructions imposed by Government last month, the Corporation has to obtain approval from the Ministry of Home Affairs for any expenses in excess of $50,000. But it is understood City Hall plans to bypass that hurdle by paying Marston Webb a monthly fee of around $8,000.

And that tactic could lead to fresh conflict with the municipality’s senior administrators, who are said to be reluctant to breach Government instructions.

Yesterday Mr Scott said: “Marston Webb was given a year’s contract with the Corporation of Hamilton, despite the fact that deputy mayor Smith and councillor Davis have conflicts of interest with the company.

“This money has been budgeted for in the budget but because it’s going to be paid in monthly instalments, it may get past the eye of the Minister of Home Affairs. The mayor and his quorum will likely threaten the managers to do what they demand, which is monthly payments.”

Yesterday The Royal Gazette e-mailed Mr Outerbridge a list of questions concerning Marston Webb’s new contract. He did not respond.