Government is backing plans by the Corporation of Hamilton to host a convention of international mayors in Bermuda — even though the event could end up costing City ratepayers as much as $350,000.

And yesterday Corporation officials failed to clear up confusion over who is behind the Conference of Black Mayors (CBM) — the Atlanta-based organisation that plans to hold the event in October.

At a press conference at City Hall, Home Affairs Minister Michael Fahy said he hoped the convention “will be a success for both the City of Hamilton and Bermuda”.

And he added that any concerns over the validity of CBM had been satisfied.

“I am here on the behalf of the Government of Bermuda to express our support for the Conference which will celebrate their 40th anniversary in October of this year in Bermuda,” Sen Fahy said.

“I acknowledge that there has been much discussion about this event in the community and in the media. As the Minister responsible for municipalities I publicly advised that, before the Ministry could endorse such an event, I too had to be satisfied that all was in good order and that this event was in the best interest of the City of Hamilton and Bermuda, before we could support the Corporation’s efforts.

“At my request the Mayor and his team undertook to do their due diligence to the point where I as Minister was content with the information provided.

“Today, I am satisfied with the discussions I have had with the Mayor and his team and therefore thought it was only fitting that I publicly stand in support of the Corporation’s efforts.

“I am hopeful that the Conference will be a success for both the City of Hamilton and Bermuda and am optimistic that the Government of Bermuda and the City of Hamilton can work together on future endeavours.”

The Corporation initially entered into negotiations with a different organisation — the National Conference of Black Mayors (NCBM) — last year after Deputy Mayor Donal Smith met up with NCBM chief executive officer Vanessa Williams at a convention on Colombia.

But by that time, Ms Williams had been sacked by NCBM president Kevin Johnson after it was discovered that the 40-year-old organisation was in debt to the tune of $1 million — and that Ms Williams, who had failed to cooperate with a financial audit of the group, had spent more than $600,000 of NCBM funds on personal expenses.

Georgia state records show that Ms Williams set up a new group, the Conference of Black Mayors, just before her dismissal and continued negotiations with City Hall for a “40th annual convention” for her new organisation to be held on the Island. She also demanded a $100,000 fee from the Corporation, half of which has now been paid out.

But Corporation sources now claim that, according to the municipality’s event planning staff, the final bill for the convention could be far higher.

One insider, who asked not to be named, said that spreadsheets give the event a final price tag of $350,000.

And that figure was also quoted by another, independent source.

At yesterday’s press conference, Sen Fahy did acknowledge that further Corporation funds would have to be found on top of the $100,000 already budgeted for the event, although he did not give a final figure.

“There has been much doubt placed on these organisations and my Ministry’s position has been, until we are satisfied with the information that we have received, we will not be in a position to approve any virements under the financial instructions that were put in place in January,” Sen Fahy said

“The Corporation of Hamilton approved a budget, which I also approved, for a $100,000 amount that was placed for a staging fee.

“The Corporation of Hamilton has requested a further sum of money to be given to assist in bookings and reserving places for the conference. What we have agreed is that we will ensure virements are provided for the minimum sums that are required.

“The Corporation is only exposed to some monies, it’s not a huge amount. Sums will be sponsored as much as possible. You can’t organise something and seek sponsorship if there’s no one prepared to say ‘we will endorse it at least to this point.’”