Good afternoon – thank you for joining me today.

You will be aware of the controversy surrounding the Corporation of Hamilton (“the Corporation”) during the tenure of this current Administration, “Team Hamilton”, dating back to 2013 when the Ombudsman reported grave concerns of maladministration relating to the Waterfront Development.

You will also recall the Ministry assumed temporary stewardship over the treasury functions of the Corporation – from 19th December 2013 to 13th March 2014. During that time my Ministry prepared a Code of Ethics and Conduct as well as a Municipal Council Meeting Guide, and the Ministry of Finance prepared a robust set of Financial Instructions, in accordance with amendments to the Act, in an effort to assist the Corporation in better managing its financial and day to day operations.

There was also a commitment by the Ministry to having ongoing meetings with the Corporation. I am pleased to report that the Mayor and I have met regularly to try and move the City in the right direction.

Notwithstanding those efforts, there has been no improvement in the overall management and administration of the Corporation’s affairs, and this has caused me to have continuing grave concern over the Corporation’s ongoing ability to function properly for any number of reasons, in particular the following:

a. A few members of the Council remain steadfast in their attempts to bring legal action against the Government in a number of areas despite there being a lack of unanimity and the Mayor’s consequent instructions not to proceed. The unauthorized actions of these few members of the Council make absolutely no sense and they have resulted in a misuse of the taxpayer’s funds – the very same funds the Government and the Council are expected to manage efficiently.

b. The Mayor’s curtailment of the day-to-day business of the Corporation as a result of the Council failing to abide by the Municipal Council Meeting Guide.

c. My concern relating to the subsequent open and very public call by certain Council members for the Mayor to resign,

d. The continuing cloud of uncertainty relating to the Black Mayors’ Conference,

e. Concerns relating to the Par-La-Ville development and the current financing arrangements;

f. The complete gridlock that now exists in relation to the management of the City by the Council which in turn has affected the ability of the Corporation to properly run its services;

g. The uncertainty among the staff regarding the direction and ongoing operation of the Corporation given the behavior of the Council, and

h. The Governance of the Corporation seemingly in complete disarray – with relations between the Council itself, as well as certain members of the Council and the Mayor, deteriorating to the point of them making open threats and allegations of racism and maladministration as well as engaging in acts of intimidation.

Since the Code of Ethics and Conduct, the Municipal Council Meeting Guide and Financial Instructions were put in place last year, it was hoped that the Council would get their affairs in order using these documents as their guide and that the Mayor would be able to properly exercise his authority over the Council. Unfortunately, this has not been the case as recent events have demonstrated.

Last Thursday I stood before you after meeting with the Council in an effort to bring a measure of calm which was sparked by the media release calling for the Mayor’s resignation.

In truth, I left Thursday’s meeting with the Council rather annoyed. Whilst there appeared to be common ground reached in respect of concerns relating to a number of issues, and whilst the conversations were frank, it was quite evident the Council was not operating in unison and the general conduct of the Council was certainly not in accordance with the established good governance principles. More importantly, it was clear to me that the current Council is incapable of conducting its affairs properly with the result that the ongoing administration of, and provision of services by, the Corporation is in serious jeopardy and will continue to deteriorate in the absence of intervention by me.

On Friday, Cabinet determined that, in accordance with Section 7B(6) of the Municipalities Act 1923 which reads “Where, due to the poor state of any of a Corporation’s infrastructure or services (as a result of force majeure, maladministration, disrepair or lack of funding), the Minister believes that it is in the public interest for the Government to temporarily assume stewardship of a Corporation’s infrastructure, function or service, in order to repair or maintain it, those particular items may, with the approval of Cabinet, be temporarily removed from the stewardship of the Corporation”, effective immediately I, with Cabinet’s authority, should assume temporary stewardship over the Governance of the Corporation of Hamilton. So what does this mean in practice?

1. The Chief Operating Officer will continue to run the day to day operations of the Corporation. Any major financial or operational decisions shall have the oversight of the Ministry. Anything outside of the Corporation’s policies will require consultation with the Ministry.

2. The current Council will have no authority to make decisions, pass any resolutions or interfere with the day to day operations of the Corporation – although I will continue to consult with the Mayor during this period of temporary stewardship. It is my hope that the decision to assume temporary stewardship of the Corporation will be respected by the Council…. and that the COO and his team will be left free to manage the day to day operations of the Corporation without interference. The Mayor is supportive of this decision as he is quite cognizant of the larger picture which sees Bermuda now placed on the international map with the prestigious America’s Cup heading to our shores…..along with many other projects of National importance in train in an effort by this Government to get our economy on track.

Before I conclude I would like to confirm that Cabinet’s decision that I assume temporary stewardship of the Corporation of Hamilton will have no impact on the Corporation of St George’s as I am quite happy with what the Mayor and his team are doing in the Town of St George’s.