Michael Fahy, the Minister for Home Affairs, has dismissed allegations that he solicited bribes from a developer as “malicious, defamatory and wholly untrue” in a sworn statement put before the Supreme Court.

Sen Fahy’s vehement denial of a string of accusations made in Michael MacLean’s second affidavit are contained in a 15-page “counter affidavit” that The Royal Gazette was provided with yesterday evening.

In it Sen Fahy rejects any impropriety in relation to his dealings with Mr MacLean over the development plans for Hamilton waterfront and brands some of Mr MacLean’s accusations as “patently absurd”.

Mr MacLean, who is seeking constitutional relief for the voiding of his agreements with the Corporation of Hamilton over the waterfront, alleges in his second affidavit that it was suggested to him that the money for Sen Fahy should be put into his mother’s bank account.

“I have never suggested that any payment be made to my mother’s account and have never given those details to anyone either,” Sen Fahy states in his affirmation.

“It would be absurd for me in any event to place such sums of money in my mother’s bank account or for that matter anyone related to me in any way. As a politician I am a ‘politically exposed person’ pursuant to anti-money laundering legislation in most, if not all, sophisticated jurisdictions. Red flags would be raised by any bank if large sums of money were deposited in any accounts belonging to a family member of mine.

“Furthermore I am a legal counsel and the compliance officer and anti-money laundering reporting officer at a large captive insurance management company, so I am of course familiar with anti-money laundering provisions in Bermuda.

“Directing that money to be placed in my mother’s bank account or any family member’s bank account would be the most stupid thing to do in respect of moving large sums of money.”

Mr MacLean claims he was approached by businessman Stephen DeCosta soon after the 2012 General Election and told that the Bermuda Government would support his development of Par-la-Ville and the waterfront in return for monies.

Sen Fahy states in response: “This amounts in effect to a suggestion that immediately the OBA had won the election on December 17, 2012, its first order of business was to solicit bribes from him. As well as being untrue and defamatory, such allegation is simply incredible.

“At no time have I ever instructed Mr DeCosta to act on my behalf ... the suggestion that I had engaged him to solicit a bribe of some kind from Mr MacLean is simply untrue.”

Sen Fahy goes on to acknowledge he met with Mr MacLean on “various occasions” and communicated with him by other means such as phone and WhatsApp messaging. But he maintains: “There has never been anything untoward in any of these dealings.

“At the outset of these events in 2013 I was potentially open to supporting Mr MacLean’s proposals to redevelop the waterfront.

“However the fact of the matter was that from a very early stage both I and others in the Government became concerned as to the circumstances in which the agreements were granted by the Corporation of Hamilton. [These] concerns were due in large part to the secretive and obstructive conduct of the Corporation.”

Sen Fahy also admits that settlement figures were “debated” between the Government and Mr MacLean, but nothing was agreed and no assurances were made to the developer.

He states: “I hoped that a settlement could be agreed rapidly, saving both Mr MacLean and Government the costs of protracted arbitration.”

Sen Fahy claims Mr MacLean was “wholly improper and irregular” in the way he has conducted his litigation.

Describing the move as an “obvious attempt to slander the reputation of the Government, Sen Fahy concludes: “I believe that Mr MacLean is in cahoots with or being used by the Opposition to further its political agenda and as a result the court is also being indirectly used to push forward that political agenda.

“It paints a picture of malicious behaviour that should be given short shrift by the court.

“It represents a complete contempt for due process and sets a disastrous precedent if left unchecked and unchallenged.”

• To read Sen Fahy’s full affirmation, click on the PDF under “Related Media”.