Premier could form special team to investigate TCD overspend
Premier Paula Cox yesterday revealed she could set up a special team to investigate her predecessor Ewart Brown’s emissions testing programme which overspent by $10 million.Ms Cox is to meet Auditor General Heather Jacobs Matthews to discuss the project following another damning report about it, this time from the Public Accounts Committee.In a document released yesterday, the PAC states it’s clear there was specific intent at the highest level of Dr Brown’s Tourism and Transport Ministry to give the initiative’s contract to Bermuda Emissions Control, a company partly owned by construction boss Dennis Correia, regardless of Financial Instructions rules.The PAC, chaired by Shadow Finance Minister Bob Richards, stated: “The burning question is why. It is a question squarely in the public interest.”Ms Cox responded that was an extreme stance unsupported on the facts, but indicated she had concerns of her own about the project.“I can stand here before this Honourable House and state with great conviction that there will be no repeat of this type of performance under this Government,” the Premier told the House of Assembly.“Mr and Mrs Bermuda, you will not see this type of performance duplicated on the new hospital project or any other capital project undertaken by this PLP Government going forward.”Giving details on her plans for Good Governance legislation earlier this month, Ms Cox said she would carry out rigorous reviews where there are concerns over past projects, appointing independent investigative teams with forensic specialists if required.She told the House: “I fully intend to exercise this option and, as a result of the issues raised in this report, I will be meeting with the Auditor General and the Director of Internal Audit to discuss whether circumstances in this case warrant the appointment of such a team.“As Government we have extended considerable effort to address any deficiencies contained in the recent PAC report and that we are committed to effecting systemic improvements to Government’s accounting and financial control systems and overall governance.”The PAC, which consists of Mr Richards, Government MPs Walter Lister, Lovitta Foggo and Wayne Furbert, and One Bermuda Alliance MP Patricia Gordon-Pamplin, highlighted a catalogue of concerns over the building of the Island’s three vehicle safety and emissions testing centres.They pointed to major breaches in how the contract was handed out and said it was difficult to get a definitive answer on how the cost ballooned from an original budget of $5.3 million to a final cost of $15.2 million.Last October, Ms Matthews revealed the project’s bill shot up after Government “relinquished control” to two private companies connected to Mr Correia: Bermuda Emissions Control, the contracting firm, and Correia Construction Company, the construction company; CCC had a shareholding in BEC.The PAC report says that represents a conflict of interest; it says BEC used CCC’s accountant to produce its accounts, adding: “How could BEC control or supervise the activities of CCC under those circumstances? Clearly, it could not.”Ms Matthews had pointed to ministerial interference from the outset, and criticised the fact the project was run by the Ministry of Tourism and Transport instead of Works and Engineering, which took responsibility for all other Government projects at that time.The PAC report says that relationship takes on the appearance of ‘a Government within the Government’.Cabinet Secretary Marc Telemaque has previously been heavily criticised by the Auditor General for disregarding a Cabinet decision to put the project out to tender.According to the PAC report, the Accountant General requested documentary evidence that justified handing the contract to Mr Correia’s firm without being put out to tender, but received none.Mr Telemaque told her to “just make it happen”, the report states, and she never saw or heard any proof of the claim that expert advice said this was the best strategy.The PAC document states its investigation is not yet finished, saying it will continue to push for records from BEC and CCC. It says records have so far not been made available, but it is advised it is entitled to them by law.“Your Public Accounts Committee will exercise its powers to follow any thread of evidence and follow the money wherever it may lead,” concludes the report.“Only then will the public have confidence that the public’s money is being properly spent and that the public is getting proper value for money.”