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Auditor General plans for a special investigations team

Photo by Mark TatemAuditor General Heather Jacobs Matthews

A Special Investigations team is being set up at the Auditor General’s office to speed up reports into public projects, including those carried out under former Premier Ewart Brown.Auditor General Heather Matthews also hopes she will get more power to “follow the dollar” as laws governing her office are modernised.A number of projects under Ewart Brown’s administration have attracted widespread criticism over soaring costs and lack of oversight.Premier Paula Cox has vowed Government’s performance over the TCD and emissions centres development, which saw its costs leap from $5.3 million to $15.2 million, will not be repeated; she introduced the Good Governance Act this summer to stamp out any unethical behaviour in Government.Asked whether her office is still investigating any projects under the previous Premier, Ms Matthews told The Royal Gazette: “We have a number of investigations ongoing. However these investigations cannot, under our current legislation, take priority over our financial statement audits, hence the delays in releasing our reports.“Our request for dedicated staff to support a new Performance Audit/Special Investigations section should alleviate this problem so that the reports can be completed and released on a timely basis.”Ms Matthews said the Parliamentary Standing Committee on the Office of the Auditor General fully supports establishing a Special Investigations section, and will make such a recommendation to Ms Cox.The Auditor has previously condemned the way Dr Brown’s Tourism and Transport Ministry handled the TCD project.The Public Accounts Committee has said there was specific intent at the highest level of the Ministry that the contract be given to Bermuda Emissions Control, a company partly owned by Dr Brown’s close friend Dennis Correia, regardless of Financial Instructions.Ms Matthews and Ms Cox met over the matter last month, with the Premier concluding the Auditor would now be given more probing powers.Giving details on those powers, Ms Matthews told this newspaper: “One of the goals we had set for this fiscal year was to review and modernise our legislation, the Audit Act 1990, to bring it in line with best practices in other jurisdictions. Our review has been ongoing.”She said the review aims to provide legal protection from prosecution for the Auditor General and staff in the conduct of their work; give them the ability to follow the dollar; protect whistle-blowers; and give full independence to the Office of the Auditor General.In the aftermath of her report into the TCD project, Ms Matthews urged Government to strengthen sanctions against civil servants who fail to follow Financial Instructions.Ms Cox made such behaviour a criminal offence through her Good Governance Act.But it’s believed Ms Matthews’ call for those penalties to be retroactive, allowing punishment for those involved in the TCD affair, was not heeded.Former One Bermuda Alliance leader John Barritt, who is campaigning for more Government accountability, said: “I do not believe this bill and its provisions, re criminal offences, can be applied retroactively, with respect to past Government contracts and projects, such as those which have been the subject of probes and comments by the Auditor General.“This is why the Act might fairly be regarded as sleight of hand with respect to past Government projects. Hence my comment when it was debated: it was almost as if we were now building a barn long after the horse has bolted.”However, Mr Barritt said it may be open for the Auditor General to use provisions of the new Act to probe past projects.“Presumably, that may assist in uncovering further the truth of what occurred in each case,” he said.“There is of course merit in this if it happens.”The former Devonshire South Central MP, who retired earlier this month but vowed to continue fighting for good governance, said those who failed to follow Financial Instructions in the TCD affair should face consequences.“Why weren’t Financial Instructions followed previously and where it was shown that they were ignored why were they not enforced and the sanctions provided for imposed?” he asked.“The Auditor General was asking the same questions and making the same point in her recent reports. We have not had any answer, let alone satisfactory answers to those very important and critical questions and inquiring minds want to know.“This is especially important if the new sanctions cannot be imposed retroactively, although as far as I am concerned, it is important, period. Otherwise, it looks very much like those concerned are being let off the hook, and whether civil servant or Minister, that cannot be right.”He added: “A culture of good governance doesn’t just come about because we have laws and rules and regulations that require it, but when those responsible for their application demonstrate commitment through practice and enforcement, and sadly, tragically even, that sort of leadership has been lacking to date.“Those at the bottom take note of what those at the top do, or do not do, as the case may be. Put another way, it is hardly convincing when you have not practised what you are now preaching. Hence, it isn’t just new laws that Bermuda needs, it’s a new Government.”