Deputy Mayor of Hamilton Donal Smith has been accused of adopting “the worst behaviour of the old oligarchs” after apparently endorsing insider business deals and failing to declare a conflict of interest in relation to Corporation contracts.

Deputy Mayor Smith came under fire at a City Hall board meeting last week when councillor Larry Scott questioned why the municipality had signed a $100,000 contract with international PR agency Marston Webb.

Mr Scott reminded his council colleagues that both Mr Smith and councillor Keith Davis had previously gone into business with Marston Webb president Victor Webb.

In December, 2013, The Royal Gazette reported that the two councillors and Mr Webb had set up Nevis Energy Limited, winning a contract to develop a multimillion dollar geothermal energy project with the St Kitts and Nevis government.

When the initial contract was awarded, critics claimed that Mr Smith and Mr Davis pressed colleagues to hire the firm while failing to reveal their business relationship with Mr Webb, who later admitted that he was “friends” with both elected officials and Hamilton Mayor Graeme Outerbridge.

The council renewed its contract with Marston Webb earlier this year, with Mr Smith and Mr Davis both voting for the resolution.

At last week’s council meeting Mr Scott said that the contract meant the Corporation was “running afoul of those precious rules that make for good governance”.

“I think it’s wrong, and I want the minutes to reflect that I have concerns that people who have conflicts of interest ought to declare them,” Mr Scott said.

“Don’t sit in the same room and vote on a contract where you have a conflict, and in this case two members were conflicted, and I think that’s wrong, and it shouldn’t happen at this level.”

Mr Scott’s point prompted fellow councillor RoseAnn Edwards to question Mr Smith, and Mr Davis, about their relationship with Mr Webb.

Mr Davis initially ducked the question, claiming: “He [Larry Scott] has made the allegation. I don’t have to answer the allegation.”

Mr Davis also attempted to block Ms Edwards from asking further questions before finally stating: “I have no conflict of interest relationship with Marston Webb, or Mr Victor Webb, that would impact on my serving with the council, or doing business with the council. End of subject.”

Mr Smith also refused to provide details of his Nevis business when questioned by Ms Edwards.

Instead, he defended his actions by claiming that, in the past, authority figures had used their position for personal financial gain.

“I remember when [former Premier] Sir John Sharpe ... was in charge of Sealand Construction, and awarded himself a contract to build Westgate,” Mr Smith said.

“That’s just one case. It’s good for certain people to be friends with the individuals who are doing business, it’s good for certain people — oh but for the brown eggs, there’s a whole lot of cracking going on.

“So I’m just saying, you know, that in our lifetime we’re going to be meeting lots of people.

“I’m doing business with lots of people, you know. Maybe I’ll encourage the council to do business with lots of people.

“But it’s really sad, you know, that we can come to a time when we have to be banged across the head by people who, just may have a streak of not understanding that even in your own business life you’re going to meet people, you’re going to divorce people, you’re going to have friends, you’re going to not have friends.

“I know a lot of people — I’m not afraid to say that — and I will always do business with people who I believe is going to do business with me, whether I’m outside of this office or not.”

Mr Scott had the last word in the discussion, describing Mr Smith’s comments as “deplorable”.

“This society is replete with old oligarchs who did things which we fought to ensure would never happen again,” Mr Scott said.

“We fought against it. We knew it happened and he [Donal Smith] called the name of the gentleman — Sir Jack Sharpe — who he says was contracted. I don’t know that to be a fact, but we know that things happened.

“Why would we want to adopt the worst behaviour of the old oligarchs, and make it our own, and justify it, which is what the Deputy just did — ‘if the old oligarchs got rich and built palaces then I’m entitled to do it too’. I find that to be deplorable.

“But if that’s what his actions are, and he intends his actions to be that, he will not do it in my name. He will find that I will expose him in The Royal Gazette.”

• NOTE: A family member of the late Sir Jack Sharpe has contested Mr Donal Smith’s assertion that the former Premier was in charge of Sealand Construction, claiming he had no connection whatsoever with the company.