The cash back for communities programme has been put on hold after its funds were used to cover other government expenses, Parliament heard yesterday.

Wayne Caines, the Minister of National Security, told The Royal Gazette that several community groups had been promised grants, only to be told that the confiscated assets fund was out of money.

Jeff Baron, the former minister, responded that it was “unfortunate that this has gone political — but that is the joust and parry of the House of Assembly”. While worthy charities and sporting organisations had been identified and a Cabinet paper drawn up, he said that the document had never been signed.

“The paper was done in the same week that the election was called,” Mr Baron said.

“I was told that it was not appropriate to proceed during that period. There were some different opinions, but ultimately that was the reason why.”

Saying he had “absolutely no idea about any promises”, Mr Baron added: “The paper was never approved, but if a charity called me to ask about their status I would have no problem telling them that their charity qualified and that I intended on advancing the Cabinet paper for them to receive funds.” Mr Baron recalled that the fund had contained $300,000 in early June, which Mr Caines confirmed in Parliament, asking: “How come we only have $100,000 left now?”

However, Trevor Moniz, the Shadow Attorney-General, responded

that the fund was “constantly changing” as assets came in and were paid back out.

“It is not purely for cash back for communities,” Mr Moniz told Parliament, accusing the Progressive Labour Party of misleading the House.

MPs heard that as of 2015 the fund had contained $10.7 million — $6 million of which had been paid out to the United States under the island’s mutual legal assistance obligations. A further $3.5 million had gone to government departments, David Burt said.

The diversions of funds also included a $111,000 legal fee that was paid to the American firm Cooley LLC to pursue the Bermuda Government’s case against the Lahey Clinic.

But the need to freeze the community grant was blamed on a $730,000 payout to cover the National Anti-Money Laundering Committee.

Mr Caines said a moratorium had been imposed for the fund to be replenished — and there was no way of saying when it would be topped back up.

“That will give little comfort or succour to the organisations that will suffer,” Mr Caines told this newspaper.

While the minister conceded that there had been nothing improper in the former administration’s use of the funds, he said its ethos had been to help the community.

“A concern arises where the fund was used to pay legal fees,” Mr Caines said.

“While that is not illegal, it’s questionable, because the Attorney-General has a budget and a prescribed way of paying for legal expenses.”

Promises had been made under the One Bermuda Alliance to “several organisations”, which Mr Caines declined to name.

• To read Mr Caines’s speech in full, click on the PDF under “Related Media”