The Government made late payments to a construction company on four occasions totalling millions of dollars, it has been revealed.

BCM Construction, the main contractor hired by the Government to rebuild the Bermudiana Beach resort, was owed $1,829,576 at the beginning of April, but did not receive a cheque until April 24 — 22 days late.

Another invoice for $2,122,072 submitted on June 9 was not fully paid off until the end of August.

A third invoice for $1,180, 831 issued on July 11 was also paid at the end of August — 20 days late.

Another payment of $99,000 was made almost a month late after it was submitted in December 2021.

The government senator Leslie Robinson made the revelation in yesterday’s sitting of the Upper House.

The Junior Minister of Economy and Labour and Public Works was responding to written questions from the senator Douglas De Couto, the opposition One Bermuda Alliance’s finance spokesman.

Last month The Royal Gazetterevealed that the project — which is being overseen by government quango the Bermuda Housing Corporation — appeared to be struggling with cashflow problems and subcontractors complained that they had not been paid.

The BHC was forced to step in with a cash handout, claiming that it had only been made aware of the issue days earlier.

Dr De Couto had asked Ms Robinson to provide details of any late payments made to BCM in the past two years.

He also asked Ms Robinson to give reasons for any late payments and explain if there had been a breach of contract as a result of any payment delays.

In response, Ms Robinson said that because the BHC did not enter into a contract with BCM, there had been no breach.

She said that BCM had been appointed through an intermediary, the Bermudiana Development Company Limited.

She said: “As such, there have been no delayed or late payments between Bermuda Housing Corporation to the main contractor or any subcontractor.

“There is no contract between BDCL and any subcontractor or supplier.

“Regarding the contract between BDCL and BCM, there have been four occasions where the payments have been delayed.

“Once payment application is received from BCM, it is reviewed and approved. Once approved, it is reviewed by BDCL, then reviewed and approved by the board for payment.”

Ms Robinson said that there was a delay in paying the December 2021 invoice after officials questioned items on the docket.

“Questions were raised on items and, once answered, payment was made,” she said.

She claimed that the bill for $1,829,576 was received after a monthly board meeting and, as a result, the board had to reconvene to grant its approval.

The June invoice for more than $2 million was paid off in four instalments over two months.

Ms Robinson said: “Most of this payment was paid on time but due to the length of the loan process, full payment could not be made at that time. A further payment of $300,000 was made prior to Cup Match. On August 28, 2023, a final payment of $761,036 was made.”

She said that the payment of a fourth invoice was “delayed slightly” after a new financing arrangement had been implemented.

Ms Robinson stressed that relations between BDCL and BCM had always run smoothly, despite the occasional clerical error.

She said: “BDCL works closely with BCM, the construction managers, meeting a minimum of twice a week.

“At times, when payments were delayed, open discussions were held and agreement made on these delays. As such, no breaches to the contract between BDCL and BCM were made.

“BDCL and BCM have a healthy working relationship that has evolved over the course of this project that results in close collaboration and open communication to resolve any issues.”

Dr De Couto said he found Ms Robinson’s answers “quite informative”.

He asked Ms Robinson to clarify which “board” was responsible for authorising payments, and also questioned why financing on such a significant project had not been in place from the start, giving authorities “ample time” to make payments.

Ms Robinson was unable to answer either question, but said that she would provide answers at a later date.

The hotel and condominium development in Warwick is expected to open next summer.

The Government has touted it as critical for the recovery of Bermuda’s hard-hit tourism industry, particularly after the 2020 closure of the Fairmont Southampton hotel

The development, which was delayed for years by the onset of the Covid-19 pandemic, is expected to cost more than $92 million.