Auditor General Report: “Misuse Of Public Funds”

January 26, 2012

[Updated] Auditor General Heather Jacobs Matthews, today [Jan.26] issued a Special Report on the “Misuse of Public Funds,” saying two issues recently came to her attention which “warranted immediate investigation and reporting”.

The Auditor General indicated that the results of her investigations and the fact that relevant information was withheld have caused her serious concern.

“The issues discussed in this report involve elected officials and senior civil servants at the highest levels,” said the Auditor General.

“Although the amounts at issue may not be seen as significant, these misuses cause me to question the ‘tone at the top’ and whether Government officials at the most senior level will do the right thing.

“Both issues indicate a complete disregard for the concept of good stewardship of public money. I continue to be amazed by the lack of awareness of, or the lack of commitment to, good governance”.

A statement issued said that the Special Report reveals that the former Chairman and Deputy Chairman of the Board of Directors of the Bermuda Land Development Company Limited entered into a consultancy arrangement with the Company while they served on the Company’s Board. This arrangement resulted in them being paid $160,000 in consultancy fees.”

The Auditor General concluded that “the consultancy arrangement put both the Chairman and the Deputy Chairman, who actively participated in overseeing the activities of the Company, in a fundamental conflict of interest. The actions of the Chairman and the Deputy Chairman clearly represented a breach of their fiduciary duty.”

The statement continued to say that, “In response to the Auditor General’s concerns, the former Chairman disagreed noting that the Company had every right to enter into the paid consultancy and that the arrangement was supported by the Minister of Works & Engineering.

“On April 1, 2011, the Premier changed the delegated responsibility for the Company from the Minister of Public Works to the Minister of Environment, Planning and Infrastructure Strategy. On May 12, 2011, at a Special Meeting of the Company, the Board of Directors was disbanded and a new Board established.”

However, the Auditor General notes that “to date, the consultancy fees have not been repaid to the Company”.

The statement continued on to say that, “In another instance of misuse of public funds, the Auditor General found that a private legal action on behalf of the former Premier and the Minister of Public Works was funded by public money in direct violation of Financial Instructions.”

The Auditor General concluded “In this case, where the fundamental financial rules which govern all civil servants have been blatantly disregarded at the highest levels in Government, appropriate sanctions should be applied including appearance before the Public Accounts Committee”.

The funding arrangements were subsequently terminated. However, public funds paid to the overseas law firm have not been recovered.

The statement continued on to say that, “During her investigation, the Auditor General was denied access to important information. In its refusal to provide requested documentation, the Attorney General’s Chambers cited the doctrine of legal privilege.”

However, Mrs. Jacobs Matthews expressed her view that “attempting to cover-up an abuse of public funds behind the cloak of legal privilege is unacceptable and violates principles of good governance and transparency.”

Mrs. Jacobs Matthews warned that restrictions on her access to information violate the provisions of the Audit Act 1990.

“The Act provides that it is a criminal offence to fail or refuse to supply any explanation, information or assistance which I may reasonably require for the performance of my functions” said the Auditor General.

“As a result, I have decided that should my access be denied in the future, I will bring the matter to the immediate attention of the House of Assembly and the public. I will also recommend that those individuals who have infringed on my right to information be required to appear before the Public Accounts Committee.”

The full 54-page report is below [or here in PDF form], click “Fullscreen” for greater clarity:

Update #1: Video of Shadow Finance Minister Bob Richards, OBA Leader Craig Cannonier and OBA Chairman speaking briefly on the Auditor General’s report. Mr Richards said they had just seen the report an hour ago, and they will make a more extensive statement about the matter later on.

Update #2: Responses from the Premier, Deputy Premier, One Bermuda Alliance and United Bermuda Party are here.

Update #3: The BLDC Chairman referred to above is Ed Saunders, and the Deputy Chairman is Pastor Leroy Bean, the PLP Branch Chairman for Hamilton East.

Read More About

Category: All, News, Politics

Comments (162)

Trackback URL | Comments RSS Feed

  1. enough says:

    Hang on, hang on…..ok, I’ve got my popcorn…..go!!!

  2. Chart says:

    Tip. Of. The. Iceberg.

  3. Lady Scribbler says:

    Shameful. Just plain shameful. Now let’s see what excuses are trotted out by the bloggers, ministers and supporters of this government. I would like to see assets frozen and funds repaid.

  4. Turini says:

    Well done Auditor General!

    • Voice of Reason says:

      Its great to see Bermuda’s system of government alive and well. The Auditor serves and important purpose in a modern democracy and Bermuda has had some good ones.

      Public officials must be held to account, and in Bermuda people can be assured that the auditor general is looking out for the interests of the Public Purse.

      Interesting however that when we talk about MILLIONS being misspent the Auditor could only find $200,000. That is $200,000 too much, but in the GRAND scheme of things that is a small amount.

      Though painful for the government it is good to have, for the record, how much money has actually been Mis-spent.

      I guess its also important to note that it seems when this was brought to light, action was taken, so once again, good to see Government work.

      • 32n64w says:

        “Interesting however that when we talk about MILLIONS being misspent the Auditor could only find $200,000. That is $200,000 too much, but in the GRAND scheme of things that is a small amount.”

        Interesting that you chose to ignore the fact that this report only covers two issues.

        “I guess its also important to note that it seems when this was brought to light, action was taken, so once again, good to see Government work.”

        So have the funds been repaid as required? No.

        Have the (ir)responsible parties resigned their positions in Government? No.

        • Voice of Reason says:

          Funds repaid as “required”…

          Interesting.

          In the first case, The board got advice that it was legal and proceeded. It doesn’t pass the smell test, hence action was taken by the premier, however the funds were paid in accordance with LAW.

          In the second case, the funds were legally paid, therefore to say that they should be repaid is funny at best.

          What is important are that controls continue to be strengthened to ensure such things do not happen in the future.

          I cover those issues, because those are the only ones at hand. I know you’d prefer me to make up stuff, but sorry, not going to do that.

          Reason

          • Yup says:

            Will the governor step in and save Bermuda??????????????

  5. Oh Well!! says:

    Do you think we will get a response from this government? Or will there be another snow job?

    • Wicky Choopa says:

      They did response in the appendix

    • Voice of Reason says:

      You should read the entire document, you’ll see the response.

  6. Bullseye says:

    This can be of no surprise to anyone. Huge payments have been received via consultancy fees for years for you cannot quantify results therefore the charge has no limit. Immoral yet not illegal, but most certainly misuse of public funds. The auditor can be on the lookout for police at the door next?

  7. Cancer says:

    I keep saying about this government and this is more proof! As ms Jocobs says this is almost at the highest levels within the government. This is why I’ve changed my vote. What do you blind loyalists have to say now???? I guess you thought you’d be able to dictate to Ms Jacobs. I just wish that AG report would be released. This government must go! Paula please call the election! But we know you won’t!

  8. navin johnson says:

    Oh Rhonda where are you Rhonda? come out come out wherever you are….I’m sure the Auditor General has as many roadblocks as the high speed chase yesterday…..where are you PATI? and the chances of that coming to fruition get slimmer by the day….shredders, butt covering, bring in the forensic accountants….been waiting for this to start coming out……unethical but not illegal? not!!!!

  9. Lazy Fools says:

    Time for a new Auditor General!

    • MinorMatters says:

      Ms. Jacobs Matthews, I can’t thank you enough for your efforts to bring the shady deals of this government under the Public Sunshine of Scrutiny with dignity, diligence and hopefully impartiality. Keep up the good work and should you ever run for Public Office, I would support your candidacy.

      Heather Jacobs Matthews for Minister of Finance!

    • wandering says:

      You have nailed yourself and not on the cross with your name “Lazy – taken… but here you are…. “FOOL’….. anybody with any sense in the PLP supporters should call for a march on the house and ask for everybody’s resignation effective immediately or you are all going to be on a boat heading to nowhere but DOOM….

      Let’s go OBA – let’s get it on…. vote people vote… get your election information straight and place your “X” where it counts…. Remember ‘EXPRESS YORUSELF”"

      • Bullseye says:

        I thought he was being sarcastic. I’m sure the PLP would like to replace the AG at this point. Truth hurts.

        • Lazy Fools says:

          Yes, I was being sarcastic! Here, I’ll try it again:

          Maybe we should arrest the Auditor General, like we did to the previous one when he blew the whistle!

      • Voice of Reason says:

        Seriously, out of a BILLION dollars the Auditor General finds 200K that may have been misspent. Don’t you think you may be taking this a bit too far.

        I think any amount is too much, and I’m happy Bermuda has a strong Auditor General (who’s independence was increased by the PLP in 1999).

        I think a march may be too much, but its an election year so I’m sure the OBA will attempt to do such, but careful for the overreach. 200,000 out of a Billion isn’t really an earthquake.

        • Bullseye says:

          In 1999 the island was run for $531 million.
          In 2009 it took $1.2 billion reported.

          You really think all of this is over $200,000?
          AND are you content with a $1billion budget?

        • Rockfish#1 and#2 says:

          Remember–she has been denied access to more information.
          However, those roadblocks will be dismantled soon.

        • soon_gone says:

          You have got to be kidding.
          $20.00 dollars of illegally used public money is wrong.It’s not the amount it’s the fact it has been covered up and hidden from the public eye!!

          • Voice of Reason says:

            Um, Kinda hard to say that its been covered up when you are reading about it.

            And its $200,000. As i said before $200,000 too much.

            • .am says:

              I believe they’re saying that ‘even’ $20 is too much, let lone $200,000. Ergo ‘it’s not the amount, it’s the fact that..’

        • Chart says:

          200k here and there and very rapidly you get to the half billion increase in Bda Govt budget over the past few years. Their expenditures doubled – and it’s hard to see how in terms of productivity or services.

        • man! says:

          its not just this $200,000…its the docks (over $30million overbudget)

          Its the TCD $15 million over budget

          $64 million barkley school that cost $125+ million

          to tenders to whites…black only apply

          Remember ” hire your own?” by Ashfeild?

          And “we have the checkbook now (chuckles)” by Ewart brown

          And “l’m just a clog in the wheel” by Paula Cox

          And all the sensless things Burch has said to embarress this country and he is back?!!!

          and more millions

          And more waste

          And hire more voters

          And go sign another “tax treaty with timbucktoo”

          And its the UBP not the OBA

          And the OBA is just the UBP in disguise

          Bermuda sucks and everybody in the world hates it here…including you. So envy what? there is no envy of Bermuda unless you are Black and even the black people are getting sick here……

          • Voice of Reason says:

            TCD was less than a million over budget. Get your facts correct.

            • Truth (Original) says:

              Wasn’t TCD budgeted to be completed for approx 5M but came in at 15M ?

              That would be 200% over budget.

              • He's Kidding Right says:

                NO.. TCD’s final Budget as approved in the house was 14.X Million and it came in and 15.2 million.

    • Death to party politics says:

      So the next one can echo the same thing as the current and former one?

      I’ll assume this is tongue in cheek.

    • haha says:

      Don’t worry, if she keeps it up she’ll get arrested soon enough.

    • Maddog says:

      I think so to, plp plp plp plp plp plp all de wayyyyyy………

  10. Triangle Drifter says:

    Way to go AG! Take no prisoners. Just like your predecessor.

    Lets see them try to squirm out of this one.

    Enough Says, can I have a seat next to you? I’ll bring some beer. This should be better than Super Bowl.

  11. wandering says:

    Okay Premier Cox – what is that you said when you were Finance Minister under former Premier Brown… “you weren’t able to?????? take them all up before the Committee and then to court – bring in an overseas judge and investigators from ENGLAND..

    Great job Mrs. Matthews and I pray that those who are thinking right in this Island, will be or get behind you in eery aspect of TRUTH, HONEST AND TRANSPARENCY…

    • Voice of Reason says:

      Please note from the report:

      “The Premier/Minister of Finance is to be commended for taking prompt action in these matters once brought to her attention by the Auditor General.”

      Actions have already been taken.

      • Finally left! says:

        Voice of Reason, you keep quoting this, yet you fail to finish the paragraph.

        Can you quote that too please?

  12. Cancer says:

    Where are you Lavern Furnert – Specialgirl4you – Trident and all you other blind followers – I’m calling you out! You comment on everything else – what are you saying now – Lavern you are always saying this government has never done anything wrong. Your always supporting “your Premier” well where are you now? I’m calling you out! PEOPLE WE NEED TO VOTE THIS GOVERNMENT PUT!!!

    • Voice of Reason says:

      A bit much don’t you think. 200K out of 1 Billion. Also, and please note this.

      “The Premier/Minister of Finance is to be commended for takingprompt action in these matters once brought to her attention by the Auditor General.”

      The purpose of the Auditor General is to investigate and recommend action.

      The system works, i know you’d like to make a big deal about it, but in the Grand Scheme I’m sure you expected the Auditor to find much worse!

      • Tired of nonsense says:

        Good chance they could have more. Also, please note this:

        “The statement continued on to say that, “During her investigation, the Auditor General was denied access to important information. In its refusal to provide requested documentation, the Attorney General’s Chambers cited the doctrine of legal privilege.”

        However, Mrs. Jacobs Matthews expressed her view that “attempting to cover-up an abuse of public funds behind the cloak of legal privilege is unacceptable and violates principles of good governance and transparency.”

        Mrs. Jacobs Matthews warned that restrictions on her access to information violate the provisions of the Audit Act 1990.”

        Ahhh…the PLP’s version of “transparency.” We will only show what we want…

      • 32n64w says:

        Oh I see you conveniently forgot to include this gem from the same section,
        just two paragraphs above:

        “It is interesting to note that this direction, like many others issued by the Minister of Works & Engineering, was not submitted to the Minister of Finance for approval as required by the legislation.”

        How does this in anyway lend credence to your erroneous belief that “the system works”? It doesn’t.

        The PLP Government have run the country as their own personal fiefdom and habitually, willfully and dishonestly abused the public purse for their own personal enrichment and advantage.

        • Voice of Reason says:

          Its in interesting that the same Minister was relieved of his responsibilities for that matter.

          Wrongdoing pointed out and addressed.

          • Gillian says:

            I agree with you @voice of reason. The Premier was informed in Dec 2010, by April 2011 the new procurement office was up and running and she had sacked and replaced the Board at BLDC – I’d call that action!

            • MinorMatters says:

              Ahem…yes,let’s just sweep this nasty mess under the rug, shall we? Nobody has to know a thing…dang that Auditor General! LOL

          • 32n64w says:

            He should have resigned from Parliament. Shuffling the deck chairs isn’t a solution.

      • Finally left! says:

        With regards to 200k out of 1Bn, remember, she has been denied information.. also the massive amount of that htat is “unaccounted for”… just because she hasnt found it doesnt mean it wasnt misused.. however, the fact that it is missing DOES imply that the govt did not take good enough care with it.

        Also, i wouldnt say the system worked. If the system truly worked, the spent money would never have been given out in the first place.

        • Voice of Reason says:

          She hasn’t been denied information. If you read the entire report, she was denied access to legal instructions which seem to be protected under privilege.

          I was skeptical before, however after reading the full ministry response, i tend to agree.

          Also, if the Auditor really feels she was impeded, then she should follow through and prosecute people.

          Unlikely however which calls the whole tone and tenor of the report into question.

  13. Stained_Paradise says:

    As I think about the Truth in that Song !! I can just SMH at these government officials

  14. Cancer says:

    PEOPLE WE NEED TO VOTE THIS GOVERNMENT OUT!

  15. enough says:

    “In my opinion, this entire situation is deplorable and represents a blatant disregard for the public purse and a lack of transparency and accountability at the most senior levels of Government. The question to be asked is who will be held accountable – the answer is likely noone!”

    Ouch.

  16. RobbieM says:

    This is the whole problem of having a politalically appointed Attorney General.

    “the Attorney General’s Chambers cited the doctrine of legal privilege.”
    Mrs. Jacobs Matthews expressed her view that “attempting to cover-up an abuse of public funds behind the cloak of legal privilege is unacceptable and violates principles of good governance and transparency.”

    So much for this Government’s pledge to good governance and transparency!!!

    • Voice of Reason says:

      That is a bit bothersome. I’m not sure how legal privilege applies with an Auditor General’s Investigation. That’s a bit weak.

      The Auditor General has a role as the public’s watchdog and is to be commended.

      • 32n64w says:

        Agreed. Very surprised the AG’s chambers haven’t complied with Ms. Matthews’ requests and are choosing to erroneously hide behind legal privilege.

        • Voice of Reason says:

          After reading the full report, I agree with AG’s chambers on this one.

          They asked to see instructions, that’s kinda silly.

          If she thought that they were hiding something, she could have pushed for them to be punished under the act, but didn’t, so seems like her throwing a fit on this point.

          She feels its private, Cabinet felt it was Govt.

          next……..

          • Big Dog says:

            What a lot of nonsense. The only case cited is the one from Canada. It is interesting they didn’t flush it out in full as they did with the other cases; which was very much from a legal text book.

          • Curious says:

            The instructions would reveal the nature of the advice and enable the Auditor General to determine who the advice was required to assist. The instructions would conclusively prove the advice was to assist Brown and Burgess with their issue.

            Legal privilege being asserted by the Attorney General to avoid producing the document to the Auditor General? This demonstrates the lengths they will go to to avoid exposing the wrong-doers.

            Brown and Burgess should be required to repay the legal fees spent on their personal matter, and Burgess should resign.

  17. Rhonda says:

    Is their a different between misuse and illegal? Are we talking wrong ledger was used or was funds stolen
    Have the police or the DPP been given a copy?
    Who determine which or if any of the transaction where illegal?

    I hope this is more than just red meat for the public to tear at.

    • navin johnson says:

      you never disappoint Rhonda…..

      • Rhonda says:

        I am glad you are not disappointed….I want to see someone arrested and found guilty, if in fact they are guilty.

  18. Victor says:

    Et tu Kerwin?

  19. LaVerne Furbert says:

    Although Bernews has made not mention of it in their introductory comments, reponses to the Report by the Ministry of Finance, the Ministry of Public Works and the Minisry of Justice are included in the Report.

    • navin johnson says:

      read this report and also read the 2008 report and you get a view of how difficult Government makes the job of the Auditor General…..you may not be able to read the 2009 or 2010 report since the Audit Committee never seems to find the time to meet….divide the hourly rate of $110 into the amounts paid and you see 2 full time jobs being billed….not knowing who the unamed Chairman and Deputy were makes it impossible to guess if they were employed somewhere else during this time….glad to see that this is being brought to light and would bet that this is just the extreme tip of the iceburg……..

    • ooops... says:

      yeah the responses from BLDC: we will consider your recommendation and from the Ministry of Justice: We cant comment. But why was the former Premier looking to sue the Architect and Gov employee?

      “In April 2011, it was brought to the attention of the Auditor General
      that legal action had been initiated in the Ontario Superior Court of
      Justice on behalf of the former Premier and the Minister of Public
      Works. The purpose of the legal action was to sue one of the Canadian
      architects and a Government of Bermuda employee for $1 million
      each for general damages and $1 million each for aggravated and/or
      punitive damages plus costs. The specific charges against the two
      individuals were conspiracy and defamation.” (pg13)

      Doesn’t that seem to be his M.O.? something comes out and he threatens to sue for defamation?

    • LongBayTradingCo. says:

      So the responses from the various foxes in charge of the hen house have been included in the report – thats ok then……….I feel much better. NOT!!!!

  20. Conspiracy in the GOV says:

    And im waiting for the reply of the Premier and her royal minions to come back with an answer…… Good job Auditor General. You are doing your job, but letting the people know that this government is ridiculous, and coniving in many dealings. there is no Broom big enough to sweep the dirt under the table with this Farcade of a Govnernment.

  21. PORTO GIRL says:

    Good job Ms. Matthews, poor thing she has no idea what will be coming soon. They will have the police in her office soon, like they did to the former Auditor General!!!!!! It use to be this white man was causing trouble with the PLP Government, wandering what they are calling it with Ms Matthews!!!!!

  22. Tommy Chong says:

    To blame or defend the whole government for this action would be a fallacy. There are certain individuals in are or were in government who the blame can be put to. Hopefully these individuals are investigated & prosecuted to full extent as misuse of funds in any business setting wether private or governmental can in some cases either be considered stealing or fraud which are both illegal. If these people are prosecuted & found guilty they are given the choice of prison time or fund reimbursement & of curse they will chose reimbursement & chose to plea bankruptcy & thats when their full assets should be liquidated for pay back.

    • Voice of Reason says:

      Agreed!

    • Triangle Drifter says:

      Oh yeah, that sounds like a good plan. Lets find a few fall guys & let the rest slip away with the goods. Good gang business plan.

    • Gillian says:

      Fully agree Tommy

  23. d-reader says:

    as shakesphere says…”MUCH ADO ABOUT NOTHING”

    • LongBayTradingCo. says:

      when you have no job, no prospects for a job cuz most of our business has shut down or moved away, there is no money for imports and nothing to buy, no roof over your head cuz you have no money to pay for it, no food in your belly because you have no money to pay for it and there is not much worth buying in anycase, and this USELESS and WORTHLESS excuse for a Government has taken this Island totally down to ground zero (they are still working on this); and its just us Bermudians left twiddling our thumbs, I wonder if you will still feel that its “MUCH ADO ABOUT NOTHING”???

  24. Rhonda says:

    However, Mrs. Jacobs Matthews expressed her view that “attempting to cover-up an abuse of public funds behind the cloak of legal privilege is unacceptable and violates principles of good governance and transparency.”

    Mrs. Jacobs Matthews warned that restrictions on her access to information violate the provisions of the Audit Act 1990.

    “The Act provides that it is a criminal offence to fail or refuse to supply any explanation, information or assistance which I may reasonably require for the performance of my functions” said the Auditor General.

    “As a result, I have decided that should my access be denied in the future, I will bring the matter to the immediate attention of the House of Assembly and the public. I will also recommend that those individuals who have infringed on my right to information be required to appear before the Public Accounts Committee.”
    WHY WAIT. IF AN OFFENCE OCCURRED AS YOU HAVE STATED, DON’T YOU HAVE A DUTY TO REPORT IT, OR IS THE AG NOW DECIDING WHAT GETS PROSECUTED.

    • Sean says:

      Rhonda, I don’t think she’s the one that would ‘prosecute’ anybody. She’s an auditor, not a cop or a prosecutor. All she can do is make recommendations.

  25. Cancer says:

    @voice of reason – you must note these are just issues that were recently brought to the AG’s attention. This is not the auditor generals report. I’m sure the report itself will reveal much worse than what we have now. Also this all happened under the finance minister Paula Cox. A full explanation shud be given by her and anyone involved shud be removed from office. Always a scandal with this PLP government!!!

    • Voice of Reason says:

      I’ll note one more time..

      “The Premier/Minister of Finance is to be commended for taking prompt action in these matters once brought to her attention by the Auditor General.”

      Please answer me this though, how are you “sure” the report will reveal much worse? Have you seen it already. One would think that you aren’t a mind reader.

      • Finally left! says:

        I’ll note one more time..

        you keep quoting this, yet you fail to finish the paragraph.

        Can you quote that too please?

        I shall since you probably wont.

        “Despite the current Board’s reported action to recover the consultancy fees, at the date of this report the amount remains to be unpaide. Equally disturbing is the fact that no one has been held accountable for these breaches.”

        The premier/minister of finance only changed the board. nothing has been done to actually correct the issue.

        • Voice of Reason says:

          I’ll repeat what I wrote below, the entire board was fired, and the Minister in Question lost control of the BLDC.

          • Real Talk (original) says:

            …only to be shuffled to another Ministry. That hardly addresses the issue.

          • 32n64w says:

            Shuffling the deck chairs.

            The Premier should have demanded the Minister’s resignation. Although something tells me she did and he refused (just like he did when she told him to fire the BLDC Chairman and Deputy Chairman).

  26. Clinton J. A. Paynter OBA Affiliated says:

    “Although the amounts at issue may not be seen
    as significant, these misuses cause me to
    question the ‘tone at the top’ and whether
    Government officials at the most senior level will
    do the right thing.”

    Nuff said… The PLP need to go. We need a new ‘tone at the top’… OBA all the way baby!

    • sticky says:

      Really no need to make light of this situation. Ms Mathews is just doing her job as the professional that she is .

      • Voice of Reason says:

        And for the most part she is doing a good job.

  27. Clinton J. A. Paynter OBA Affiliated says:

    Does this mean that the Auditor General is now a member of the so called “Combined Opposition”??? Reality must have an anti PLP bias.

    • Voice of Reason says:

      Clinton, will you commend the Premier is the same way that the Auditor General did?

      “The Premier/Minister of Finance is to be commended for taking prompt action in these matters once brought to her attention by the Auditor General.”

      • Finally left! says:

        Lets quote the rest of that paragraph you so nicely started yet again…

        “Despite the current Board’s reported action to recover the consultancy fees, at the date of this report the amount remains to be unpaide. Equally disturbing is the fact that no one has been held accountable for these breaches.”

        • Voice of Reason says:

          Kind of hard to say that no one has been held accountable when the Entire Board was fired!

        • Chart says:

          Exactly – the Premier keeps talking but not doing.

          • Itsaboutallofus says:

            what are you talking about? she has done exactly what she said she would do. This all happened back in mid 2011. Once she was appraised of the situation she did what was required.

            • Pastor Syl says:

              Fired is not the same as being held accountable, far from it. You fire someone so they can’t continue to do what they were doing. Then you hold them accountable for what they actually did. This is why bank cashiers and retail staff who steal are not only fired but are also taken to court. My expectation is that everyone else from top down, is held to the same legal standard.

  28. 32n64w says:

    Ms. Mathews sums up the PLP Government’s attitude towards the taxpayer quite succinctly and accurately:

    “In my opinion, this entire situation is deplorable and represents a blatant disregard for the public purse and a lack of transparency and accountability at the most senior levels of Government. The question to be asked is who will be held accountable – the answer is likely no one!”

    At least the current Premier is making an effort to bring our Government and the legislation into the 21st Century.

    Let’s just be sure, where possible and constitutionally acceptable, these changes and amendments are retroactive so those parties who may have defrauded the taxpayer can be brought before the courts and restitution made.

  29. Rhonda says:

    No disrespect to a AG…but she has more excuses than a bird has feather…Send us something that leaves no doubt…I want to see the handcuffs, and walk down the block..

    Not stuff that only causes political speeches…

  30. Hmmmmm says:

    Difficult day to be PLP but that’s the way it is. This is bad Report and nothing can change that. However, this is proof that he who has the mic wins everytime. Ewart and Derrick were targeted in their capacities as Ministers, not privately and so it is at least arguable that these costs are justified. Suppose a member of Chambers with rights of audience in Canadian courts was flown over to Canada to handle this case. Would that be ok or still a misuse? (real question). One thing about Heather though, she’s getting out all that pent up stuff from years of reporting to the folk she’s dealing this hand to now. Her language is right on the line though….leaving it “to the court of public opinion” ? Almost seems like an attempt to influence an election…..inside or outside of the Party……more to this than meets the eye folks.

  31. man! says:

    no wonder they want to get rid of the governor and privy counsil and go independent……………nobody would even know about any of this crap!

    • Chart says:

      Bingo.

      • Voice of Reason says:

        Curious comments seeing that. PLP has never ever at any time stated they wanted to get rid of the Governor or appeal to the Privy Council.

        Also, the PLP increased the independence of the Auditor General in 1999 as one of their first acts, so your comments don’t really make sense.

        • Chart says:

          Actually the PLP has repeatedly championed the idea of joining the Caribbean Court of Justice as an alternative to the Privy Council. Look back at info related to the independence commission and Caricom.

          • Voice of Reason says:

            How about you prove that. As the PLP has never said that, though it has been discussed the official position has never been anything except for the Privy Council.

            Just coming on here and saying stuff does not make it true.

            • Keepin' it Real...4Real! says:

              I’ve been reading up until now..Voice of Reason…Everything you have said here in this conversation just became Null and Void…and i will quote YOU… “Just coming on here and saying stuff does not make it true”.

  32. The One (Original) says:

    Can’t wait to see how the PLP blames the UBP, OBA, expats, anyone else for this.

  33. The Hell!! says:

    Go get em Mrs. Mathews. We the public got your back.

  34. gee PLP whats going on hinding spending our money,and not doing anything about it,they just worried about themselves,and the people they help.wonder if they will fire her now that she put it out there for the public to know,they so quick in trying to cover things up.job well done.

    • Voice of Reason says:

      “The Premier/Minister of Finance is to be commended for taking prompt action in these matters once brought to her attention by the Auditor General.”

      Also, it is hard to say that things are covered up when you are reading about them.

      • Hmmmmm says:

        Well said. Any the covering up hasn’t shortened the reach of some of Heather’s “opinions”. And there seem to be at least 6 competing opinions in this report alone…….but she has the microphone, so off we go.

      • ooops... says:

        “To date, I have attempted to obtain information through persuasive
        methods. However, as explained later in this report, our access to
        information continues to be challenged. If this persists, I will bring the matter to the immediate attention of the House of Assembly and the
        public. In addition, I will recommend that those individuals who have
        infringed on my right to information be required to appear before the
        Public Accounts Committee”

        • LOL (original) says:

          Yea the one that never meets……………………..

          LOL

  35. sticky says:

    Its tijme for some heads to roll, lets see whose rolls first, this is cause for great concern for Bermuda, since the government is the people and the people and the people deserve better. The names of these arrogant individuals should be made public right now.

  36. Terry says:

    In the 60-70′s the BBC did it to complete Marxis control. Reminates still remain for monetary.

  37. Cancer says:

    I would think every day would be a difficult day to be a PLP follower I mean c’on it’s been scandal after scandal practically for about 7 years now. Starting from bermuda housing corporation right up to this very day…it continues on. Oh how we let one man ruin a party and a country – hopefully this won’t last after June! The PLP must go! Vote for good governance and a team with fresh ideas and new people who will turn Bermuda and this economy around.

  38. Itsaboutallofus says:

    From what i have read, the Auditor General found areas of major concern, highlighted them, brought them to the Premier’s attention, and corrective action has been taken. In my view that means both the Auditor general and the Premier have acted with the responsibility of their positions. In the report, the AuG even says that the action has already been taken.
    Come on people, just because you dont like the PLP, don’t misread the report, or read more into it.
    The Premier has been clear about her quest for good governance to be a hallmark of her leadership. I don’t see how the entire governmment or she for that matter should be clouded for these discrepancies when they were not under her direct watch, and when she was apprised of the situations, she made the tough decisions that needed to be made. If anything she should be praised.

    • Sandgrownan says:

      No. Therese are not tough decisions numbskull. These are black and white issues and easydecisions and as Finance Minister she was aware of the wrongdoing all the way back to EB’s tenure. Shame on you for applauding Cog for doing, finally, what she should have been bloody doing all along. You know, her

    • Sandgrownan says:

      …job

  39. man! says:

    man! says:
    January 26, 2012 at 1:48 pm
    its not just this $200,000…its the docks (over $30million overbudget)

    Its the TCD $15 million over budget

    $64 million barkley school that cost $125+ million

    to tenders to whites…black only apply

    Remember ” hire your own?” by Ashfeild?

    And “we have the checkbook now (chuckles)” by Ewart brown

    And “l’m just a clog in the wheel” by Paula Cox

    And all the sensless things Burch has said to embarress this country and he is back?!!!

    and more millions

    And more waste

    And hire more voters

    And go sign another “tax treaty with timbucktoo”

    And its the UBP not the OBA

    And the OBA is just the UBP in disguise

    Bermuda sucks and everybody in the world hates it here…including you. So envy what? there is no envy of Bermuda unless you are Black and even the black people are getting sick here……

    Reply

    • Cleancut says:

      If the PLP win the next General Election, and Burch gets in, many people will call it a day, under the disguise of cut-backs and relocation. As a result Bermudians will loose jobs.

  40. Cancer says:

    PLP supporters are so contradictory and use words that always suit their purpose… I take the words of itsallaboutus “”I don’t see how the entire governmment or she for that matter should be clouded for these discrepancies when they were not under her direct watch, “” but yet the OBA is continually ostracized amd bled for the wrongdoings of the old boys network within the old UBP which the people and party today had nothing to do with ! You guys can’t have it both ways….

  41. Wicky Choopa says:

    I dont see the big deal. Some dudes in a quango wanted to pay themselves as consultants, went to independent law firms to see if they could do it… law firms said they could. Finance Minister finds out and tells them to leave their post..

    2 ministers were victims of a failed plot to frame them as being corrupt. Plot failed, and the Ministers used public funds for litigation against the accused persons..

    Why is this a huge deal? or can someone re-explain this to me?

  42. Just sayin says:

    I want to see all funds PAID BACK. Then court action.

  43. Victor says:

    Very odd that Ms. Laverne Furbert is so quiet on this issue when she is generally such an outstanding correspondent on Bermuda’s politics, especially so when it comes to her beloved PLP. Gone missing have we today Ms. Furbert?

  44. Victor says:

    Oops, my mistake, Ms. Furbert did correspond. Apologies

  45. concerned says:

    “The issues discussed in this report involve elected officials and senior civil servants at the highest levels,” said the Auditor General.

    By senior servants does she mean certain Permanent Secretaries? Then they shoud be named because persons switch regularly between acting PS posts. It would be interesting if those persons applying for the recently advertised posts are involved in any mishandling of the publics purse if this should be the case.

  46. Real Talk (original) says:

    If somebody could start a petition for duty rates, can a petition not be started to have an election called ASAP?!

  47. not a happy Bermudian says:

    God bless you Mrs Jacob Matthews for your do dilgence!
    So when is the whistleblower protection act going to be passed??? Definitely not with this present PLP Government, so time to “send a message” (not a cheque as most Bermies think : ) to Paula & the PLP, “Time for change in Government & NOW!”

  48. Cleancut says:

    We could have received quite a healthy package! for the 4 Uyghurs that were smuggled into this country ILLEGALLY by Col. Burch and Dr. Brown. Those two are great humanitarians Aren’t they? to not accept a LARGE QUANTITY OF CASH in return.

  49. Truth (Original) says:

    I’m in love with Heather Jacobs LOL !

    • specialgirl4you says:

      ARe you sure, you do not really know her, or what the true motive is behind this report? Your only happy in that you think it may pull the PLP down, that may backfire on you as well. All is not told. It is politically motive, and done by you know who? I do not believe that anything was done from ill intentions.

      • Tired of nonsense says:

        Well then tell us what is “not told.”

        If you know something that would clear this all up while at the same time being able to show the AG retains biases then you would have done it already.

        no instead you make these wild insinuations but never seem to be able to provide that last piece of evidence and/or ulterior motive that you are always bleating on about.

        No Govt is perfect and many politicians are in it for themselves. The PLP is no different and they are definitely not this totally angelic organization that your daily propaganda tries to portray them as being. Just accept that many mistakes have been made and that no so virtous people inhabit the ranks of the Party. Doesn’t mean they are the majority.

        So either put up…you know the rest..

      • MinorMatters says:

        Well I am not disappointed! I was wondering when the Auditor General’s motive would be questioned or her reputation impugned…forgeddabout the alleged egregious violation of ethics of the ministers, chairman and deputy chairman…let’s launch an attack on the Auditor General’s motive…nice one!!!

  50. OMG says:

    Gee….can some one try and find my paycheck while they are at it. I work for this Government and some of us haven’t seen a paycheck in weeks. (they) blame the new system !!! As Paula says in this hard economic times….yeah right

  51. Cleancut says:

    A lot of people seem to praise the Auditor General Ms. Matthews, remember she is working under the direction of the Governor. Like all of us she has her own position to protect, she also has to be seen to be doing something pro-active. Every so often she alerts the media, and REPORTS to the public and she always seems to be unveiling something or another in a timely fashion. This time its small pickings, last time it was of huge importance. But do we really know this women Matthews and her intentions? Maybe she is a PLP supporter, and/or she is just protecting her position. We wouldn’t want to see the Governor bring in a Foreign Auditor General, now would we?

    • Bermudian in IB says:

      Foreign or Bermudian AG… who cares??? We need transparency and a system of checks and balances.

      That’s what we need more than any sort of Bermudianization.

  52. Somerset Girl says:

    I am praying for the suditor general. Those that conspired to use the public purse as if it is there own private stas may seek to have her locked up as they did her predecessor. Oh come on Bermuda grown up and hold these politicians accountable. Lock them up until we can set a date for their trial. Seize all travel documents and make them appear before the court once a month.

    • Triangle Drifter says:

      That would be nice. First a former MP might have to be extradited from whatever vacation residence he may be in, then you might have to jail a number of sitting MPs which would make a chaotic Government even worse.

      Besides Bermudas own little puddle of British colonies, the rest of the world won’t care. It might make a 30 second story for one day on CNN, maybe a little longer if there is a US connection.

    • PEPPER says:

      Somerset, prayers are not going to help !!! did you hear Derick Burgess on the radio today ? he is so full of you know what, but the blind fools will back him up…when ever the P.L.P.are caught out they run to z.b.m. and spew their BS out to the sly fox.
      Thank God we have Gina and Michael, they are the best thing to happenn to Z.B.M.
      I wonder if the time has come to retire Everest,because he has become a grumpy old man …

  53. Mayan says:

    When is enough going to be enough? The amount doesn’t matter-it’s a matter of principle. There is just too much going on with this present government. They feel like they can just do what they want because they know their followers will just buy their baloney. Sorry to say, but PLP supporters just aren’t very smart and they have no clue as to how the real world works-no clue about finance, economics,etc. and definitely no common sense. Don’t make this into a race thing, either because I’m a black Bermudian but thank god many of us have some brains in our heads and don’t just vote for people who look like us but have no clue what they’re doing, and who are hellbent on destroying this country.

    OBA-when you get in PLEASE, PLEASE do not get complacent and arrogant like the UBP unfortunately did years ago. PLEASE ensure that you are fair in governing this island because we can’t afford for the locals to get disgruntled again to the point where they vote these people back in again. When you get in, please do what you have to to make sure you stay in for good-PLEASE!Bermuda can’t afford a PLP government EVER again!!!

  54. Not Surprised says:

    not surprised by this news at all. It was only a matter of time before the truth starts to spill out, because it’s now too much to contain. And now the BS will begin to flow freely to cover the truth up…..sigh (and some will still support this government).
    Just wondering how long the AG will remain AG. Think this poor person will be an unemployment statistic soon. Keep it coming though, and congratulations for the having balls to go public with this. Cudos to you!

  55. Vote for Me says:

    This is a difficult one for the PLP. I assume they want to be firm but must be careful not to be overly critical of the Auditor General.

    From reading the facts, an objective response is quite simple. The report represents a difference of professional OPINION by the The Auditor General, KPMG and Trott and Duncan.

    To summarise, the Auditor reviewed the payments to the former Chairman and Deputy Chairman and had concerns about the appropriateness of the payments. She advised the Board and they sought independent (expert?) advice from a leading accounting firm (KPMG) and law firm (Trott and Duncan). Both confirmed that the payments were not illegal and in accordance with the company bye laws. Once the Premier was aware of the Auditors concerns, she took decisive action – requested a repayment and replaced the board!!

    The report result – the Auditor infers that there was a problem with the payments and the Minister’s response that Trott and Duncan and KPMG confirmed that the payments were legal get relegated to the end of the report!

    I also thought these types of reports were published via the House of Assembly. What happened to cause the reports to be published without the immediate benefit of debate by our Parliamentarians?

    From a succint review, how can we legitimately criticise the current Premier and Minister of Finance?? She acted with a sense of urgency once notified by the Auditor.

    • Mike Auxard says:

      you will never get it.

      • Vote for Me says:

        Never get it?? What exactly did you not get from my post. Please do not follow the habit of others when they disagree by simply posting one liners. I am open to clarify anything I wrote above.

      • Robb says:

        @Vot for me, you seem to have intimate knowledge of what went down that the rest of the general public does not have access to? I wonder how you know so much? It is obvious to everyone that the Premier acted only after she moved the Minister to another portfolio. Then she was able to fire the Chaiman and Vice-Chaiman. What annoys me as a taxpayer is that neither of these gentlemen have repaid the funds!

        • Vote for Me says:

          @ Robb
          The full report is available on line from Bernews and contains everything I have posted. It is interesting that the RG and others did not get the same succint summary of the report! Remember that we are in an election period and it is in the interest of some to stir controversy where none exists.

          The difficulty for most of us is to take the time to read public information in its entirety rather that following the sometimes ill informed opinions of others, especially some of the posters to this and other sites.

          What more do you want the Premier to do? Remember that Trott and Duncan and KMPG concluded that the payments were not illegal.

          Notwithstanding, the Premier requested repayment of the funds, changed Ministerial responsibility and replaced the board. As always, I accept differences of opinion but in this instance, what more do you want?? The Auditor herself has commended the Premier for acting promptly and yet many of these posts continue to blame the Premier.

          May we all READ before forming opinions.

  56. Poetic Justice says:

    Did the censor shut down the Stained Paradise video link? Seems freedom of speech and expression are not so free any more!! SAD!!!

    Joshua laid bare some hard truths as to why we as a country are were we are presently and for whatever reason that isn’t acceptable!!?? Stand up people!!!

    You can run but you cant hide from the truth!!!!

  57. MinorMatters says:

    FYI – from Royal Gazette – Jan 27 2012:

    “In early 2010, when the Bermuda Land Development Company’s board approved the payment of consultancy fees to chairman Edward Saunders and deputy chairman Pastor Leroy Bean, an approximate figure of $14,000 each was settled upon.

    The two men were to conduct an “assessment of the operations of the company,” further to a suggestion by Works Minister Derrick Burgess, with the expectation that their inquiries would be completed by the end of March.

    But the lucrative $110-an-hour work continued for many more months, with the pair ultimately netting a total of $160,230 between them, all courtesy of Bermuda’s taxpayers…”

    • Tired of nonsense says:

      Was the AG ever able to review the assessment that these individuals were commissioned to complete?

      $160k for an assessment of a small quango? Auditors charge about a quarter of that for audits on local banks that have more than $10bn in assets!

      • Vote for Me says:

        @ Tired of nonsense. Reveiew any of the bank’s audit fees to determine how much they pay. You may be surprised that the bill is several hundred thousand.

  58. 32n64w says:

    What are Edward Saunders and Pastor Leroy Bean’s qualifications?

    Is is sheer coincidence that two former PLP branch chairmen were appointed to the Board of the BLDC and subsequently received $160k each?

    • PEPPER says:

      Pastor Leroy Bean is a a joke , and should be ashamed of himself these so called pastors remind me of the Rev Al Sharpton,and shake down Jessy Jackson…there is more to come out about these guys…

    • Vote for Me says:

      @32N64W
      Just a minor correction. The TOTAL payment was $160k, not $160k EACH.

  59. HeyBye says:

    Time for the British Government to step in and dissolve the current government for major corruption and lack of governance;like they did in Turks and Caicos.
    I am afraid this is the only way for Bermuda start anew, with a clean slate.

    Other wise,the PLP base will continue to vote them back in,they seem to be a gluten for punishment.They have been so brain washed about race,they do not notice that they are being screwed.

  60. It's real says:

    A few bad apples ruining life for all

  61. Poetic Justice says:

    @ HeyBye – Yeah I agree with you I listen to the talk shows and here the PLP defenders continually making all manner of excuse for things that are so blatantly wrong that I could never understand anyone being so detached from reality.

    When one can ignore the facts of the matter and doggedly support something that has no factual basis for logic or truth we have gone way beyond brainwashed were talking full lobotomy here.

    These people are sick beyond compare. Any wonder the present government operates with reckless abandon? they figure the ignorant electorate (of which there are many) will blindly vote them back in regardless of the hack job they have done on this country. What is worse these fools are the ones who are suffering most as a result of their blind loyalty to this administration that is clearly interested in advancing their own agendas and personal self worth. Sad!!!

    We keep hearing this need to redress the economic disparity between blacks and equally educated whites yet the only people I see getting paid are PLP hacks, crony’s and supporters. Almost none of the capital projects have gone to “People who look like me” yet these fools cant see Rome burning in front of them??

    “BACK TO THE PLANTATION’

    • Vote for Me says:

      @poetic justice
      The facts are that the Auditor General (a professional accountant), KPMG (an international accounting firm) and Trott and Duncan (a leading Bermuda law firm) each looked at the same facts (payments to the former Chairman and Deputy Chairman). One (the Auditor) considered the payments to be wrong. Two (KPMG and Trott and Duncan aadvised that that the payments were not wrong).

      The final report then says that the payments were wrong, even though 2 other independent professional opinions disagree with her.

      Simple conclusion – the minority opinion has been carried as THE OPINION. Thus we really have a difference of OPINION, not FACT.

    • Vote for Me says:

      @poetic justice
      The facts are that the Auditor General (a professional accountant), KPMG (an international accounting firm) and Trott and Duncan (a leading Bermuda law firm) each looked at the same facts (payments to the former Chairman and Deputy Chairman). One (the Auditor) considered the payments to be wrong. Two (KPMG and Trott and Duncan aadvised that that the payments were not wrong).

      The final report then says that the payments were wrong, even though 2 other independent professional opinions disagree with her.

      Simple conclusion – the minority opinion has been carried as THE OPINION. Thus we really have a difference of OPINION, not FACT.

  62. CAN YOU SLEEP? says:

    Stand tall Mrs. Matthews. I am sure that you sleep well at nights. Continue to carry out your duties without fear or favour.. Leave a legacy of ethics.

  63. Kj says:

    People please take your time and read the document. Our Premier/Minister of Finance who is the commander of this ship knows and has done the right thing and is commended for it within the report several times.

    On April 1, 2011, the Premier changed the delegated responsibility forthe Bermuda Land Development Company Limited from the Ministerof Public Works to the Minister of Environment, Planning andInfrastructure Strategy. On May 12, 2011, at a Special Meeting of theCompany, the Board was disbanded and a new Board established.

    The Premier/Minister of Finance is to be commended for taking prompt action in these matters once brought to her attention by the Auditor General.