OBA’s Cannonier On Auditor’s Report

January 30, 2012

[Written by Opposition Leader Craig Cannonier] We don’t believe the people of Bermuda are surprised to hear about the misuses of public money revealed by the Auditor General’s report.

Over the years, we have seen enough to know that the system has been worked time and again for the benefit of friends and insiders.

Government pledges to strengthen good governance have been more a smokescreen than a path to better governance.

The OBA from the beginning has said it will reform government to make it more transparent and more accountable, so that people can have confidence the government is actually working for their benefit.

But those reforms are really just one part of the equation. To really make reform work, to make it stick, you need people who believe in it.

The reality is you can have all the rules you want, but if you’re not going to follow them, if you’re going to try to manipulate them, then Bermuda is never going to have a government they can trust.

At the end of the day, good governance comes down to people and the trust you have in them, and that is the issue at the heart of this report.

Here are a couple of examples of what an OBA Government would have done differently:

Missed opportunities at the BLDC

The public learned three days ago through the Auditor General about the misuse of public funds at the BLDC. The Premier learned about it more than a year ago. What does that say about her commitment to transparency?

An OBA Government would have informed the public immediately. We would have stepped up to the microphone as soon as possible to report what was going on with a pledge to keep people informed going forward. This is what transparency and openness mean.

This Premier did not do that. Despite talking many times about the need for transparency in government, she has been anything but transparent. Here was an opportunity to walk the walk but she did not.

The Auditor also reported that the BLDC chairman and Deputy Chairman defied the Finance Minister’s orders to vacate their positions and that the Public Works Minister took no action to support that order.

An OBA Government would not have tolerated such disrespect.

Public money funding private legal actions

Premier Cox argues that her decision to use public money to pay the expenses for two ministers’ private legal action was done to protect the integrity of the government.

If that was the case, then:

1. The Government of Bermuda needed to out its name to the action, not the names of Ewart Brown and Derrick Burgess, and

2. The Government should have sued for $1 in damages, not the $4 million sought by Messrs Brown and Burgess.

Seeking $4 million makes the action about enrichment; seeking $1 makes it about integrity.

As it was, the Government only backed away from the financing the action when the Auditor General raised questions about it. But to back away does not make sense if the Premier truly believed the Government’s integrity was at stake. Her action suggests she thought her decision to fund her colleagues’ private action was wrong.

An OBA Government would not have paid legal fees for a private action.

Read More About

Category: All, News, Politics

Comments (42)

Trackback URL | Comments RSS Feed

  1. employees says:

    I’m quite sure an OBA government wouldn’t have had forges cheques planted in government files in an attempt to frame a premier and a cabinet minister!

    Keep it up Craig, you sound more desperate everyday.

    • all clogged up says:

      Yes let’s discuss the cheques if that is where your interest lies. If the media, Government and the general public agree that the persons involved have been correctly identified, then why haven’t we seen the AG (attorney general) move to extridite the canadian man, and prosecute the bermudian man accused of the forgery and perversion of justice? Why sue in a court outside of Bermuda, outside of our juristiction? The crime was committed here wasn’t it? Please enlighten me…..or confuse me further with your answer.

      • Yup says:

        Bermuda is going down hill. Bye-bye Bermuda. Hello Jamaica!!

    • mrwiggin says:

      haha what? what are you smoking, public money is your money too.

      It’s like someone robbed you and now you’re accusing the police of planting money in your house to set yourself up to be robbed.

    • Black Bermudian in IB says:

      I think the whole country is desperate for the issues of abuse and misuse to stop. Not just stop making headlines and embarrassing us but also to stop being perpetrated altogether.

      • LongBayTradingCo. says:

        Open request to this PLP Administration:
        Why don’t you help yourselves and JUST STOP all of this speculation, inuendo, supposition, allegations of wrongdoing, suspicions etc. by just OPENING YOUR BOOKS, ACCOUNTS, OVERDUE ACCOUNTS, RECORDS AND ALL RELEVANT FINANCIAL DOCUMENTATION related to the many issues raised over the past several years to the sunshine of Public Scrutiny??? Why not?? Why is it so difficult and why do you spend SO MUCH ENERGY circumventing what is rightfully the public’s right to know if you have nothing to hide? Why won’t you just do this one simple thing and put an end to all the speculation? Surely if you have nothing to hide there is nothing to worry about? Or is there?

        • Voice of Reason says:

          Interesting thought. What is more interesting is, that is exactly what happens.

          The books are open, and everything is audited.

          • Mad Dawg says:

            The ‘books’ are not open. No im-plementation of PATI yet, even though it was passed years ago. The Auditor General gets stiffed every time she wants to hold a meeting with people responsible, or get information. And when the Auditor General does makes a comment about things not being as they should, she gets accused of being on a ‘personal witch hunt’.

            When audits are held up, you say ‘the Auditor general should hurry up’.

            Are you living in a complete fantasy world?

  2. Meltdown says:

    Huh? Serious? Lol

  3. OBA=UBP says:

    Cue the Overreach by the OBA

    2003 – BHC
    2007 – Cedar Beams
    2012 – BLDC

    Didn’t work the first 2 times, won’t work the 3rd

  4. Cancer says:

    Yes time for the PLP to go – they’ve run this ship aground. It needs to stop. A vote for the PLP is a vote for continued taking from the people.

  5. flikel says:

    In my opinion, the main problem is Bermuda’s ‘system’ allows various forms of unethical behaviour to take place. The ‘system’ permits the misuse of public funds without penalty.

    Although the OBA, UBP cry foul, the PLP cried foul when they were the opposition….there is NO real effort by any party to change the ‘system’.

    The people of Bermuda simply have promises this will never happen again. However, if the ‘system’ does not change, this is not the last time we will hear of such behaviour regardless of which party is in power.

    PLP, UBP, OBA….are comprised of people. By human nature, we will exploit opportunities for personal enrichment. If such opportunity exists, without penalty, it will be taken advantage of.

    Change the system and penalties in place is the real solution.

  6. Serious though says:

    OBA, this is what i thought will be be the action points

    For government Transparency govt will:
    1. Review the Auditor General Powers, offer investigation and prosecution of public officers who misuse public funds PLUS those found guilty have to reimburse the “people their money”.
    2. That all government audits should be completed within 1 year after the end of government fiscal year
    3. The parliament should debate the audit report

    • Voice of Reason says:

      1) This already exists courtesy of the PLP Government. If the Auditor General had such proof she could pass it to the DPP.
      2) That is already part of the law. Auditor General just needs to hurry up and finish her reports.
      3) All reports of the Auditor are debated in the house.

      • LOL (original) says:

        Not untill the committee that never meets see them first remeber.

        LOL

  7. Derek (and Clive) says:

    PLP is the only party in desperation here. They are going down quicker than a lead balloon. Bring on the election so we can vote these fools out.

  8. Ole says:

    @Employees – I am a supporter of the PLP and will vote for them in the next election, however the party has been severely damaged and Paula will need to work overtime to convince those swing voters that the PLP can be trusted to continue to lead the country.

    What should have been a foregone conclusion will most likely end up being a very close race..

  9. kevin says:

    There seems t be a serious rush to judgement here and also an assumption that the Auditor General cannot be wrong. Indeed her report speaks of her opinion without ever stating whether or not she got a legal opinion since she is not a lawyer. She does not have greater say over how funds are spent than the finance minister and or cabinet.

    • 32n64w says:

      She did receive a legal opinion on the matter of privilege.

      There was no need to seek an opinion (which doesn’t mean she didn’t) on the Minister’s failure to follow the Act. His dis-adherence is a confirmed fact.

    • Pastor Syl says:

      @ Kevin: “Opinion” is auditor-speak for having subjected financial records to the most rigorous scrutiny imaginable – especially given these are a country’s records (and being fully cognizant of the outcry that was sure to follow). In any other setting, the Auditor General’s opinion would be taken as absolutely irrefutable, especially since she is in an independent position (and not able to ‘cook the books’)!

      When your company is audited, assuming you work, it would be HIGHLY unusual for your auditor’s opinion to be questioned. Mrs. Matthews has been through the most rigorous training to be in the position she has reached, and it is extremely insulting and a mark of the disrespect you have for her, her position, and anyone who paints a picture of the PLP that is less than rosy, that you would even THINK to question her.

      Further, you are half-right in that the Auditor General has no say on how funds are spent. That is not her job. Her job is to ensure that when the people’s funds ARE spent, that it is done appropriately:that is, legally; in accordance with the constitution; for the benefit of the country; and in accordance with accepted business practices. There are rules in place so that people can’t embezzle, misappropriate, misuse, behave fraudulently with, cheat or bamboozle funds without consequences.

      In my humble opinion, since it was agreed that the country should pay the legal fees for the defamation suit – which was purportedly “done to protect the integrity of the government,” then any monies collected should be paid back into Bermuda’s coffers, not go to enrich private pockets.

    • OBA=UBP says:

      She did get a legal opinion. She pays Saul Froomkin (completely unbiased i’m sure) to give her her opinions. She follow’s Saul’s playbook pretty well.

  10. star man says:

    @employees: The so-called forged cheques fiasco could have been an “inside job” IMO. If it wasn’t someone would have been charged with something by now. Sorta like the silver bullet thingamajig.

    But as far as Mr Cannonier sounding “desperate?” Really? Come on! He’s just pointing out more Brown Stains on the plp record of non-performance and ethics.

    Know who DID sound desperate, though? That mousey plp lawyer fella.

  11. enough says:

    I hope the OBA will employs an editor.

  12. enough says:

    *employ
    Lmao, I’ll get my coat.

  13. specialgirl4you says:

    Hey Mr Cannioner,

    Since Mr. Richards requested that Auditor General investigate all government projects, there are likely to be more to follow. This election is beginning to turn ugly and dirty. Mr. Richards has gotten the Auditor General on his side of the fence for now, but this too shall end. Who place the forge checks into the government files? Why did the Auditor General fail to mention or report the entire facts, such as the response from legal and Accountant firms and information on the conspiracy of who place the checks in the files. It is also likely that there is a conspiracy at work here, to bring the government down, no matter what. But, it is also possible that persons desire to tear down the government can actually end up with tearing down all of Bermuda, just to win the political race. I would suggest that the OBA also pursue the investigation to determine who was behind the placement of the checks on the files, is it possible that the tracks may lead to an uncomfortable answer? Look at the man in the Mirror. It is without a doubt, something does not add up here. A Conspiracy is at work folks. Just asking…… curious indeed…….

  14. Jus' Askin' says:

    I can not wait for election time ;-)

  15. d-reader says:

    dear bernews do you have any poll asking if the people trust the government with their money?

    • Bernews says:

      No, our poll feature is broken lol. Reading above, looks like they confused us with the Sun…

  16. Cancer says:

    Jump on the OBA train – it’s gonna be coming to your town…

  17. Honestly says:

    OBA not, never. I will let that train pass me by. No interested in what Cannonier has to say. Just listen to him putting on as he speaks on the radio. JOKE, and a good laugh they are all desperate!

  18. d-reader says:

    posted my comment 2 hrs ago why is it not up?

  19. Derek (and Clive) says:

    @Honestly. Sounds like you just want more “we had to deceive you”. Good luck with that.

  20. Cancer says:

    @Kevin – your post reads very silly – you really sound like you don’t know what your talking about. The AG responsibility is to audit the books of the government and to point out any wrong doings and to assit in putting corrective measuresion place to ensure the people’s money is wisely spent. For what purpose would she need a lawyer for? She’s done and still is carrying her responsibilities professionally. If I were you i would sit back from trying to defend the PLP as it appears your others bloggers are apparently doing mostly because of the embarrassment the PLP has brought to them and this country..

    • specialgirl4you says:

      Be careful calling other silly, as they too have knowledge and a position.

      The tone of the Auditor General’s report raises several concerns. I have reviewed carefully, several Auditor General Reports from various countries and Islands; none were presented in such a tone, that almost border on professionalism. This brings into questions her motive, as worldwide standards suggest that in order for an Auditor General’s report to have any real creditability it should not have a “Got you Mentality”. But, rather the Auditor General Role is to work with government, and assist them in ensuring that the public purse is spent correctly, and provided the government with direction in how to operate more effectively. The Auditor General decisions and interpretation of the law, can be question, and are not necessarily correct, just because she is the Auditor General. There are some unanswered questions in regards to this matter and her legal interpretation of the position government took is not absolutely correct. It is also common for Auditor Generals to employ the services of a Lawyer to assist with the interpretation of the law. In this case she did, but not always do Lawyers provide the correct legal advice, in this case they failed to provide The Auditor General with such. Government does have the power to make some decisions on how the monies are spent. In this case these two opinions differ, does not mean one is necessarily right over another. The government therefore, may have had the legal advice to make the decisions they did make, which therefore suggest they are indeed correct in their decisions.

      • Mad Dawg says:

        Ah, I see. Shooting the messenger again, Betty. It gets really old.

        Anyway, I see your main suggestion is that the accused should ‘lawyer up’ and build a defence that the things they did were, though admittedly unethical and immoral, were (allegedly) not actually illegal. Well, that’s great. Perhaps the PLP can use that as its next election slogan: “In dishing out government contracts we will probably not break any written laws of Bermuda”. That would be very comforting.

        • LOL (original) says:

          She probly compared Chin, North Korea and the old USSR audit reports…………………

          LOL she truely is speacial

  21. P.I.A says:

    When will they audit WEDCO. That’s were the real money has gone.

  22. bdananny says:

    D-reader

    It amazes me that you have to hide behind a name in order to get your point accross.

    • bdananny says:

      Dear Bernews,

      Just out of curiosity is it the norm to allow posters to mention ppl in the community that are not govt mps, officials or senators etc???

    • d-reader says:

      maybde you can tell me bda nanny