Senator Burt Responds To Bob Richards

February 21, 2012

Junior Minister of Finance Senator David Burt responded to Shadow Finance Minister Bob Richards’ statement yesterday saying, ”The government will not be drawn into a debate about the budget before February 24th, however it is important that we stick to the facts.

“The qualification in this and the prior fiscal year was based on the Auditor General’s opinion that there were issues in internal controls in the management of certain capital development projects,” Senator Burt continued.

“The Auditor’s opinion states, “except for this particular matter the financial statements present fairly in all material aspects, the financial position of the Consolidated Fund of the Government of Bermuda.”

“To state ‘that there remain serious questions about the integrity of the numbers,’ as the Shadow Minister of Finance has stated, is a gross exaggeration of the facts.

“The Government will work with the Auditor General and take the required steps to ensure that this qualification is removed in the future, in the same manner we did when actions were taken on qualified accounts in 2000 and on other previous occasions.

“It should be noted that the annual accounts of the Consolidated Fund have been qualified before November 1998. The March 31, 1998 accounts were qualified by the Auditor General for two reasons as the Auditor was unable to verify:

  • Stamp duty revenue
  • PSSF pension liability and pension related expenditure for the year.

“But the misrepresentations by the Shadow Minister don’t end there. The Shadow Minister then goes on to claim that employee expenses were 16% over budget when in fact they were 5% under budget.

“It is also interesting that he criticises overspends in health and financial assistance. If he was in charge, would he turn people away from the hospital, or refuse support for those that may have fallen on tough times due to the worst financial crisis since the great depression?

“It is easy to play skipper one year later; however 2010/2011 was a year of extreme economic challenge for our country. This government views it as its obligation to assist the vulnerable in times of need and we will not apologise for taking care of the people of Bermuda when they need it,” concluded Senator Burt.

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Comments (56)

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  1. navin johnson says:

    once again they send out a mouthpiece to try to explain financial shortfalls….lets try to translate the problem with “mismanagement of certain internal controls in capital projects” basically says “We cannot find the money”….

    • Jack Jumping says:

      WELL DONE SEN. BURT….you have sure lit a fire under the OBA feet. They are upset that you pulled their hero Mr. Richards down on a real level. Keep pushing on Sen. Burt. Their comments along, suggest that your words were powerful, and so now they are attempting to reject the truth. You keep pushing on Sen. Burt. What a wonderful young man working hard for his country… GOOD JOB Sen. Burt.

  2. Bewildered says:

    “But the misrepresentations by the Shadow Minister don’t end there. The Shadow Minister then goes on to claim that employee expenses were 16% over budget when in fact they were 5% under budget.

    Senator Burt provides no reference or figures for this alleged 5% below budget number so this statement is meangless on its own. However, on Page 43 of the Auditor General’s Report, the following amounts are clearly shown:

    2011 Original estimate $517,851,000
    2011 Actual $599,745,003
    2010 Rwstated $577,423,250

    Maybe he can explain why $599,745,003 is 5% less than $517,851,000. Perhaps it is standard PLP accounting methods.

    • employees says:

      Ask that question to Bob Richards. Why did he take non-cash expenses off of the topline, but didn’t substract non-cash expenses when he discussed employee expenses.

      Disingenuous. Accountants know better, Bob Ricahards can’t read a financial statement.

  3. Mad Dawg says:

    “Issues in internal controls in the management of capital projects” is not a minor thing. It involves the misuse of, potentially, hundreds of millions of taxpayer dollars.

    Burt sweeps this up as a trivial item, as if it doesn’t matter. He’s using the “Burgess standard” of accountability, i.e. if it is not specifically illegal, then there is nothing wrong with it.

  4. Yup says:

    Mr. Burch is hoping that people cannot read or use their brain. To imply that all is well when you ignore the controls over capital projects is like saying all is will if you just ignore the bull in the china shop.

  5. Bermyman says:

    “This government views it as its obligation to assist the vulnerable in times of need and we will not apologise for taking care of the people of Bermuda when they need it,”

    This is all well and good but how much money has been wasted on the ‘in-vulnerable’ and how do you decide whom is vulnerable. Was Andre Curtis vulnerable?, because he certainly got taken care of by Ewart. Are the Cabinet ministers so vulnerable that they each need cars and expense accounts? Are they so vulnerable that they do not need to take pay-cuts when everyone around them is doing so. Are they so vulnerable that they need to take all expense trips to NASA in Florida, to the Caribbean and Royal Weddings! You name it!! The Government have not cut back on their expenses! We will loose jobs as a country because of that. Civil Service employees WILL loose jobs because of the Governments poor financial management and greed.

    Money has to be spent, but it has to be spent responsibly, wisely and within budget. If this does not happen then the ENTIRE local population will be in a very ‘vulnerable’, position.

    The PLP will wait till the election, if they get back in they will cut jobs on mass within the civil service. They have to! Their costs are too high. Anyone working in the Civil Service should start thinking about a back-up plan because at present your Government is pulling the wool over your eyes. The truth is, many of you will loose your jobs.

  6. Burt [not the Senator] says:

    Once again the OBA and Bob continue to mislead the island of what is really happening. It is expected of the opposition.

    Indeed what would Bob do “If he was in charge, would he turn people away from the hospital, or refuse support for those that may have fallen on tough times due to the worst financial crisis since the great depression?”

    It is clear, if Bob was in charge there would be little to no assistance for the people of this country through this current difficult time. No wait, if Bob was in charge, the world wouldn’t be in recession!!! lmbo.

    People examine the facts and leave the cherry picking practices of the opposition as a last last last resort!

    • Noel Ashford says:

      Senator Burt,
      Interesting how you insult the intelligence of the people by your own cherry picked statements to disguise the real fact that your government squandered the public purse so badly that it isnt likely to be repairable at least in our lifetimes, also jointly executed with the fact that at the same time your policies made the IB feel unwelcome and unliked – you may twist that however you want, but foreigners were made to feel unwelcome – if you have a baseless arguement for this take a poll – see how foreigners feel and wonder why there are so few left. No wonder they have to be paid extra when they come here. It’s to tollerate prejudiced PLP policies and mentalities.

      Notably in ref to your “last resort statement” if your government was still in a position of power, you would have long ago called election. You are for once fearful that you will lose as people have had enough of the PLP incompetence and failure.

      Best of luck in the next election – you need it.

      -Noel

    • Family Man says:

      You’re right on one thing – if Bob was in charge Bermuda wouldn’t be in the depression its in. There would be far fewer people needing financial assistance and BERMUDA WOULD HAVE THE MONEY TO HELP THEM!!!

    • Bernews says:

      As an FYI, the commentator is named Burt as well, but it’s not the Senator, we just checked. Sorry about that, we amended the name for clarity…

    • navin johnson says:

      If Bob had been in charge Burt we would not have people in this difficult time…The worst financial crisis since the great depression that you refer to would have by passed Bermuda had Bob been in charge….the world would have had its problems but we would not have had people driven out of IB due to immigration policies and tax increase which is the cause of our problems…in other words out woes are totally self inflicted by your beloved government….

  7. DirectAction says:

    Not being involved or having little tolerance for politics, I just don’t believe Bermuda would be better off in this time either under an OBA government either. Given the current situation (and I don’t see the current debt level as a huge huge problem) would Bob be quick to cut jobs, financial aid and other capital projects? Does he and the OBA put dollars and cents ahead of the people in this country? PLP has mis-managed and do not in my books get away, however this conservative view that the opposition has during this externally caused world wide recession wouldn’t be good for the country. Where I come from people are put first.

    • Justin says:

      You’re right, the OBA will be left holding the bag and will face many hard choices. My prediction is that the civil service will be downsized through attrition if the OBA got into power. This means that, for example, as people retire or resign their jobs will not be replaced. In my opinion this will be best solution, because for too long Bermudians have been rewarded with good pay for doing little work in the public sector. The culture of doing the least possible while earning a decent wage is not sustainable, but the PLP keep perpetuating this mindset by refusing to do something about it. The PLP say we must ‘do more with less’ but this hasn’t happened! Its been proven by the latest budget deficit revelation.

      It sounds harsh, but in my opinion there is little difference between social assistance and a gov’t worker standing on the side of the road doing nothing. I’d rather have that same gov’t worker receiving a smaller social assistance check every month than us taxpayers funding their comfortable standard of living while doing nothing to earn it. Maybe then will that worker become aware that you must work for what you want in life.

      That’s the difference between the PLP and the OBA, in my opinion. The PLP will continue to subsidize a gov’t worker’s two trips a year for doing nothing via debt which the rest of us taxpayers will eventually have to pay off. The OBA on the other hand recognizes this and will begin to make the hard choices to put Bermuda back on track towards economic sustainability.

      • Al says:

        This is the ugly truth.

        It doesn’t matter who is the head of the government at the end of the day if you spend more than you make eventually you will go bankrupt. For Bermuda that means that Civil Servant’s paycheques will start to be late or bounce.

        The PLP will continue to deny there is a problem until the the cheques bounce, whereas the OBA will admit the hard truth and minimise the pain.

    • Family Man says:

      Failing to fix the problem now is only going to make it much, much worse tomorrow. You can’t keep borrowing money so our politicians can have nice fluffy pillows on which their tired heads.

  8. DarkSideOfTheMoon says:

    The OBA sounds like Michelle Bachmann and the Republican party, making up stuff for political gain and cheering on leaving the sick and in need to die…

  9. Triangle Drifter says:

    Burt would have made a fine captain of the cruise ship Costa Concordia. “Everything is fine folks. Everything is under control. No worrys.”

    In reality the ship, in this case Bermuda, is mortaly damaged.

    At this point anything coming out of a PLP mouth needs to be questioned.

    • Chris says:

      Love your comment, but the sad part is we are on that ship!

    • Hmmmm says:

      Well everthing is fine for the PLP upper table, they are not suffering at all, they are living it large and out of our pockets.

    • wiaruz says:

      more like the Titanic

  10. Chris says:

    Burt, are you kidding. How in Gods name do you think we got here. The Governments overspending is what got us here. This Government has to borrow money just to pay its staff. This Government perks alone have helped run up the dept. You say Bob Richards is misleading the Island give me a break. “We had to deceive you” thats the PLP motto!

  11. Soooo says:

    “The qualification in this and the prior fiscal year was based on the Auditor General’s opinion that there were issues in internal controls in the management of certain capital development projects,”

    In other words…. NOTHING??

  12. Rummy says:

    Bermuda is so screwed.
    Call the election Paula.
    Lets get it over.
    You all will get your pensions et al.

  13. John Dog says:

    When I saw Burt responded to Bob Richards and before reading what he had to say, I asked myself: “what would I expect him to say?” I am happy to report he is very predictable and every point bar one was hit. The missing response was to accuse Bob Richards of racism or imply it was a white conspiracy.

    In the end no matter how the PLP spin this nonsense, the results are grave; a total embarrassment. They clearly are incapable to running Bermuda (or at least on a fiscally prudent basis).

    To his last comment, had the PLP not squandered so much of the budget, the crisis wouldn’t exist. Had they not chased off international business and expatriates, their revenues wouldn’t be in such a sorry state.

    So spin away Burt. Eventually you will be dragged, with the rest of Bermuda, into the god awful cesspit dug by the PLP.

    • LongBayTradingCo. says:

      To the Senator – don’t let anybody fool you!! The world IS FLAT and the PLP ARE doing a wonderful fiscal job and Bermuda is NOT BROKE! Keep the faith and don’t let anyone try and tell you otherwise!

  14. Bermyman says:

    “This government views it as its obligation to assist the vulnerable in times of need and we will not apologise for taking care of the people of Bermuda when they need it,”

    This is all well and good but how much money has been wasted on the ‘in-vulnerable’ and how do you decide whom is vulnerable. Was Andre Curtis vulnerable?, because he certainly got taken care of. Are the Cabinet ministers so vulnerable that they each need cars and expense accounts? Are they so vulnerable that they do not need to take pay-cuts when everyone around them is doing so. Are they so vulnerable that they need to take all expense trips to NASA in Florida, to the Caribbean and Royal Weddings! You name it!! The Government have not cut back on their expenses! We will loose jobs as a country because of that. Civil Service employees WILL loose jobs because of the Governments poor financial management and greed.

    Money has to be spent, but it has to be spent responsibly, wisely and within budget. If this does not happen then the ENTIRE local population will be in a very ‘vulnerable’, position.

    The PLP will wait till the election, if they get back in they will cut jobs on mass within the civil service. They have to! Their costs are too high. Anyone working in the Civil Service should start thinking about a back-up plan because at present your Government is pulling the wool over your eyes. The truth is, many of you will loose your jobs.

  15. FaVerne Lurbert says:

    Since the late 90′s, this Government’s actions and decision-making ability have been key to the success and growth of Tourism, International Business, the Contruction and Landscaping Industries, Hotel and Restaurant Industries, Housing, the Employment of Bermudians, and has made milestones with regards to relationships with Expatriats working and living here and…………….. WHOAAAAAAA!! LOOK OUT FOR THAT DARK BLUE 7 SERIES BMW!!!!!!!!!

    Pheww just made that one, sorry was asleep at the wheel for a moment…

  16. what is the real truth says:

    Why are many civil servants using blackberries costing a fortune for non business?
    Why do Permanent Secretaries have to drive GP vehicles?
    Why are mechanics at TCD allowed to test drivers without themselves being qualified?
    Why are many of the policies under the previous administration being reversed?
    Why are we willing to pay 80k per inmate giving them free medical insurance?
    Why do teachers have to dip into their own pocket to buy school supplies?
    What criterial to we use to evaluate persons leading the country when they have criminal records?
    Why are soldiers not drug tested like the police, fire service? Don’t they use live ammo? They do it in the United States.
    Why does the Pulic Accounts Committee have no real power?
    Why do we have half the UBP switching to the PLP? PLP/OBA/UBP is there any real difference?
    Why are the Union Heads not standing up to take a pay cut?

    • Gvt Mechanic says:

      @ what is the real truth – totally agree and here are a couple more for good measure

      Why do DIRECTORS / Heads of Departments have brand new GP cars (Director of PTB is an example)?
      Why does the head of the Civil Service do nothing when he is told about breaches of financial regulations?
      Why is the Minister of the Environment and his PS inspecting docks in the Bahamas when Hamilton Waterfront belongs to CoH and they are spending $20m + on a new scanner facility>
      Why, given his involvement in every financial scandal, is Minister Burgess still in Government?

      • Maddog says:

        What about the Governor.O he is white i forgot.
        AND REMEMBER OVER A MILLION DOLLARS IS SPENT ON THE GOVERNOR.

        • LOL (original TM*) says:

          Again why focus on him? WE are trying to focus on what we can change NOW! So if this is the best you got find 3000 – 5000 signatures for a referendum on independence if you think you can.

          LOL
          I thought the PLP were abount talking about issue’s facing the naormal man hate to break it to you but the Governor isn’t a pressing issue right now so rain in you dog……….

  17. 2 Cents! says:

    This so very sad!

    The PLP continue to select candidates that are unqualified for the challenge. We all continue to point fingers at one another, but nobody is being realistic. The ship is leaking! It doesn’t necessarily have to sink though…

    PLP, stop the stupidity! We got here because, and ONLY because, of your poor judgment and policies. More pointed, simply because you just do/did not understand how Bermuda Inc works. Accept the fact, or move over and let someone else fix it! How can you sit there in all honesty and defend your poor financial record as the Junior Finance Minister has? It’s unconscionable; and just gives me so little confidence for the future!

    The first and MOST essential step in recovery (for example in AA), is to admit there is a problem. If you cannot get to this point then god help us all! PLP, are you mature enough to do this?

    But to defend a poor record that is so flagrantly obvious (it’s hitting us in the face for god’s sake), in my opinion, is only manifestation of the deepest immaturity I’ve seen in any political party in Bermuda’s history. Some of the most recent resolutions put forward are at best disingenuous, and some policy reversal have been wisely so. But we MUST address our problems with real solutions. Government cannot spend more that it takes in; and in principal should treat all citizens equally.

    Solutions? Try immediate restructuring of the government’s pension plan, try reducing overhead within government. For god’s sakes even take a look at the approaches being deployed at the state level in the USA where serious deficits exists, including reduce government working hours or furlough, privatize appropriate services, etc. But to do nothing is….! Continue efforts to spur economic growth. More entertainment on beaches, in City, open an upscale casino, spurn on online gambling industry, build a water park, extend marine tourism, etc. But let’s get on with it! How about just being more inviting to foreigners? I’ve been an expat before…and it matters.

    Tell us, the people we’re in BAD shape. Sacrifices WILL be necessary! There is no way around it! But let’s think outside our normal box!

    The PLP and Bermudians at large need to seriously ask ourselves if we really do care about Bermuda. Do you really care about the legacy to be left to future Bermudians, including my children? This should transcend race… I don’t necessarily endorse the OBA/UBP either. Folks the system is broken! We need to seriously think about dropping political parties all together. They stick us with a lot of unnecessary baggage and ineffectiveness. Until then, the two parties will pander to their base and we’ll end up like Greece. I’d rather take a broken toe now, compared to two broken legs in five years if we don’t seriously address our challenges NOW!

    In my opinion, this country seriously lacks LEADERSHIP. Leadership in my view, despite how unpopular, includes advising constituents and colleagues of the RIGHT thing(s) to do, facing challenges with integrity, and not kicking the can down the road! We take too long to address even obvious issues!

    Unfortunately, current politicians don’t have the conviction of their predecessors. Or do they? Under Freddie Wade, Lois Brown, Henry Tucker or John Swan our current situation would not have occurred (my opinion). We can debate all day about how and why we got here, but I‘m seriously worried in the meantime nothing will happen, and thing will merely get worse!

    Wake up!

    2Cents!

  18. crazy says:

    Just because they tell us its ok do does not mean its so ,with this Government “everyting you know is wrong”
    we are getting tired of spend and spin

    • C..ing is B..Leaving says:

      In other words , Don’t Believe Everything You Think . Equilibrium and the words of the Senator are poles apart .

  19. 32n64w says:

    “The government will not be drawn into a debate about the budget before February 24th, however it is important that we stick to the facts”

    No surprise there. The PLP Government have screwed up so badly they’ll do anything to avoid having to talk about their miserable performance.

    “The qualification in this and the prior fiscal year was based on the Auditor General’s opinion that there were issues in internal controls in the management of certain capital development projects,”

    Funny … he conveniently forgot to mention the qualified opinions in 2008 & 2009 (the last four consecutive years!).

    “The Government will work with the Auditor General and take the required steps to ensure that this qualification is removed in the future”

    Like that’s worked before. Quick … pull the other one Mr. Burt!

    PLP – taking more and more for themselves leaving taxpayers with less and less since 1998.

  20. Just sayin says:

    Burt, the spin doctor educated you well, SPIN SPIN SPIN, dizzy yet Bermuda.

    • Hmmmm says:

      Yep the PLP are very goid at politcs and spin, sadly that has nothing to do with managing a country well.

  21. Gvt Mechanic says:

    I’d like more detail on the qualification – one “theory” doing the rounds is that AG won’t sign off that the Court Building is worth what was paid for it – shocker eh!

  22. Rummy says:

    She won’t sign off on the monies paid to Ministers either…………………..Bwahaaaaaa

  23. somerset girl says:

    Even a blind man can see the monies have mismanaged. This what we need to do. Don’t pay the politicians at ALL. Take away ALL unlimited credit cards. They can earn a salary AFTER the AG signs off on the 2012/2013 fiscal year.

    I am not interested in a pay cut – solution don’t pay them at all.

  24. Cancer says:

    @FaVerne Lurbert – you are the best thing that hit politics. We believe everything you say cus you sound like someone we could really believe in. Most of all your not racist and you’ll not only consider whites but will also take into account black people. You always admit when your wrong and I can see you don’t need to defend defend defend all the time. I like that! I think you’ll make a great senator or even an MP because we know you’ll get lots of votes and you’ll never say “my Premeir” FaVerne would you please tell senator Burt to sit down cuz we don’t need any more spin! I know you’ll do that for us! Turn this flipPLoP party around while your add it ok!!!

    • Jack Jumping says:

      Well Done Sen. Burt, keep pushing on, your comments have set a fire under the OBA, that is why they are feeling the need to decry you down. It is clear you have make some keys points !! WELL DONE!!

  25. pebblebeach says:

    Mr Burt

    As Junior Minister of Finance, please tell me the names of the beneficiaries of the Trust that received 30% of the multimillion dollar contract to build the Dame Lois Brown Evans building…I can guess but would rather it be factual…

    Minister Burgess who awarded the contract after saying he did his due diligence on the Trust (really) will not disclose the names of the beneficiaries…

    As a taxpayer I deserve to know…

    • observer says:

      We all would like to know. Once the OBA is in Government, alot we will get to know!!

  26. Jim Bean says:

    SPIN MASTER BURT!!! REALLY _ YOU ARE A JOKER _ MAKES ME SICK BURT!!!

  27. Jack Jumping says:

    Well put Sen.Burt, you are a brilliant young man, that has step up to serve your country. Keep pushing on. Looks like most of the bloggers are OBA diehearts that will decry what you say no matter what. Just their way of fighting for votes. Sad but true. I suggest you carry on doing your work and stay focus, as you know what your talking about.

    Once again well done Sen. Burt. The government are doing well and continue to push on in whatever you take on. WELL DONE!!!

  28. Jack Jumping says:

    WELL SAID SEN.BURT…..you have spoken well and are a brilliant young man. Keep serving your country. Do not listen to these die-heart OBA people, for they know not what they are talking about. You are extremely knowledgeable and have great insight into such matters. Keep pushing on….WELL DONE……

  29. VOTT!! says:

    Yup. OBA die-hearts don’t have a clue. Does the PLP really care that their supporters are probably the ones losing their homes, and are unemployed, and are living in areas where shootings occur regularly? Now they are being asked to sacrifice their future benefits because of government overspending.Things are grim all over and it is going to get worse. He who feels it knows it.

  30. Jack Jumping says:

    Listen I am a swing voter, but the negative and nasty behaviours displayed by the OBA/UBP bloggers does not convince me to vote for the OBA. One must learn to give credit where credit is due. This young man is brilliant and correct in his comments. Do we just hit back because he is not OBA? Or do we seriously consider and evaluate his comments based upon facts of the discussion? It is apparent that no matter what he says the OBA bloggers will attack. I am not sure I want to be apart of such negative actions, in fact it is a big turn-off and the bloggers are acting more like the old UBP to me. So far I see something great about this young man. So I will encourage him on, WELL DONE SEN BURT……KEEP SPEAKING OUT……

  31. Jack Jumping says:

    Listen I am Swing Voter…but the daily comments by the OBA bloggers is a big turn-dd off for me. The nasty comments made daily are not any thing I would like to be associated with. One must learn to give credit were credit is due. One must critically anlayze what is said and provide a more reflect comment. The OBA bloggers remind me of the old UBP and the TEA Party group in USA, I do not want to be associated with that. We must not just attack persons because they represent a different political viewpoint or support the PLP. This is silly and lacks mature behaviour. Sen. Burt is a good young intelligent man who is providing service to his country. His recent comments are correct. I would like to encourage him. Keep pushing on Sen Burt.

    • Pastor Syl says:

      @ Jack Jumping: Senator Burt may be very intelligent but he is also disingenuous. This government’s record on caring for the poor and underserved is the worst ever – funding systematically cut for Teen Services, Family Services, CADA, Focus, Sunshine League, Age Concern, the Police – in fact just about every service that works with or addresses social issues has had their budget cut to the point where some have had to close down (not to mention the Indigent Clinic which was actually shut down by Dr. Brown). Every service, that is, except the Prisons. Says a lot about the mindset to me. This government’s record doesn’t look anything like meeting an “obligation to assist the vulnerable in times of need” and they surely haven’t been “taking care of the people of Bermuda when they need it”! Not by a long shot!