Premier: $12.69M In ‘Unbudgeted Expenditure’

September 15, 2017 | 36 Comments

[Updated with video] Premier and Minister of Finance David Burt tabled a Supplementary Estimate in the House of Assembly today [Sept 15] detailing over $12.6 million he said was a “combination of unbudgeted expenditure items which were incurred by the previous administration” for the America’s Cup, World Triathlon Series, Casino Gaming Commission, airport redevelopment and St. George’s Hotel development.

Premier Burt said, “Specific details of some of the Supplementary Estimates are as follows:

  • “An additional $4.3 million in sponsorship guarantees paid to the America’s Cup Event Authority [ACEA] in addition to the under budgeted amount of $15 million; this under-budgeting occur despite the advice of the ACBDA to budget at least $18 million. The total $19.3 was paid to the ACEA last month
  • “$2.9 million to host the World Triathlon Series events in 2018
  • “$1.6 million to fund the operations of the Gaming Commission
  • “$1.7 million to provide additional ferry services for the America’s Cup as no additional funds were included in the budget for the additional ferry service for the America’s Cup.
  • “$1.9 million to undertake certain infrastructure works as part of an agreement with the Desarrollos Hotelco Group, the developers of the proposed St Regis Hotel in St. George’s;
  • “$290,000 to fund the relocation of the Post office mail facility from the airport to avoid penalties and having to pay rent to AECON.

“This Government will try its utmost to ensure that the projected deficit for 2017/18 does not worsen, but we cannot let past lapses with regard to handling the public purse by the former Government hamper our efforts to establish a better and fairer Bermuda that was promised in our election platform,” the Premier said.

The Premier’s full statement follows below:

Mr. Speaker, I rise today to provide Honourable Members with information on Supplementary Estimate No. 1 for 2017/18 which was tabled in this Honourable House earlier today.

Mr. Speaker, the Ministry of Finance policy is to place supplementary estimate requests before the Legislature just prior to the conclusion of the financial year.

However, considering that there has been a change in Government, it is prudent to table a supplementary estimate at this time in order to highlight the supplementary estimates that were the responsibility of the former Government.

Notwithstanding that these items will be debated at a later date, I can advise that Supplementary Estimate 2017/18 [No. 1] is a combination of unbudgeted expenditure items which were incurred by the previous administration.

This Supplementary request directly relates to contractual commitments of the former Government for the America’s Cup, World Triathlon Series, Bermuda Casino Gaming Commission, Bermuda Airport Authority Capital Grant, the redevelopment of the airport and a Memorandum of Understanding for the St. George’s Hotel development.

Specific details of some of the Supplementary Estimates are as follows:

  • An additional $4.3 million in sponsorship guarantees paid to the America’s Cup Event Authority [ACEA] in addition to the under budgeted amount of $15 million; this under-budgeting occur despite the advice of the ACBDA to budget at least $18 million. The total $19.3 was paid to the ACEA last month;
  • $2.9 million to host the World Triathlon Series events in 2018;
  • $1.6 million to fund the operations of the Gaming Commission;
  • $1.7 million to provide additional ferry services for the America’s Cup as no additional funds were included in the budget for the additional ferry service for the America’s Cup.
  • $1.9 million to undertake certain infrastructure works as part of an agreement with the Desarrollos Hotelco Group, the developers of the proposed St Regis Hotel in St. George’s;
  • $290,000 to fund the relocation of the Post office mail facility from the airport to avoid penalties and having to pay rent to AECON.

Mr. Speaker, as I mentioned these items will be debated in detail including input from the relevant and accountable Ministries and Minister at a later date.

Mr. Speaker, this Government will try its utmost to ensure that the projected deficit for 2017/18 does not worsen, but we cannot let past lapses with regard to handling the public purse by the former Government hamper our efforts to establish a better and fairer Bermuda that was promised in our election platform.

Thank you, Mr. Speaker

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  1. Politricks says:

    “but we cannot let past lapses with regard to handling the public purse by the former Government hamper our efforts to establish a better and fairer Bermuda that was promised in our election platform.”

    Hahahahahahahaha….did a PLPer actually say that with a straight face?….hahahahahah

    Lest we forget the PLP’s $400mn deficits which were more than halved by the previous Government.

    • SNS says:

      LOL! I had a good chuckle at that as well.

      • Friends and family deal.

        • A Chap called Vanz says:

          Wow. Great digging.

          The fact that the OBA only received unqualified audits must make one wonder how bad the PLP were last time with all their qualified audits.

          • really says:

            If anyone was wondering…………

            UNqualified audit is a clean audit opinion. = GOOD

            Qualified means that the audit opinion had to be explained, = not so good.

    • mark says:

      unbelievable. the irony is so amazing. the parallels between our problem and the trump phenomena in America is astounding. the plp have become our republican/trump. they cant even admit facts!

  2. Blind Sheep says:

    At least that 12 mill is accounted for….still waiting on the 800 mill that is still missing

    • Breathe says:

      Don’t let the truth get in the way of your story. Here’s the TRUTH from the Commission of Inquiry Report:

      We appreciate that there were, and perhaps still are,
      expectations about what the Commission would uncover,
      again in respect of matters that were outside our remit. One
      of the more notable examples was the oft-repeated refrain of
      discovering what had become of the “missing $800 million”.
      Notwithstanding that this was an inaccurate and misleading
      portrayal of the Auditor General’s actual comments, and that
      pursuit of this matter was outside our Terms of Reference, the
      Commission felt it important to respond and did so on our
      website, pointing out exactly what the Auditor General had
      had to say about this expenditure of government funds, when
      and why.

      • Double S says:

        Now print the rest of the truths from the Commission report…

        Let’s start with Port Royal and then move onto the Court House building shall we?

        • mixitup says:

          At least you have a commission, some of us (Land Grab) can’t even get that far, for whatever reason..

          • Double S says:

            The reason being is that your beloved PLP refused to come up with a simple terms of reference for the Commission.

            It was purely for emotional purposes. And it worked.

          • Double S says:

            “At least you have a commission,”

            What do you mean ‘you?’

            You do understand that they just didn’t abuse/waste just my or non-PLP supporter tax dollars right? Sigh.

            • mixitup says:

              I’m concerned with the stolen land my ancestors lost and generational set-backs that are still felt today. I would also like to see inquiries on past deeds the UBP solidified for their friends and family. Certain Monopolies were locked in from the 1950′s onward to allow certain families to maintain control and have become very wealthy on past Gov’t policies… Maybe you weren’t around then.

              • Toodle-oo says:

                We keep hearing about all these ‘stolen lands’ and I have a feeling that your definition might not reflect the true definition so please list the ‘stolen lands’ , and they must actually have been stolen . Not compulsory purchase orders where money exchanged hands.
                No money exchanged = stolen

              • really says:

                I recall reading that the lands were paid for at a fair market price. Do you have evidence of any thefts? I’d like to see that.

              • Double S says:

                Deflection.

                But understandable.

                Carry on.

        • Breathe says:

          Having spun that line as the centerpiece of your July campaign, don’t you think you can let the authorities for their work on those cases and where action needs to be taken it will be. Deal with the fact that a) that campaign lost in a landslide and b) that the OBA didn’t count on being exposed like this. Do you have any outrage left that isn’t hyper-partisan or is ok when the OBA overspends and under-budgets? The sound you hear is your credibility going down the drain.

          • Double S says:

            Exposed like what?

            These are supplementary budget figures that occur under every administration. At least these are accounted for and were allocated to events that benefit Bermuda as a whole. They did not go to the friends and family gravy train that we were so used to under your beloved PLP.

            And on top of that they do not include an outline of the income derived from some of these sponsorships. For example, the $1.9m ferry expenditure will be inevitably offset by the income derived from all the ferry users during that time. Conveniently left out by your team as transparency is not in their vocabulary.

            You guys were awfully quiet when your team bankrupted this island to the the tune of $400mn deficit. You can yap on about a landslide all you like. It won’t fix our economy and it won’t clear up our debt.

            In less than 5 years the OBA took the PLP’s $400mn deficit and more than halved it whilst also returning the consolidated fund’s audits back to unqualified status from the PLP’s five consecutive qualified audits.

            Facts are not on your side. But we all know the PLP and their supporters mostly deal in ‘alternative facts.’

            • Truth in the Matter says:

              Thank you for some truth. People need to educate themselves. HmmM! Im sitting here waiting for Bob to shut this non-CPA, up and let the real truth speak. Shame on this government and the Premier. Lead with truth and not deception

          • mark says:

            the irony of your comments are lost on you aren’t they? you trump/plp die-hards are all the same

  3. Double S says:

    At least all the monies are accounted for and is allocated to events and organisations that benefit Bermuda as a whole. As opposed to going to friends and family contracts as was the MO in the not so distant past.

    “$1.7 million to provide additional ferry services for the America’s Cup”

    Is the PLP railing against such expenditures that were gobbled up primarily by overtime pay to M&P workers?

    PS: The OBA took the PLP’s 2012 $400mn deficit to under $200mn in 4 years. That cannot be labelled a ‘lapse.’

  4. Rhonda says:

    PLP ignore the noise…stay transparent. .

    Give us facts only..

  5. John E. Thorne says:

    Where is the 800 million David?

  6. Do Right says:

    Tit for Tat, a race to the bottom; “See, I am better at getting away with it” then you lot. SMH

  7. mixitup says:

    So the same folks screaming PLP Mis-Management have no comment relating to the actual issue at hand…. And would like to be taken seriously lol

    • nerema says:

      Maybe because based on the half-story that we’re getting they mostly seem like pretty reasonable decisions, and the total amount is still less than the overrun on the swimming pool. Or the overrun on TCD. Or the overrun on Port Royal. Or the overrun on the cruise ship dock.

    • really says:

      The triathalon opportunity came up in the year, so how could it have been budget for.

      The guarantee didn’t necessarily mean that it was going to happen…although I would have budgeted for it.

      The additional ferry services would have generated income too, so looking at it in isolation as a cost is not showing the whole picture.

      290K to relocate mail so as not to have to pay rent seems reasonable if it provides a cost saving…although 290k seems quite high to me.

      $1.9m for infrastructure work…I’m pretty sure this has been covered by the media already , so it is not new.

      NOW how about Port Royal… I won’t even mention the other things as 20m is way in excess of the amount mentioned by Burt.

  8. Bolt says:

    Come on Burtie – appoint a Commission of Inquiry into AC35 and the 4.5 years of chaos, confusion and financial mismanagement of the OBA!!!

  9. Unbelievable says:

    So the PLP spends it’s very first day in Parliament kicking the OBA while it’s down instead of beginning its agenda and working.

    This is tit for tat politics. David, you are not a real leader.

  10. just wondering says:

    totally agree ALL should be examined – the latest issues as commented on by the PLP , port royal , the court house. TCD, heritage wharf etc etc etc

  11. Up D Hill says:

    Clearly showing the PLP have no idea how to move forward.

  12. cpm says:

    As a constituent of Pembroke West Central- Why is the trash still sitting here at 7:30 pm on Friday with accompanying vermin when it should have been collected on Tuesday and Today?

  13. I'm full ... says:

    Premier Burt. That was a mouth full & a lot to remember wow wow!

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