Fahy Denies Confirming BPAC Bank Account

July 23, 2014

[Updated] Speaking in the Senate today [July 23], Minister Michael Fahy denied confirming the BPAC account, and also stated that he was not interviewed in relation to the OBA’s internal investigation into the “JetGate” matter.


On Thursday, then-OBA Chairman Thad Hollis released a full statement on the “JetGate” investigation, which said that the money was sent to an account which was opened with two signatories; Steven DeCosta and Derrick Green.

Mr. Hollis said the account “was not authorised by the established protocols of the OBA” and said it received seven deposits of $50,000 from Nathan Landow and his associates, which the Party Executive did not know about until eighteen months later.

As it pertains to Minister Fahy, Mr Hollis said: “The account was opened with two signatories; Mr. Steven DeCosta and Mr. Derrick Green. When the signatories were attempting to open the account, the Bank of N.T. Butterfield sought confirmation from the Party regarding the opening of the account. Mr. Michael Fahy, the then OBA Campaign Chairman, was telephoned and confirmed the account.”

Mr. Hollis added, “This account did not follow the established protocols and while the Party can say it did not receive the funds, the campaign was the beneficiary and therein lays the accountability as to the means and expenditures. The Campaign was managed and run by Mr. Michael Fahy, as Chairman I was not directly involved in the Campaign, by design and it appears now by intent.”

Police Investigation

The police have confirmed they are investigating the account, with a police spokesperson saying, “The Bermuda Police Service Financial Crime Unit has commenced enquiries to determine if any criminal offences have been committed in relation to the financial transactions associated with The Bermuda Political Action Club account. No further information with regards to this investigation will be released at this time.”

Minister Michael Fahy’s Statement*

Minister Fahy said, “Today I wish to take this opportunity to give a personal explanation to the Senate in relation to a Press statement made by the former OBA Party Chairman on 18th July 2014.

“It is regrettable that this statement is inaccurate, and creates a certain amount of uncertainty in relation to the role that I played in the election campaign of 2012,  as regards the opening of a bank account during that campaign, at the Bank of Butterfield.

“I have hesitated to comment publicly on the matter because I took the view that it was an internal party matter. However, given that inaccurate information has now been made public by this report, has been repeated in the media, has been repeated in another place, it is fair and proper that I clarify matters today.

“At present, the former Chairman says in his statement that the account was opened with two signatories: Mr. Steven DeCosta and Mr. Derrick Green. When the signatories were attempting to open the account, the Bank of N.T. Butterfield sought confirmation from the party regarding the opening of the account. Mr. Michael Fahy, the then OBA Campaign Chairman, was telephoned and confirmed the account.”

“Whilst this quote is partly accurate, to the extent that the account was opened with two signatories, I have spoken directly with officials at the bank who advised me that when Mr. Green and Mr. DeCosta applied to open the account, verification was required as to the background of Mr. Green, as he was a guest worker.

“A senior official at the bank made repeated phone calls to the former Chairman to confirm that Mr. Green had a work permit with the OBA and was still employed with the OBA, since, presumably, this was the information provided to the bank upon the opening of the account.

“I have been advised that the then party Chairman was unreachable. I was therefore phoned as an OBA official in my capacity as OBA campaign director by a senior official at the bank. I was asked two questions:

  • Does Mr. Derrick Green work for the OBA? My reply was yes.
  • Does Mr. Derrick Green hold a valid work permit? My reply was yes.

“I was not advised by the bank as to why I was being asked those questions and the conversation ended. This is not unusual; banks make inquiries of this sort in relation to business accounts frequently.

“That was the full extent of my involvement in relation to that account,” added the Minister.

“Contrary to what has been said in another place, I did not open the bank with the account and I was unaware that the account would be opened with the bank.

“On 12 July 2014, I orally advised the former Chairman by telephone of the fact of the call by the bank, and clarified with him the circumstances of the call. Despite my informing him of this fact, his statement says that I confirmed the account.

“That is not accurate,” added the Minister.

“I was subsequently was made aware of the name and existence of the account by the signatories, but I had no involvement with the account. To my mind, this is an important distinction to make, given the overall tone of the former Chairman’s public statement and the allegations and insinuations now being made by some in the community, by members in another place, and the repetition of those inaccurate statements in the media.

“To be crystal clear: I did not open the account. I did not confirm the account. I had no access to the account. I had no access to the donations made to the account. I do not know the identity of the persons who donated to the account. I did not see or receive bank statements.

“In other words, I had no control whatsoever over the account. I was only made aware of the full donation amounts well after the election was over.

“To this day, I have no knowledge of all of the individual donors names, or the amounts transferred in or out of the account, other than what I read in the statement by the former chairman.

“The reason for this is that I had no need to know; it was not an OBA account. For further clarity, I did not have access to or knowledge of donations made to any OBA accounts either.”

“Again, it was not in my remit to have that knowledge. At present, it is important to note that the setting up of the account in Bermuda by Mr. Green and Mr. DeCosta was perfectly proper.

“It is not in breach of any Bermuda campaign law or, for that matter, in my view, any OBA campaign protocols which have not been previously identified by the former Chairman.

“I was made aware that the account at the bank was set up to accept donations to support a ‘Get Out and Vote’ grassroots campaign. I had absolutely no issue with this when I was informed, this is a normal part of any political campaign.”

“Election campaigns are by their very nature fast moving. There was no secret and no attempt to keep the account secret.

“In a democracy, people are entitled to spend their money to support the party or the political issues that are important to them. Who controls those monies and how they are spent is a matter, first, for the donors and, then, for the account signatories.”

“People are intended to spend their money, to support the party or the political issues that are important to them. Who controls those monies, and how they are spent, is a matter first for the donors, and then for the account signatories.

“Finally, Madame President, although I wish to limit this statement to the key facts that I’ve outlined as to what actually happened when I was phoned by the bank, it would be remiss if I did not express my personal regret and advise the Senate that I was not interviewed during the inquiry.

“I was not given an opportunity to review the former Chairman’s statement, either to confirm it was concluded or to correct obvious inaccuracies. Those are fundamental failures of the rules of natural justice and, as I’ve said, they are regrettable indeed.

“Madame President, I again repeat that there is nothing wrong with persons in charge of a campaign opening bank accounts and spending money to support a political party and its lawful activities.

“My absence of criticisms for other portions of the former Chairman’s statement does not mean that I support or endorse the rest of his statement. I’ve already brought to the attention of the executive of the OBA my other concerns, but I shall deal with those internally.

“I am nonetheless happy to set the record straight about my personal interaction with the bank.”

Possible Legal Action?

There have been unofficial reports suggesting that Minister Fahy may be contemplating legal action, however we have been unable to obtain a confirmation or denial of those suggestions from either the OBA, Minister or Mr. Hollis.


What we have printed is correct, but one section of Minister Fahy’s statement is missing due to logistical issues of recording & transcribing someone speaking, by hand, on short notice. Apologies for this, but we hope to obtain a text copy and update with the full statement!

Update 2.07pm: We have added in the “missing section” [it was two sentences] so now the statement is printed in full.


Read More About

Category: All, News, Politics

Comments (62)

Trackback URL | Comments RSS Feed

  1. Samuel L. Jackson says:

    Just when you think the plot couldn’t thicken any more.

    • Bettty Trump Fact checker says:

      Mr. Hollis would not have stepped down, if he did not believe more was going on within in OBAubp party. Particularly, as it involved Fahy and Crockwell. The big Spin Masters behind this entire JETGATE adn 300,000 affair.

      Fahy is good at Spin and political strategy moving. FOr REAL…Fahy is attempting to clear himself from all wrong doings. Fahy is setting the stage to ensure that his hands are clean. REALLY…… He wants to place the blame on others, but make himself look clean. The Spin continues on…. REALLY

      Fahy is now attempting to run clean…..REALLY ….We know different Mr. Fahy…

      The two Ministers that need to step aside are Fahy and Crockwell, if OBA really want folks to believe they are standing on Transparency and Honesty. Until that happens they are nothing more than a party of spin and false dealings.

      • Alan Smith says:


        otherwise this is jsut bleating because you just dont like Fahy

        • somuchless says:

          It’s not that trump don’t like Fahy, Trump don’t like the Oba.

          • Kunta says:

            I know it embarrassing for de O.B.A/ubpers but if this was P.L.P or Dr. Brown you would have a field day, but now de shoe is on de other foot you feel like S— !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

            • Ringmaster says:

              At least Mike Fahy is stating his position in a full statement. Thinking back to another matter as an example, the BHC issue, this was halted when the main suspect refused to cooperate with the police and had enough power to then shut down the investigation. If there is any wrong doing here then bring it out and punish the wrong doers. That would make a welcome change in the Bermuda political scene.

              • Bettty Trump Fact checker says:

                Come on give Bermuda people a little more credit than that, they are not dopey or stupid…..Fahy confirmed for the Bank that Green was working for the OBAubp…..open up the account ….for what…come better than that….even a blind man can see this is…by Fahy….really…unless the blindfaithfulness followers do not…..

            • hmmm says:

              The police investigation will likely require review of the banks call (must have been taped for the bank to protect themselves) so if Fahy is telling lies, he will be caught out.

              Hopefully the conversation was recorded.

      • Fact Finder says:

        I’m glad the police are starting an investigation. Maybe next they can help find this countries unaccounted for $800M. At least the only money in question here was not from the public purse.

        • drunken ursula says:

          hey clueless police check and audit has been done …whats your point?????

          • 32n64w says:

            Wrong. The investigation was never completed and the audit opinions were qualified based on a serious lack of internal controls.

            But hey, why let the facts get in the way of PLP Politricks right?

      • Allspice says:

        To be fair, it has been mentioned that several people were not interviewed by Mr. Hollis, Fahy included. That implies that the research for the report was not as complete as it might have been.

        The point is that you don’t know. Making large accusations of complicity in this thing is pretty much baseless given the information that you have.

        All you have is conjecture.

        All this talk doesn’t really help the situation. I want to know the truth too, but spreading a lot of fear and doubt really does no good for Bermuda, and that’s what we’re all here for right? The good of Bermuda?

        The facts will come, and quicker than they ever did under another government that we have not forgotten.

  2. Admitting to the 2 questions put forward by the Bank and hanging up the phone doesn’t make the Minister guilty of any wrong doings…It will be up to someone else to prove contrary to what the Minister has stated. End of conversation.

    • Bettty Trump Fact checker says:

      @Ray Raymond,,….as a blindfollower of the OBAubp you would not see a bright light in your eyes, if the doctor told you it was still shinning…REALLY Fahy is in deep , his name mention since day one of this fiasco. This is a real thorn in the side of ht OBAUpb and they have loss all credibility now…folks eyes are awake to the injustice and lies spinning out of the OBAubp party…. come on at least hold your beloved party accountable…

      Fahy trying to wipe his hands clean now….what a joke..if I ever heard one….REALLY ,… Drunkenly’s strategy, put forward a statement in the news, clean up your hands mate….

      • “To each their own” Betty Trump Fact checker:-) The bottom-line is “proof” Betty, until their is proof I’ ll stand in the O.B.A.s corner just as you and the others support the “regressive opposition party” e.g. Progressive Labour Party.

        • Bettty Trump's Fact Checker says:

          Really, and you call yourself a party of Transparency, yet your willing and the other diehards to protect, and defend the injustice and lies as put forward by your party daily…really…. oooh blindfaithfulness is sure killing the oBAubp, in a matter of time more will fall on their swords…I predicted it before, and I say soon come, soon come…

          A party who’s foundation is built upon lies and deceit, will fall…..as humpty dumpty did and never came back again…. soon come, soon come…..

        • Hurricane says:

          @ Raymond Ray, you will stand in the OBA’s corner with or without proof. But as you say, to each his own

        • drunken ursula says:

          poor Ray ….OBA e.g. old boy’s association….

      • Alan Smith says:

        so your evidence is his name was mentioned. Thank heavens you are not a judge (I hope!). I also shudder to think if you have ever been on a jury…

    • Evie says:

      Mr Ray if someone called you asking you about anything would you not say what is this about (concerning) stop this crazy talk and dismissing anything OBA SMDH The Struggle Continues

    • Tell the truth says:

      The OBA house seems to be built on nothing but lie after lie after lie after lie! The more lies we allow them to get away with only seems to embolden them to feed us more false narratives!!! Where I come from, if you tell lies then that makes you a liar and untrustworthy! Yet, we reward liars by putting them in positions of trust and allowing them to lead us! Pied pipers of deception….on both sides of the aisle!!!

    • Kunta says:

      Sounds like Bill Clinton, “I did not have sexual relations with this woman”
      But every man loves to…. in life!!!!!!!!!!!!!!!!!!!!!

  3. Sick n Tired says:

    I’m sorry, but Mr Fahy is an intelligent man (I presume), so if the BNTB calls and asks you whether Mr. Green works for the OBA, an intelligent response off top would be and should have been, “what is this in reference to?” I am quite sure that the representative from the bank at some point stated that Mr. Greene and Mr. DaCosta are trying to set up a Political account on behalf of the OBA which needs party approval. At some point I am quite sure that the representative would have stated the purpose of her call.

    Let’s start being honest and not making the Bermudians feel like we are all stupid!!!

    • flikel says:

      Something is still not right.

      Fahy states he did not know the nature of the bank’s call and simply confirmed that Green is an OBA employee, and valid work permit holder.

      So, does this mean any OBA employee can open up bank accounts? I would assume only officers or managers can open or authorize the opening of bank accounts.

      It stands to reason the bank would need authorization from a manager or officer within the party in order to open an account.

      • miss elle says:

        I’m sure the bank would have called Immigration for verification of Mr. Green’s employment status on the island. Fahy knew what the call was about.

      • Creamy says:

        Anyone can open a bank account. Not such a big surprise is it? And it is absolutely usual practice for the bank to check the person opening an account is employed and has a work permit.
        So what happened here that us unusual?
        Absolutely nuthin.

        • Sick n Tired says:

          And any person in a role such as Mr. Fahey as a campaign manger would want to know what they were opening an account for, if for nothing else, accountability and transparency for the party.

          Let’s not try and defend what is obviously a cover up . . .let’s be transparent and accountable.

          If there was nothing to hide, why are there all of these hidden transactions, failure to be forthcoming, and lying about who knew what?

          So in essence you are asking the people of this country to believe that everyone in the OBA is that stupid to allow two people to just go to the bank and open an account on their behalf to do whatever they want to with the account without their knowledge? If that is the case, then that confirms why they shouldn’t be the party leading this country, since anybody can open up accounts as long as they work for them and do whatever with that account!! Really????????

    • Steve Davis says:

      It did not need party approval dingaling! It was a private account NOT AN OBA ACCOUNT! It needed approval that Mr.Green was an employee of the OBA and held a work permit. Everything else from the Bank’s perspective would have been confidential. If a bank needs confirmation of anything from your employer they are not going to phone up and state the purpose of an account, ” Hey Dingaling wants to set-up an account to buy a boat can you verify that Dingaling is going to use the account to buy the boat he said he was going to?”. They are going to simply ask that you verify employment.

      PLP Heresay in full swing. No need for facts, just spread lies!

      • Steve Davis I just want to thank you for setting the record straight. Unfortunately there are far too many “dingalings” around the Island who don’t know their “a – - from their elbows” :-(

      • Sick n Tired says:

        Obviously it did if Mr. Fahey admitted he was contacted regarding the account. If they didn’t need approval, there would never have been a reason for the BNTB representative to contact anyone at the OBA.

        I won’t entertain your name calling, as your comment just proved your ignorance.

        • Derek A. G. Jones says:

          @ Sick n Tired, I think the point many people are missing is the OBA was Mr Green’s employer. As far as the bank was concerned he could have been setting up ten bank accounts, they just needed confirmation he had a job and a work permit. Pretty much every employee of a company on a work permit is going to have to open a bank account in Bermuda. Mr Fahy simply was asked to confirm Mr Green was eligible to do so, which he did.

    • Bettty Trump's Fact Checker says:

      Well said @ “Sick and Tired”, I guess as Uncle Bob Richards always says, “Bermudians just do not understand”, guess they think we are dump and stupid, they “DO NO CARE ABOUT US”…thus the granting of status to many….a party that is based upon a false foundations, will fall soon, soon come…

      • furby logic says:

        Show me where Bob Richards says, “Bermudians just do not understand”, or are you just making up stuff again?

        • Bettty Trump's Fact Checker says:

          Guess you do not follow the House of Assembly debates, go read Hansard, it is there several times….this is his favorite choice words… he presents in a very condescending manner,…. he downs Bermudians every opportunity he gets, and more so has nothing for us…thus the granting of Status…and outsourcing of our jobs…..

          • furby logic says:

            no, most of us do not read Hansard and I’m not going to trawl through years of them. Give me ONE date where he used that expression, I will look it up

  4. Jim Jones says:

    This all sounds pretty reasonable. I find it astonishing that Hollis would include something in his report that implicates Fahy like that without even interviewing him. If that is true that whole investigation was a farce.

    • furby logic says:

      What can disliking Jim Jones comment possibly mean? You don’t like your conspiracy theories punctured?
      Thad Hollis has some explaining to do

  5. Starting point says:

    It would actually be unethical for the Bank to provide more information about an account being set up by a person. The call to Mr. Fahy is the same call any employer would receive. His explanation on this topic seems legitimate, of course he could be lying but on face value this part of the sordid detail seem clean.

    and while i still find it ironic that the opposition is interested in this issue at all, as it is a party issue, party money etc. as a party supporter I would like an accounting of what the money was used for. We won the election so if the monies went to this effort then perfect, money well spent. If the money went into someones pocket for future assistance then that is an issue.

    as for the ‘blind’ OBA follower comments that seem to be on the rise in these forums I do have to LOL, I imagine there are more OBA posters who want a thorough investigation into these matters than anyone else, that is the difference between the two current political parties imo. PLP supporters will not even knowledge the past 14 years and during never said a word, as opposed to OBA supporters such as myself and others who want to actually hold their party accountable and improve the party as a whole.

    • Bermy says:

      I have to disagree with you, it isn’t unethical, it’s proper check and measures by the bank!

      The bank most certainly would have told Fahy why he was being asked these questions!

      ‘Oh hi Mr Fahy, I have two gentleman here who are trying to open an account called BPAC, one of them isn’t Bermudian, we tried getting in touch with the OBA chairman, but with no luck, so as you are the OBA campaign director, can you confirm Mr Green works for the OBA and has a current valid work permit, and that they have the OBAs authorisation to open a political account?’

      • Ringmaster says:

        You really think local banks ask such questions in that detail? In the real world maybe but this is Bermuda. The questions are just as I would expect them to be based on my experience with the banks.

  6. Betty Rech says:

    Bermuda in a sad state who can we trust

  7. Terry says:

    This guy Fahy reminds me of Alexander Haig.

    “I am in control”.

    Research and find relevance.

    Time for Mr. Dunkley to milk the cow or get off the stool.


  8. clear as mud says:

    How do you know when a lawyer is lying? Answer: when his lips are moving!

  9. flikel says:

    “Does Mr. Derrick Green work for the OBA? My reply was yes.
    Does Mr. Derrick Green hold a valid work permit? My reply was yes.”

    The situation with Green needs to be clarified. He was, and still is, a consultant for the OBA and on a work permit.

    So, how was he able to secure employment with Cosmic to do work on the Tourism Authority contract? And why was a work permit given, without the position being advertised? And why was a work permit given, when the individual has no experience or expertise in the subject matter?

    Did he have two work permits? Can a person have two work permits? If this was the case, I am sure existing work permit holders would try to secure additional or part-time work to generate extra income.

    We need more answers

    • Build a Better Bermuda says:

      Consultants are a different class of employment, they are not an employee, so the work permit rules are different as they are typically sought out for their particular expertise on specific contract work and not advertised for. What his particular expertise relating to the contract is a question that needs to be directed to Cosmic, as they are the ones who hired him.

  10. Bermy says:

    ‘“I have been advised that the then party Chairman was unreachable. I was therefore phoned as an OBA official in my capacity as OBA campaign director by a senior official at the bank. I was asked two questions:
    Does Mr. Derrick Green work for the OBA? My reply was yes.
    Does Mr. Derrick Green hold a valid work permit? My reply was yes.
    “I was not advised by the bank as to why I was being asked those questions and the conversation ended. This is not unusual; banks make inquiries of this sort in relation to business accounts frequently.’

    This doesn’t make a slight bit of sense!!
    The bank would have told Fahy why he was being asked these questions, it’s standard procedure. ‘Oh Hi Mr Fahy I have two gentlemen here trying to open account called BPAC and one of them isn’t Bermudian, can you confirm Green works for the OBA and has a valid work permit? We’ve already tried to get in touch with the OBA chairman but no luck, so as you are the OBA head of campaigning can you confirm the details regarding Mr Green are correct? And that they are authorised to open this account by the OBA?

    If the bank didn’t inform him of why he was being asked, which I can’t believe, why didn’t Fahy ask the bank what this was all about?
    Fahy thinks we are idiots..

  11. Teed Off says:

    So is it only me but certain people can deposit money with much said or investigated?

    • Bermy says:

      The bank would have properly investigated the opening of the account,

  12. clearasmud says:

    This man is a lawyer who had plenty of time to approach his party chairman if he believed that he had important information that could assist the report whether or not it was an internal party matter so i am not buying what he is selling. In fact because it was an internal matter when Mr Hollis announced that he would report back to the public he could have made his feelings known to his chairman but he did not! Actions speak louder than words!

  13. Gotham says:

    At least the funds we are talking about are not from the public purse, unlike say what went down at Bermuda Housing Corp, etc.

  14. drama du jour says:

    This is better than theatre—let’s keep focussing on the “drama du jour” and let those capable of providing solid solutions to help this country get back on its feet do so.

    Have a look around–hotels are upgrading, tourism is getting a breath of fresh air, ABIR has stated that the current administrations has made Bermuda a more attractive place to base people and just as a reinder–ABIR companies contributed 16% or nearly $900 million to our economy.

    So while those of us that bring NOTHING to the table spin themselves into a frenzy and create one “drama du jour” after another.

    There are others among us that are rolling up their sleeves and mucking out the dirty stall.

    funny iina????

  15. drunken ursula says:

    My poor friend Pat must be turning in her grave…. OBA is not the change we wanted….

  16. Infidelguy says:

    Mr Fahy, why did you not ask the bank why they were inquiring about Mr. Green’s status with the OBA? You had every right to ask yet you failed to do so. I thought you were more thorough than that? At least that’s the way you “seem” to come across publicly.

    You may have not opened the account yourself, but you played a very important role in facilitating it. Indirectly, you did authorize the opening of that account.

    Ignorance is not an acceptable excuse!

    • WTF says:

      Infidelguy, read the bloody article….it is quite clear Fahy knew why the bank was inquiring about Mr. Green…they needed to know whether or not Green worked for the OBA and had a work permit. Both “yes” or “no” questions. That is not “facilitating” anything. End of story.

  17. OnionSeed says:

    Is there any HONESTY brokers amongst the OBA?

    Who do you believe the former CHAIRMAN Thad Hollis who has nothing to LOSE and then suddenly RESIGNS after creating a report or Lawyer SENATOR Michael Fahy, who is deep in the middle of this mess. You be the JUDGE.


    Wait a minute … will he tell you a story today and CHANGE it if you call back tomorrow. Can you TRUST WHO you voted for or are you a recruited vote via D&B Consultants. Selling Bermuda away one vote at a time.


  18. Coffee says:

    I don’t quite think we’re getting the whole story here ,,, I’ll wait until the other shoe drops !

  19. Whatdoesthefoxsay? says:

    For Fahy to now wish us to believe that there was no connection between Decostas activities, Greens activities and the work in the ground in marginal constituencies and HOW the ‘workers’ were being paid is simply fantasy. Go figure. There simply had to have been a connection between what Decosta and Green were doing and in what marginals. Campaign Director is the key pivot. That’s how campaigns works. How the election of 2012 was controlled by US interests is unravelling.

  20. Jim Rodgers says:

    Sounds to me like Hollis may have gotten ahead of himself & his ‘resignation’ was requested……….. 2.5 cents

  21. islandguy says:

    Are we saying its unethical!!

  22. Alvin Williams says:

    The one who really has clean hands here is the former OBA Chairman Mr. Hollis. It’s a wonder he did not step down the minute he was told this will be a transparent report; but you can’t investigate here and you most definitely can not look in this direction because it it came to light it most certainly would clash with premier Dunkley’s pronouncement that ” Jet-gate is dead’. Mr. Hollis must have mull over this for quite some time as the stuff ooze out of the pit and it could no longer be denied what was causing this smell. This is the second OBA person who has some personal integrity are there any more yet to make their appearance?

Latest Tweets From ForeverBermuda.com