Auditor Criticizes Port Royal Cost Overruns
Auditor General Heather Jacobs Matthews has released a Special Report on the Port Royal Golf Course Improvements Capital Development Project, which is highly critical of the Board of Trustees and the Government’s management of more than $24 million which was spent during the years 2007 to 2011 – a project the Auditor said was initially budgeted at $4.5 million in November 2006.
A statement from the Auditor General’s office said, “Similar to other major capital development projects reported on by the Auditor General, this project was not delegated to the Ministry of Works and Engineering which has the mandate and expertise to carry out such projects.
“Instead, this project was delegated to the Cabinet Office and the Ministry of Tourism and Transport with the Board of Trustees given the responsibility to manage the project – a role neither of these entities had the technical capacity or the legal authority to undertake in accordance with Financial Instructions.
“The Special Report speaks of cost overruns, a lack of proper oversight and monitoring by the Government, loan financing authorized by the Minister of Finance without the approval of Parliament and a total disregard of established financial practices and controls for government expenditures – including the lack of tendering and conflicts of interest relating to Board members, one of whom was a Government Minister.
“Further, the Auditor General reports that she cannot conclude whether all the funds received by the Board of Trustees were used for the intended purposes or were fully accounted for due to inadequate accounting records.
“She notes that the “The Board of Trustees has not received a clean audit opinion on its financial statements since 1999. In fact, the Department of Internal Audit in its 2011 operational review of the Port Royal Golf Course noted numerous deficiencies in its internal controls”.
In the final analysis, the Auditor General reports that neither the Board of Trustees nor Government can confirm that value for money was achieved in this project nor can they confirm that taxpayer funds were effectively managed and protected.
The Auditor General’s Special Report on the Port Royal Golf Course follows below [PDF here]:
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PLP are disgusting.
Can’t say I’m shocked by the findings in this report. Not one bit.
More PLP fallout.
Sounds similar to de BTA.
no it doesn’t
You’re reaching..even for you Kunta.
Anyone with half a brain knows for 14 years money was used inappropriately. this is no big shock, just thrilled that truths are coming out!
True we shouldn’t be surprised, their track record assure us of numerous shenanigans they are famous for in the 14 years of ruling this Island (to the point that we find it today in debt billions of dollars generation to come)unless we stick to the wicket along with our present Government, One Bermuda Alliance that are proving to have a handle on the situation and the interest of foreign investor which will bring U.S.A. dollars here to help us get out of the rut we face
Here we go again.
At least you won’t go to jail………………………..
Who says…
“Further, the Auditor General reports that she cannot conclude whether all the funds received by the Board of Trustees were used for the intended purposes or were fully accounted for due to inadequate accounting records.”
Imagine that.
Right, so is something going to be done about this? Does someone need to go to jail? I hope So! This was MY MONEY!!!!
I have a feeling that will be hearing plenty more detail about this affair over the next year.
Actually it is not a surprise, its just par for the course… I’ll show myself out.
@Surprise surprise- you win the internet for today
why am i not shocked by this anymore???
Who was Chairman of the Board of Trustees at the time?
As one MP likes to say every week – “Enquiring minds want to know!”
Wendell Brown was Chairman of the board of trustees for Bermuda’s public golf courses during this project
He is a Director at a local Bank
Who was the Chairman? does anyone know???
Who was the Contractor?
Another shocking example of the incompetence and clear abuse under the PLP. Let’s go a step further and name those involved – Trustees, MP, etc. I suspect we have not heard the last of this revelation.
This is appalling…. What is sadder is that no one is surprised and nothing seems to come from it because of our passivity. Those who allowed this to happen or oversaw or took part in this should be ashamed and they need to be held accountable. It shows absolutely no respect for the people of Bermuda. If we do not make our voices heard and make these people pay, it will happen again..
If Pat will allow this, I have written a blog: http://jeremydeacon.wordpress.com/2014/11/14/what-course-are-we-heading-down/
And to think that there’s still a lot of people out there who refuse to believe that there’s no such thing as ‘missing’ or ‘unaccounted for’ $800 mill .
It certainly isn’t missing!!
This is why we are broke.
Well at least somebody got paid I guess.
What are the next steps if any? Would it even be possible to determine who is responsible and prosecute? Is this and similar future findings simply unethical but not illegal?
So …………………… “When do the prosecutions begin?”
Nothing ever happens
These are the people you want to get reelected and run the country again?! You’re a fool. Jus’ Sayin
When have I ever promoted PLP for reelection?
Jus’ Askin’
The $23.5m in ‘cost overruns’ could have paid for quite a lot of college scholarships, couldn’t it.
I wonder where it really ended up.
I think we all know where it ended up.
If Trustees acted:
- beyond their authority, or
- in conflict of interest, or
- without accounting records, or
- in disregard of their duties of care as Trustees
the Trust should bring an action against the Trustees to recover for the public.
Accountability for public money is an important principle at stake here.
Just a small excerpt of this Report says:
“A contract for equipment rental was not formally put out to tender following established procedures. Instead, contractors were invited to bid and only one company submitted a bid. The company was awarded a $1.6 million contract and was paid $1.7 million.
A subsequent contract for $1.2 million was awarded to the
same company without being tendered. The contract was based on the lowest
quoted rates per hour for equipment rental. The company received a further $0.6
million for other services for which no bid appears to have been received. In
total, approximately $3.5 million was paid to the company.
A Board of Trustee member, who was also an elected Member of
Parliament, had an ownership interest in the company. Since other bids were not
requested, we do not know if the subsequent services were provided at a
reasonable cost.
In the second instance, a contract was awarded to a
contractor to provide goods and services based on a guaranteed supply and
uniformity of quality/colour of product basis. The contractor subsequently sub-
contracted the supply of materials to another company in which a Board of
Trustee member was a director.
The contractor received $1.3 million for the services
provided to the Project.
The amount paid to the sub- contractor was not provided.”
Board of Trustee member – and elected Member of Parliament – had an ownership of the construction company? Which Construction Company on The Island could that possibly be?
Surely these findings by the Auditor General have to be investigated further?
Bet we can guess real quick which firm it was????
Has anyone heard anything from Mr. Zane DeSilva today? I wonder why not
One thing i know his staff that was working up there was not happy with their PAY when working ALL the EXTRA hours!!!!! Now pick the bones out of that….
Wouldn’t it be in the public interest to know the names of these Trustees, particularly the MP/contractor/ Trustee who was enriched by $3.5m?
It’s shocking that Starling, with all his interest in access to information, has not already commented on this. I wonder why that is?
Yes, who were the Trustees? Surely that must be a matter of public record.
weres kunta
Where YettB ranting about the all the indignities of the OBA? Mmmmm,m?
They are around at Alaska Hall getting instructions on what to write. Give it a little while. They will be here with the usual effluence.
Too busy defending old potty mouth.
“In the final analysis, the Auditor General reports that neither the Board of Trustees nor Government can confirm that value for money was achieved in this project nor can they confirm that taxpayer funds were effectively managed and protected.”
This sums up EVERY Capital project undertaken by the PLP Government. Yet their supporters cry, scream and march to high heaven when Bob Richards tells them why there is no money left for handouts.
A don’t forget how insulted everyone was when he rightly said we don’t have a money tree. A $20m over run on a $4m project…on what planet is that possible. Anybody that honestly thinks they should ever be allowed to get in power needs to have their heads examined.
PLP are leeches, painting an imaginary picture whilst sucking the blood out of every Bermudian.
It’s sad how the trolls come out in force if the OBA spends anything, and yell and scream about a few hundred dollars, but millions here, and …… drum roll….. NOTHING!
Bermuda Police Service,Foreign Commonweath Office,Scotland Yard, INVESTIGATE THIS MISUSE OF PUBLIC FUNDS!
At 7.40pm there have been 223 comments relating to the OBA “walking out of the House” but only 33 regarding the PLP Government overspending Port Royal by $23.5million. That really shows where the interest really lies.
I call for an investigation into the $23.5million, who cares about a bunch of politicians deciding to hear the Opposition reply to the Throne Speech in the comfort of an adjoining room.
Ah hello. You just had an investigation into it, lasting almost 4 years. Don’t you think that if there was more to tell or more to be done this Report would say so? When an auditor says “I can’t tell” it means just that. It doesn’t mean what you want it mean. Sorry.
All the AG can do is report her findings.
The audit may have taken 4 years but it is now up to the relevant authorities, which would appear to include several authorities, to act on the findings.
You seem to be OK with “I can’t tell where $23m went” means the books are closed and the monies will never be recovered, or if appropriate, persons charged.
Man, that really is stupid. It does mean exactly what Ringmaster says it means. It means overruns of $24m were incurred, but nobody can tell the public exactly where the money ended up. Because the papers were destroyed or removed, presumably.
And this week people wanted to pass judgment on a Minister’s taxi fare.
How times have changed.
You are wrong. Deeper investigations by other authorities can reveal information that has not been found in this report.
scotland yard opls do it
show plp games are over
Oh man – this is real bad stuff
We are sinking under a huge debt as a result of such situations which they brazzened out over and over again.
Where is it the leader to stop the misuse of the people’s money?
Be worthy of the heroes who gave their lives for our freedom.
One of these days someone will take the time to educate the public on the meaning of “TAF” and how a number comes to be set for it. The greatest tragedy of this and other reports is that it never contains the full details that explain the numbers. Is it impolite to point out that the TAF for the Port Royal renovation was set BEFORE the PGA had a desire to go there and so that $4.6m in upgrades from 2005 would bear no resemblance to what was eventually done to make the course fit for the PGA. So the suggestion that there’s a $20m “overrun” is just outright wrong; the two figures relate to totally different work. So in this first public statement or report from the Auditor General in almost three years (hmmmmm) we get a replay of the same old half story.
The question is, when will she look into:
1. JetGate
2. the airport agreement sole sourced specifically to circumvent the usual procurement process
3. the endless grant of concessions to the prejudice of the public purse
4. any of the sole sourced contracts gazetted or the ones that haven’t been
Oh wait, that was before, this is now.
P.S. Nice to finally have a Report sans hyperbole madam; the mission must have been accomplished in 2012.
What silliness!
At Port Royal the Trustees awarded sole bid contracts with $3,500,000 public money to a Board Member’s, company without adequate accounting records, which “may not have been used for the intended purpose”, and another $1.3m was paid to a company that subcontracted to the board member’s company.
Oh yes, and then we had $1,100,000 for “golf cart pathway upgrades”!
Jetgate was a private $300,000 gift to individuals and no contract with Government was made.
If something wrong was done that should be investigated but no Government money or Trustees of a public body were involved.
A Canadian Government entity publicly agreeing to finance reconstruction of Bermuda’s disintegrating airport is not comparable to a Board Member MP’s company consuming MILLIONS IN PUBLIC MONEY.
The Auditor General’s Report reviews $24,000,000 expenditure on a golf course.
You are defending this ABUSE of Bermudians money !!!!!!!!!!
Not defending anything. For one moment just stop and think. Would $4.6m worth of renovations been sufficient to get the PGA to even consider Port Royal and therefore Bermuda? Of course not so no matter how you slice it more than that was always going to be spent. Check the cost of renovating or even constructing golf courses of Port Royal’s calibre in other jurisdictions with far cheaper labour and materials than Bermuda and you will find that the numbers are not that far removed from what was spent here. Any criminal acts should be fully prosecuted but we have to grow up in this country and think for ourselves and do our own research and stop taking everything thrown at us as gospel truth. Any golf course designer or professional will tell you that we got 5 times more than $4.6m worth of work at Port Royal. Why would you let this report then tell you that this project represents an “overrun” when the original bid couldn’t buy a portion of the work that was actually done. Think for yourselves. Prosecute the guilty but don’t check your brain at the cover of this accounting exercise.
The PGA event was held at the Mid Ocean Club, prior to any course renovations at Port Royal. There was absolutely no need to spend this amount of money as the event could have continued where it started, however, the PLP elite wanted taxpayers to underwrite their vanity project so THEY could show off at OUR expense.
For what reason, other than financial manipulation and overt control, would they shift responsibility for the renovations away from W&E? Think for yourself.
I wouldn’t disagree with you but the big question here is why are there apparently so many missing invoices/change orders/supporting documentation? The AG is saying there is no audit trail. No back up. No paper trail. A few dollars is one thing but there seems to be a lot more than that which has to give rise to questions. I would expect at least a team of forensic accountants to be tasked to investigate.
If innocent, then come forward and provide the proof.
Someone needs to get locked up!
……..
We should be finding ways of coming together, yet we lie, cheat and steal from each other and remain divided. We are surely doomed if we don’t come together… like right now!!! Some people need to stop spewing hate and and starting finding ways of working together. Enough is enough already, the majority of us are tired of it! Be proud Bermuda and stand together…one people, one Bermy!
Surely there is someone – anyone out there who can defend the former PLP Government on this issue?!! We have PLP bloggers attacking the OBA every single day on anything and everything they do or don’t do. Surely they can blame the Auditor General for being biased, or the newspaper for biased reporting. I can think of lots of excuses or reasons, however, spurious for diverting blame away from the PLP, but on this parotcilar subject we don’t have one single person trying to do so. This lack of support from the PLP bloggers is inexcusable!
And people want the PLP back as Government…lmfao smh!
Just imagine “dat”! We’re up to our chin in the cesspit and now we see blatantly why we are…
Had the OBA not staged their Parliament drama, then quite possibly you would have seen a much greater interest in this Report.
The OBA upstaged the Auditor’s Report and completely dwarfed it even though Cabinet must have been aware that it would be coming out today.
And although I have not read the Report in its entirety I would like to highlight a snippet where the Auditor stated:
A draft of this report was reviewed by the Audit Committee (the
“Committee”) established under Section 5 of the Audit Act 1990.
The Committee’s role includes reviewing drafts of my public
reports, discussing the contents with me, and communicating to
Cabinet any matters the Committee believes should be brought to
Cabinet’s attention. The members of the Committee who reviewed
this report are:
So, I seriously doubt that the Premier was not aware of the imminent release of this Report.
The plausible question rises, why politically upstage this very substantive Report? Possibly to limit comparisons and contrasts between then and now (PLP vs OBA)of government spending, such as: 1) the capital project for a new airport terminal was never put to tender (same mistake made by the PLP on Port Royal) and; the America’s Cup costs to the public purse are deeply hidden from the public (we know not whether the cost is $25 million or $250 million to the public purse.
But regrettably the Auditor General audits the end results, when government funds have long since vanished without a trace.
However, the OBA should be held accountable and transparent for capital projects that it undertakes from now in the future of their tenure.
It is better to know what is going on before the horse leaves the blocks, not sit dumbfounded commenting on it after the horse has has bolted.
Abuse of women not an important issue to you?
Many feel OBA protest made a high profile public stand.
If you think that then why not support the effective AntiCorruption Act and Commission published in February by Alex Scott?
Don’t worry it is going to be debated in the House in a couple of weeks. It will get plenty of attention then and no doubt in the months to come.
Note the Board composition during the period in question…
STATUTORY GOVERNMENT BOARDS, 2007
The following Boards are appointed from January 1, 2007 to December 31, 2007 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair: – Mr. Wendall Brown
Mr. Delano Bulford
Mr. Neville T. Darrell
Mr. Zane DeSilva
Mr. William Griffith
Mr. Carlton Lowe
Mr. Shaun Morris
Mr. Anthony Richardson
STATUTORY GOVERNMENT BOARDS, 2008
CABINET OFFICE – TOURISM AND TRANSPORT
The following Boards are appointed from January 1, 2008 to December 31, 2008 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair: Mr. Wendall Brown
Mr. Delano Bulford
Mr. Zane DeSilva
Ms. Yolanda Furbert
Mr. Billy Griffith
Mr. Allen Richardson
Mr. Tommie Squire
Mr. Neville Tyrrell, JP
Mr. Bob Wilson
Ms. Pandora Wright
STATUTORY GOVERNMENT BOARDS, 2009
The following Boards are appointed from January 1, 2009 to December 31, 2009 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair: Mr. Wendall Brown
Mr. Delano Bulford
Mr. Zane DeSilva, JP, MP
Mr. Bob Wilson
Ms. Pandora Wright
Mr. Neville Tyrrell, JP
Ms. Yolanda Fubert
Mr. Allen Richardson
Mr. Leroy Robinson
Mr. Tommie Squire
Mr. Greg Swan
Hmmmm…anyone else notice certain names that were there every year? I would not want to be any of those right about now.
Is that what you call the……………” cookie jar”.
Statutory boards, such as the Board of Trustees of the Golf Courses, are appointed each year by the Minister responsible for the organisation. The names are printed in the Official Gazette. I have listed the names gazetted at the beginning of each year for the period in question. Note that it is difficult to know when in the year someone stepped down if they aren’t appointed the following year.
STATUTORY GOVERNMENT BOARDS, 2006
(http://www.bermudasun.org/…/6-Jan-2006…/-3/268/28161)
The following Boards are appointed from January 1, 2006 to December 31, 2006 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair Mr. Michael Emery
Deputy Chair Hon. Nelson Bascome III, JP, MP
Mr. Delano Bulford
Mr. Derrick Burgess, JP, MP
Mr. Neville T. Darrell
Mr. William Griffith
Mrs. Veronica Hines, MBE
Mr. Carlton Lowe
Mr. Shaun Morris
Mr. Anthony Richardson
STATUTORY GOVERNMENT BOARDS, 2007
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s…)
The following Boards are appointed from January 1, 2007 to December 31, 2007 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair: – Mr. Wendall Brown
Mr. Delano Bulford
Mr. Neville T. Darrell
Mr. Zane DeSilva
Mr. William Griffith
Mr. Carlton Lowe
Mr. Shaun Morris
Mr. Anthony Richardson
STATUTORY GOVERNMENT BOARDS, 2008
(http://www.bermuda.com/…/25-jan-08-government-notices-2…)
CABINET OFFICE – TOURISM AND TRANSPORT
The following Boards are appointed from January 1, 2008 to December 31, 2008 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair: Mr. Wendall Brown
Mr. Delano Bulford
Mr. Zane DeSilva
Ms. Yolanda Furbert
Mr. Billy Griffith
Mr. Allen Richardson
Mr. Tommie Squire
Mr. Neville Tyrrell, JP
Mr. Bob Wilson
Ms. Pandora Wright
STATUTORY GOVERNMENT BOARDS, 2009
(http://www.bermuda.com/…/9-january-government-notices…)
The following Boards are appointed from January 1, 2009 to December 31, 2009 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair: Mr. Wendall Brown
Mr. Delano Bulford
Mr. Zane DeSilva, JP, MP
Mr. Bob Wilson
Ms. Pandora Wright
Mr. Neville Tyrrell, JP
Ms. Yolanda Fubert
Mr. Allen Richardson
Mr. Leroy Robinson
Mr. Tommie Squire
Mr. Greg Swan
STATUTORY GOVERNMENT BOARDS, 2010
(http://www.bermudasun.org/…/8-January-2010…/-3/718/44169)
The following Boards are appointed from 1st January, 2010 to 31st December, 2010 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair: – Mr. Wendall Brown
Deputy Chair: Mr. Bob Wilson
Mr. Delano Bulford
Mr. Neville Tyrrell, JP
Ms. Yolanda Furbert
Mr. Allen Richardson
Mr. Tommie Squire
Mr. Gregory Swan
Mr. David Woodward
STATUTORY GOVERNMENT BOARDS, 2011
(http://bermudasun.bm/…/7-January-2011…/65/187/49952)
The following Boards are appointed from 1st January, 2011 to 31st December, 2011 under the applicable Legislation, unless otherwise indicated.
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair: – Mr. Nitin Aggarwal
Deputy Chair – Mr. Shaun Morris
Mr. Andy Burrows
Mr. Delano Bulford
Mr. Neville Darrell
Ms. Yolanda Furbert
Mr. Leroy Robinson
Mr. Quinton Sherlock, Jr.
Mr. Tommie Squire
Mr. David Woodward
STATUTORY GOVERNMENT BOARDS, 2012
(http://bermudasun.bm/…/6-January-2012…/65/187/56081)
The following Boards are appointed from 1st January, 2012 to 31st December, 2012 under the applicable Legislation, unless otherwise indicated.
STATUTORY GOVERNMENT BOARDS, 2012
BOARD OF TRUSTEES OF THE GOLF COURSES
The Golf Courses (Consolidation) Act 1998
Chair:- Mr. Nitin Aggarwal
Deputy Chair:- Mr. Mr. Clement Talbot
Mr. Delano Bulford
Mr. Andy Burrows
Mr. Neville Darrell
Mr. Tommie Squire
Mr. David Woodward
Hmmmm…. who is not there after 2009?
Being an accountant myself I personally welcome such accountability. If monies cannot be traced fully let’s bring in the forensic accountants for further analysis as the OAG’s scope is limited. Bring it on! What bothers me though is that many of the OBA supporters here are living in glass houses along with their MPs. So called transparency of showing an average plane trip of $2K plus on a website is a deflection and doesn’t quite equate to the millions spent in ways we do not know or have access to as taxpayers such as the BTA. In addition, the handling of the airport and other capital projects, policies, etc by this Govt is dicey at best. Do you honestly think that this project will come under or near to the $200 million budget? That’s a lot of $$. We will be watching and waiting.
The PLop put a “For Sale” sign on us Bermudians!
Is there no law that protect us from this?
How disappointing to get up and read this on a Sunday morning. And yes, i did read the complete Auditor’s report.
While OBA may not be perfect in some of their political approaches to dealing with the Bermudian public, how can we be expected to hand back the financial reigns of the country to the PLP who spent like this?
It begs to question how many other Capital Projects were as badly managed as this under the PLP’s leadership?
This isn’t a black v white issue, this is an, I am Bermudian issue.
Will someone from the PLP or this Board of Trustees of the Port Royal please explain this.
ZANE or somebody say something! Normally you guys are so quick to speak out!!!!!!!!!
Maybe “they’ve” been told to take the fifth
The shame of this breaks our faith.