Log In

Reset Password
BERMUDA | RSS PODCAST

PAC chair decries ‘government interference’

David Burt

Chairman of the Public Accounts Committee David Burt expressed concerns about government interference as the committee was set to hear evidence about spending on the 35th America’s Cup.

While the committee was scheduled to ask questions of William Francis, the permanent secretary for the Ministry of Economic Development, the committee heard that Attorney-General Trevor Moniz sent Speaker of the House Randy Horton a letter arguing that the committee did not have the power to inquire on the spending of government funds.

In a subsequent letter, Mr Horton said the committee did have such powers. However, Mr Francis did not attend this afternoon’s meeting citing illness.

Speaking after the meeting, Mr Burt said it was unfortunate that Mr Francis was unwell, but expressed concern that the Bermuda Government was interfering with the legislature.

“Government is effective when the separation of powers exist and holds the executive to account,” Mr Burt said. “It is the PAC’s role to ensure that public funds, which are everyone’s money, are spent in accordance with financial instructions and the rules and regulations.

“In the case that was happening here, the committee previously unanimously agreed to call the PS for Economic Development. There are PLP members and OBA members on the committee. There are more OBA members than there are PLP members, and the OBA can always outvote, but it was a unanimous resolution of the committee.

“It is quite surprising that the Government felt the need to engage in attempting to block public officers from appearing, and we saw that happen.”

During this afternoon’s meeting, Mr Burt presented the committee with a series of letters and e-mails, stating that he had issued a summons for Mr Francis’s appearance after he failed to respond to electronic communications.

Mr Francis responded to the summons and stated that he had received legal advice that Mr Burt did not “have the authority to make this request”.

Mr Burt responded in an e-mail that the committee did have the power to summon witnesses and documents, citing three pieces of legislation.

That same day, a letter was subsequently sent to Speaker of the House by Mr Moniz, which read: “The Government takes the view that he [Mr Burt] does not have the authority to pursue this course of action and humbly asks that you take appropriate efforts to restrain the chairman from engaging in activities that may serve only to bring the House into disrepute.”

Mr Horton responded in a letter dated yesterday morning that it was in the PAC’s purview to examine funds voted on and approved for expenditure by the legislature, and that the Governor’s consent was not required to order officers to appear.

He added: “I do not think it is helpful to charge that a properly constituted committee of the House may, as you put it, ‘engage in activities that may serve to bring the House into disrepute’ when it appears that PAC, composed as it is of members from both Government and Opposition, is seeking only to discharge what is regarded as one of its responsibilities under our standing orders to the legislature and, ultimately, to the people of Bermuda.”

During the committee meeting, Mr Burt said he was concerned by the back-and-forth, and had taken those concerns to the Governor.

Susan Jackson, making her first appearance as a committee member, said the discussion was a “major distraction” while the committee should be working on their investigation into the Port Royal Golf Course.

Mr Burt responded that the committee had unanimously agreed to schedule the America’s Cup matter for yesterday, adding that several meetings on Port Royal have been carried out with more still to come.

At the conclusion of the meeting, the committee voted to again request the appearance of Mr Francis on April 23. They also voted that the documentation regarding the America’s Cup be served on the same day Mr Francis appears, despite strong objections from Opposition members who argued the documents should be put before the committee sooner.

Wayne Furbert, of the Progressive Labour Party, said the decision sets a bad precedent moving forward, while Lovitta Foggo said she was bewildered by the move, adding that having access to documents in advance allow for more relevant and cogent questions.

Ms Jackson responded that the documents being requested in this case are “actively in negotiation contracts, agreements, plans and strategies”.

Government Whip Cole Simons added: “We are walking in new territory as far as addressing current issues. When we address current issues, sometimes they are live issues and we have to make sure that we don’t compromise what is the best interest as a whole.”

A Government spokesman responded to Mr Burt’s comments last night, calling them “unfortunate and nothing short of grandstanding”.

In a statement, the spokesman lso addressed the chairman’s concerns of interference: “Firstly, the PAC normally examines audited accounts which have been tabled in the House or reports of the Auditor General which have been tabled in the House — however, neither is the case here.

“Secondly, the chairman has spoken of funds appropriated for the America’s Cup, however that has not happened yet. It’s simply unprecedented that the PAC would look into accounts before the funds have actually been allocated by Parliament. This is pure political grandstanding by the Shadow Finance member.

“To ensure public clarity, to date the ACBDA has received no transfer of funds. The public should be advised that funds will be properly allocated and fully debated as is the normal custom and practice in the upcoming 2015/16 National Budget debate, and where there will be ample opportunity for the Opposition members in the House and Senate to ask questions and review the numbers.

“As an added note, the Government finds it quite puzzling that this matter has catapulted ahead of the Port Royal Auditor’s report.

“The public should be reminded that there have been no public hearings yet regarding the Port Royal Report, and that comprehensive, very detailed document was tabled several months ago.

“Also, as an important note, it is highly unusual for the PAC to issue a witness summons, particularly without the authorisation of the full PAC membership. Finally, the America’s Cup agreements are still being negotiated and are at a very sensitive stage. With that in mind, the convening of today’s meeting was entirely premature.”

The Government statement in turn drew an immediate reply from Mr Burt, who said: “Is the Government really telling the people of Bermuda that not one penny has been spent from any ministry’s budget on the pursuit of the America’s Cup? That is simply unbelievable and begs the question what is the Government hiding?”

• For the full correspondence presented to PAC, click on the PDF link under “Related Media”.