Senator Michael Fahy, the Minister of Home Affairs, last night hit back at claims that the Bermuda Government had spent nearly $1.5 million in legal fees to seek guidance on how to void the Hamilton Waterfront lease.

Opposition Senator Marc Daniels had made the claim yesterday, saying the expenditure was as “an affront to every Bermudian”.

But Sen Fahy rejected the allegation and branded the claims “misleading and false”.

He said that “less than half the requested amount” had been spent by Government.

“Senator Daniels has made inaccurate statements regarding legal fees in respect of the Ministry of Home Affairs,” said Mr Fahy.

“To ensure public clarity, the ministry has requested supplementary sums for the fiscal year 2014-15.

“This measure is designed to cover legal fees expended and fees possibly to be expended in respect of the waterfront arbitration, for fiscal year 2014-15.

“In addition, it is anticipated that the measure would cover costs for the constitutional challenge to the changes to the Municipalities Act 1923 currently before the Supreme Court of Bermuda, again, for fiscal year 2014-15.

“As an added note, a small portion of the requested allocation relates to funding a guarantee through the Bermuda Economic Development Corporation.

“The supplementary request is based on best estimates and the fee request and billings to date are vetted by the Attorney-General’s Chambers.” ? Sen Fahy added: “Contrary to the Opposition Senator’s statement, the ministry has not spent $1.5 million to obtain advice on voiding the waterfront leases. Such assertions are completely misleading and false.

“Fees have been spent on overseas counsel, expert advice, preparation of pleadings, witness statements and other litigation expenses.

“To date, less than half the requested amount has been spent.

“It’s quite regrettable, as Senator Daniels should know better than to issue such inflammatory and speculative statements, particularly when the matter is scheduled to be debated in the House and Senate during the Budget debate.”

Last night the PLP released a further statement on the matter which stated: “In his haste to evade the truth, Minister Fahy neglected to reveal which company looks to receive nearly $1.5 million taxpayer dollars in legal fees.

“The fact is that the OBA has set aside $1.5 million dollars of your money to fight a legal case that is likely to generate even higher legal bills.

“That’s nearly $1.5 million that could have been spent on our students or on bringing tourists to our shores.

“We call on the OBA to stop evading the truth, come clean and reveal which law firm has benefited from so much of our tax dollars and if there is any connection with members of the One Bermuda Alliance.”