Log In

Reset Password
BERMUDA | RSS PODCAST

Government gets more control of corporations

Minister of Home Affairs Michael Fahy

Senators called it “a sad day” as they spoke on the passing of the Municipalities Amendment (No 2) Bill 2015, which provides for ministerial control of corporation affairs.

The legislation also gives the Minister of Home Affairs, or a person appointed by the minister, the right to attend corporation meetings and give direction.

It continues to allow for ministerial stewardship of the corporations should that be deemed necessary, as was the case when Sen Michael Fahy took control of the Corporation of Hamilton in January as the controversy of the Par-la-Ville car park falling into receivership intensified.

The bill, which affects the municipalities of Hamilton and St George, passed with two objections.

Minister Fahy, during debate on the bill, said the new legislation would give the Government oversight — “Not taking over (the municipalities), but oversight,” he said.

Sen Fahy told senators he had brought the bill before the Senate instead of the House of Assembly because he wanted to ensure the legislation was under way before last week’s municipalities elections, so that both the voters and those running for office knew what the Government’s intent was.

Now the elections have been held, he said: “I have met with the Hamilton Council already, and I’m meeting with the St George’s Corporation next Wednesday.”

Sen Georgia Marshall, the newest Government senator, said she hoped the amendment would “stem the tide, buttress what we have already and ensure the longevity of our municipalities”.

Both Sen James Jardine, an independent, and Sen Jeff Baron, of the One Bermuda Alliance, said that debating this bill made it a sad day, but did not argue against the amendments.

Sen Jardine said: “There is no question that this bill does in fact give the Minister control over a variety of aspects of both Hamilton and St George.

“It is an unfortunate day that we find ourselves in this position.”

Senate president Carol Bassett supported the amendments. “At this juncture, I don’t think we have a choice,” she said.

OBA Sen Lynn Woolridge said she was in support of the bill. “The OBA believes in accountability. This is what this bill is about. These powers are powers of last resort.”

She compared the municipalities to local governments in other jurisdictions.

“Municipalities are like local governments, but are answerable to national government.”

However, the opposition senators, the lone dissenters, criticised the bill, with Sen Diallo Rabain (left) saying that it “spits in the face of democracy”.

The Opposition Senate Leader noted there had been several amendments to municipality legislation.

He added: “I just wish they [OBA] would make up their minds about what they want to do. “I don’t support this bill in its current form.”

Sen Renee Ming, the Shadow Minister for Municipalities, who is also a St George’s MP, said: “I see this as legislation that hampers and makes the corporations powerless. I’m talking about both Hamilton and St George.”

She also described the powers to be given to the Home Affairs Minister to temporarily take over the financial governance of a corporation when it is believed finances are being mismanaged, governance is in a poor state, or if it in the public interest as “very subjective”.

Sen Fahy responded to criticisms, saying: “The ex officio member simply attends (the meetings).” He also criticised the setting up of the Democracy Trust by the previous municipal administration, which held 20 year leases on most City properties.

“The Democracy Trust was an attempt to stymie the elected Government’s right to govern,” he said.

“To me it matters not which government is in place.”

He also said: “The day-to-day running of the Corporation is not for the Minister of Home Affairs, it is for the Hamilton Corporation secretary and staff, as it should be.”

• For full ministerial statements, click on the PDF link under “Related Media”.