The decision to renew a controversial tourism consultancy contract without a public tender came from Ewart Brown, the former Premier, the Commission of Inquiry heard yesterday.

Cherie Whitter, the former permanent secretary, told the inquiry that Dr Brown, the Minister of Tourism and Transport at the time, had “taken a particular position” based on the “very public discussion” surrounding the GlobalHue deal, and did not intend on having a tender when the contract reached term.

The tribunal, which is probing several capital projects between 2009 and 2012, has already heard that the Auditor-General, Heather Jacobs Matthews, criticised the original contract with GlobalHue for not being tendered in a report released in February 2009, just two months before it was renewed. Under the arrangement GlobalHue used a sub agent called Cornerstone Media to place broadcast ads and the Auditor discovered that Cornerstone’s “mark-up” when it billed GlobalHue was sometimes as much as 186 per cent.

Asked by commission lawyer, Narinder Hargun, if she gave any advice or recommendations about the renewal to Dr Brown, she replied: “The minister was aware that the agency contract was expiring. Technical officers provide the minister with advice on a regular and ongoing basis relative to a number if things.

“In this regard the minister had a particular position he had taken based on the very public discussion and deliberation around GlobalHue from inception when it was awarded the agency of record account in 2006 for Bermuda tourism.

“As a result of all public attention he had a particular position and it was his position that he did not intend to conduct an agency review when the contract reached term.”

Mr Hargun further inquired: “Did you not give advice because the minister was not looking for advice?”

“To a large extent that is accurate,” Ms Whitter replied. “However, what we were required to do in accordance with financial instructions was conduct due diligence and the minister was aware of that.”

Ms Whitter acknowledged that there had been difficulties with the consultancy contract prior to its renewal as Cornerstone had failed to provide invoices for work done. However, she told the Commission that it was technical officers from within her ministry that flagged up the problem and enlisted the help of the Auditor-General to address the issue.

“My understanding is that all the invoices were ultimately provided,” she said.

Ms Whitter outlined that in the revised contract’s terms there were new provisions in relation to third-party suppliers that stipulated they could only be used when GlobalHue did not have the resources itself, costs were identified and there was prior consent from the Bermuda Government. During yesterday morning’s hearing Ms Whitter also gave evidence about the project to redevelopment of Port Royal Golf Course.

In her critical 2014 report Ms Jacobs Matthews revealed that the board of trustees authorised and paid $10,000 in excess of the invoiced price to a company, which was awarded a contract for goods.

Ms Whitter told the commission that she assumed the Port Royal board of trustees had their own financial procedures in place when she took her position in the ministry, but she acknowledged that she could not speak to the adequacy of them.

“It was my understanding they (financial procedures) existed,” she said.

Ms Whitter went on to add: “It was our responsibility to dispense the funds in accordance with financial instructions. They were responsible for how they used the funds and ensuring they were used in accordance with the financial procedures they had. We did not review their contracts or tendering process because that was not our responsibility. They were a body corporate.”

Commission timeline

Day 1: Commission chairman Sir Anthony Evans brands actions carried out by the Port Royal board of trustees as “straightforward fraud”.

The tribunal hears how the board paid $10,000 of public money to a company awarded a contract for goods, so the company could in turn pay that money to board of trustees member Delano Bulford as a “finder’s fee”.

It hears how the Ministry of Works and Engineering was repeatedly “sidelined” when it came to managing capital projects during the years that Ewart Brown, the former Premier, was Minister of Tourism and Transport.

Day 2: Dr Brown’s lawyer, Jerome Lynch QC, argues the former Premier needs an additional nine weeks to consider and answer the questions asked of him by the Commission relating to the various capital projects under scrutiny.

Derrick Binns, the Cabinet Secretary, is quizzed about two projects from the time he was permanent secretary at the Ministry of Public Works and Engineering: the Heritage Wharf cruise ship pier at Dockyard and the Dame Lois Browne-Evans court and police building in Hamilton.

Paula Cox, the former finance minister, is said to have objected to a proposal by Dr Brown to hire an overseas company as consultants on a $400,000 a year retainer.

Day 3: Marc Telemaque, the former Cabinet Secretary, defends the civil service, which he insists is made up of “good people” working with a “broken system”.

Mr Telemaque is quizzed in connection with the Heritage Wharf project that came in millions of dollars over budget.

The tribunal hears how the contract to build two satellite emission testing centres was not put out to public tender, despite Cabinet mandating it should be.

Day 4: Bobby Horton, the former Works and Engineering permanent secretary, reveals former minister Derrick Burgess’s actions over planned renovations to the Commercial Court building had caused considerable concern among technical experts and senior civil servants.

Mr Burgess is said to have interfered as he tried to cut costs and provide more opportunities for smaller businesses, but technical officers feared his approach could end up costing the Bermuda Government more money.

Cherie Whitter, the former Ministry of Tourism and Transport permanent secretary, says Dr Brown made the decision to renew the controversial GlobalHue contract without a public tender, based on the public attention the issue had attracted.

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