Commissioners highlighted the lack of a performance bond as they heavily criticised the Bermuda Government’s Heritage Wharf development.

The project, which ended up costing taxpayers $60 million — $21 million more than the original contract signed in 2007 — has been the subject of media scrutiny over structural difficulties since its completion in 2009.

When damage to the thruster wall was reported in 2011, the Progressive Labour Party government refused to say whether a performance bond had been in place to guarantee its successful completion.

The Commission of Inquiry, which found evidence of possible criminal activity within the project, noted that the contract awarded to Correia Construction had no such bond.

It stated works and engineering permanent secretary Derrick Burgess had flagged up the situation to Cabinet Secretary Marc Telemaque in a letter, stating: “The cost of a performance bond to 50 per cent of the contract value is estimated to be in the region of $3 million. This has not been required in the contract and will not be purchased by Correia Construction.”

Commissioners also noted the “unclear, unsatisfactory and inappropriate” documentation of how oversight of the project passed from the Ministry of Works and Engineering to Ewart Brown’s Ministry of Tourism and Transport.

They also said payments were made by the Accountant-General’s department without evidence of Cabinet approval of the contract.

Dennis Correia, the head of Correia Construction and a close friend of Dr Brown, the former premier, has defended the project by saying it was a moving target with many changes to plans and specifications.

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