Auditor General: Make financial statements public or I?ll intervene
The under-fire Bermuda Housing Trust?s refusal to make their financial statements public is an ?absolutely atrocious? position according to Auditor General Larry Dennis (pictured).
And the often outspoken Mr. Dennis has pledged to write to the Board of Trustees to inform them that he has the legal right to formally audit their finances, while not ruling out the possibility of pursuing his claim through the courts if they do not respond favourably to the request.
The BHT was established through an Act of Parliament in 1965 with a mandate to build housing for Bermuda?s seniors and rent them at prices significantly below market value. The Trustees are appointed by the Housing Minister but operate independently from Government in the main ? although the Trust does pay a sizeable fee to the Bermuda Housing Corporation for a number of support services including property management.
As has been widely reported, BHT residents have been up in arms for almost a year at what they see as totally unreasonable rent hikes ? with a large number now required to fork out double what they were paying to live in BHT properties at the end of last year. And with lawyer and Opposition member John Barritt fighting their cause, 31 tenants will be taking their complaint to Magistrates? Court in October, where they are expected to argue that the rent increases fundamentally undermine the Trust?s raison d?etre. Housing Minister Ashfield DeVent and the Trustees have balked in the face of demands from Mr. Barritt to justify the rent increases by making the BHT?s financial statements public ? both arguing that there is nothing in the law which suggests they must do so.
BHT chairman Ronald Simmons has said the increases are to cover the spiralling cost of maintaining the existing properties ? a claim the tenants themselves hotly contest ? as well as generating the capital to build yet more affordable homes in light of dwindling contributions from other sources.
In a further twist however, understands Mr. Barritt wrote to the Auditor General at the beginning of the month, arguing that his office has the power under the Audit Act to audit the accounts of the BHT ? an opinion Mr. Dennis now shares after a few weeks? reflection.
Mr. Dennis also said that it might be possible to force the Trust to publish their finances in the public domain because of the Charities Act, which makes it clear that any organisation which generates money from the public is forbidden from keeping its affairs under lock and key and must hand over it statements to the Charities Commission.
?The Audit Act does give me the authority to audit any Government organisation which is either controlled by shares such as the Bermuda Housing Corporation, or has a Board appointed by the Government ? and I think the Bermuda Housing Trust fits into that category,? he said. ?I will be penning a letter to the Trustees in the near future, bring the law to the board?s attention and informing them that I will be seeking to audit them. I presume they will refuse ? in which case I may have to think about pursuing my claim through the courts, although if I do I will certainly hold off until the current case [of the rent protesters has been dealt with. To be honest, I am fed up of having to go to the trouble of approaching these organisations who really should be coming to me. Many others actually prefer being audited by my office because it is convenient and because it is free ? so I am surprised that the Trust has not taken this route before. But be that as it may, as a public Trust established under a Government statute, it is ridiculous that the statements are not out there already because they are not as yet accountable to the public as they should be.?
Mr. Simmons did not respond by Press time.
