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BHC twice turned down offers to buy Brown property

The Flatts Village house that Dr. Ewart Brown sold to the Bermuda Housing Corporation.

Bermuda Housing Corporation twice turned down offers to buy the run-down property of Transport Minister Dr. Ewart Brown - but finally acquiesced when it became apparent that both he and Housing Minister Nelson Bascome were "anxious" for the sale to go through.

And sacked BHC general manager Raymonde Dill said he believed the total of $610,000 that the BHC paid for the property was a fair price and that it had been independently evaluated - contrary to claims in Auditor General Larry Dennis' report.

Mr. Dill spoke out after The Royal Gazette reported on Monday how Mr. Dennis had raised questions about the sale, particularly the fact that Dr. Brown had not declared his interests when transacting with a Government quango. But Mr. Dill said, contrary to the Auditor's report, an independent value appraisal was carried out on the North Shore Road apartments in Flatts by Entasis Architecture and he said he believed BHC had paid a fair price for them.

However, the sacked general manager said he did not know why the Auditor was unable to find the independent value appraisal when carrying out his special audit of BHC.

Mr. Dill said BHC ended up paying $440,000 for the two, two-bedroomed apartments, as well as $152,000 on refurbishments, despite the fact that they were not "ideal". "I don't think that the Flatts Village property was the most suitable property for the Housing Corporation to buy as stock because it was directly on the road," said Mr. Dill.

"That was the primary reason because it was not ideally situated for children, which our client base largely includes.

"I had turned down that property on more than two occasions from Dr. Brown and his agent. He kept coming back. I am sure he wanted it brought to some conclusion but it was not ideally suitable, and it was also occupied. The final straw was that it became empty." Asked if he felt pressurised to buy the property from Dr. Brown, Mr. Dill thought for a moment and said: "No."

But he added: "I did not have my arm twisted, but it was certainly clear that both the Minister of Health (and Housing) and the Minister of Transport were anxious that this sale be made.

"The final straw for me after turning it down twice was being confronted with an empty dwelling and the growing list of clients that needed property. My mandate was to provide homes for Bermudians."

Asked why both Dr. Brown and Mr. Bascome were anxious for the sale to go through, he said that maybe they, also, were anxious to provide homes to Bermudians. But asked why Dr. Brown did not simply sell his property privately after BHC had first refused his offer, Mr. Dill said: "I can't answer why he came back again - why he did not sell to someone else."

Last night The Royal Gazette made contact with Dr. Brown but he refused to make any further comment, other than what he said earlier this week, on the sale of his property.

Mr. Dill said the property, while not ideal for families, was suitable for mature couples and adults who were on the housing list. And he said he felt sure that if the property was sold now, it would reach at least $610,000, which is what BHC ultimately paid for it. He added: "Do I think that two, two-bedroomed apartments overlooking Flatts village, overlooking the bay, on just under a quarter of an acre of land, could have been acquired for under $600,000? The answer is no."

Asked why Minister Bascome became involved in the transaction, he said: "Nelson Bascome was my boss so he was aware of the approaches that were being made. He was aware of my initial feelings about the property and of the approaches that were being made.

"He was anxious that the deal be sanctioned."

And he said he was often asked if he felt pressurised by people while working at BHC.

But he added: "I'm a professional and I'm certainly no wuss. When I have been in discussion with Government officials or Civil Servants about things that the Housing Corporation had an interest in my concern was always 'am I going to be able to provide a service to the client base that I have been commissioned to do'?"

And he added: "I never got 100 percent my own way. I made decisions based on information placed in front of me and based on my mandate to provide housing to Bermudians."

Mr. Dennis criticised the sale of Dr. Brown's property in his special report and said, in his view, documentation should be available to demonstrate, as a minimum, that non-arms length business was transacted at reasonable commercial prices.

And he said that as the Code of Conduct directed, these situations should .... "be resolved in favour of the public interest, rather than your own."

The Auditor added: "It is not inappropriate for Members of the House and Government officials to transact business with Government. When property sales like these are negotiated, however, as the Code of Conduct infers, documentary evidence retained should demonstrate that the prices and arrangements arrived at are beyond reproach."

Dr. Brown has denied any wrongdoing and said he could not assist anyone who was attempting to carry out their own agenda. He said at a press conference on Monday in relation to the matter: "It appears the Auditor General's concern was that documentary evidence be retained demonstrating that the prices and arrangements are beyond question and reproach.

"I believe that the prices and arrangements with regard to this family property are beyond question and reproach. All my dealings with Bermuda Housing Corporation were above board. If the Bermuda Housing Corporation did not follow procedures, that was and is beyond my control."