The Department of Tourism last night denied claims made by one of the unsuccessful bidders for the contract to run Stonington Beach Hotel that a decision has already been made.

Mega Contracting Services, partnering with American company Montibello Foods, was informed in writing in May that it had not won the contract to run the Government-owned hotel.

Motibello Foods president P.K. Patnaik told The Royal Gazette he was informed by Jerry Morrison, an American consultant used by the Department of Tourism, in April that the committee awarding the contract had already made a decision.

He said he was puzzled why an announcement on the contract has still not been made.

Mr. Morrison referred calls to Director of Tourism Judith Hall-Bean, who said: "I can't imagine him (Mr. Morrison) saying that because no decision has been made and he is aware of that."

Mr. Patnaik said: "Three or four days after we were interviewed, Mr. Morrison said the decision had been made.

"He said the decision had been made before he left Bermuda but he could not discuss it publicly because of a confidentiality agreement.

"It thought it was fine, a decision had been made. In May we got a letter from Mrs. Hall-Bean saying we were not selected. Later on I found out that no one had been selected yet, which is very strange."

Mr. Patnaik reiterated calls made in a letter from Mega Contracting Services to Tourism and the Attorney General's office that two others short-listed for the contract, Bermuda Resort Hotels (BRH), and former Elbow Beach General Manager John Jefferis, should be barred from bidding because of alleged conflicts of interest.

BRH president Billy Griffith, who was president of Bermuda Hotel Association until this month, also sat on the board of Bermuda College. He also sits on Bermuda Tourism Board.

Mr. Griffith has said there is no conflict of interest because he has always been open about his business interests and took no part in the decision-making process.

He also pointed out that the College is not involved in the making the decision as the contract will be awarded by a joint committee of the Education Department and Tourism Department.

But, Mr. Patnaik said: "Public policy needs to be transparent to avoid giving the impression of any impropriety.

"This man (Mr. Griffith) is on the Tourism Board and Bermuda is a small country and there is a perception that there is a conflict of interest, so it incumbent on Mr. Griffith (not to bid)."

Mr. Patnaik also claimed there was no clear criteria for awarding the contract, so he did not know how his bid had failed.

"There was no criteria established for the selection. If there was an established criteria, I could say it was a fair game.

"But with a lack of criteria, how can I challenge it and ask how we failed?"

Mrs.. Hall-Bean said: "It is at a very delicate stage in the negotiations and it is not appropriate to comment.

"But I don't know what (Mr. Patnaik) means. They were asked certain things and produced certain things. There was a criteria. "

Earlier this month, Mrs.. Hall-Bean said she hoped a decision would be made on the contract by October 1.