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Premier questions the character of pier subcontractor

The Premier has accused the subcontractor who worked on the new cruise ship pier at Dockyard of being of "dubious character".

Dr. Ewart Brown questioned the repute of the man who disclosed details of the project to The Royal Gazette, in the House of Assembly on Friday.

Dr. Brown, Tourism and Transport Minister, also claimed Louis (Skip) Gardella had a criminal conviction an allegation denied by the subcontractor last night.

Mr. Gardella, owner of US company Norwalk Marine International (NMI), said: "I don't know what he [the Premier] is alluding to, I don't have any criminal convictions. I feel this is an attempt to smear me."

Last week this newspaper revealed our findings from an investigation into how costs for the new dock rocketed from an original budget of $35 million to $60 million.

The investigation was prompted by figures released by Government to explain why measures to protect animals at Dolphin Quest cost taxpayers an extra $3.7 million.

Mr. Gardella and Dennis Correia, boss of contractor Correia Construction, both told this newspaper the Ministry of Tourism and Transport's figures given in Parliamentary answers were inaccurate.

Government, however, last week maintained that its figures were correct.

Among the findings of our investigation were that:

¦ rental fees for a crane quadrupled from subcontractor NMI's original quote, from $8,000 a month to $10,000 a week;

¦ two vibratory hammers to drive the pile foundations of the dock were billed as an extra under "dolphin mitigation";

¦ the design of the thruster wall a barrier against sediment surge from ship propellers — changed four times according to Correia, tagging millions of dollars onto the project;

¦ the terminal building doubled in price to $3.9 million;

¦ Government paid Correia almost $9 million up front 23 percent of the entire original contract price — as an interest-free mobilisation loan;

¦ the relationship between Correia and subcontractor NMI soured so badly that NMI was terminated early and three of its staff defected to join Correia following a $600,000 out-of-court settlement.

Both the United Bermuda Party and Bermuda Democratic Alliance have demanded answers from Government on how the new cruise ship pier costs have soared to $60 million.

Former Home Affairs Minister Quinton Edness last week called on the Bermuda Police Service to investigate the rising costs and for the Premier to demand an inquiry.

But Dr. Brown said on Thursday there was no misconduct by any public official involved in the project.

He said: "I would like to separate any inefficiency from malfeasance."

The next day, the Premier questioned the character of subcontractor Mr. Gardella, who opened his financial records to this newspaper during our investigation.

"Significant media sensationalism surrounds this project and an investigation by The Royal Gazette," Dr. Brown told the House.

"It is important for honourable members and the people of Bermuda to know that I am advised that the source of that expose is a man with a criminal conviction; a man who is the subject of numerous civil actions arising out of the conduct of his business and who may shortly be facing a suit at the behest of the family of a member of his staff killed while doing similar work to that in which he might have been engaged in Bermuda.

"The tragedy of this is that I am also advised that the same journalists who penned the stories of the last few days had access to the information that demonstrated the dubious character of their source. In fairness, some mention should have been made in the same stories about the quality of the source in question... there was none."

Mr. Gardella last night denied having a criminal conviction and being "the subject of numerous civil actions".

He confirmed that that a civil case is due to be heard by the State of Connecticut Judicial Branch court system following the death of an employee in an industrial accident on June 26 in Connecticut.

Mr. Gardella said: "It was an unfortunate accident and there is a lawsuit. I can't really say anything more as it is a lawsuit and a sensitive issue."

Mr. Gardella says his motive for contacting The Royal Gazette was to clear his company's name of any inference that it profited from Bermuda taxpayers' money due to "dolphin mitigation" delays.