The fire cracker that fizzled out
Despite assurances from the Premier, at the close of 2004 Bermuda has yet to see any legislation updating anti-corruption laws in an effort to prevent scandals such as those occurring at the Bermuda Housing Corporation.
The Police investigation into the matter also came to an end in 2004, not with a bang but a whimper. Two years after United Bermuda Party (UBP) Deputy Leader Michael Dunkley first blew the whistle and then-Premier Jennifer Smith ordered a special investigation into the matter, allegations of corruption and scandal at the BHC at the very highest levels of Government have fizzled into just four little words: unethical, but not illegal.
At the beginning of the year hopes for a powerful and final resolution to the scandal were still high, however. The Police investigation was still on-going in January, with then-Director of Public Prosecutions Kulandra Ratneser promising the matter would be a top priority after he received Police files.
Three weeks later he announced the case would have to be put on the backburner when the Lagoon Park murder trial got underway.
Also in January Ashfield DeVent a relative newcomer to the PLP backbenches was named Housing Minister in a meteoric rise to fame. Many felt there were sinister motives behind the move, suggesting Mr. DeVent was being set up to take the fall for former Minster Nelson Bascome and Government for the many problems within the Ministries of Housing and Works and Engineering.
The appointment came during a Cabinet reshuffle following the death of Finance Minister Eugene Cox. Mr. DeVent's watch began when the BHC was under intense pressure for results, with more than 1,000 names on the waiting list for housing and Mr. Dunkley declaring the scandal was tainting all politicians in Bermuda.
Several months later, results from the Police investigation began to trickle in. On May 5, 2004, Mr. Ratneser announced at least one man could be facing multiple fraud charges in the BHC scandal. One month later The Royal Gazette revealed that no MPs would be charged - despite the results of the Auditor General's report, which pointed fingers at Transport Minister and Deputy Premier Ewart Brown, as well as former Environment Minister Arthur Hodgson as being parties involved in shady transactions.
Though the Progressive Labour Party called on Mr. Dunkley to back down from his relentless call for the heads of politicians, Mr. Dunkley vowed to keep fighting. A week later, the Opposition was barred from bringing the Auditor General's special report to the House of Assembly.
On July 7, former BHC housing manager Terrence St. Patrick Smith became the first person charged in the scandal, accused of defrauding the quango of $1,393,291 in 49 different charges. In all the charges, it was alleged he falsely pretending BHC purchase orders were genuine to induce corporation staff to pay cheques to carpenter Steven Barbosa with intent to defraud. Mr. Smith will stand trial in May.
On August 10, the massive Police investigation into the scandal came to a close with an announcement that left the UBP calling for blood. Police announced in a joint Press conference with Mr. Ratneser that evidence gathered was not enough under existing legislation - legislation which is nearly 100 years old - to accuse many of anything other than “failure to comply with the standards of the BHC”.
Without evidence of criminal activity, the Police and the DPP were unable to bring forward any further criminal charges.
When asked by a reporter if the term “unethical” could be used to describe the actions of some involved in the scandal, Mr. Ratneser agreed - though at no point did either he or Police Commissioner Jonathon Smith use the word themselves. Both were careful to observe that the investigation had been conducted independently, and that neither had been hampered in their roles.
Police also confirmed at the Press conference that no MPs were interviewed in the course of the investigation - leaving Opposition Leader Grant Gibbons to demand why not.
Though the Opposition continued to call for heads to roll, Premier Alex Scott repeated that without evidence of wrongdoing, he could not fire any Ministers. He also promised Government would ask the Attorney General to examine existing legislation in an effort to update the law.
“We look forward to their recommendations. This investigation has demonstrated that this Government is prepared to place questionable activities under the heaviest possible scrutiny, and is prepared to live with the outcome.”
Mr. Scott also condoned the use of the term “unethical”, saying that wherever the term came from, it was “unprofessional” to use it to describe the situation.
In late August Mr. Scott confirmed he had received the Auditor General's report on his special investigation into the matter. A week later the full report was published - without, Mr. Scott said, a smoking gun.
As for the Police report into the matter, Mr. Scott declared it may make “good bedtime reading”, but that he would not ask the Commissioner for it - adding that if the Commissioner or the Governor wanted him to see it, they would send it to him.
Though Dr. Brown had offered in August to re-purchase property which he sold the BHC in 2001 for a price of $602,000 for that same amount - property valued at roughly half that price - the BHC refused his offer, saying it did not make fiscal sense.
Also that month, the Auditor General gave the BHC 2003 books a clean bill of health. That report is likely to be tabled alongside the 2004 Auditor General's report on the BHC.
In November, Opposition Whip John Barritt was barred yet again from tabling the Auditor General's special report into the scandal in the House of Assembly, with Speaker of the House Stanley Lowe noting it was a Government-commissioned report and had not yet been officially delivered to the House - despite the report being in the public domain since August.
Then, just two weeks later, the Premier himself tabled the report - along with notice of a motion to take note of it in the House. Outraged, Dr. Gibbons called the motion “shameless”, though Mr. Lowe reaffirmed his role as Speaker of the House and reminded Dr. Gibbons he was duty-bound not to allow any debate on the report until it was properly tabled. “I don't think the public wants to hear us bicker over who brings it first,” the Premier added.
The move has left the Premier in control of when any debate on the BHC scandal will next take place in the House. While his motion exists on the Orders of the Day, MPs are barred from debating the scandal elsewhere (such as during the Motion to Adjourn), and only the Premier may initiate the motion itself.
At the close of the year the Premier remained coy over his plans regarding the motion.
Plans over anti-corruption legislation were also vague, with Dr. Gibbons noting that no such legislation was mentioned in the 2004 Throne Speech in November. “Maybe another line was left out.”
