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Burgess refuses to reveal Berkeley award

Works and Engineering Minister Derrick Burgess

Works and Engineering Minister Derrick Burgess yesterday refused to reveal the findings of the Berkeley arbitration between Government and Pro-Active, the company sacked from the new Berkeley Institute project in 2004.

Pro-Active is appealing against a decision understood to have left it owing Government millions of dollars.

Sources close to the arbitration last December said Pro-Active owed Government $13 million, with a subsidiary, Union Asset Holdings, owned by the Bermuda Industrial Union (BIU) being liable for $6.5 million of that amount.

Union Asset Holdings was formed to provide a performance bond to Pro-Active, a condition of it getting the contract for Berkeley.

Government has consistently refused to comment on the outcome, as has Pro-Active.

Yesterday in Parliament, Shadow Works Minister Patricia Gordon-Pamplin challenged Government to come clean but Mr. Burgess said under the terms and conditions of the arbitration both parties were bound to secrecy on both the outcome and evidence submitted.

He added that the award He added that the award was the subject of an appeal set to take place in a few months.

"In the circumstances, the matter remains sub judice and no further response can be made at this time," he said.

Mr. Burgess, the president of the BIU at the time Union Asset Holdings was formed, also was unable to say how much had been spent on legal fees.

Pressed on whether he would tell the House at a later date, he said: "I will take it under advisement."

The Royal Gazette, as part of its A Right to Know: Giving People Power campaign, is urging Bermuda's leaders to tell the public the amount spent so far on fighting the case.

The bungled Berkeley project cost taxpayers about $125 million rather than the budgeted-for $70 million and was years late.