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Full inquiry needed

The Berkeley scandal is not Bermuda?s Watergate, as Opposition MP David Dodwell claimed on Friday night in the House of Assembly.

But in terms of dishonesty and Government secrecy, it comes close. It is certainly the worst example of Government mismanagement and over-spending in the Island?s history.

It puts other infamous capital project bungles to shame. The bail-out of Sea-Land Construction in the 1990s and even the famous cost-escalation at the Civil Air Terminal pale in comparison and the current Government should stop beating that drum, just as they should stop trying to claim that the award of the project to Pro-Active was an historic act of black empowerment. That?s because the United Bermuda Party, regardless of its other faults, learned from its mistakes and in the CedarBridge school project, did what this Government signally failed to do at Berkeley.

It finished the projection time and close to budget and in doing so, empowered dozens of smaller firms.Compare that to the Berkeley project managed by the Progressive Labour Party government. The sole firm given the contract is utterly discredited. The project is at least two years late and may well be more since there?s been virtually no work at the site since August. It is at least $13 million over budget. That could rise to $20 million and could well be higher. The greatest irony is that Somers Construction, which managed the CedarBridge project, is now ?advising? the Government on Berkeley.

What?s worse, there is every likelihood that the next Government project, the seniors home in St. George?s, is headed in the same direction. Its costs ballooned from less than $10 million to $19 million before one block was laid and it is already six weeks behind schedule. That?s why Works Minister Ashfield DeVent, having finally admitted, in classic Government understatement, ?that things have not gone smoothly? at Berkeley, should not be granted his request to the Opposition to stop rehashing the past and to get on board with the Government to make sure the school is finally finished.

Instead, the Opposition should keep pressing for an inquiry because it is patently clear that the truth has not come out and it is also clear that Government has not yet learned its lessons.

Only a full inquiry will allow the Island to get its capital project management policies onto a reasonable level. It?s important to do it for another reason too. Many accusations have been levelled against the Government, against civil servants, against banks, against steel designers and against Pro-Active Construction itself. Some of these entities, especially the Civil Service, have been accused of trying to sabotage the project and of deliberately refusing to carryout the Government?s of the day?s policies by Government MPs. They have no right of reply and they deserve an opportunity to defend themselves in a forum where they have not fear of recrimination.

A properly constituted board on inquiry is one of the only places where that is possible and the Government owes them that. It is entirely possible that a board of inquiry will find fault with the Civil Service. That?s fine; ensuring that future capital projects are better handled than the new Berkeley project has been must be a board of inquiry?s reason for being. But there are many other questions that need to be answered.

Why did then Works Minister Alex Scott overrule his civil servants and appoint Pro-Active? Why did Pro-Active drop its overseas partner Lubben, apparently as soon as it received the contract? Why did the Government keep insisting that everything was going smoothly when it clearly was not? And, yes, was the performance bond ever paid? Given Government claims that Pro-Active had trouble getting credit lines from the banks, it would be worth seeing if the banks? reluctance was justified. It would also be worth finding out why Government did not ensure that Pro-Active did not have its financial house in order before it bid on the project.

These are questions that have not been answered. along with many more. A board of inquiry could find the answers and should be appointed.