Gambling with the future
Any questions about the PLP?s position on gambling in Bermuda were cleared up late last week with the amendments to the Prohibition of Gaming Machines Act. Or were they? Only if you make the mistake of thinking that the Premier and his colleagues don?t like to do a little gambling. In fact they?re in the middle of some serious games of chance.
The Premier ? in a rather colourful presentation ? unequivocally stated that his Government would be ?protectors and guardians? for Bermuda?s vulnerable. Sadly he doesn?t feel the same about protecting and guarding the public purse, which has become increasingly vulnerable under successive PLP Governments.
This Premier is gambling with the Bermuda Government?s reputation both locally and internationally. Few of us probably care when politicians risk their own reputations and futures, but we should all care when that of our Island is thrown carelessly on the poker table.
The Premier made a bet ? in his former life as W&E Minister ? that no one would notice the unaccounted $700,000 at the Berkeley project. That bet he lost. But instead of folding he doubled down, placing a bigger bet that the public wouldn?t care about the apparent financial impropriety. He might be right.
There?s been a relative lack of public outrage over Government?s inability to provide proof of payment for the $700,000 bond. It?s not very sexy is it? In fact it makes for dull reading when written in the language of accountants, auditors and insurers. But make no mistake about it, your money and the Island?s reputation is being used to fund the Premier?s bet. Surely this hand has lasted longer than he anticipated with the Auditor General calling all the bluffs and now raising the stakes with legal action.
Pro-Active Management ? the infamous contractor at the centre of the scandal ? has likewise engaged in some gambling of its own, by failing to pay its pension dues to Government. This too seems like a pretty safe bet from the company?s perspective. The only people who seem bothered are the Auditor General and the Opposition, and we know how much attention the Government pays to them.
If ever there was an easy problem to rectify, this is it. Our legislators should ensure compliance by deducting the amount owed before paying Pro-Active for work completed at Berkeley. A responsible Government would also put in effect a policy preventing tax and pension violators from holding future Government contracts. By continuing to pay a company that is illegally withholding the pension contributions of its employees, Government is condoning and rewarding this behaviour. Could it be that Pro-Active has seen Government?s hand and knows that this card won?t be played and are free to treat their employees? pension contributions as profit?
If we accept that Government sets the example for the community to follow, then we shouldn?t be surprised that an increasing number of Bermudian businesses and individuals are neglecting to pay their taxes and pensions ? currently totalling over $30 million. Why should a business pay its taxes when the Premier himself refuses to comply with requests for routine financial information and follow established practices, preferring instead to attack the Auditor General? Is it such a surprise that annual financial statements seems to have become a thing of the past for the BHC and the BIU when the head of the Government maintains that he has no obligation to account for taxpayer funds?
The PLP Government has set such a poor example at managing our finances that over 50 percent of its appointed boards are now following suit. The indefatigable Auditor General recently reported that it ?is a sad commentary at the quality of Government?s financial accounting that more than half of the financial statements completed during the year resulted in qualified or denied opinions?. In non-auditor language that means he can?t figure out where all the money was spent or if it was spent legitimately.
Place all of these bets on the table at once and the PLP?s house of cards looks set to crumble. Ultimately we the people of Bermuda are the losers in this gamble.
Bermuda?s hard-earned reputation, already under fire by opportunistic American politicians, is suffering serious damage as a result of these and other financial irregularities in the ?New Bermuda?.
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