A Government report says it is “professionally unethical” for the Bermuda Monetary Authority to have one person be both the chairman and the CEO.

This was revealed in a Government commissioned report - Untangling Bermuda's Quangos - that strongly recommended the roles be separated. The report - which was led by Cabinet's Central Policy Unit after Government undertook its first ever review of the Island's 17 quangos - was released to the public during the last session of the House of Assembly, last month.

But yesterday the BMA's chairman and CEO Cheryl-Ann Lister said the recommendation had not taken into account the checks and balances that are prescribed in the BMA Act 1969 to ensure that there is the same level of accountability as there would be if the roles were divided.

The report found that while the BMA was meeting its objectives, “from an international standard perspective and from a transparency and accountability perspective” it was “professionally unethical” to have one person carrying a dual role as both chairman and CEO.

The findings in the report were said to follow a review of the Authority's finances, organisation, operations and the Bermuda Monetary Authority Act 1969 and subsequent amendment acts.

In addition, the report said the BMA could improve on its level of public communication, boost operational efficiency by housing all divisions in one building and aide transparency and accountability by developing a code of conduct.

Responsibility for the BMA was handed over to one person after a change to the Authority's structure in 2001, which did away with a General Manager post in favour of CEO.

In addition, the CEO and chairman roles were put in the hands of Mrs. Lister and effectively making both political appointments.

Previously, the general manager had been appointed by the BMA board. Mrs. Lister, who has held both roles since 2001, told The Royal Gazette that section 4 (c) of the Act put in place checks and balances to ensure that there was no conflict in the combined role.

That section of the Act, which is subtitled ‘Functions to be carried out by non-executive members', calls for the board's non-executives' to:

Keep under review the question whether the Authority is discharging its functions in accordance with policy objectives and strategy determined by the board;

Keep under review the question wether the Authority's internal financial controls secure the proper conduct of its financial affairs;

And determine the remuneration and terms of the office of the CEO, the Superintendent of Banking, Trust and Investment and Supervisor of Insurance.

Government reportedly commissioned the report of the semi-autonomous bodies to ensure they are both accountable and meeting the needs for which they were established.

The report recognised that appointing a separate CEO and chairman might cost more but said it was wrong to have both functions continue in the hands of one person. Although the report recognised that the “BMA has been functioning successfully under one person with dual leadership, from a professional, transparency and accountability perspective this is professionally unethical,” it said.

The report continued: “While there may be cost savings incurred as a result of having one person perform the functions of two people, from an international standard perspective and from a transparency and accountability perspective this is professionally unethical. The Chairman is her own boss.”