GOVERNMENT MP Terry Lister faces possible expulsion from the Institute of Chartered Accountants after being charged with “failing to maintain the good reputation of the profession”.The charges stem from an incident 11 years ago when Mr. Lister was an Opposition Senator and failed to declare he had a conflict of interest during a debate in the upper chamber.

At the time, Mr. Lister was also working as a financial adviser to communications company Hardell Cable TV Ltd., which was trying to raise funds to set up a subscription TV service on the island.

In July 1996, a bill amending the Telecommunications Act was brought before the Senate to be rubber stamped. However, it is claimed that, because of a personal grudge with Hardell owner Harold Darrell, the Senator deliberately de-railed the bill in a bid to sabotage his client’s business.

According to Mr. Darrell, relations between the two men cooled earlier after the businessman refused to support Mr. Lister in his quest for the leadership of the Progressive Labour Party.

Mr. Darrell, a long-time supporter of the party who made frequent donations, told Mr. Lister that he would always back then-leader Frederick Wade and Jennifer Smith over Mr. Lister and his group, who he accused of wanting to hijack the party. According to Mr. Darrell, this prompted a “vicious verbal attack” from Mr. Lister.

Despite the difference of political opinion, Mr. Darrell claims he maintained Mr. Lister as his financial adviser.

After the Telecommunications Amendment Act was approved in the House of Assembly, Mr. Darrell claims Mr. Lister, as his financial advisor, knew it was essential for his business that it also be approved in the Senate. The pair had held meetings with potential investors who wanted the amendment to be passed before they would commit.

He said that, as a result, the Senator told him he would excuse himself from any Senate debate on the issue because of his conflict of interest.

But when the legislation finally came before the upper chamber Mr. Lister “led the charge” in having the bill rejected.

The Institute of Chartered Accountants of Bermuda has only recently completed a two-year investigation into the incident and now plans to hold a hearing, at which Mr. Lister will be asked to answer the charges.

In a letter to Mr. Lister dated April 16, 2007, Thomas Conyers of the Institute’s Professional Conduct Committee wrote: “The Professional Conduct Committee has completed its investigation of the complaint made against you by Mr. Darrell in respect of your former client, Hardell Cable TV Ltd. The Committee has voted to bring the enclosed charge against you.”

An attached charge sheet which states: “The Hon. Terrence Lister failed to maintain the good reputation of the profession and its ability to serve the public’s interest contrary to Rule 201 of the Rules of Professional Conduct.

“In July 1996 certain amendments to the Telecommunications Act 1986 came before the Senate. Hardell informed Mr. Lister that passage of the Telecommunications Amendment Act 1996 was of vital importance to the establishment of its proposed subscription television service. Mr. Lister undertook to recuse himself from participating in the Senate on the Telecommunications Amendment Act.

“In breach of his undertaking, Mr. Lister did participate in the July 1996 Senate debate on the Telecommunications Amendment Act. Mr. Lister proposed that the Telecommunications Amendment Act be further amended before passage by the Senate.

“As a result of Mr. Lister’s activities in the Senate, the Telecommunications Amendment Act was not passed in July 1996. The reintroduction of the Telecommunications Amendment Act was substantially delayed, thereby hampering Hardell’s ability to raise funds to establish its subscription television service.”

A second charge alleges that Mr. Lister “failed to inform Hardell that he had an interest which Hardell might reasonably be expected to be informed of”.

“Having undertaken to Hardell not to participate in the Senate’s July 1996 Telecommunications Amendment Act proceedings, Mr. Lister failed to inform Hardell that he intended to oppose the Telecommunications Amendment Act in the Senate and that he did in fact vote against the Telecommunications Amendment Act.”

A hearing at which Mr. Lister will be asked to answer the charges is expected to be held at the end of the year.

And if found guilty, the former Minister could be expelled from the Institute.

One accountant, who asked not to be named, said the charges represented a serious breach of the Institute’s guidelines.

Another experienced accountant, who asked not to be named, said: “It would appear that Mr. Lister had conflicting professional roles. If that’s the case, he should have abstained from any debate and not voted. He really shouldn’t have put himself in that position.”