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Allegations fly against BHC

Allegations of corruption at the Bermuda Housing Corporation (BHC) ripped across the floor of Parliament yesterday.

BHC was called "the Enron of Bermuda" as the Opposition made allegations that some BHC staff are taking kickbacks and accepting cash gifts.

UBP Shadow Health Minister Michael Dunkley used the dying minutes of the Health Ministry Budget debate to call for a full-scale, independent investigation into BHC operations.

Mr. Dunkley said the problems at BHC reach straight to the top of the organisation.

He came dangerously close to breaching House rules in order to voice his charges.

"The UBP believe people within the organisation are not qualified and lack experience for their positions and the problems start right at the top," Mr. Dunkley began.

But he was immediately chastised by both Health Minister Nelson Bascome and Deputy Speaker Walter Lister and warned not to speak further about civil servants.

"We do not, on the floor of this House, criticise any public servant," Mr. Bascome interjected. "That's a basic rule."

Acting as Speaker as Parliament was in committee to debate the budget, Mr. Lister sternly told Mr. Dunkley to resume his seat.

"You'll follow the rules of this House if you're going to speak," Mr. Lister said. "If you don't know the rules, you shouldn't be here."

Amid calls from Government that he attack the Minister rather than civil servants, Mr. Dunkley, called on the Minister to hold an independent investigation.

"I believe we have a serious problem with corruption we have to look at," Mr. Dunkley said.

Allegations of kickbacks and cash gifts must be investigated, he added.

The investigation must look at "every contract, its location, the contractor carrying out the work, its schedule of work and its completion date," Mr. Dunkley said.

"Accepted bid price for each contract, its completed price and the reasons for cost overruns if there are any" should also be looked at, he said, and a list of all contractors that bid on the project should be public along with the amounts bid.

Mr. Dunkley did not stop there, however.

He continued to say the investigation should look at each property the BHC purchased, every mortgage it gave and make public a list of BHC staff alongside their qualifications and ability to do the job.

"We have a quango that is an absolute mess," he said.

Minister Bascome broke in to the debate to say BHC's general manager (Raymonde Dill) has already publicly said allegations of trouble in the corporation are being dealt with.

"They're only allegations and we do have an investigation," Mr. Bascome said. "We will be going back and looking at a number of contacts over the years."

But Mr. Dunkley said it was unacceptable for BHC to investigate itself.

"That's like letting the cat watch over the chickens," he said.

In addition to calling for the investigation, Mr. Dunkley criticised BHC's failure to produce an annual report since 1999.

He suggested BHC is violating the law in not producing a report.

"Is there something we're trying to hide?" he asked.

Government Ministers quipped back that the annual report would be tabled tomorrow but Mr. Dunkley was not satisfied.

He also broached issues of low staff morale at BHC before time for the Health debate ran out.

Mr. Dunkley told The Royal Gazette yesterday he felt strongly the allegations must be investigated.

"There are very serious allegations but I stand behind them," he said. "This is public money that was supposed to go toward housing and people are lining their pockets and it's just wrong."

Mr. Dunkley said he was aware of contractors submitting very low bids only to see the project awarded to those who'd bid much higher.

"The finished prices are even higher that," he added.

"There are BHC properties being renovated where the doors and windows are replaced twice or three times.

"And there are allegations of outright kickbacks and bribes going on in that corporation."

Government backbencher Delaey Robinson dismissed Mr. Dunkley's charges yesterday, however.

"The real problem with the BHC is that in the last three years it has produced at least 150 houses whereas in the previous ten years, it hadn't produced as many as 20," Mr. Robinson told The Royal Gazette.

During the Health debate, Mr. Bascome said BHC would be receiving $3.7 million this year as an operating grant toward rental assistance and mortgage assistance programmes.

By the end of 2001/02 fiscal year, BHC will have added 106 homes and 22 shared housing units for its target market, Mr. Bascome said.

And another 45 new homes are expected this year.