A high-level Government committee is to be set up to handle major lease negotiations following criticism of the renegotiated Stonington deal.

The Opposition had branded the lease awarded to businessman John Jefferis for the former Stonington Beach Hotel in 2003 ?a sweetheart deal? after extra terms were added after the deal was signed.

New clauses included a lease extension from 21 to 50 years, a five-year rent-free period, an extra 5.9 acres of land boasting two cottages with ocean views, and the right to build and sell condominiums on the property.

Responding to Opposition questions yesterday, said a committee appointed to investigate the terms of the lease for Stonington ? now renamed Coco Reef ? had found Government had secured the best terms for the deal at the time.

He said the committee ? made up of Assistant Cabinet Secretary Judith Hall-Bean and Education Permanent Secretary Michelle Khaldun ? had found current Government procedures focus on the day-to-day running of departments and don?t address major transactions such as the Stonington Beach lease.

The Committee found detailed procedures are appropriate and helpful for routine transactions but can be counter productive in situations such as that lease.

?It is impractical to attempt to draw up rules to cover every foreseeable situation for major property transactions,? said Mr. Scott.

However, he said no new changes had been made to the lease and re-negotiation had not been recommended by the committee. In a special report Auditor General Larry Dennis called for the lease to be re-tendered.

Government actions were further brought into question when it was revealed Mr. Jefferis had paid for Trinidadian political consultant Roy Boyke to work with the Progressive Labour Party during the 1998 election campaign.

It also emerged Government had blocked the choice of the Bermuda College Board of Governors and instead awarded the lease to Mr. Jefferis.

The lease itself was not ratified by the board but signed in June 2003 by PLP politicians Raymond Tannock and Larry Mussenden without the board?s approval.

Yesterday in the House Mr. Scott said: ?In order to build upon the comments made by the Auditor General in his report the Committee has made several recommendations.?

The most significant was the establishment of a cross-functional committee comprising the Central Policy Unit, the Ministry of Finance, the Ministry of Works and Engineering and the Attorney General?s Chambers.

?This committee together with an appropriate commercial lawyer would manage and negotiate significant contracts for the sale or long-term lease as well as all capital purchase projects over $1 million. These recommendations will be considered and implemented as appropriate.?