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Berkeley to get `detailed' audit

Those calling for a probe into the Berkeley school construction project will get their wish soon. Auditor General Larry Denis yesterday confirmed that the $70 million project is scheduled for a routine management control system (MCS) audit.

Management control system audits are routine for all Government capital projects, he explained.

"And the Berkeley project is scheduled to be part of that but it got side-tracked by the Housing Corporation (probe)," Mr. Denis said.

But he added that, given the public discussion surrounding the project, his office will go a little further than a normal MCS.

"It means at this point, it will probably be a more detailed audit than a normal MCS audit," Mr. Denis said. "The public has to be satisfied that their assets are being protected."

Asked whether any alarm bells had been raised from his point of view, he said: "I'm not going to comment on what my feelings are on this audit."

He revealed that his office started an MCS on Berkeley in October last year. But he would not say why it had been stopped. "We went as far as we could - we'll pick it up again."

A management control audit normally lasts four to six weeks and examines the control system of a project.

"We discuss actions of management - how they approve documents, enter into contracts, control costs, control personnel. It's the system under which the organisation operates and how they manage and control assets and keep control of the assets."

The Bermuda Housing Corporation probe, which is now winding down, was more detailed with lots of individual transactions put under the auditor's microscope.

The Berkeley project has been in the public spotlight since the contract was awarded to Pro-Active Management Services last year. Pro-Active won over several other contractors including BermudaTech which submitted a lower bid and has since gone bankrupt.

A week ago, Works and Engineering Minister Alex Scott told his House colleagues of an attempt by an "approved candidate" of the United Bermuda Party (UBP) to get one of his senior officers to hand over documents relating to the Berkeley projects.

He said the candidate's behaviour was at the very least improper if not illegal. Mr. Scott said then that he believed that the effort was part of a "cunning political destabilisation campaign".

There has been speculation that Mr. Scott was talking about Precision Construction Company's chief financial officer Roger Russell, a former Progressive Labour Party supporter recently recruited to the UBP.

Contacted by The Royal Gazette this week, Mr. Russell said : "I'm not prepared to make any comment at this point in time. But I do appreciate your call."

This week Mr. Scott said that a file on the matter will be forwarded to the Police Commissioner by the Attorney General's office on behalf of the officer involved. As of yesterday afternoon, Police Commissioner Jonathan Smith had not received the file, although he said that he had talked with the Minister about the allegations and was expecting a formal complaint to be filed.

It remains unclear whether any criminal activity has taken place.

Police procedure would be to investigate the matter and, if necessary, pass on their file to the Director of Public Prosecutions.

The UBP responded to Mr. Scott's allegations by questioning the Minister's motives saying that he had made unsubstantiated allegations in the past and may be trying to deflect attention away from "Government's own problems" or intimidate potential whistle blowers in the civil service.

Party leader Grant Gibbons also called for the Auditor General to launch an investigation into the project, saying many concerns had been raised about its financial management, work schedule and the bond for the project.

Dr. Gibbons also said that should Mr. Scott's allegations be proven the matter would be taken seriously by the party and action taken.

This week the Minister insisted that the Berkeley project does not warrant an investigation. He could not be reached yesterday for further comment.