The Auditor General, Heather Jacobs Matthews, is to investigate the 2009 amendment to the Coco Reef lease.

Mrs Jacobs Matthews announced today that she will now conduct an audit based on a preliminary review of the document.

The Deed of Addendum, which was signed on May 4, 2009, between the Board of Governors of the Bermuda College and Coco Reef Resorts Limited, extends the life of the lease from 50 years to 125 years, or until April 30, 2128.

It was made public a week ago after months of Opposition MPs asking to see the details.

Today the Auditor General stated: “The Bermuda College is a Government-controlled organisation and as such is included in the Public Accounts of Bermuda. Its affairs, including the lease of its property to Coco Reef Resorts Limited, are subject to Parliamentary oversight. My report on the audit, once tabled in the House of Assembly, will be made available to the Public.“

This is the second time the Coco Reef lease has been investigated.

The lease agreement between the Bermuda College Board of Governors and hotel has been under scrutiny since 2003 when Government granted former Elbow Beach managing director John Jefferis a 50-year lease to manage the former Stonington Beach Hotel.

After winning the tender, Mr. Jefferis was able to renegotiate the terms of the lease, it doubled from 21 years to 50 while the rent to Government was reduced.

A 2004 Auditor General’s report recommended the lease should be re-tendered because it was “considerably more beneficial” to Mr. Jefferis than the tender document specified.

* Full story in tomorrow’s Royal Gazette.