Finance Minister Paula Cox (pictured) is seeking "clarification" regarding certain issues surrounding allegations that Deputy Premier Ewart Brown was involved in a pay-to-play scheme in 2002.

The Finance Minister also said yesterday she anticipates an independent review by a third party will help ensure Government is operating in line with best practices.

"At this stage, based on our preliminary review and enquiry, there has been no determination that there has been any legal or regulatory infraction," she said via e-mail yesterday afternoon.

"However given the need for the supervision of the management of the pension funds to be seen to operate in as transparent and open manner as possible an independent third party review can assist in this process." Such periodic reviews, she added, were the norm.

The Mid-Ocean News reported on Friday that Government's pension fund consultant, Tina Byles Poitevien, of the small Philadelphia-based minority firm Fiduciary Investment Solutions (FIS), arranged a luncheon in Dr. Brown's honour in Washington in 2002. Guests (current and potential money managers/stockbrokers of the Bermuda Government pension funds) paid $2,500 to attend the event, and Dr. Brown confirmed on Friday that the money went towards his personal election campaign for the 2003 General Election.

Dr. Brown called the event a political fundraiser, and PLP spokesperson Scott Simmons confirmed on Friday that PLP MPs are encouraged to find ways to fund their own campaigns.

However, Opposition Leader and Shadow Finance Minister Grant Gibbons called it "unethical" and "a shocking example of pay-to-play". Dr. Brown, who met with his lawyers on Friday, said he had been advised to make no public comment on the matter. He declined to comment again yesterday.

Ms Cox was off the Island on personal leave when the story broke on Friday. Returning on Sunday night, she told that Government must ensure it had all the correct facts before taking any action.

"Clearly any issues that revolve around allegations of impropriety are matters that the Government views very seriously ? especially given that we are dealing with the management of the Government's pension fund assets," she said via an e-mail which was not received by Press time on Sunday night.

"However, equally important is the need to ensure that we have the facts so that we can address any outstanding issues. While I have been abroad on personal leave up until today, within the Ministry of Finance I did seek information pertaining to issues raised in Friday's article.

"While I am seeking clarification as to certain issues, it should be noted that the appointment of FIS in late 1999 resulted from an objective process in which Requests for Proposals (RFPs) were sent out and FIS was awarded the contract under a former chair of the PFIC. Also, it should be noted that the performance of the pension fund assets has been in the top quartile."

Speaking to in February, Ms Poitevien said six firms received the RFPs. In November her firm was engaged to perform a governance review of the Bermuda pension funds. After providing nearly two telephone books' worth of recommendations and holding a two-day retreat, both Ms Poitevien and the Bermuda Accountant General's office told that the Public Funds Investment Committee ? which has charge of the pension funds ? was pleased that FIS was unanimously chosen as Government's new pension fund consultant.

Yesterday was unable to speak with Ms Poitevien, who is understood to be travelling. Ms Cox added on Sunday: "While it is always easy to go for a political soundbyte and to talk about sleaze and corruption and lack of trust, as a jurisdiction and as legislators we have committed to putting ourselves under searching scrutiny, whether by way of the Register of Members' Interests and a ministerial Code of Conduct as well as tough action in terms of reputational probity as a jurisdiction with our Proceeds of Crime i.e. anti-money laundering) legislation.

"We have also as a jurisdiction subjected ourselves to inspection by external regulators and standard bearers, and where we have found gaps in our regulatory framework we move quickly to plug those gaps, even where there were issues pertaining to a need to tighten processes in our own internal controls in various Departments within Government and the Accountant General's Department.

"Specifically in the latter instance within the Ministry of Finance we did not shirk from calling in an independent auditor to assess our processes and refinements and as a consequence improved controls were instituted.

"If, following further enquiry and investigation, there is a need to improve processes with regard to improved controls and governance re the investment of pension funds, then this will be done."