A financial comptroller at the Bermuda College was made redundant - after reporting what she thought was inappropriate spending by top brass at the institution.

Jane Smith worked for the College for more than 24 years - most of that time as an accountancy lecturer.

She moved into administration starting in 1995 but her career ended soon after she expressed concern last October that College vice president Larita Alford and president Michael Orenduff may have made some inappropriate charges on College credit cards.

The executive responded by putting her on administrative leave for disclosing confidential information.

When she returned she was told her job was being made redundant.

"The most I could say is when you have whistle blowers they should be rewarded and not penalised. Jane Smith appears to be yet another victim under the PLP leadership when a person does the right thing," said Opposition Senator Leonard Santucci last night.

"Bermuda on the whole should be thanking her for standing by her principles and her convictions but instead what we have seen is persons like her suffering greater hardships and it becomes increasingly difficult for people like her to do the right thing."

For reasons she did not want to discuss publicly, Ms Smith did not take her concerns about the spending to her supervisor Ann Parsons, the Chief Financial Operating Officer, but instead went to the Director for Professional and Career Education, Eugenie Simmons.

"That was the beginning of it," Ms Smith told The Royal Gazette yesterday

"They thought that I brought it to senior management in an inappropriate way. I did disclose information that they thought was confidential - which was an inappropriate use of College funds.

"The person (vice-president Larita Alford) who had used the funds inappropriately actually paid the College back. So by that action they agreed that it was inappropriate."

Ms Smith's punishment was to be sent home for two weeks without pay after which her position was declared redundant.

College Vice President Larita Alford had spent "hundreds of dollars" immediately after last year's Hurricane Fabian on accommodation for herself and her husband at the Stonington Hotel.

"I thought this particular expenditure was a very poor decision on her part," Ms Smith said.

"I thought it was very inappropriate because everybody else was suffering from the hurricane and having to put up with no electricity. There had been a lot of inappropriate expenditure. Some of it could be justified on the basis that it was College business but there was a lot of people going on conferences and no reporting back, particularly the top management."

At the time College management could spend up to $2,000 on credit cards without any documentation, Ms Smith said.

"But you can make quite a lot of inappropriate expenditures under $2,000."

Asked why she did not take the matter to Ann Parsons, the Chief Financial Operating Officer, she said : "I didn't think it would be dealt with in the appropriate way."

Ms Smith was also concerned about entertainment spending charged by Dr. Orenduff and reported that to senior College management as well.

Yesterday she said that she had not been able to get to the bottom of the president's spending and was unable to confirm if it was in fact inappropriate or not.

While the matter of her termination was being discussed between the College administration and the Bermuda Public Service Association, Ms Smith said she felt the union was just too busy to properly advocate her position.

"I think they've got a lot of contentious issues to deal with - meetings were set up, they tend to drag," she said.

"I don't think they have sufficient people to deal with situations that occur."

She accepted a redundancy package effective in February. Her former duties are now being performed by the head of Business Services and the Chief Financial Officer.

"They did me a favour actually because I came away from it quite well. I got my pension which took into account that I had been made redundant."

Ms Parsons declined to comment when contacted last night, and College Board chairperson Sen. Raymond Tannock could not be reached by press-time last night.

Eugenie Simmons, who had immediately brought the matter to Ms Parsons, declined to comment when contacted saying it was a personnel matter.

But in e-mails obtained by this newspaper, Ms Simmons told Ms Parsons that she was concerned that the credit card charges could be perceived as evidence of financial misconduct.

"I respectfully submit that if the College should pay for the cost of any of its executives' post-Fabian hotel accommodation on the basis that they had merely no electricity, it could, and in all probability be construed as an improper use of public funds and become a major political scandal if it became public knowledge," Ms Simmons wrote.

She added that because the College is a publicly audited organisation, "it is highly likely that the Auditor would make special mention of any perceived improper expenditure by the College Executive of public funds. Not only would this tarnish the reputations of all of the College Executive - including those of us who attempt to exercise fiscal prudence in the execution of our duties, but it would also deeply embarrass the Government."

In a second e-mail responding to a verbal response to her concerns, Ms Simmons suggested that the College end the policy of allowing employees to use College credit cards for personal expenses and making charges up to $1,000 without providing any documentation.

"The policies seem most offensive when viewed in the context of our current employees. However, as guardians of the public purse, we are held to a higher level of accountability, and as such we should be seen to be even more vigilant than most in our usage of public funds."

The news comes on the heels of a strongly worded statement from College Board chairman Raymond Tannock that the College had been working hard to eliminate financial waste and had ended the practice of staffers selling personal items, charging gifts of flowers to the College and putting in for excessive overtime.

But Ms Smith yesterday criticised governance at the Bermuda College saying it was riddled with politics.

"As long as he (Sen. Tannock) cuts out the right fat," she said when asked her reaction to Sen. Tannock's speech made during last week's Senate hearing.

"I think they had the right intentions but it's too political - they've got to take the politics out of it."