The Bermuda Housing Corporation is back on track and no one can escape the ?rigorous protocols? that have been put in place, Premier Alex Scott promised yesterday.

Speaking at a press conference at the House of Assembly just one hour before yesterday afternoon?s debate on the Auditor General?s special investigation into the BHC began, the Premier outlined new policies and procedures at the BHC while declaring the quango is now positioned to foster ?good corporate governance and enhanced business practices?.

Housing Minister Ashfield DeVent expressed his relief at the Auditor General?s 2004 report, while crediting the staff at the BHC and BHC Board members with working extremely hard.

The Minister also said he hoped that, after yesterday?s debate, the BHC can move on and concentrate solely on its mission of building houses. ?The BHC is in good health.?

The redesigning of the quango includes:

A Tendering Policy, stating that all contractors must submit bids for all major projects

Project managers, brought on board once major projects are underway, who help the BHC maintain further scrutiny and oversight ? ensuring, for example, that the BHC does not pay for work which has not been performed.

As a third party the project managers can also verify the validity of any disputes which might arise between the BHC and the contractor, though the BHC emphasised that the quango is doing due diligence and maintaining a presence on work sites on a regular basis.

A requirement of three to ten bids for smaller maintenance contracts from contractors who have proven to be responsive, reliable, and honest, and have produced quality work at a reasonable and competitive price

Authorisation levels established to address weak expenditure controls, setting clear levels of expenditure for all officers, managers, and board members of the BHC

The implementation of procedures for pricing, ordering and procuring goods and services

The implementation of a ?certification of invoices procedure? to ensure that goods and services that were ordered have indeed been received

A capitalisation policy, establishing limits for all expenditures

A special process has also been put into place for large contracts, BHC general manager Vance Campbell explained yesterday.

A pre-qualification package is sent to various contractors and, based on who fills those requirements, the BHC then has a pool of certain contractors who they can invite to bid on the project in question.

Some of the factors examined include the contractor?s reputation and longevity ? adding that while the BHC is ?not afraid? to look at new contractors, they do incur a greater risk.

Other factors examined include whether or not the contractor is in good standing with Government ? regarding in particular the payment of payroll tax and social insurance contributions.

Private sector quantity surveyors will also be conducting their own estimates on what a project should cost, giving the BHC a benchmark to measure bids against, Mr. Campbell said.

?The BHC has gone above and beyond the issues outlined by the Auditor General in his report,? the Premier said at the press conference. ?They have gone the extra mile.

?The BHC undertook a broad review of the Corporation which has led to reorganisation and restructuring to ensure increased efficiency and effectiveness, reduced duplication of effort, improved coordination, and enhanced accountability.

?In order to ensure that all Board Members are aware of their responsibilities, each new member is provided with an orientation binder including Directors? guidelines, the Bermuda Housing Act 1980, and copies of the minutes of the Board meetings for the past year.

?They are thoroughly briefed. No one on the Board can claim ? not that they would ? that they did not know.?

The proof of how the new measures are working is in the Auditor General?s BHC 2004 End of Year Report, the Premier said.

?The Auditor General has given the Housing Corporation an ?Unqualified Opinion? ? which, from an auditor?s perspective, means that everything is in good and proper order.

?In effect, the Housing Corporation has created an environment where maladministration or misappropriation can be more readily detected.

?We now have an environment in the BHC which fosters good corporate governance and enhanced business practices.?

During yesterday?s debate Opposition MP John Barritt said the Auditor General had pointed out that BHC has been governed by legislation, policies and control procedures but people had been allowed to flout them by a PLP-appointed board.

He told the Government: ?It wasn?t as if there were no policies.

?It was your man in place, it was your board that were running things. You are accountable, you take ultimate responsibility.?