Premier Alex Scott's lack of action following allegations that Deputy Premier Ewart Brown may have been involved in a pay-to-play scandal suggests he has become a "political eunuch", Opposition Leader Grant Gibbons declared yesterday.

"'It didn't happen on my watch' is not an acceptable excuse for inaction," Dr. Gibbons stated yesterday. "He is the Premier now. Bermuda expects him to lead."

Dr. Gibbons, also the Shadow Finance Minister, demanded that his Government counterpart Paula Cox immediately fire Government pension funds consultant Tina Poitevien, adding that if the Finance Minister took no action her own oversight of the Government pension funds would be compromised.

The pay-to-play allegations surfaced after it was revealed that in 2002 Ms Poitevien, already Government's pension funds consultant, arranged what Dr. Brown termed a "fundraiser" luncheon in his honour. Guests were asked to pay $2,500 to attend the lunch in Washington, D.C., with the money going towards Dr. Brown's personal election campaign fund for the 2003 General Election. Sources have alleged that the guests were all current or potential money managers or stockbrokers of the Bermuda Government pension funds, prompting Dr. Gibbons to denounce the luncheon as a "shocking example of pay-to-play".

Former Securities and Exchange Commission (SEC) lawyer Edward Siedle suggested attendees may have breached the US Foreign Corrupt Practices Act.

However while Dr. Brown has maintained his silence on the allegations after meeting with his lawyers, a spokeswoman for Ms Poitevien declared the majority of guests were "close, personal" friends of the Deputy Premier and his then-fianc?e, Wanda Henton, who simply wanted to support their friend's vision for Bermuda.

When Director of Communication and Information Beverle Lottimore was asked for comment on the allegations from the Premier on Friday afternoon, she told that as Mr. Scott was not Premier in 2002, it would be "foolhardy" of him to comment.

"He is playing dodgeball with this issue," Dr. Gibbons said yesterday. "Not only has he failed to hold Minister Brown accountable for his unethical behaviour in this instance, but he has also refused to take any personal responsibility for dealing with the issue.

"His failure to act suggests he has become a political eunuch in Cabinet, unable or unwilling to discipline his colleagues.

"The Premier must state what everyone else understands implicitly: Dr. Brown's behaviour was unacceptable and compromised Bermuda's pension fund management. He should also insist that Dr. Brown return the money to the investment managers involved."

The Ministry of Finance told on Friday that an independent consultant is being engaged to conduct a governance review on the public pension funds and this is to commence on a priority basis. Until the objective review is completed, no further specifics could be provided regarding Mr. Siedle's suggestion that the luncheon attendees had breached the Foreign Corrupt Practices Act or regarding what further enforcement action the Ministry may or may not take.

Though he agreed the Ministry should go ahead with the independent review to ensure no other infractions were taking place, that was not good enough for Dr. Gibbons yesterday, however. "We know the lunch took place, we know who organised it, we know money changed hands, and we know what Tina Poitevien and Dr. Brown did was wrong," he told .

"The Ministry of Finance should send a very clear message that this is unacceptable behaviour by a Government pension funds consultant and terminate her immediately."

The situation was all the more urgent as US regulators continue to intensify their focus on Bermuda as a financial jurisdiction, scrutinising business deals made by Bermuda-based insurance companies.

"Minister Cox cannot be taken seriously as a defender of Bermuda's international reputation unless she acts to address this issue within her own Ministry," Dr. Gibbons said. "She must implement a full-disclosure policy to govern current and future dealings by Bermuda Public Fund Investment Committee (PFIC) members, investment consultants, managers, and Cabinet Ministers.

"The Finance Minister can't have it both ways ? she can't maintain her integrity as Finance Minister and dodge the implications of the unethical behaviour of her Cabinet colleagues. She can't continue to maintain that Bermuda's pension funds are being managed in the best interests of beneficiaries while pay-to-play activities are left unaddressed.

"Her failure to act demonstrates a political expediency that is truly damaging to Bermuda's reputation.

"So far Minister Cox has done nothing to reassure Bermudian and foreign regulators that the Government of Bermuda will not tolerate this kind of unethical behaviour. The time is past due for firm and decisive action."