Webb lashes back at UBP `hypocrisy': Says former government was a past master
Government Minister Renee Webb yesterday dismissed Opposition demands that the ruling PLP disclose details of bids to influence Ministers and MPs over jobs and contracts as "hypocrisy''.
And she said: "Under the previous Government, we had Ministers and former Ministers who granted themselves a contract while they were Ministers.
"Conflict of interest was a normal way of doing business under previous governments.'' Ms Webb lashed out after Acting Opposition leader Grant Gibbons asked for PLP chiefs to release more information on attempted influence peddling, revealed in a speech by Premier Jennifer Smith at the start of the PLP's annual conference.
Dr. Gibbons hit back that there were strict rules governing bidding for contracts -- and that the real issue was what the PLP had done to clamp down on attempts to influence politicians.
But Ms Webb said: "Based on the transgressions of the former Government, Grant Gibbons really should remain silent, because the UBP are not in any position to criticise influence peddling.'' Ms Webb added when the PLP took over last November it found: Government "computers and paper supplies'' was contracted to A.F. Smith -- owned by the family of former United Bermuda Party Education Minister Tim Smith; Computer firm ICS -- under the chairmanship of UBP backer Ward Young and husband of UBP MP Kim Young and with ex-UBP Minister Quinton Edness as a director -- holds a computer maintenance contract worth $75,000 in the current financial year; Bermuda Information Technology Services -- chaired by ex-UBP Senator E.T.
(Bob) Richards -- held a 1999/00 $100,000 contract for computer services and; Bermuda Computer Services, headed up by UBP supporter Donald Lines, has a $300,000 contract for computer work in this financial year.
Ms Webb said: "The beneficiaries of Government contracts were like a who's who of the UBP and that's what we inherited -- Government rentals of property is a similar issue.'' She added: "Clearly, in a place like Bermuda, there could be a contract awarded to a company in which someone has an interest -- but it should be known.'' And she quoted a report in The Royal Gazette from June, 1996, that links between Dr. Gibbons' family and phone company TeleBermuda International existed -- the firm that won two approvals from Dr. Gibbons to help it break the Cable & Wireless overseas telephone monopoly.
The Royal Gazette article said Dr. Gibbons, as Minister of Management and Technology, offered TBI a licence to compete with Cable & Wireless.
Webb hits back at conflict of interest charges And, as Finance Minister, he allowed TBI an exemption from the 60/40 rule to restrict overseas ownership to a minority holding.
The report added that company records and other investigations showed that some TBI shares were indirectly held by a family trust set up by Dr. Gibbons' father Graham for the benefit of his children.
And James Gibbons, a cousin of Dr. Gibbons, was listed as a TBI shareholder and director.
Colonial Insurance, one of the pillars of the Gibbons' family empire, was listed as holding a six percent stake in TBI.
Both Colonial and James Gibbons became TBI shareholders in May, 1996 -- nearly a year after the licence to operate was granted, but before the firm gave notice of its plan to ask for an exemption from the rule ensuring Bermuda majority ownership.
Graham Gibbons conceded Dr. Gibbons would probably be a beneficiary of his Mangrove Holl Trust, a major shareholder in Colonial Insurance through Edmund Gibbons Ltd, the family holding company which was listed as owning all the shares in Colonial.
Dr. Gibbons, however, rejected any suggestion of conflict of interest and insisted there was an "extraordinary distance'' between himself and Colonial.
He added he knew his cousin James was a TBI shareholder, but did not know Colonial was. And he said he had no financial interest in Colonial or operating responsibility.
His father and uncle, Sir David Gibbons, backed claims of the distance involved and added Dr. Gibbons may not even benefit from the trust -- and if he did, out of Colonial's millions of dollars in assets, it amounted to "a few hundred thousand''.
But Ms Webb said: "I'm really appalled at his arrogance in talking about influence peddling. The Premier was simply saying that's not the way Government works and making that clear.'' And she added: "We had a Minister of Tourism who owned a hotel -- none of these things would be allowed in other countries.'' Ex-Tourism Minister David Dodwell owned the Reefs in Southampton, but stepped aside from direct involvement while in Government.
She added: "What we're saying is we want to make the process more transparent, so if this sort of thing goes on, the public will know.'' Ms Webb said: "I've made a process of not awarding contracts to anybody unless I know who owns the company.'' But Dr. Gibbons said: "There was a very clear formula put in place which dealt with outsourcing and contracting.
"The story is an admission by the Premier that there has been influence-peddling and the public want to know what these influences were and what has been done to stop it.'' And he dismissed the 1996 TBI story as wrong and irrelevant to the issue at stake.
And Dr. Gibbons added: "Even if Renee Webb thinks personally that there were conflicts of interest in the past, that doesn't justify somebody else doing it because they think somebody else might have done it.'' Renee Webb