A bill improving oversight of Government policies and programmes was finally passed in the House of Assembly yesterday, two months after it had to be deferred following complaints.

Premier Ewart Brown made a number of amendments to the Internal Audit Bill in response to criticism from the Opposition that it didn't give enough independence to the Internal Audit Department it sets up to oversee Government. Now, if the Director of Internal Audit finds irregularity or fraud of public funds, the Auditor General must immediately be informed, ensuring an independent body will join the investigation.

Dr. Brown has previously stated the legislation intends to give people reasonable assurance that "persons entrusted with public funds carry out their functions effectively, efficiently, economically, ethically, equitably and in accordance with the law".

Until now, internal auditing has been done directly through the Accountant General, with reporting responsibility to the Financial Secretary — creating a conflict of interest when reviews are performed for the Ministry of Finance.

Accounting firm Ernst & Young has helped carry out a risk assessment and recommended the internal audit function should become its own separate department.

Dr. Brown initially opened the debate in early December, but he deferred it when the United Bermuda Party and Bermuda Democratic Alliance complained about the lack of independence. During a brief debate before the bill was passed, UBP MP Grant Gibbons said private companies value the independence of their internal audits.

Dr. Brown said it is very difficult to find auditors who are completely independent from Government in such a small society.

He added that to be effective the auditors need some degree of understanding of how Government works anyway, so total independence is not desirable.