United Bermuda Party Members of Parliament believe that a new audit of the Coco Reef lease will focus on concerns which have not been addressed since a 2004 audit.

Yesterday, Auditor General Heather Jacobs Matthews announced she was launching an investigation into the 2009 amendment to the Coco Reef lease, which was made public last week.

The new lease lengthens the duration to 125 years and alters some of the insurance payments.

Veteran United Bermuda Party Member of Parliament John Barritt said he and fellow MP Grant Gibbons believe Mrs Jacobs Matthews' investigation may focus on concerns from the last audit that have not been addressed in the amended lease.

"On a preliminary review of the amended lease two things jumped out that have not been addressed," he said. "One, putting in a more precise definition of Gross Annual Profit.

"Two, is the provision in the lease that when it comes to an end the land will be returned but not the condominiums and that doesn't make any sense at all."

In 2004 former Auditor General Larry Dennis issued a report which raised several concerns over the 2002 lease between Government and Coco Reef Resort.

He said the whole lease should be retendered because it was "considerably more beneficial" to owner John Jefferis than the tender document specified. He said Mr. Jefferis had renegotiated the lease, after winning the tender, to lengthen it from 21 years to 50 had reduced the rent he had to pay for the property.

He also queried why there was a clause in the lease which stated that when the 50 years were up Coco Reef would return the land, but not the condominiums.

Mr. Jefferis has received a Special Development Order to build 66 leaseback condominiums on the Paget property, he expects to start construction this year.

In 2004 Mr. Dennis said he had sought legal advice and was told the condominiums could not be sold for an indeterminate time and that the whole property would revert to the landlord when the lease was over.

In response to his statement the Department of Tourism said an amendment was being drawn up to address the issue.

Mr. Barritt said the amended lease, signed in May 2009, does not address the point.

Mr. Barritt also said the amended lease does not address what Gross Annual Profit (GAP) is.

The original lease outlined base rent payments and said a yearly turnover rent of 20 percent of GAP would also be in place.

In 2004 Mr. Dennis said: "No description of gross annual profit appears in the lease."

At the time the Department of Tourism said, in response to the report, the omission "will be addressed when or if a longer-term lease is negotiated."