Deputy Premier and Finance Minister Paula Cox issued this statement last night in response to a request for comment on the Auditor General's special report on TCD.

"While the better view would be for you to liaise directly with the relevant Minister(s) or permanent secretaries, the Office of the Auditor General (OAG) has helpfully set out the chronology.

"You will note it spans a time frame that includes actions and decisions that covers the time span from 2003 to 2009.

"Clearly, the OAG recommendations highlight areas of improvement to further improve value for money from a governance and Government perspective.

"We have an identity of interest, as the Ministry of Finance also considers this to be a serious issue.

"In fact, as signposted in the National Budget Statement 2010/11, the Ministry of Finance had an independent diagnostic review conducted by a local audit firm.

"The review of the regime has considered the framework that exists for procurement, tendering, contract award and management of capital projects, with a view to introducing enhancements.

"The aim is to ensure that public sector governance standards for capital projects meet or exceed international best practice.

"This is to strengthen confidence in public infrastructure development. This will be done by identifying gaps in the project oversight framework and making the necessary changes. Also, sanctions for those senior civil servants who are not in compliance are incorporated in the enhancements to the existing regime of systemic internal controls and the checks and balances.

"As a follow-on from this diagnostic review, briefings for key senior civil servants were arranged, so that with immediate effect improvements could be made to the existing regime.

"While, as noted, project management and capital works is not under the remit of the Ministry of Finance, the Ministry has a clear stake in improving controls so that these can be made more robust and enhanced."

Ms Cox quoted Government's Estimates of Revenue and Expenditure, which states in its explanatory section that accounting responsibilities for capital projects lie with the Works and Engineering permanent secretary, except for minor works and projects in respect of Bermuda College, the Mid-Atlantic Wellness Institute and the Ministry of Transport.

"Notwithstanding the above, the permanent secretary of Works and Engineering has an obligation to ensure that proper consultation with the head of the client department is maintained throughout all phases of a project," added the Minister.

"The intent is to clarify and insert amendments to Financial Instructions to remove any latent ambiguity so it is even more clearly stipulated that the Ministry of Works and Engineering will have the overriding authority."