Government Senator Walton Brown yesterday challenged Shadow Tourism Minister Michael Dunkley to ask any questions he likes about the Coco Reef Resort project.

Sen. Brown – chairman of the board of governors at Bermuda College which has had responsibility for the hotel – spoke out about Sen. Dunkley's accusation that hotelier John Jefferis was given a "golden handshake" by Government.

Such comments are irresponsible, particularly during a recession which has led to hotel closures, Sen. Brown told the Senate during the Motion to Adjourn.

"I know the previous Auditor General has termed the deal 'fantastic'," said Sen. Brown, "I don't know if it's just politics, but I would hope not.

"We don't want to send a message to the community that there are things that are underhanded with regard to Coco Reef.

"Senator Dunkley can ask questions. We have nothing to hide. We have transparency with respect to our operations."

United Bermuda Party Senator Jeanne Atherden responded: "He was focussing on the fact that questions were being raised by the Auditor with respect to the lease."

Mr. Jefferis is to construct 66 villas in the New Year at the former Stonington, a hotel school site, at a cost of $94 million, while a six-storey hotel is planned for later construction.

He signed a lease in 2003 which more than doubled the length of one held previously from 21 years to 50 years. The new contract reduced the amount of rent to Government, added a 1.9 acre plot of oceanfront land and gave permission to build condominiums for sale.

A 2004 Auditor General's report recommended it should be re-tendered because it was "considerably more beneficial" to (Mr. Jefferis) than the tender document specified".