The Premier and Deputy Premier's heads would roll if they'd run a business the way they've managed Bermuda's finances, Shadow Finance Minister Bob Richards said yesterday.

Mr. Richards said the new Auditor General's damning verdict on Government's handling of capital projects backs up his fears the Island is showing "the hallmarks of a banana republic".

He claimed if a company's financial statements were as inadequate as Government's have been declared in the past two years, its bosses would face the axe, nobody would lend it money and the public's faith in it would hit rock bottom.

The Consolidated Fund received a qualified audit for 2008/09 — for the second year in a row — meaning Heather Jacobs Matthews was not satisfied Government's financial statements fairly reflect its financial position.

She also pointed to "serious internal control deficiencies in the management of various capital projects".

Responding yesterday, Mr. Richards told The Royal Gazette: "What it means is that the Auditor General can't account for the money that's been spent on capital projects, which in this case would be Dockyard and Port Royal.

"If a business had done that, they would probably be broke. Nobody would lend them any money. Even normal folk doing business with that entity would wonder what the heck's going on with that business.

"People dealing with a business that has that kind of report, two in a row, would view it with a very, very jaundiced eye. Heads would roll. Shareholders would be screaming for a replacing of the management because their assets are at risk."

Mr. Richards questioned the lack of a public outcry, adding: "The parallel is that taxpayers are really the shareholders — but people are not outraged."

He said Finance Minister Paula Cox should be held to account, as should Premier Ewart Brown because his Tourism and Transport Ministry is the worst offender because of its handling of the Dockyard pier project and Port Royal Golf Course, which both saw their costs soar.

The Shadow Minister also recalled how Mrs. Jacobs Matthews' predecessor Larry Dennis was verbally attacked whenever he raised serious questions.

"There was all kinds of awful things said about the Auditor General," he said. "It's not happened yet, but you should stay tuned when the new Auditor General comes forward with her special report."

Last Friday, Ms Cox also revealed Bermuda's net public debt had risen by $204.9 million during 2008/09 to $483.3 million — a rise of 73 percent in 12 months.

A week earlier, this newspaper reported Government had a shortfall of $100 million in its finances for that year due to incorrect estimations on spending and revenue.

Mr. Richards said yesterday: "It all feeds into this pretty awful report of waste and mismanagement. I'm very saddened. We used to be proud of the way Bermuda is run. Now it has the hallmarks of a banana republic."

Ms Cox has pointed to the adverse affect of the global economy on Bermuda, but Mr. Richards said this should have been anticipated.

"I guess if they had forecasters from someone other than the UBP they may have listened," he said.

"If they got forecasting advice from an economist, they got it from the wrong person. I suspect they didn't get it at all, and merrily went along and thought things that affect the rest of the world don't affect Bermuda."

Ms Cox has declined to comment in detail until a special report from the auditor is completed, but her Ministerial Statement on the qualified audit can be found in full at www.royalgazette.com.