City Hall has yet to provide Government a copy of the lease of the waterfront it has signed with developers.

The City’s intransigence is hampering Government’s efforts to conduct its due diligence on the multimillion project.

Home Affairs Minister Michael Fahy, whose portfolio includes responsibility for the municipalities, said that his Ministry “continues to await the delivery of crucial documents from the Corporation of Hamilton so that the government can complete its due diligence.”

The Minister added: “Indeed this is a project of significant national importance and as we go forward the government will consider how to best represent the interests of the people of Bermuda as opposed to leaving such decisions to the sole discretion of the Corporation.”

City Hall declined to comment yesterday.

But one insider confirmed that among the “crucial documents” the Minister has requested is the lease.

The insider, who insisted on anonymity, said that City Hall’s handling of the waterfront redevelopment project stood in sharp contrast to the manner in which the Green family is approaching the development of a new marina at Fairmont Hamilton Princess.

“I cannot fathom what could be in that lease which is so confidential between ourselves and Allied that it could not be shared, if its going to be at the end of the day a public entity.”

Government has made it clear that it will not support the project until it has conducted its due diligence.

City Hall’s relations with the Government have chilled since January when the City insisted on going ahead with a planned announcement of the start of the multimillion dollar project — against the wishes of Government which said it needed to be fully briefed on the project.

The City announced that it had chosen Allied Development Partners as lead developer and promised to work with Government going forward.

It later emerged that it had leased City waterfront property to the developers — without the knowledge of the current or former administration.

Michael MacLean, head of Allied Development Partners declined to comment for this story, saying he had signed a confidentiality agreement with City Hall.

Ombudsman Arlene Brock has launched an investigation into City Hall operations.

Ms Brock said she was launching an own motion systemic investigation in the public interest because of concerns about governance, lack of transparency and lack of public consultation particularly around the waterfront project.