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UBP: Will Govt be liable for Sovereign deal?

United Bermuda Party leader Kim Swan fears Government will have to pay for damages after handing out an improper licence for private jet services at the airport.Sovereign Flight Support was given permission to provide services in 2007 but it later emerged Bermuda Airport Services (BAS) already had exclusive rights for the same services until 2014.A Supreme Court hearing later found in favour of BAS, with Government ordered to pay the company $2 million for loss of revenue caused by the breach of its exclusive rights.Now Mr Swan suspects taxpayers will have to pay out again because Sovereign had made huge financial commitments based on the licence granted by former Premier Ewart Brown’s Transport Ministry.Sovereign is currently in negotiations with the Department of Transport.St George’s West MP Mr Swan said in a statement to The Royal Gazette: “It is now evident that former Transport Minister and Premier Ewart Brown’s Ministry of Transport granted Sovereign Flight Support an improper and potentially illegal licence to operate a private jet facility opposite the Southside Cinema in St David’s.“Interestingly, the principles of Sovereign Flight Support are now waiting anxiously to determine their future, particularly as they made huge financial undertakings based on the licence they were granted by the Transport Ministry and by extension the Progressive Labour Party Government.“The Government has since further settled with BSA and the private jet facility at Southside is now available for let by the Government.”Mr Swan asked whether the lease has now been granted to another company, or given to Sovereign. He continued: “Are Government liable for damages in favour of Sovereign Flight Support for allowing and encouraging them to wrongly invest millions into a Government-owned facility and wrongly invest in, start and operate a business?”Mr Swan raised the issue in the House of Assembly last Friday, but complained new Transport Minister Terry Lister did not address his questions.“Unfortunately, it is just another example of the callous disregard shown for proper operating practices by the Ministry of Transport under former Minister and Premier Dr Ewart Brown,” stated Mr Swan. Approached for comment yesterday, a spokesman for Sovereign said: “Sovereign were surprised at the comments in the House of Assembly since we are currently in active and positive negotiations with the Department of Airport Operations.”The Ministry of Transport declined to comment.Useful websites: www.ubp.bm