He said it was necessary as Bermuda is “increasingly subject to the politics of one man rule”.

According to local media, Mr. Swan said:

“Why have we moved a motion of no confidence? The public affairs of Bermuda are increasingly subject to the politics of one man rule under the Premier, Dr. Ewart Brown. We consider this unhealthy and not in Bermuda’s best interest.

“This is not just about Uighurs in Bermuda, though that issue typifies a style of leadership that is reckless, autocratic and conducted with no sense of accountability to the people or, indeed, to Bermuda’s Constitution.”

“The motion reflects concerns held by the general public but also our long-standing concerns about a host of public issues that have not been well managed. What we are seeking with this motion is a change of leadership for Bermuda — not necessarily a change of government at this time — but a change that can get this Island back on a steady course, where we no longer are distracted by the antics of one man, where we can collectively get together, roll up our sleeves and start working on solutions that are best for Bermuda.”

A wide spectrum of political voices – including many in the PLP – have decried Dr. Brown’s tumultuous leadership.  Let’s see if Bermudians can break their inertia – and the racial polarisation that allows the circumstance to continue – to start putting Bermuda’s governance back on track, and to stop the distractions of the constant circus that surrounds Dr. Brown.

The motor/traffic amendment passed 13-11.  By my reckoning, that means Dr. Brown (who I think was not present) didn’t get 8 votes from his own side of the aisle … and a couple of UBP MPs were no shows.

Despite the normal time-spinning on congrats and obits, they ran out of things to talk about by noon and packed it up for the day.

Yes, Bermudians, your elected representatives feel that they have nothing to talk about.  Everything is hunky dory in Bermuda.  Parliament has nothing to add.  Drinks over at Greg’s then let’s go play golf.

Pathetic.  Our Parliament and its procedures are in dire need of reform:

• Agenda published in advance on internet
• All tabled motions and prospective laws published in advance on internet
• Recorded votes by MP name
• Hansard transcript
• Publication of all parliamentary questions and responses
• More bipartisan committees that meet in public
• Weekly Q&A time

I am amused at the “blame game” the Premier’s proxies are playing trying to pin the resistance to the gambling bill on the UBP.  Shouldn’t that finger first be pointed at the PLP MPs who also question the bill?  Like many, I find the Holland America “gun to the head” letter a bit contrived.

With the resistance in the backbench, it looks like we can expect a non-productive legislative session as Dr. Brown dodges challenges to his authority.

With the constant circus of allegations and murky affairs, Bermuda needs anti-corruption legislation for its local sector.

But we also apparently need it for our international sector.  You know, if we really want to the The Gold Standard™.

The US has solid anti-corruption regimes – that include both the public and corporate sectors – and under the Obama administration seems to be stepping up enforcement.  The Financial Times reports:

US companies account for 64 out of 93 cases being pursued by the Department of Justice and the Securities and Exchange Commission — Britain, Bermuda and the Cayman Islands are in second, third and fourth places…

Bruce Yannett, partner at Debevoise & Plimpton, the US law firm, told the FT that while there were a number of factors behind the large number of British-linked probes in the US, one was Washington’s unhappiness with London’s performance on tackling bribery. “If the US authorities feel there is weak enforcement, they will play the role of policeman”

The US data raises further questions about the role of corruption conduits played by leading offshore financial centres, many of which are British overseas territories or dependencies.

Helen Garlick, former head of the Serious Fraud Office’s anti-corruption unit and a consultant at Nardello & Co, a private investigator, told the FT that Britain’s dependencies tended “to be the place where so much dirty money ends up. Any forceful overseas corruption investigation is bound to end up there sooner or later“.

This is not a list we want to be on.  So, are we serious about reform?

I understand that gambling was to be discussed again, but given the high degree of dissent amongst Parliamentarians, that’s unlikely to be put a vote.  So, they’ll spend the time with self-gratifying waffle and the usual bitchiness.

However, the coming months in the House may have more tension than the normal “rubber stamp” block voting.

You see, the House has 22 PLP MPS, 13 UBP, and 1 Independent.

If a motion of “no confidence” somehow made it to the floor, it is entirely possible that it would pass.  The PLP may be able to suppress its unsatisfied backbenchers within its internal Caucus and Central Committee meetings, but will they be able to do so on the floor of the House?

Now, it’s certain that every quirk in the rule book will be used to disallow such a vote coming to the floor … but margins will be tight if just a few MPs vote on conscience, don’t show up (last year, PLP MPs showed up at least once in a daily meeting 90% of the time, and UBP MPs 92% of the time), or just go to the bathroom.

This may also be an opportune time to push for the legislation that is long promised and never delivered such  public access to information, anti-corruption laws, integrity in public life/code of conduct, open committees, etc.

Bermuda needs reform.  In my view, the Premier’s paranoia may now be justified … as a direct consequence of his own actions.

Sometimes though, I have to shake my head in wonder.  The latest issue has an apologist view of the governance issues in our current Government, saying that past administrations were no different:

“The day is late on their [the UBP and media] behalf to be talking about corruption, cronyism and nepotism, for their sword of ethics and morality is dull on both sides from way back in time.

The question to ask, is cronyism and nepotism ethical?  It may not be, but I have yet to see any newly elected government come out of the front doors of any parliament anywhere in the world and announce to the world how they would be awarding juicy million dollar contracts to any of their freinds and supporters.  They just don’t do it.

I could bet you that those in the UBP can’t wait to win back government so they too can get back to doing all of that which they have been accusing the PLP government of doing. “

This circular logic gets Bermuda nowhere.  Is the writer implying that “to the victor go the spoils – but just don’t talk about it?”  Government is not a sow to be milked for inside interests – particularly with our recent billion dollar budgets.   Two wrongs don’t make a right.  Good governance is the goal – not playing a game of tit for tat that goes on for generations.

I support the comments of UBP MP Donte Hunt in todays’ press calling for Government to champion anti-corruption legislation.  It’s not about “whose hands are the cleanest” … it’s about establishing high standards for our elected representatives of the future, as well as our ever-increasingly powerful civil service.

“It is totally unacceptable to excuse or nullify any form of corruption based on the view that Governments of the past have operated in such a manner and did nothing to resolve the issue.”

That view did nothing to mature Bermuda but instead kept the Island in perpetual regression and moral decay, said Mr. Hunt.

“It is the mandate of every Government in every new term of service to correct the wrongs of the past, improve on the milestones of yesterday and ultimately drive to make their jurisdiction a better place.”

Change came to Bermuda with the election of the PLP – and one of those changes is that when the UBP (or whatever grouping may arise) is elected to Government, the expectations placed on them will be much higher. Bermuda society has not been dominated by a “forty theives” for decades – there is much greater diversity in our power structures and corporate entities. So why are we still worrying about which insiders’ turn it is to suck at the teat of Government largesse?

One day, the impact of old identity politics will fade – and voters will place much greater emphasis on good governance TODAY and TOMORROW rather than the  battles of yesterday.  Learn from the past: serve the public, everyone, equitably.

“Forget those numbers. Numbers can come back to haunt you. Words can always be explained away.”

In other words, bury the facts and statistics and talk about the Platinum Period™.

You know that Bermuda tourism is in bad shape when suddenly Bermuda withdraws from the statistical reports published by the Caribbean Tourism Organisation.

The fact that most tourist locations are reporting slumps is no surprise – with other destinations showing drops in air arrivals of 5-15%.  Cruise travel is particularly affected – with some destinations showing drops of 20-30%.

That’s worrisome given the huge sums that Bermuda has invested in the Dockyard megaship strategy.  Planning laws and other governance processes were overriden in order to get that facility rush ready for this year – and the cruise season just got the recession blues and swine flu.  Just wait til Cuba opens its new cruise facilities.

Smile and hug a tourist today.  His name is Bob and he’s staying at the Fairmont.

Without making too much of a fuss, I am against gambling being legalised in Bermuda for the following reasons:

1. I don’t think it will do anything for tourism. Gaming venues require a critical mass of hotel rooms to feed them and to create the buzz. Bermuda no longer has sufficient rooms in close proximity to create a destination. Even more so, much of the projected growth in our rooms is in fractional units – which are not a normal gaming audience.
2. Moreover, gambling takes us further away from the essential qualities that our visitors say they appreciate about Bermuda.  The Minister of Tourism loves to talk up “pop & sizzle” but everyone in the industry will tell you that it’s the “calm & balmy” tourists that spend money.
3. No-one has made a believable economic case, either in terms of employment for Bermudians or taxes. The pro arguments have mainly consisted of dreams.
4. I have little faith in the Bermuda Government’s ability – or desire – to regulate gaming so that it remained clean and fair … never mind free from money laundering.
5. Internet gaming:  don’t touch it unless you are willing to battle the US.

I don’t think the current $300,000 study is a waste – as long as it is truly being conducted impartially, rather than being a “commissioned justification” for a political decision already made.  I look forward to getting facts on which to base our decision.

We all know that, if gaming is allowed without thorough consideration of the objections, this will be a very divisive issue for our little teacup. And lord knows we already have enough to fight about.

Describing the creativity used by the Ministry of Tourism to market Bermuda, he says:

“Before the Club Med implosion there had never been an implosion in Bermuda.”

I agree.  I think blowing up a hotel was a great metaphor for the Ministry’s management of tourism in Bermuda.

He also justifies Bermuda’s creeping shift in focus from hotels to the development of fractional condominiums:

“Overall, we’ve seen our annual air visitor spending on-island skyrocket more than $100 million between 2005 and 2007-from 341 million to 444 million. We think the increased number of fractional owners played a role in that increase.”

First, that number sounds big, but nearly half of it is accounted for by basic inflation.  Second, I doubt that the remaining growth was due to fractionals, most of which were not even on the market at that time.  Rather it was probably due to the short term increase in business visitors after Hurricane Katrina in 2005.  For a period, the island was crawling with clients and brokers all eating dinner, going golfing, etc.  That bump in business travellers – which had little to due with the marketing efforts of the Ministry of Tourism – later subsided.

My pals in the reinsurance sector say there may be another bump in business travellers beginning.  Due to the capacity crunch caused by the global economy, there is a quiet hum of activity amongst some of the Bermuda insurers.  Hopefully this will ease some of the pain felt by the collapse in leisure travellers to Bermuda.  But let’s be clear, these people are not coming to Bermuda to “feel the love”.

It’s strange that the Premier did not choose to highlight the opening of the 88-room Tuckers Point hotel today.  With all the talk of platinum, this is an actual live luxury development.   I suppose that’s because Government’s role was minimal. They provided incentives (such as customs duty rollbacks) – and got out of the way.  Plus, Government always gets a little edgy about Tuckers Town.

It’s not just the disillusion over promises made … and broken.  It’s also the the constant allegations of meddling, shortcuts, and bullying. The media reports are normally angrily denied – but this is Bermuda, most of us have relatives on the inside  – and somehow, when the facts come out, the situation is quite clear.  Despite the secretiveness of the Bermuda Government, and the paranoid pack mentality that surrounds much of Bermuda political life, the media normally gets it right.

I hear from time to time from ex-civil servants who say things like “we tried to tell about all of this – but it seems so many of our seniors were involved in the whole tangled web that our warnings got nowhere”.

Or “the shuffling and bullying in the civil service is because we knew all about this nonsense – almost like a government Ponzi scheme.  Did they hope that with us gone or silenced, none of it would surface?  Unlike the ponzi schemes, where the bad guys go to jail, these guys just thumb their nose at any critics and get away with it.  It’s so sad.”

Government ponzi scheme.  Ouch.

A lot of people are watching the LeYoni Junos case with interest … and hope.

This means that all attention will now focus on the “greylist”, which includes Bermuda.

Obviously, it behooves Bermuda to make all efforts to be one of the first countries to enact sufficient reform to move off the list of targeted jurisdictions.

The TIEAs are just the start of it.  Bermuda must also move rapidly to improve the transparency and accountability of its Government, with freedom of information laws, stronger anti-corruption laws, whistleblowing provisions, and better contracting and audit performance, among other things.

It seems that the many governance shortcuts that have been taken in pursuit of rapid growth have seriously undermined the country and, in effect, created a failed state.

A consultative council will be formed to advise the Governor on the needed reforms.

“The Commissioner states that the written information obtained in the first six months of the Commission’s inquiries, when coupled with the evidence in the public hearings in TCI earlier this year, have provided information in abundance pointing to a high probability of systemic corruption or other serious dishonesty. In his view this, together with “clear signs of political amorality and immaturity and general administrative incompetence”, has demonstrated a need for the urgent suspension in whole or in part of the Constitution, and for other legislative and administrative reforms and change…”

“As drafted, the Order would leave in place important elements of the Constitution such as the fundamental rights chapter and provisions relating to the Governor, the courts and the public service, while removing the Cabinet, House of Assembly and references to ministerial and related powers. Powers and functions currently exercised by Ministers would be exercised by the Governor acting in his discretion, including in relation to public finances, legislation and necessary regulatory reforms…”

“I can confirm that consideration is being given to the establishment of a special civil recovery team, and the need to bolster the capacity of the police and to appoint a special prosecutor to undertake prosecutions which may be warranted in keeping with any evidence of criminality which may be disclosed by it [the final report].”

The Commission’s interim report may be found here. It’s breathtaking.

The report includes recommendations to pursue criminal deals that may have taken place, a integrity in public life law, requirements for ongoing scrutiny of political financing, greater emphasis on audit and audit timeliness, and ziiiiiing widening the franchise to include long term residents, etc.

This is the second time in 23 years that the TCI constitution has been suspended.

PLP chairman David Burt expressed his support to the Royal Gazette.  However, Mr. Burt’s “define your opponent” dictum sticks in my mind …  it’s not clear if his comments are just non-committal personal sentiment or if his party really embraces the reform idea.  This is a turnaround in opinion for both Mr. Furbert and Mr. Burt from just a year ago.

And don’t forget that when the UBP ran an ad in the last election declaring its candidates’ business interests, the PLP responded with the attack of “UBP on the take”.  And the PLP has voiced vague support for PATI and open parliamentary committees for years without taking any concrete actions.  And finally we still have the big “pay for play” elephant lurking in the room.  So, take it with a grain of salt.

I agree that political funding in Bermuda needs reform but doubt that our politicians – of either side – have the stomach to tackle it.

That’s because the disclosure of campaign contributions is just scratching the surface…

Political expenditure is also of great importance. You might also take a look at limits on donations by individuals (including the candidates themselves) or groups, as well as control of “hard money” (specific to elections) and “soft money” (given to parties for general use, or spent by independent organisations).  Plus, the “register of interests” for politicians will need to be much more rigorous in content and enforcement than it is currently.  Plus, binding “codes of conduct” will be required.

Ultimately this leads to the question of public funding of politics (often called “fair elections” in the US).  These laws require significant transparency from candidates and often require the publication of detailed platforms and participation in public debates on specific issues.

The experience in some of the US cities and states that have implemented fair elections is that 1) the number of incumbents who are re-elected drops, and 2) the number of elected independents outstrips those affiliated with a major party.

That sounds healthy for Bermuda with its two-party boneheadedness.  And plus, it would remind the politicians that YOU WORK FOR US!

For more information on “real” political finance ref0rm, see:

• Common Cause
• Public Campaign
• Open Secrets