Four Consulting Firms Raise $ 6 Million In Less Than Two Years, House Says – The Royal Gazette


Created: Dec 11, 2018 2021 07:55

Unfinished homes at the Caroline Bay complex at Morgan’s Point, where the government paid liquidators several millions (file photo)

More than $ 6 million was paid in consulting fees to four professional services firms over a 19-month period, they told MPs yesterday.

But Curtis Dickinson, the finance minister, said more than 60% of the money went to EY under a court order.

The government had to appoint EY as joint provisional liquidators for the failed Morgan’s Point complex, to the tune of $ 4.357 million.

The government retained ownership of the resort’s debt in 2019 after its investors called a multi-million dollar loan guarantee.

The figure covered the period from April 2020 to October of this year.

Mr Dickinson released the figures after parliamentary questions were tabled by Cole Simons, the Leader of the Opposition.

KPMG received $ 880,132, PwC was paid $ 594,200 and Deloitte received $ 220,274 in addition to the money paid to EY.

Mr. Dickinson also broke down the contracts by department.

Cabinet office: a $ 70,000 contract with EY to study the feasibility of attracting companies to a technical hub in Bermuda;

A $ 276,000 contract for PwC on the economic impact of the one-year residential certificate and to examine the feasibility of a medical tourism center and vertical agriculture;

$ 150,000 for PwC for government website analysis and

Approximately $ 20,000 to KPMG for professional services related to the Bermuda Post Office.

· Finance: $ 234,809 for Deloitte’s administration and support work on the tax administration portal;

A $ 4.28 million contract with EY for Morgan’s Point and Caroline Bay;

PwC was paid $ 96,500 for “a series of professional engagements” – an assessment of George’s Bay, which is part of the Caroline Bay project, the first phase of a business and cash model for the economic stimulus plan, and a evaluation of the unemployment benefit program.

The company also had a $ 7,490 contract with the Office of the Tax Commissioner to update the payroll tax calculation system and a $ 224,493 contract with the Companies Registrar for a review of the fee structure related to the Economic Substance Act.

· Health: KPMG was paid $ 131,250 to establish a “road map” to achieving universal health coverage.

National security: $ 5,465 to Deloitte for police services related to “major tax investigation”.

Officer of the Auditor General: KPMG earned a total of $ 496,437 for Bermuda Monetary Authority outsourced audits in 2020; Bermuda Council of Hospitals, 2018-19; Bermuda College in 2021 and an accounting course for the Office of the Auditor General;

PwC was hired and paid $ 71,000 for outsourced quango audits.

Mr Dickinson added that EY’s tech hub report had been submitted for a final review “expected in the coming weeks”.

He said the company had submitted its reports on medical tourism and vertical agriculture, as well as a “road map” for the government portal.

Mr Dickinson added that PwC had requested only $ 1 to perform an accounting valuation as part of a consolidated fund audit on the George’s Bay company linked to Caroline Bay.

The company has also completed its first phase work on budgeting and cash flow for the economic recovery plan.

Mr Dickinson told the House that KPMG has completed work for the corporate registrar, as well as work on the payroll tax calculator, which is now operational.

MPs also learned that KPMG has handed in the “deliverables” for a three-year roadmap to universal health care.

Mr Dickinson said PwC had a contract with the Cabinet Office on the 17 UN Sustainable Development Goals for 2030.

The firm will deliver its report on the business needs of the planned Bermuda arbitration center early next year.

Mr Dickinson added that EY’s work as joint interim liquidator at Morgan’s Point would continue.

He said Deloitte’s work on tax administration and KPMG’s work for the auditor general also needed to be completed.


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