We’ve been closely monitoring things since publishing Selling Bermuda – the story that led to Craig Cannonier’s resignation as Premier of Bermuda. Now, as the country awaits the announcement of the results of the governing OBA’s internal inquiry into JetGate, here’s a list of a few things the legacy media can’t – or won’t – tell Bermuda about the scandal. The JetGate update you’ve been waiting for.

How did we compile this list? We kept in touch with sources – friendly and unfriendly, and those close to them. We read between the lines of reports in the legacy media. And we were able to build on our own original reporting in Selling Bermuda. So read on to learn fresh aspects of the scandal such as:

• Who else did Nathan Landow have as his Bermuda consultant?
• How did Cannonier respond to our report that he, Bazarian, DeCosta and Landow met following the JetGate trip?
• What’s going on with Stephen DeCosta and Derrick Green?
• Will Thad Hollis’ inquiry find any unlawful activity?

 

1. On Nate Landow’s payroll – Derrick Green AND Stephen DeCosta

It is now common knowledge that Stephen DeCosta was a consultant to the developer. Green, a consultant to the governing One Bermuda Alliance, also had a contract with Landow, it has emerged. It is not clear whether each knew of the other’s arrangements with the billionaire. Cannonier himself ordered the pair not to continue their consultancies when he found out.

Green and DeCosta’s consultancies were short-lived – from around January to March 2013.

Update/clarification (July 20, 2014): Green denies that Cannonier ordered his consultancy stopped. “He would have no right to do that.” And, Green says, Cannonier asked Landow to deal only with DeCosta. “Stephen DeCosta stayed on.”

2. Cannonier confirmed conference with Bazarian, Landow and Stephen DeCosta

In crisis meetings when the story broke, OBA members insisted on full transparency from their leader. Did a meeting take place between DeCosta, Landow, Bazarian and Cannonier – as reported in Selling Bermuda? Cannonier’s answer? “Yes, but…”

He had been visiting his mother in the US, he explained, when he received a phone call from Landow who informed him that a Carl Bazarian had come down to see him. Landow asked Cannonier to attend the meeting. He obliges. And brings DeCosta along.

That, in short, was Cannonier’s story to the OBA – a version backed up in other fora by DeCosta.

3. Cannonier denied full knowledge of secret bank account

Yes. He denied full knowledge of the bank account set up in the name of the Bermuda Political Action Club to run an “underground campaign” for the OBA, a party he led. Senator Michael Fahy, who served as the party’s campaign manager, also denied full knowledge of the bank account, although he admitted confirming to the Bank of NT Butterfield that Green and DeCosta worked for the OBA.

Update/clarification (July 20, 2014): Green claims that Cannonier had “full knowledge” of the account.

4. Cannonier confirmed meeting Landow in Bermuda

As we reported in Selling Bermuda, Landow’s Gulfstream was on the island on four occasions before the infamous JetGate trip. We also reported that he was on at least one of those flights – in early 2013 – and was said to have met with Premier Cannonier. Cannonier confirmed to his party during the crisis talks that he did in fact meet with Landow at Bermuda’s airport.

According to information we have received, Landow’s trip to Bermuda, was motivated – in part at least – by his concern over expense reports that had been filed by one of his on the ground consultants. He came down to question Cannonier about the expenses.

But Cannonier was, reportedly, flabbergasted that Green and DeCosta were on Landow’s payroll and ordered the arrangements halted. Green and Cannonier had a falling out around the same time.

Update (July 20, 2014): Green insists that Cannonier already knew about the consultancies. And that Landow could not have come to Bermuda simply to query expenses. “Why would Mr Landow spend $25,000 to question expenses, if that were his reasons?”

5. Hollis inquiry corroborates Selling Bermuda

With the exception of our reported claim that Cannonier asked Landow for $2 million, Hollis’ internal investigation has effectively corroborated all the key aspects of Selling Bermuda. Other key players in the saga agreed in off the record comments that the story was largely accurate. Cannonier and Landow have, of course, denied that the then premier asked for $2 million.  No other specific details have been questioned by any of the other key players, but Stephen DeCosta has been campaigning to have Cannonier exonerated of any suspicion of impropriety and is baffled at Cannonier’s resignation.

6. Hollis pressured to resign

The inquiry has come at considerable personal cost to Hollis – and others within the party. Friendships have been broken, trust shattered and there’s been a heightened anxiety about whether the party could retain power in the wake of Selling Bermuda.

The party chairman, who has never been the most popular official in certain quarters, came under intense pressure about two weeks after he announced an internal inquiry. He was told that the investigation should have been completed and that he should resign his chairmanship.

His detractors were not amused by the fact that he had announced the internal inquiry unilaterally and told the media that our story had “some validity”. Another concern held by some is that he was straying from his terms of reference and widening the scope of his investigation.

Hollis has apparently stuck to his guns, and maintained a fierce independence, refusing to divulge details of his investigation even to party executives. For weeks, he effectively told them what he told the rest of the country.

7. Inquiry’s terms of reference is Selling Bermuda

We didn’t exactly “learn” this. It was quite obvious but we include it here because the legacy media has chosen to ignore this fact, preferring instead to promote the narrative that Hollis’ inquiry is restricted to the $350,000 campaign donations.

What prompted the decision to launch an inquiry was the story Selling Bermuda, in its entirety, not simply the detail about campaign donations (denied then by Landow). This should have been obvious to the assembled media when at a press conference to discuss the party’s charitable deeds, Hollis first mentioned the internal inquiry.

Here are some excerpts:

“A lot of the things Mr Johnson was telling me I was not aware of. As a result of the story and looking at some of the information that was there, I felt, along with the rest of the executive, we needed to have a full fledged investigations into that internally and that over the next few weeks we would be making our findings known.”

[Asked whether the Premier and other ministers should resign]

“The Premier is the leader of the party. If there is any truth in the allegations, and it is an active investigation, once we have found the facts, looked at the evidence we will then make that determination. As it is right now we have a story that appears to have some validity to it. I don’t believe in rumours or character assassination by rumour. So what I would prefer is to allow us to have that internal investigation into what happened in JetGate – what was intentions and what promises were made. Because as it stands now, I’m not sure and neither are the rest of the executive.”

And he recounted conflicting accounts about DeCosta’s presence at the JetGate meeting.

“I’ve been told by the Premier that he was there because he was taking a break and a seat was available and he went up and he spent a couple of days. Then I heard via talk radio that he attended the meetings to talk about golf. That is what is open to the public. We are investigating that further.”

8. There’s a cold war between Green and DeCosta

As reported to us: “They’re both looking to throw each other under the bus”.

Green and DeCosta both insist privately that everything they did was above board. Yet both appear to be a little anxious about Hollis’ investigation. And both are said to be in possession of information which is probably best described as “sensitive”.

DeCosta has, apparently, compiled a dossier on the “underground” campaign for Hollis’ review which purportedly shows that everything he did was on the up and up. He also offered it to Premier Michael Dunkley on condition he sign a non-disclosure agreement. The Premier declined. It is not clear whether Hollis signed an NDA for his copy of the DeCosta document.

DeCosta and Green have not spoken to each other in several months. Green’s relationship with Cannonier chilled in March last year after the latter was informed that Green had been a consultant for Landow. But there are also indications that Green had raised concerns about DeCosta and Cannonier’s relationship with Landow around the same time.

Update/clarification (July 20, 2014): Green denies a “cold war” between him and DeCosta.

“There is no cold war between myself and Mr DeCosta. Steve DeCosta did an outstanding job during the campaign. I am hoping that he spent the money -of which the vast majority went to his company B and D Consulting – that he spent the money on what he said he would spend the money on, Green said. “I believe that it went to campaign activities as he said it would.” He added that he had enjoyed working with DeCosta.

9. Mouthpiece journalism is never a good look

We already knew that one too. But its worth repeating. See our upcoming Think piece Mouthpiece journalism and the forgetful Nathan Landow.

10. Hollis inquiry will find no unlawful conduct

And not for the reasons the cynics think. Some find it hard to believe that the OBA will be transparent if serious wrongdoing is found. With just a handful of seats separating the two political parties, and some on their side still licking their wounds, the political stakes are way too high for such transparency, the sceptics argue.

Public scepticism will not be assuaged by the fact that this inquiry follows months of deliberate obfuscation by people in the highest echelons of government with no public protest or show of concern from their backbencher colleagues. Why change this institutional behavior now?

But there’s another reason why Hollis will find no unlawful conduct, in our view – if indeed there has been unlawful conduct. He simply does not have the powers to “follow the money”.

If, hypothetically speaking, BPAC money ended up in Craig or Antoinette Cannonier’s bank account, establishing that would not be as simple as looking at BPAC’s bank statements. Any money launderer worth his or her salt would not make such a direct connection to the final recipient. Hypothetically speaking.

Hollis’ examination of the BPAC statements will find numerous withdrawals, indicating cash payments to those who assisted the underground campaign and payments to DeCosta and Green for their work. One never really knows, but our guess is that DeCosta and Green have not opened up their personal bank accounts to Hollis’ scrutiny. (This is not to suggest that there may be reason to scrutinise their bank accounts.)

11. Why Cannonier resigned when he did

Hollis’ inquiry had scarcely begun when Cannonier’s resignation was announced. Why, then, did he resign? It boils down to shrewd political calculations, a sense of betrayal among those closest to him, and a growing sense that his belated explanations just weren’t credible.

Leading the charge against Cannonier were MPs Nandi Davis and Leah Scott. Toni Daniels was the leader among party executives.

OBA executives and MPs came to the rapid conclusion that their Leader’s tenure was unsustainable, and could well have cost the party its hold on power. While some believed their Leader was guilty of nothing but naiveté, others had become convinced that something improper had been afoot.

Concern intensified following the end of the second day of crisis meetings (May 18) when Cannonier stood his ground.  OBA advisers knew that another week without a resolution to the leadership issue would have exposed the party to a parliamentary vote of no confidence or a censure vote against the Premier and a couple of Ministers – something that could easily have led to a General Election, given that Cannonier had lost majority support of the MPs on his side. See OBA: Cannonier must go

12. (Bonus) Green denies pitching Landow and co for campaign funds 

Derrick Green was not amused when Landow dished his scoop to the local media. He saw the reports as an orchestrated ploy by DeCosta to take the heat off himself and Craig Cannonier and turn the spotlight on Green. But Green won’t make a decision on whether to tell his story until Hollis goes public with his findings – a strategy also being employed by DeCosta. So, if Green did not make the pitch, who did?

Stay tuned.

Update/clarification (July 20, 2014): Green has now reported that Maryland lobbyist Gerard Evans pitched Landow for campaign funds.

See

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