Bermuda’s Government is heading for a Supreme Court showdown this afternoon over a controversial law allowing it to take control of the island’s municipalities.

But it exercised its powers under the law on Monday taking over stewardship of the Corporation of Hamilton which mounted the constitutional challenge, and is expected to argue that the municipality does not wish to proceed.

Senator Michael Fahy, the Minister in charge of the municipalities, in justifying the takeover on Monday said it was clear that the Hamilton City Council “is incapable of conducting its affairs properly with the result that the ongoing administration of, and provision of services by, the Corporation is in serious jeopardy and will continued to deteriorate in the absence of intervention by me.”

Senator Fahy listed what he said were his “grave” concerns, at a press conference on Monday.

At the top of the list was what he said was an insistence by a “few members” of the Council to bring legal action against the Government “despite there being a lack of unanimity and the Mayor’s consequent instructions not to proceed.”

He added: “The un-authorized actions of these few members of the Council make absolutely no sense and they have resulted in a misuse of the taxpayer’s funds – the very same funds the Government and the Council are expected to manage efficiently.”

But the Minister’s takeover has fuelled suspicions among council members that there has been a concerted effort to derail the legal proceedings.

Our enquiries have found that seven of the nine council members are in support of continuing the action against government. Only two – Mayor Outerbridge and Common Councillor Larry Scott are opposed.

Last week a group of council members claimed that Mayor Graeme Outerbridge had unilaterally asked the City’s lawyers J2 Chambers to stop their legal challenge – despite there being a resolution to proceed.

Following a confrontation with the Mayor in his office, he suspended City Council meetings for six weeks arguing that the code of conduct had been breached.

Politica can now confirm that the council did pass a resolution on October 2013 engaging J2 Law Chambers to challenge the constitutionality of amendments to the Municipalities Act. According to the minutes of the meeting shared with us by someone with close ties to the Corporation, the resolution was proposed by Councillor Keith Davis, seconded by Mayor Outerbridge and unanimously approved by the five members present.

We understand that the case seeks to determine whether the government can pass a law to deprive the Corporation of power over the use and control and ownership of their land.

It also wants the court to determine whether or not the government actually succeeded in March this year to invalidate a controversial agreement to redevelop Hamilton’s waterfront, and it challenges the constitutionality of the law’s stewardship provision.

Government first took over stewardship of the Corporation in December 2013. The City went to court then and argued that the stewardship was unlawful but Minister Fahy lifted the stewardship before the case proceeded and it was argued that the action was no longer necessary.

It is unclear how today’s case could proceed with the Corporation under the Minister’s stewardship. The Minister would not answer our questions about the matter on Monday.

And he ignored a list of emailed questions submitted later that day – including whether he now has the power to rescind Corporation resolutions, or whether he agreed that the Mayor could rescind City Council instructions to their lawyer.

The Minister also referred to infighting among the members of the City Council to justify the takeover, saying governance was in “complete disarray with relations between the Council itself, as well as certain members of the Council and the Mayor, deteriorating to the point of them making open threats and allegations of racism and maladministration as well as engaging in acts of intimidation.”

This article belongs to Politica ! The original article can be found here: Government faces Supreme Court action over municipalities takeover powers

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