December 2007 information revealed:
Shortly after work on Dr. Brown's house was completed, a BCC review showed
they are still owed $422,470 for work there (this number includes "an
estimated $60,000 for any future work")
BCC owes creditors 424, 447.64
BHC makes final payment of $229,000 to BCC for Southside project
Dr. Brown pays BCC $50,000
has an overdraft of more than $200,000, and owes creditors about $200,000
BHC pays $200,000 to BCC
BHC pays $200,000 to BCC
Roughly the same
time: Another construction company pays $22,000 to BCC
November-December 2003: BCC uses a lot of the balance in its account to pay a
number of its creditors (although many get only partial payment), leaving
$2,409.45 in the account
2003: A deposit of $50,000 to BCC's account (source unknown); the $50,000 is
withdrawn the same say (beneficiary unknown)
March 25, 2004:
Dr. Brown pays BCC $100,000; BCC pays Island Construction Services $102,000
April, 2004: BCC is de-listed
while sub-contractors go unpaid
WHEN BCC compiled an overview of its financial position in December 2001,
it drew up a list of sub-contractors and vendors it had employed to help build
Dr. Brown's palatial home who had not been paid for their services.
The list consisted of 29 companies, including electricians, building supply
firms and couriers. Also on the list was Island Construction, owned and
operated by Zane DeSilva who, as a 25 per cent shareholder in BCC and company
manager, was able to sub-contract his own firm to work under the BCC.
According to BCC calculations, the creditors were owed a total of $424, 447.64
– cash that BCC did not have unless it could call in the $422,000 it claimed
it was still owed by Dr. Brown. However, the Premier was adamant he had been
overcharged and refused to make any further payments to cover the cost of
Nevertheless, after a two-year wait, creditors were able to get some of their
money back – but only after the BHC had paid $400,000 into BCC's coffers in
And even then, the sub-contractors only received part-payment. Copies of BCC
cheques written out by Mr. DeSilva to a batch of companies on the creditors
list show they were paid less than what they had originally been owed. The
cheques were also marked 'Full and Final Settlement of Account', meaning that
they had no recourse should they change their minds and try to recoup more of
One sub-contracter told the Mid-Ocean News: "I went from Dr. Brown's to
Southside to work on the 20 units there and by the end of those jobs, I hadn't
"There were problems with the company, there were complaints and delays – so
much so, that Arthur Pitcher didn't finish the job."
The man said he was advised by Mr. DeSilva that he would be recompensed once
the work at Southside was finished but that never happened and then the
Bermuda Housing Corporation scandal broke.
"The company was breaking up, there were problems with money and he called me
and told me, 'I know you're owed in excess of $50,000. Here's $20,000 take it
or leave it'. After I heard about all the crap that was going on I figured if
I didn't take it I'd get nothing. I wrote it off."
Asked why he didn't take Mr. DeSilva to court for non-payment, the man said:
"I've been that route. You end up spending more money than you're owed. I
decided to cut my losses and move on not knowing that four or five years down
the road all of this would come about. With all the finagling going on, I
decided to just write it off. I have no axe to grind but the bottom line is
Mr. DeSilva's own company was also subject to the same harsh financial
reality. The 2001 list of creditors shows that Island Construction Services
was owed $90,985 by BCC, yet in the end, the construction boss had to settle
for just $35,182.34, paid to him on November 10, 2003.
Bank records show that, once all the creditors had been paid off at the end of
the year, BCC's account stood at $2,409.45 in credit.
There were just a handful of further transactions on the account in the
following weeks. On December 22, 2003, a deposit of $50,000 was paid to BCC.
On the same day, $50,000 was paid out, although documents given to the
Mid-Ocean News do not show who made the deposit or the withdrawal.
But a similar double transaction took place three months later. On March 25,
with the account balance still standing at $2,409.45 a deposit of $100,000 was
made into the BCC account.
The deposit was paid in by Dr Brown, despite insisting for the previous two
years that he was not prepared to make any further payments to the firm – and
despite the fact that BCC no longer had any debts to pay off.
On the same day, BCC wrote out a cheque for $102,000, effectively clearing the
The cheque, written by BCC company manager Mr. DeSilva, was made payable to
Island Construction Services.
BCC was delisted a month later.