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Globalhue Linked to "Possible Criminal Activity" by Ex-Bermuda Auditor

By Jim Edwards

Updated on: June 20, 2009 / 3:51 PM EDT / MoneyWatch

Globalhue's overbilling of the Bermuda Tourism account is a "fact" that represents "possible criminal activity," according to the island's former auditor general, Larry Dennis. Dennis' remarks came after he was accused of being used to politically discredit Bermuda's premier, Ewart Brown, who also doubles as the nation's tourism chief.

Dennis (pictured), who was replaced as auditor general shortly after he published a report describing $1.8 million in overbilling by Globalhue, told the Royal Gazette:

The overbilling of media-buy costs is not a mere allegation it's a fact. We have proved this numerically by analysing media vendor, buyer and agency invoices.
The invoices show that the Bermuda Department of Tourism overpaid for its broadcast media-buys by approximately $1.8 million in fiscal 2007-08."
What action has been taken to determine whether the $1.8 million excess payments were the result of criminal actions in the Civil Service, or merely incompetence?
In a Special Report, the Auditor General, in so many words, described possible criminal activity taking place. Is that all that happens? Who is responsible to initiate an investigation and court action, if appropriate?

Globalhue and Brown have repeatedly defended the agency's handling of the account by accusing their critics of racism. Now GlobalHue's billing methods are being used as a stick to beat Brown. The premier defeated a second no-confidence vote after he drew criticism for allowing four former Guantanamo Bay prisoners to come to the island. Citizens don't like their home -- dependent on tourism -- being linked to terrorism. In the debate prior to the vote, the Bermuda Sun reported:

Dr. Brown was present for the early part of the debate, looking relaxed, except on a couple of occasions when he challenged Mr. [Kim] Swan's criticism of faith-based tourism and the controversy surrounding ad agency GlobalHue.

Globalhue was cited in a prior attempt to end Brown's reign, back in May.