Revelations that the Police/Court builders paid a donation to the Progressive Labour Party represent a new, sleazy low in Bermuda governance said Opposition leader Kim Swan.

Auditor General Larry Dennis revealed Landmark Lisgar donated $1,000 to the Progressive Labour Party and then claimed the money back from Government.

However Government said the reimbursement claim was spotted and not paid.

Landmark Lisgar had not been the choice of technical officers.

And the $78 million project in Hamilton has been mired in controversy over delays which saw Government hiring a $400,000 project supervisor to get it back on track.

Calls to LLC Bermuda, were not returned yesterday while Premier Ewart Brown said: "Check with the party chairman we receive many cheques."

Asked if the cheque should be returned if the PLP had it, Dr. Brown's press secretary intervened to say the Premier should not answer hypothetical questions.

Mr. Burt said: "During my tenure as Chairman, the PLP has received thousands of cheques from people and companies who appreciate thoughtful and progressive leadership in Bermuda.

"We fully believe that all people have a right to express themselves politically, including attending PLP events and fund-raisers, and we would not want to strip that right away from anyone.

"A review of our records indicates that Landmark Lisgar Construction Company purchased two tickets to the Premier's Gala Fundraiser featuring Nancy Wilson in June, 2008.

"I hope that my friends at The Royal Gazette were as disturbed as I was to hear MP Wayne Furbert report that the United Bermuda Party receives not just one thousand dollar cheques, but, cheques for hundreds of thousands of dollars. I look forward to reading that explosive Royal Gazette expose."

Yesterday United Bermuda Party leader Mr. Swan said the Auditor General's Special Report on the Police/Court Building revealed a project compromised from its inception by politics, bad decisions, incompetent oversight and lax regard for the value of taxpayer dollars.

In response, the Government had tried to demonise the Auditor and deceive the public with words that have not refuted his findings in any way, said Mr. Swan.

"The revelation this week that the building contractor made a 'charitable donation' to the PLP a donation later reimbursed by the government represents a new, sleazy low in the governance of Bermuda.

"A senior civil servant now says the reimbursement was not made, but the Auditor said 'our audit work confirmed' it was paid by the Government."

There are many such differences between the Auditor's findings and Government's response, said Mr. Swan who hopes the Public Accounts Committee, a bipartisan committee of MPs, can winkle out the truth.

"This will be a test of our powers of good governance as it will be an examination of government conduct in the management of this $70 million-plus contract," said Mr. Swan.

If the committee's work is stymied the UBP will push for the establishment of a formal Commission of Inquiry. "In the meantime, we renew our call for the Finance Minister to say something anything about this controversy," said Mr. Swan.

"She is the minister responsible for the management of the public purse. Her silence on this matter has been deafening.

"Specifically, we would like her to comment on the report that Government reimbursed the contractor for his donation to the PLP. Does she support tax dollars ending up in PLP coffers?"

Mr. Swan said the stakes in this controversy are serious.

"How Government deals with it can affect Bermuda's international reputation for sound, responsible Government and its credit ratings. Make no mistake this controversy is in the spotlight.

"Moody's this week put Bermuda on watch for a possible downgrade, while analysts from another ratings agency were on the island conducting their own island review."

Last month Government held an extraordinary press conference attended by the Cabinet and top brass from the Civil Service in which Premier Dr. Ewart Brown claimed copies of cheques from the same builders to him and Works and Engineering Minister Derrick Burgess were fabrications aimed at bringing the Government down.