Controversial Government backbencher Arthur Pitcher has denied allegations that nepotism exists in the handing over of new affordable housing on Southside - despite admitting that his own stepdaughter is one of the first tenants.

The illusive MP, who rarely talks to the media, spoke to The Royal Gazette to deny claims by the Opposition United Bermuda Party that the friends and family of those involved in the housing development were being given preferential treatment.

Mr. Pitcher is one of four directors of the general contracting firm, Bermuda Composit Construction Company, awarded the $4 million development.

He admitted that it was running behind schedule, but said he had given a commitment on Friday to the Bermuda Housing Corporation (BHC), which is behind the project, that the remaining units would be completed by the end of August, with tenants moving in in early September.

So far, only eight families have been able to move in to the 17 units.

Mr. Pitcher said: "I have had no say, and I don't think any MP has had any say, as to who goes into the units.

"She (my step-daughter) did it all on her own. I never saw the queue or waiting list.

"This is hearsay. Let the person come out with facts. Let the person come out with evidence if they think there is nepotism.

"Let me say this, as reported in the paper by my colleague (fellow St. George's South MP) and brother-in-law Rev. (Wilbur) Lowe, we have been of the opinion that the people of St. David's should be given priority on the Southside housing.

"My step-daughter, Tarica Dillas, has lived with me in St. David's from the age of five. She did it on her own. It had nothing to do with me."

Mr. Pitcher spoke out after Opposition Health and Housing Minister Michael Dunkley last week said in Parliament that it was time Government came clean on the whole Southside housing affair.

Mr. Dunkley claimed in the House that rumours had surfaced that the families housed in the new development were not even on the waiting list, a claim which Government backbencher Rev. Wilbur Lowe denied.

The Rev. Lowe admitted he was the brother-in-law of Mr. Pitcher, but denied there had been favouritism in finding tenants. He told the House that priority was being given to St. David's residents.

And Health Minister Nelson Bascome said it was the BHC who chose tenants.

Mr. Pitcher conceded there had been a delay to the project, but blamed a major theft on the site back in January, when between $40,000 and $60,000 worth of doors, plumbing, paint and electrical equipment was stolen.

He said the matter was still under Police investigation and, as yet, the insurance company had not paid out, leaving cash flow problems for the firm.

And Mr. Pitcher said the cash-flow problem had led to a "stand off" between his company and the BHC in the interim.

He said: "However, we are addressing it. We had a meeting this morning (Friday) and I think things will come to a close in the future.

"As a company, we are going to try to finish the development. The remaining units will be finished, hopefully, at the end of August.

"The meeting today was basically to get a commitment from us as to when it will be finished. We have committed to the end of August. The units are structurally finished. The major thing is the asphalt."

But Mr. Pitcher said the changes in management at BHC, brought about by claims of corruption and the suspensions of general manager Raymonde Dill and Finance Manager Robert Clifford, had also caused delays.

Mr. Pitcher said the contracting firm had also suffered some staffing difficulties on the site, as some workers had found it hard to adjust to the new prefab-style building technique used on the site, which aims to reduce dampness.

Mr. Dunkley last night said he found it difficult to believe anything he heard about the Southside project, particularly after the Rev. Lowe had denied any family connections, only for Mr. Pitcher to then confirm that his step-daughter had, in fact, moved in.

He said: "Rev, Lowe misled the House by stating that no family or friends had been put in those places.

"Perhaps, most importantly, from day one, it has been a total miscarriage of public money and in dealing with the problem of affordable housing.

"I have had calls from people on the waiting list who are still waiting. They are aware that a family member has moved in there.

"If she was on the list, I can accept that and move on from there. But for Rev. Lowe to deny it?

"I smell a rat over the whole thing and this most curious thing about the theft of the equipment. When anything is stolen it is reported, yet we never heard anything about this until six months after.

"And if the construction company is saying there has been cash flow problems, then is the project over budget? I'm calling for the Minister to look into this project."

Neither Mr. Bascome or Rev. Lowe were available for comment last night.