In February, Works and Engineering Minister Derrick Burgess and Premier Ewart Brown called a press conference to announce the "deeply disturbing discovery" that someone had falsified cheques to make it appear that both politicians had received kick backs.

Dr. Brown said the a copy of a cheque for $14,780 made out to 'Dr. E. Brown' was found in Works and Engineering files along with a $10,000 cheque made out to 'D. Burgess', both of which proved to be fakes.

The Premier said the cheques were part of a smear attempt.

They were first discovered by Permanent Secretary Robert Horton and purported to be completed cheque transactions sent by the Bank of Bermuda to Landmark — the company hired to build the new Police/court building — and subsequently submitted by Landmark Lisgar Construction Ltd. to the Ministry.

Mr. Burgess said: "As part of our investigation, however, we had asked Landmark Lisgar Construction Ltd. now LLC Bermuda, to produce the entirety of their actual bank records.

"It took very little time to discover that the two cheques to which I have just referred never existed."

Mr. Burgess claimed the copies contained in the Ministry's records were fabrications of the true originals which themselves were:

¦ Another Landmark Lisgar Construction Ltd. cheque bearing the same number 0123 in the same amount of $14,780, but this time in favour of Scorpio Construction Ltd, and

¦ Another Landmark Lisgar Construction Ltd. cheque bearing the same number 0170 in the amount of $10,000, but this time in favour of Chester Management.

Mr. Burgess added: "We have confirmed that the versions of the cheques which are in LLC Bermuda Ltd.'s possession are identical to those held by the Bank of Bermuda."

He said the funds arising from these cheques were never deposited into the account of any Cabinet Minister. "These funds reached their intended destination," he added.

Mr. Burgess said Landmark had confirmed that the only version of its bank records that it would supply are the original records supplied by the bank and still in their possession.

And he said Landmark insisted that no cheque has been issued, and no payment had been made, by them or to any Cabinet Minister at any time.

Mr. Burgess said Landmark/Lisgar had been required to produce invoices, cheques and any other documents to support a payment request and he had discovered in Government files copies of the cheques.

He added: "I have spoken to senior personnel at HSBC/Bank of Bermuda Ltd. upon which bank the cheques were drawn, and they have confirmed that the actual cheques which they received are as follows: cheque number 123, which was made out to $14,780, was not in fact made payable to a Dr. E. Brown, in fact it was made payable to Scorpio Construction.

"Similarly, cheque number 170 was not payable to a D. Burgess, instead it was payable to Chester Management."

In a press release the Premier added: "We cannot prejudge. But I have to say that it is at least possible that these fabrications emanate from within the Ministry itself and that one or more civil servants may be found to bear some complicity in their manufacture."

Lawrence Brady — Government's Chief Architect — was arrested in connection with the probe, but he has never been charged and is no longer a subject of the investigation.