Bermuda admitted taking the money to pay bills, a court heard yesterday.

Detective Constable David Geraghty said Heather Fox gave a full confession under caution after being arrested last January. However, Fox, 29, has since denied the charge of larceny.

The court has previously heard allegations that the assistant supervisor at the Church Street branch had, as usual, taken a bundle of merchants' cheques and cash and calculated their totals before putting them in the secured vault overnight.

The next morning, when her supervisor carried out a random check on Fox's deposits from the night before, she found the box was down $5,209.98 on what the cash slip dictated there should be.

Fox had written the cash slip herself the night before. After discussions with managers, the Police were called in.

Fox was later found to have $1,000 in cash on her when she was arrested.

During his evidence in Magistrates Court yesterday, Det. Con. Geraghty said he asked Fox if she wanted a lawyer present during interview, and she said "no''.

Det. Con. Geraghty said during the interview he asked Fox, 29, to explain what had happened to the cash. The officer said: "She said `I took it out in cash'.'' He told the court he then asked the accused a number of questions about the missing money, in which she told him she had taken it in two lump sums of $2,500 on January 10, in 100 dollar bills.

The officer testified Fox had said in her statement: "I paid the bills.

Electric, light, telephone, groceries, and the other bit you have is for rent (the $1,000).'' The officer said Fox had accounted for $5,000, but did not know where the other $209.98 had gone.

Fox told Police that sometimes errors were made in counting cash, and that was probably where it could be accounted for.

Defending Fox, lawyer Richard Horseman cross examined the detective and asked if the accused had earlier denied taking the money.

The witness answered: "I do not have a written record of that conversation, but I do believe that she denied it, yes.'' And Mr. Horseman asked why Fox was allowed a member of her family with her throughout the interview, and at what point the detective had realised Ms.

Brangman was a special constable.

Det. Cons. Geraghty said: "I learned Miss Brangman was a reserve Police woman once she had spoken to Miss Fox. I did not know Laverne Brangman prior to this.'' The detective said Fox had told him that she wanted to speak to her sister, so he allowed them access.

He went on: "As a male officer, especially as a male Police officer of reasonable physical stature, it's always a concern of mine when dealing with female prisoners the fact that my presence alone could be construed as intimidating.

"I was always at pains to ensure that at no time was I alone with Miss Fox.

It's for this reason that I permitted Miss Fox 's sister to be present during the interview.'' The detective said Fox had inquired as to whether or not she would be given bail and allowed home that night.

He said it was usual for suspects to ask that.