to stay and work in Bermuda, it emerged last night.

David Keough, who was chief financial and administrative officer with Bermuda-based Texaco subsidiary Heddington Insurance, was dismissed on Wednesday.

The sacking followed an investigation into tapes recording some senior Texaco executives uttering racial slurs and discussing destroying documents needed for a lawsuit against the company.

Mr. Keough was not heard saying any racist comments.

Last night President and CEO of Heddington, Jennifer Cartmell, said Mr.

Keough, who was suspended last November, had not been expected to come back to the company.

"We had been making plans to survive without his position and we do not intend to replace that post. The duties have been absorbed by other people,'' said Miss Cartmell.

It is thought that Mr. Keough was on a three-year work permit secured by Heddington where he started work in September 1995.

Because it was specific to one company and one job it is thought that it cannot be transferred and therefore is unusable.

Chief Immigration Officer Dr. Martin Brewer said: "If there was an application we would judge it on its merits.

"The Minister has to take many things into account including a person's character and conduct.''