Union leader and PLP MP Derrick Burgess is under pressure to come clean about the BIU's dealings with discredited promoter Bonnie Marshall.

Last week The Royal Gazette revealed that the Bermuda Industrial Union president agreed to hand over a $40,000 loan to Ms Marshall's company, which has been hired to set up this year's World Conference of Mayors convention, being held on the Island in November.

Ms Marshall's reputation has since been called into question after it was revealed that she has been sued in the US before. And one US lawyer is also considering taking further legal action against her.

The BIU leadership is now thought to be concerned that the loan might not be repaid.

Mr. Burgess has repeatedly refused to either confirm or deny that the union has made the donation.

And last night a former union shop steward called for Mr. Burgess to at least let BIU members know what he had done with their cash.

BIU member Raymond Russell, who works at the Sonesta Beach Hotel, told The Royal Gazette : "Nobody in the union has been told about this.

"If the leadership have made this donation then they should have at least consulted with the membership first. If they are going to give out that sort of money then the members should know about it. You can't go and make a major decision like that without discussing it first. Why didn't he go to the people for such a major contribution? "That's the problem with Bermuda. There are times when the Government and the Union join up against the workers -- you will see union officials covering up for something that they've done.

"Mr. Burgess made a bad statement in the newspaper. He should come clean. All he had to say was they he had made the loan in good faith and that he is sorry that it didn't work out.

"But he can't blame anyone else. The BIU loaned the money which, to me, just doesn't make any sense in the first place. It was never going to be of any benefit the union.

"I don't think he should resign but he should come clean and say `Look, I have made an error'. He's trying to safeguard himself.'' The BIU became involved in talks with Ms Marshall after the Government's Department of Tourism refused to hand over $65,000 worth of sponsorship cash to her company.

In contrast with the BIU's apparent willingness to make a donation, Department of Tourism chiefs have repeatedly stressed that they would not pay Ms Marshall's firm until they had seen concrete evidence that the conference was going to be marketed effectively.

Yesterday Mr. Burgess declined to comment on the matter.