to give controversial convention promoter Bonnie Marshall a cash loan.

The Royal Gazette understands that the Bermuda Industrial Union decided to hand over the cash in a bid to help Ms Marshall organise the World Conference of Mayors. It was agreed that Ms Marshall would pay back the money once she had secured an outstanding $65,000 from the Department of Tourism, which is co-sponsoring the event.

But the department has now severed links with Ms Marshall following a long standing feud over marketing plans. And yesterday it emerged that the American promoter's credentials as an events organiser have been repeatedly questioned in the past.

Ms Marshall has had writs filed against her in the US. And one Kansas attorney told The Royal Gazette : "We would be extra cautious in getting into any business dealings with her or giving her any money. She does her thing and when people start asking questions or pursuing answers or even more formal proceedings she has a way of ducking out of them. There's a whole variety of things in her background that just don't add up.'' Last night BIU leaders were keeping a tight lid on their relationship with Ms Marshall.

BIU President Derrick Burgess has continually refused to confirm or deny that the union had provided Ms Marshall with a loan.

But earlier this year Ms Marshall herself, referring to difficulties she had faced on the Island, conceded that things changed once the BIU became involved. Last night Mr. Burgess went straight onto the offensive when questioned about the matter again by a Royal Gazette reporter, claiming that this newspaper was out to smear the union.

"You are trying to make blacks look incompetent -- that's the history of your paper,'' Mr. Burgess said.

"It's union business, it's nothing to do with you. Don't keep asking me questions about it -- I object to you even asking me. I am not a child, I may be black but I'm not a child.

"You are always having a go at the union, trying to make us incompetent. You did it with the Co-op and you're trying to do it again now.'' Although Mr. Burgess seemed reluctant to associate himself with Ms Marshall following yesterday's revelations, he had sat alongside Ms Marshall at a press conference on Tuesday in which she blasted the Secretary General for "deception and bad faith''. The conference was held at the BIU headquarters and was also attended by BIU deputy president Chris Furbert.

Earlier this month he made a plea to Ms Marshall and the Government to patch up their differences and come to an agreement.

"I want to see this thing a success in the interests of Bermuda,'' Mr.

Burgess said.

"If there are differences between the Government and whoever, I really want to see it sorted out quickly and amicably.'' But The Royal Gazette understands that union bosses' main fear is that, if an agreement is not reached between the Department of Tourism and Ms Marshall, the BIU may not see a return on its generous loan.