Although, as an MP, Mr. Allen was legally entitled to join the Government Employee scheme at any time, Mr. Dennis said the apparent pre-dating of the form suggested the entry at a time when the applicant was already seriously ill was a situation people "felt uncomfortable with".

Now Mr. Dennis has recommended consideration of a change in the law to avoid a similar case happening in the future.

The report stated that Mr. Allen's application, signed and dated February 1, 2002, was made while he was at Boston's Lahey Clinic in September 2002, when he was undergoing treatment for stomach cancer.

He returned to Bermuda and died of the disease later that same month.

Finance Minister Eugene Cox, whose department oversees the GEHI scheme, also received mention in Mr. Dennis' report, which stressed that the Minister should have had "no role to play" in deciding who should be admitted to the scheme.

It is understood that Mr. Cox wrote to GEHI committee chairman Dr. Bert McPhee requesting that Mr. Allen be enrolled into the scheme ? a move which reportedly caused resignation threats from some members of the committee.

The Ministry of Finance sent a statment to the yesterday, when we asked for a response to the Auditor's findings.

"The Auditor General's Report is now in the domain of the House of Assembly," the statement read. "The process is for the Public Accounts Committee to consider the Report and to issue its own report to the House.

"At that time, the Minister of Finance will address any points of substance including comment on Government's view of the various recommendations in the Auditor General's Report. As to the facts surrounding the enrolment of the late Minister Allen in the insurance scheme, we repeat that nothing improper occurred."

The Auditor's recommendation for a change in the law received backing from Opposition Leader and Shadow Finance Minister Dr. Grant Gibbons, who said there was no reason why Parliamentarians should get special dispensation on health insurance.

Dr. Gibbons added that Mr. Cox appeared to have used "undue influence" to try to get Mr. Allen GEHI cover.

GEHI covers all Government employees, but only members of the Legislature are allowed to enrol at any time. The time limit was removed by an amendment that became operative on March 1, 2000.

The Auditor's report, submitted to Parliament last Friday, will be debated in the House of Assembly today.

On page 84 of his report, Mr. Dennis wrote: "During our audits of the accounts of the GEHI Fund, we took note of the circumstances surrounding the late Minister of Tourism in GEHI and the impact this could have on the fund . . .

"In accordance with a GEHI enrolment form, signed and dated February 1, 2002, the Minister of Tourism applied for enrolment in GEHI while he was at the Lahey Clinic in September 2002.

"Since the law allows members of the Legislature to enrol at any time, whether the Minister of Tourism enrolled in February or September would have no consequence.

"The significance of the two dates is that they give some indication of the rather extraordinary efforts taken by many persons involved with this matter to come to grips with a situation they felt uncomfortable with."

When we called him, Mr. Dennis declined to add any comments to those he made in the report.

Dr. Gibbons said the report raised some serious issues.

"I think the sense most people have is that Mr. Allen or others rushed to try and get him into the scheme after he was clearly diagnosed with what turned out to be a terminal illness, when it was clear that he was going to have serious medical bills to deal with," Dr. Gibbons said. "That's what it looks like.

"This is not something that would be common practice in the private sector. There is no reason why Parliamentarians should get special dispensation on this.

"Members of the civil service may also be affected by higher premiums because of Mr. Allen's medical bills."

Mr. Dennis' report went on to say that there was a real possibility that the Mr. Allen scenario could be repeated.

"It has been said that the case of the late Minister of Tourism is a one-off situation; it is not likely to occur again. I disagree," stated the report.

"Of the 51 legislators with the right to join GEHI at any time, only 15 have done so. The March 1, 2000 amendment applies to members of the Legislature as if they were Government employees, except that Government employees must join GEHI when they become eligible to do so, whereas it is voluntary for members of the Legislature.

"If it is deemed appropriate to retain the voluntary provision for members of the Legislature, a time limit on the exercise of this choice could eliminate possible unpleasant realities when the letter of the law is applied."

The situation now is that any of the 36 MPs and Senators without GEHI cover could sign up for it when they are about to undergo major medical treatment.

The Auditor recommends that an amendment be considered to the Government Employees (Health Insurance) Act 1986, so that if MPs, Senators and their non-employed spouses and dependents entitled to join GEHI "are not voluntarily enrolled within a definitive number of days of their becoming eligible to do so, pre-existing conditions shall not be covered if they do choose to enroll at a later date".

In a further recommendation, Mr. Dennis suggests: "To ensure that all legislators have the insurance coverage they desire, the Accountant General should obtain written confirmation from the 36 members of the Legislature who are not enrolled in the GEHI that this situation is in accordance with their wishes."

The Auditor also touched on Mr. Cox's contact with GEHI management committee chairman Dr. McPhee on the subject of Mr. Allen's enrolment.

"In hindsight it was noted that the Minister of Finance, the chairman of the GEHI or the GEHI management committee have no role to play in the registration of applicants into the GEHI," Mr. Dennis wrote.

Their role in law was to receive, investigate, adjudicate and authorise claims and not determine enrolment, the Auditor added.

When contacted yesterday, Dr. McPhee said: "This is something that happened according to what the Act was and I have no further comment on the matter."

Dr. Gibbons said: "While it has not been reported in full in the Auditor's report, there seem to be allegations that people were actively trying to get Mr. Allen on the scheme who shouldn't have been. That seems like undue influence."