claims that BTC ignored advice from original consultants and cut 14 white-collar jobs.

But he said he would delay commissioning a special investigation so a Board of Inquiry could investigate the allegations revealed in today's Royal Gazette .

Mr. Edness said the Board, which will also examine BTC's labour relations policy, would be chaired by Dr. Dan Kruger, a world-renowned industrial expert based at Michigan State University.

The two other Board members will be Senate President Alf Oughton, former CEO of Belco, and Ken Richardson, ex-Cabinet Secretary and former Permanent Secretary in the Labour Ministry.

Mr. Edness added: "I'm absolutely appalled by these latest claims about the BTC reorganisation.

"I'm particularly shocked that there's a claim from Dartmouth Research & Consulting that there were not supposed to be any redundancies but an upgrading and retraining of the staff.

"If that's the case, then a major injustice has been done to those 14 managers who were made redundant.

"It's difficult at this stage to know who's right and who's wrong and it certainly seems as though there's a difference of opinion between Dartmouth and a person who left the company to continue the project.

"This is the first time I've heard the claim that there were not supposed to be redundancies but there's an inquiry already about to take place and I believe the company itself deserves the opportunity to respond in that forum before I commission a separate investigation.'' He said the Board of Inquiry, which will also incorporate arbitration to settle last month's unofficial strike at BTC, should be ready to sit down with union leaders and telephone company executives early next month.

"There's a good team in place for this inquiry,'' said Mr. Edness. "They have now been named and notified and once we get written confirmation from both sides we will be ready to proceed.

"I would also like the Board of Inquiry to consider the latest allegations.

The Bermuda Telephone Company has explained that consultants don't always agree and that's fair comment.

"Does that deserve a Government investigation? At the moment, I think not.

"I know this doesn't bring any consolation to the people made redundant. I know how they feel because I met with them.

"And I would hate to think that anything unfair happened and they were made redundant when they should not have been.

"Let's just wait and see what the Inquiry Board brings up.'' The ex-managers who lost their jobs are already considering court action against the Bermuda Telephone Company and former manager David Bell is suing for more than $100,000.

The management-to-staff ratio at the firm is now 1:4, instead of 1:3.

Last month's four-day walkout, which came after The Royal Gazette revealed an increase in customer complaints and low staff morale, was organised when BTC bosses suspended a worker for two days for leaving her post.