spoken publicly for the first time since the Bermuda branch stopped operating last week.

Mr. James DeCouto, who has managed United Security's local branch since 1987, has defended his role in a company which collected premiums from 2,000 local policyholders for five years while it was insolvent.

His full statement, issued through United Security's local lawyer, Mr. Mark Diel, read: "During the last week, many matters have been raised in the media and elsewhere and allegations made that are, at best, inaccurate and, at worst, wrong to the extent of being libellous.

"I took over the day to day administration of the Bermuda branch in late 1987.

"I wish it to be clear that I am an employee of the company and I am not and never have been a director of the company.

"As such, I have at all times taken my instructions from the Head Office in Trinidad subject to any restrictions placed upon the Bermuda branch by the Registrar of Companies. Those restrictions or directions were always complied with.

"I wish it to be known that, at no time since 1987, have any funds been taken from the jurisdiction of Bermuda with the sole exception of funds to pay for an in-house actuary to establish in part the liability of the Bermuda portfolio.

"I obviously am saddened by the position that the company is presently in. I have been with the company for over 20 years and do have great sympathy for the policyholders.'' Mr. DeCouto told The Royal Gazette yesterday that he may be prepared to enlighten the public more on what really happened with United Security but not until Bermuda's Supreme Court hears a petition to wind up the firm on August 28.

Mr. DeCouto added: "I don't want to say anything before the hearing. I'm trying hard to protect my own integrity. It means more to me than anything.'' Mr. DeCouto has been criticised by local policyholders for allowing United Security to continue taking their money even though it has been insolvent since 1987.

As of last December, the Trinidad-based firm's debts stood at $16.6 million.

Mrs. Verbena Daniels, who was Registrar of Companies at the time United Security became insolvent, has refused to explain why her department did not stop the firm collecting premiums in Bermuda or prevent them from issuing new policies until February of this year.

Finance Minister the Hon. David Saul said the company was allowed to continue to operate while efforts were made to put together a rescue package for the local business.

Mrs. Daniels, now an insurance consultant with law firm Appleby, Spurling and Kempe, which does legal work for the Registrar of Companies, cited the Official Secrets Act as the reason for her silence.

Some insurance businessmen believe Bermuda's current Registrar of Companies, Mr. Malcolm Butterfield, who took over the post in December, 1990, is unfairly taking the flak for Mrs. Daniels over the fiasco. Mr. Butterfield has also refused to comment on the affair.

Meanwhile, United Security's provisional liquidator, Mr. Gil Tucker, has been compiling a list of local insurance representatives whom United Security's policyholders -- who are no longer insured -- can contact to take out new insurance.

"These insurance companies are not trying to take over existing policies nor are we trying to push one insurance company over another,'' said Mr. Tucker.

"But we think this is a sensible measure under the circumstances.''