A Bermuda-based insurer was targeted by immigration chiefs after a whistle-blowing call to a special hotline.

And last week Overseas Partners Ltd was visited by immigration officials in a row over allegations of an employee working without a work permit.

The Royal Gazette understands that an employee from an accountancy firm was working on a secondment basis with the firm, based in Hamilton's Par-La-Ville Road.

And, according to legal sources, the employee was set to quit her original job and move to OPL on a permanent basis.

It is believed the immigration department has launched a probe into claims that the accountancy firm employee was breaking the conditions of her work permit -- which tied her to her employer exclusively.

Labour and Home Affairs Permanent Secretary John Drinkwater said that it was department policy not to comment on individual cases and declined to discuss the claims.

He added: "At any time there are a number of investigations being carried out by investigators from the immigration department.

"But it would be totally inappropriate for us to comment on any particular investigation into a particular firm.'' The Royal Gazette understands, however, that immigration officials acted as a result of a tip-off to the immigration hotline, set up so people can register complaints on matters like alleged work permit violations.

No-one from Overseas Partners Ltd could be contacted for comment yesterday.

But the firm hit the headlines only last week after an insurance rating agency suspended its A-plus (superior) rating in the wake of a tax scandal involving its former big brother company, US giants United Parcel Service.

A US tax court ruling two weeks ago ordered UPS to pay taxes, penalties and interest to the American Internal Revenue Service related to its use of OPL to claim a 1984 tax deduction.

For that year alone, IRS bill estimates are estimated by some experts to be as high as $300 million -- and the US taxmen are thought to be preparing claims for subsequent years.

OPL involved in permit dispute UPS continues to deny any wrongdoing, despite a judge's description of a "sham transaction'' to reduce its tax liability.

OPL -- shares in which are owned by UPS employees -- was not a party to the US case and is not directly affected by the court's decision.

International rating agency Best Co. suspended OPL's rating because UPS many change its arrangement for insuring and reinsuring shippers' risk, cutting off a source of premiums and underwriting profits for OPL.

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