with rumours persisting that this year's event has been cancelled.

And further fuel was added to the fire yesterday when two board members would neither confirm or deny that BIFF had run into trouble.

The first annual festival was held in 1996 and grew last year to such an extent that it was touted as having the potential to generate $10 million to $20 million for the local community in future years.

Some even ventured that if it continued to enjoy the success of its first two years it could become one of Bermuda's biggest attractions for overseas visitors.

But yesterday all that promise fizzled -- and some sources insisted it was permanently stalled.

When contacted by The Royal Gazette , board member Dr. Stanley Ratteray said: "An excess of comment would not be desirable.'' BIFF board of directors chairman Stan Chetkowski was also keeping his cards close to his chest last night despite broadcast reports blaming his "autocratic style'' of leadership for the event's collapse.

He said after a trip abroad over the holidays, he flew back into Bermuda on Tuesday straight into the storm of confusion over BIFF's future.

He had been informed of the rumours circulating but would not comment on them until after the board of directors met to "discuss all the options together'' over the coming weeks.

Mr. Chetkowski dismissed claims that his leadership was "autocratic''.

The cloud over the 1999 version of the film festival began in October when the entire management board suddenly resigned.

They stepped down in protest over BIFF trustees' refusal to hire a full-time administrator for the trouble-plagued event.

Mid-Ocean News Editor Tim Hodgson was recruited as director and Joe Gibbons was appointed as the new fundraiser.

But less than two months later in December, Mr. Hodgson and Mr. Gibbons stepped down, citing work pressures.