Allegations of corruption at Bermuda Housing Corporation (BHC) are being investigated and handled discreetly, Health and Family Services Minister Nelson Bascome said yesterday.

Mr. Bascome delivered a Ministerial Statement to Parliament in response to allegations made by the Opposition on Monday that some BHC staff may be double-billing and taking bribes and kickbacks.

The Minister said rumours and allegations about BHC predated the existing administration and he chastised UBP Shadow Health Minister Michael Dunkley's actions on Monday when the charges were raised during the Budget debate.

"As regards this allegation of corruption, the PLP Government inherited an organisation that was plagued with rumour, hearsay and innuendo in relation to improprieties on the part of the staff and certain members of the construction industry," Mr. Bascome said.

"Under the new management of two years ago, one of the challenges has been to root out any substance, where it existed, and to take appropriate corrective action. This was not a licence to carry out a witchhunt and that was not how it was tackled."

The Minister went on to say BHC General Manager Raymonde Dill identified two cases of impropriety since taking over - one within three months and one more recently.

The first involved a "misappropriation of company property", Mr. Bascome said.

The latter involved "amongst other things, an inappropriate relationship with a contractor".

"Both incidences have been dealt with in a manner that was deemed suited to the specific circumstances," he said.

"These are two examples of the discreet and professional way in which issues of this nature have been handled in the past and will continue to be handled in the future.

"Early last year the Board was made aware of certain rumours and they attempted to ensure that the necessary procedures were in place to protect the Corporation from harm of this nature.

"Have all possible occurrences been trapped? Only time will tell."

The Minister added that BHC is being investigated at the moment as part of the Auditor General's planned audit work for 2002.

"The Corporation was just one of the entities to be included in this independent review," he said.

Mr. Bascome began his statement by charging UBP MP Michael Dunkley of an outright attack on BHC management.

"I would like to begin by reiterating the position stated by the Deputy Speaker Walter Lister, that the Honourable Member's outright attack on the leadership, management, staff and the service providers of the Corporation was completely out of order, and I have apologised to all of them for his unacceptable behaviour," he said. "I would like to publicly restate that if (Mr. Dunkley) or any of his colleagues has any information that can support the sweeping allegations made, they should bring them to my attention or the attention of the Housing Corporation as a matter of urgency."

The Corporation uses a broad base of contractors, Mr. Bascome added. "This has minimised the potential for collusion between staff and contractor. "The contractors are in the main drawn from a pool of contractors that have never over the years been afforded the opportunity to carry out construction work for the Housing Corporation.

"Small Bermudian contractors with a vested interest in doing a good job at a good price and thereby earning the right to be considered for further bidding opportunities."

Mr. Bascome said he did not intend to "dignify" some of Mr. Dunkley's statements with a response but, on the question of the qualifications of BHC staff, noted that 22 of the 27 current staff members were in their positions two years ago and many for much longer.

After hearing the Minister's response yesterday, Mr. Dunkley stood firm behind his allegations. He said that since the issue was raised on Monday his phone has rung off the hook and people were coming forward with even more information.

A letter detailing the allegations and information the Opposition has received is being prepared and vetted by UBP Caucus, Mr. Dunkley added.

Mr. Dunkley said he intended to present the letter to the Minister and make an arrangement to meet with him in order to discuss the allegations in detail.

In regard to the two incidences Mr. Bascome mentioned in his statement, Mr. Dunkley said what the Minister was speaking of was "the tip of the iceberg" and he suspected those cases were not resolved to the satisfaction of all parties.

Some of the allegations would be very difficult for the Government Auditor to pick up through examining balance sheets as they relate to cash transactions, Mr. Dunkley said. "This goes a lot deeper than the Minister either knows or is prepared to admit publicly," he said.

He made no apologies for the manner in which he raised the issue in the House on Monday.

Mr. Dunkley told The Royal Gazette he never intended to name any specific civil servants only to elaborate on his allegations and that he broke no House rules. "I asked which rule I had broken and Mr. (Walter) Lister replied `my own'," Mr. Dunkley said.

The allegations refer to serious wrongdoing and as such he had to disclose what information he has chased down, Mr. Dunkley said. "I stand behind my actions and my comments," he added, noting that he meant no offence to hard-working Civil Servants doing their jobs properly.