A judge yesterday ruled that the Auditor General does have the power to inspect the accounts of Bermuda Housing Trust (BHT) ? after a year-long legal wrangle.

Puisne Judge Geoffrey Bell told Supreme Court that legislation required Auditor General Larry Dennis to conduct an audit of the trust on an annual basis and awarded $27,000 legal costs to Mr. Dennis? department.

The matter first appeared before the court a year ago after the trust ? which has had its accounts audited by an independent international audit firm for more than a decade ? turned down a request for Mr. Dennis to inspect its books.

Mr. Dennis launched legal proceedings with his lawyer, Saul Froomkin, arguing that the trust was Government-controlled, was listed as a statutory Government board and had the benefit of public funds. Kevin Bean, for BHT, countered that the body?s trustees acted independently of Government despite being appointed by the Governor on the recommendation of the Housing Minister.

He said it would go against the Auditor General?s constitutional mandate for him to act as auditor of the trust.

Mr. Justice Bell said in his judgment: ?I do not accept Mr. Bean?s submission that because there is no express power given to the Minister to give directions to the trustees, or otherwise to control the exercise of their powers, it can then be said that Government does not have the power to secure that the affairs of the Bermuda Housing Trust are conducted in accordance with its wishes.?

He added that the trust was Government-controlled within the definition of the Audit Act 1990 and that therefore Mr. Dennis was charged with annually auditing its accounts.

Mr. Dennis told he was ?very pleased? with the ruling. He said: ?There is nothing untoward about my wanting to go in and audit the organisation. I was just surprised that any organisation would challenge the Audit Act. ?I?m just very pleased that the law has upheld the right of the Auditor General to audit any organisation which is controlled by the Government.?

He said the ruling was not likely to affect other organisations since the trust, which was set up in 1965 with public funds to provide low-rent accommodation for seniors, was something of a one-off. Trust chairman Ronald Simmons could not be contacted for comment.