The first of what is expected to be a number of lawsuits against contractors alleged to have done substandard work for the Bermuda Housing Corporation (BHC) is heading to the Supreme Court.

Notice for a civil action against contractor Glenn Robinson was filed yesterday. Representing the BHC is Juris Law Chambers.

As Bermuda Police continue a criminal investigation into allegations of fraud at the BHC, the quango is moving ahead with a commitment made by new Housing Minister David Burch to take legal action against contractors believed to be shady or who delivered shoddy work.

Senator Burch, who took over the portfolio from Health Minister Nelson Bascome, announced in October that a "substantial" amount of money had been overpaid to contractors and that a number had been struck off BHC's approved list for unsatisfactory performance. He said then that while a culture of making verbal agreements between BHC and the contractors may hamper efforts to establish a strong case, he was determined to recover taxpayers' money.

"In instances where we can pursue people for redress, we will certainly do so," he said then. He would not name the contractors struck off the BHC approved list or how many there were, but added: "They know who they are and it is our intention to try in some instances to recover financially through the civil courts, so I don't want to give them notice."

The most glaring (problem uncovered) has been the number of contracts that were entered into verbally: `he said, she said', and you can imagine what kind of activity had to go on in response to that to get a handle on that."

The scandal which broke in March over allegations of massive over-payments to some contractors and corruption in the corporation, has already claimed some casualties. General manager Raymonde Dill and property officer Terrence Smith were sacked in August, five months after Mr. Dill was suspended by the BHC board. Finance officer Robert Clifford remains suspended.

BHC documents showed painter Paul Young was paid $810,940 between May and November last year. A carpentry firm was paid $487,193 over the same period, and a gardener received $68,564. Mr. Young later said the payments were for maintenance work as well as painting, although he admitted later that he could not give details of how the money was spent.

It is understood that Mr. Robinson, who could not be contacted yesterday, is being sued for damages regarding one building contract he had with BHC.