New leadership for the Bermuda Housing Corporation was put in place yesterday to cover for suspended senior officers as the investigation into allegations of corruption at the troubled quango continues.

The BHC board said it hoped the temporary appointments of civil servants Richard James and Nas Jetha would help the corporation to begin rebuilding public trust and to continue the work of providing affordable housing for Bermudians, despite the investigation.

The two men were appointed by Minister for Housing Nelson Bascome following the suspensions last week of general manager Raymonde Dill and Finance Minister Robert Clifford, pending the outcome of the investigation by Auditor General, Larry Dennis.

The general manager position will be filled by Mr. James, a Bermudian who is the Chief Architect at the Ministry of Works and Engineering.

In addition to his current position, Mr. James has acted as Permanent Secretary for Works and Engineering as well as Assistant Secretary to the Cabinet.

Mr. James is well versed in the workings of the housing corporation. He was employed as the quango's development manager from 1991 until 1993, Government said in a statement announcing the appointments.

Meanwhile, Nas Jetha, a consultant to the Cabinet Office, has been appointed interim finance manager.

Mr. Jetha is a contract worker who has previously served as Financial Comptroller for the Works and Engineering Ministry.

He is currently assigned to the Cabinet Office to work on special Government projects and was involved in the development of the Civil Service Code of Conduct and Conditions of Service.

A special meeting of the BHC board was held yesterday to welcome aboard the interim heads.

Board chairman Valerie Dill pledged full support to the new appointees and expressed her hope they will point BHC in a new direction, despite the investigation.

"We want to see this corporation up and running and fulfilling its mandate of providing affordable housing for the people of Bermuda. And we want to rebuild trust in the public's eye," said Mrs. Dill.

The corporation has been rocked by allegations of kickbacks, massive payouts to contractors and other irregularities since corruption charges were raised in the House of Assembly three weeks ago by UBP MP Michael Dunkley.

Shortly after documents were leaked to The Mid-Ocean News which showed BHC made large payments over a short period of time to a number of contractors including over $800,000 to painter Paul Young.

While some of the contractors named have since clarified their positions, all efforts to contact Mr. Young have been unsuccessful.

Allegations that BHC officers are running side businesses from the offices have also surfaced over the past three weeks.

A contractor told The Royal Gazette that after he billed a BHC property officer for work his company did at the man's home, his BHC contracts were terminated.

Contractor Kevin Pilgrim said he was told BHC property officer Terrence Smith and general manager Raymonde Dill had ordered his company off his BHC jobs just days after he submitted a bill for work at Mr. Smith's Tee Street home.

When the board announced the senior suspensions last week however, it stressed that the moves did not imply any wrongdoing on the part of Mr. Dill or Mr. Clifford.

Both officers were suspended with full pay and the board said the action was taken to protect their professional capacities and the integrity of the investigation.

Mr. Dennis has been ordered by the Premier to produce a full report for the Speaker of the House of Assembly and has promised he will pass files to the Attorney General's Chambers if he uncovers evidence of criminal activity.

Both Mr. Dill and Mr. Clifford have consistently refused to return calls from The Royal Gazette for comment.

Yesterday, Shadow Minister Michael Dunkley said he was pleased to see that the BHC board realises the quango has to go in a new direction as Ms Dill highlighted in her statement.

"I'm pleased they've finally put people in place to run the housing corporation while these suspensions are reviewed and while the examination of the evidence is underway," Mr. Dunkley said.

Mr. Dunkley said the Opposition are committed to ensuring the corporation continues its work of providing affordable housing but it is essential that it is done in a controlled environment with strict guidelines in place.