A second Bermuda Housing Corporation employee has been suspended until a corruption inquiry by Auditor General Larry Dennis is completed, it was announced yesterday.

The BHC board of directors said finance manager Robert Clifford had been temporarily suspended and relieved of his duties, but it stressed this did not imply he had done anything wrong.

The announcement came the day after the board revealed it had temporarily suspended general manager Raymonde Dill. The BHC statement regarding Mr. Clifford yesterday was almost identical to the one used for Mr. Dill.

Saying Mr. Clifford would be suspended on full pay, the BHC statement said: "We affirm the decision does not imply any wrongdoing on the part of Mr. Clifford.

"The board has taken this action to protect Mr. Clifford in his professional capacity and to protect the integrity of the investigation."

Mr. Clifford could not be contacted for comment yesterday. Mr. Dennis is now in the second week of his investigation into the corporation, which was prompted by claims in the House of Assembly by the United Bermuda Party of inflated payments to contractors and kickbacks at the BHC.

Mr. Dennis was given a mandate by Premier Jennifer Smith to take the investigation wherever it needs to go, and to report to any relevant authorities.

He will produce a full report for the Speaker of the House of Assembly and has promised he will pass files to the Attorney General's Office if he uncovers evidence of criminal activity.

Valerie Dill, the chair of the BHC board of directors, said in the statement on Tuesday that the board fully supported the inquiry and encouraged anyone who has information to contact Mr. Dennis.

Reacting to his suspension on Tuesday night, Mr. Dill said he was concerned that contractors and their families had been hurt by 'vicious allegations from a small group within our community'.

Mr. Dill was quoted in yesterday's Bermuda Sun as saying the allegations against the Housing Corporation were a 'travesty of justice'. He said proper procedures were in place at BHC for dealing with service providers and if changes were made 'the corporation has discussed and agreed such changes'.

"I am therefore satisfied that suitable procedures were in place to properly administer the awarding of contracts and work orders consistent with the mandate provided to us.

"I am also satisfied that the staff employed were fully aware of the expectations from them in relation to the proper conducting of business with suppliers. Where there was evidence to suggest otherwise, appropriate action was taken." Mr. Dill, who was appointed general manager of BHC in 1999 by the Progressive Labour Party, was asked on VSB yesterday if the current investigation will deal with political issues.

He replied: "I can't speak to whether they will get to that area or how deeply (they will go). I am confident that as a result of the investigation BHC should be able to move forward with as clean a sheet as is possible."

When asked if he felt any political pressure, he said: "I support the mandate given to me by my minister (Nelson Bascome) and I didn't find that pressure."