The families squatting in the former Governor's residence in Dockyard were thousands of dollars in arrears when they were told to vacate their homes months ago, claims the West End Development Corporation.

And one of the families has admitted to receiving a $1 million-plus accident settlement which is being used to build a new home.

Earlier this week Debbie Bean and Ray Crofton moved their families out of Lodge Point after complaining the West End Development Corporation (Wedco) had failed to fix their leaking homes three months after their roofs were badly damaged by Hurricane Fabian.

But yesterday Wedco claimed Mr. Crofton was $2,663 behind in his $640-a-month rent while Ms Bean's father Ariel Castle was more than $4,000 in arrears for his identical two-bedroom house next door. Both families have denied the claim.

Wedco had given the families three months notice, effective on September 30, in order to upgrade the properties.

However, Ms Bean said the rent money had been withheld months ago in protest over the lack of upgrades and was paid up when Wedco threatened to evict her family.

Since the hurricane she said her family had paid half the rent because they were only using half the house as the upstairs was out of bounds due to roof damage.

Mr. Crofton denied being in arrears but admitted his wife had been awarded more than $1 million after being confined to a wheelchair and suffering serious head injuries in a road accident in 1996.

He admitted the family was planning to build a purpose-built home for her but he said it was still in the planning stages and they needed somewhere to live right now.

Mr. Crofton said the seven-figure sum wasn't worth a lot in Bermuda.

“Wedco have to do what they are supposed to do as a landlord.”

He said several other families also face being moved.

“It is not just me. (Wedco boss) Lloyd Telford has to get his act together. People are trying to pick at my business. They have to own up to their own responsibilities.”

He said his sons wanted to stay in the property which Wedco is planning to demolish.

“It's an historic place built in 1844. I would be a darn shame if they knocked it down.”

Wedco assessments done after Fabian hit put the new bill at $1 million for the six-unit Marine Terrace at Lodge Point which Wedco have deemed uneconomic given the monthly rental return of less than $4,000.

General Manager Lloyd Telford said he did not know whether the new development would be for rent or sale.

He said: “We are at the concept stage.”

And he said Wedco had been hoping to sell off The Cottage, the plush seafront home in which the families are now squatting.

Now Wedco is gearing up to reclaim the property. The Police will be sent in and the electricity turned off.

Mr. Crofton said the Police had been around already and he denied he was squatting.

“Squatters don't pay rent. The word is definitely not appropriate. I have every right to be here. We were in danger at Lodge Point.”

The family left after his disabled wife Angelique was hit by a four foot long piece of concrete board which fell from the ceiling.

Mr. Telford said he had broken with the normal policy of client confidentiality after the families had repeatedly dodged meetings about the matter.

On Monday he rang Mr. Crofton requesting a meeting but Mr. Crofton declined saying he did not want to take his wheelchair-bound wife to the upstairs Wedco office.

Mr. Telford said: “It's never stopped Mr. Crofton coming to me in the past.”

Ms Bean said Wedco were now requesting separate meetings with the two families in a bid to divide them.

The families were offered emergency accommodation in Prince Albert Terrace but Ms Bean said it had been no better than her own damaged home as it had asbestos coming off the roof which had hole in it and was leaking water.

Mr. Telford denied there had been asbestos intrusion but admitted there was a leak with water coming through the roof and settling on the floor.

“We would have dealt with that in a reasonable amount of time. We have 214 acres of property.”

Mr. Crofton declared the offer of a two-bed wheelchair accessible apartment an insult, said Mr. Telford.

Wedco is now exploring several options for housing the families including the two-bedroom wheelchair accessible Spar Lane Cottage and a three-bed unit in Dockyard Terrace.