A senior Texaco executive -- based in Bermuda -- has been sacked following an investigation into tapes recording company bosses uttering racial slurs and discussing destroying documents needed for a lawsuit.

David Keough, chief financial officer with the Bermuda-based Texaco subsidiary Heddington Insurance, was dismissed yesterday.

The announcement came in a letter from Texaco CEO Peter Bijur to all employees.

He said: "I write to you to provide you with information concerning the outcome of the independent investigation with respect of the four current or retired employees involved in the tape incident.

"The independent investigation conducted by Michael Armstrong, an outside attorney, has been thorough and detailed.

"We said in early November, Texaco would follow the facts in this case wherever they may lead and would take whatever action is necessary.'' The letter continues: "In this regard, we have terminated the employment of David Keough.'' Last night Mr. Keough, who has a home in Bermuda, was not available for comment, nor was anyone from Heddington Insurance.

A storm of protest erupted late last year when tapes of four senior executives were made public.

Some could be heard allegedly discussing destroying documents needed in a racial discrimination lawsuit against Texaco.

Some of the executives -- but not Mr. Keough -- could be heard uttering racial slurs against coloured employees.

Mr. Keough transferred to Bermuda to become chief financial and administrative officer with Heddington after the tapes were made.

Two other Texaco bosses involved -- Robert Ulrich and Richard Lundwall -- retired after the tapes were released. They have had a series of retirement benefits permanently suspended.

The other man involved -- Peter Meade -- has been suspended for two weeks without pay and will attend a sensitivity programme when he returns.