legislation paving the way for hotel land to be sold to two foreign companies due to a conflict of interest, it has emerged.

Last night another Minister was also examining whether he had a conflict over a vote on the private bill allowing ACE Ltd. and Exel Ltd. to buy the Bermudiana Hotel property.

It also emerged yesterday that Dutch oil millionaire John Deuss played a key role in the plan as his bank acted as brokers for the deal.

ACE and Exel have agreed to buy the Bermudiana Hotel from Argus Insurance subject to planning permission for offices and passage of the Bermudiana Site Rehabilitation Bill which will bypass Bermuda's 60/40 rule.

Both must be passed before the end of March, or the two companies will pull out.

Yesterday it emerged that Planning Minister Pamela Gordon is a director of the Argus Group.

The new Health Minister Clarence Terceira is also vice-chairman of the Bermuda Commercial Bank, which helped broker the deal -- although it has no financial interest.

The Bank of Bermuda holds the mortgage on the site and one of its directors is Home Affairs Minister Quinton Edness. Another is Government backbencher Ann Cartwright DeCouto.

It is not known how any abstentions will affect the vote on the bill which was put forward by a PLP MP. The UBP is to hold a special caucus meeting tomorrow to discuss the issue.

Other MPs are also shareholders in Argus Insurance including former Premier Sir John Swan and PLP backbencher Paula Cox -- although the number of shares held is so small they are not required to declare an interest.

Yesterday Ms Gordon said it would be a conflict of interest if she had to hear a planning appeal for the site.

She also said that as a director her conflict was enough to rule her out of voting on the Bill when it comes to the House of Assembly for its second reading.

"It would be a conflict of interest to hear any appeal and I would not put myself or the Government in a compromising position,'' she said.

"I have already declared my interest to Argus and said that as Minister I will not hear anything to do with that case.

"I would have to have an acting Minister deal with it. I would have to leave the Island and the acting Minister would be appointed by the Premier.'' Dr. Terceira added: "I have a conflict and will not be voting. I am vice president of the Bermuda Commercial Bank which acted as the brokers for the Bermudiana site with ACE, Exel and Argus.'' The bank's chairman is Dutch millionaire John Deuss and two other directors include Deputy Premier Jerome Dill and PLP Leader Jennifer Smith although they both joined the board after the bank had brokered the deal.

Mr. Dill said last night that he did not believe he had a conflict of interest and would be voting, although he declined to say which way. Ms Smith was unavailable for comment.

The hotel sale is valued at about $18 million of which about $11 million will go to Argus, although the cash is already accounted for in the company's accounts and there will be no windfall for shareholders.

Argus Insurance took control of the land after the Bermuda Financial Centre Ltd., which is lobbying MPs to vote against the Bill, defaulted on debts.

It took over debts including a mortgage on the land with the Bank of Bermuda.

Last night Mr. Edness said he would investigate whether he had a conflict of interests.

"I will have to look at what our rules are in the House of Assembly,'' said Mr. Edness. "Because of the nature of this bill I will have to consider my position. If I do have a conflict of interests I will abstain from voting.'' BUSINESS BUC