No one will be charged in Bermuda's courts in connection with two "false cheques" doctored to make it look like the Premier and the Works Minister received kickbacks.

But further investigation could take place overseas into the alleged forgery, according to a Government House statement issued last night.

The Premier and the Works Minister said in a subsequent statement that the cheques were produced in Canada, and they will "seek redress" in the courts there.

Copies of two cheques — purportedly made out to Ewart Brown and Derrick Burgess by contractors working on the new Police and court building — were discovered in the files at the Ministry of Works and Engineering almost a year ago.

Dr. Brown said at the time that they were fabricated and falsified versions of two cheques for $14,780 and $10,000 paid out legitimately by Landmark Lisgar Construction to two other companies.

"Those acts were clearly committed with the intention that they should be used to sully the reputation of the Government and to damage, if not destroy, reputations," he told a press conference on February 5.

Police launched an investigation and arrested Government's Chief Architect Lawrence Brady — brother-in-law of The Royal Gazette's editor Bill Zuill — on April 17, but he was released without charge.

Last night's statement from Government House said: "Images purporting to show two valid cheques, apparently made out to Dr. E. Brown and D. Burgess, but which were in fact fake images and most probably created with malicious intent, were well publicised in early 2009.

"The fake image of cheques may still be subject to investigation, but no longer in Bermuda.

"A very thorough investigation in Bermuda was conducted by the Bermuda Police Service. An appraisal of the results by the Director of Public Prosecutions (DPP) concluded that there was no evidence of criminality which could be charged to court here in Bermuda.

"The further investigation which may take place would be in a different jurisdiction; in other words, overseas."

Governor Sir Richard Gozney would not confirm last night that Mr. Brady — who remains in his post with Government — had been ruled out as a suspect.

"You'll need to ask the Police about the status of anyone whom you believe they may have interviewed," he said.

Asked in which other jurisdictions further investigation might take place, he replied that he was not willing to go further than the Government House statement.

A Police spokesman said inquiries had taken place in the US and Canada, as well as locally. Asked about Mr. Brady, the spokesperson replied: "The Governor's press statement makes it clear that a file has been presented to the DPP and no charges will be laid in Bermuda.

"It is therefore inappropriate to comment further on any specific person that might at some point have been linked to the extensive Police inquiries into the matter."

Following the Government House statement, Dr. Brown and Mr. Burgess issued a statement saying the fraudulent cheques were produced in Canada. They added: "Sadly, this malicious act will not be prosecuted in Bermuda. This does not mean that the Premier and the Minister will not seek redress within the appropriate court system in Canada."

The cheques from Landmark Lisgar Construction Ltd. — which became LLC Bermuda — were paid out to Scorpio Construction Ltd. and Chester Management.

Mr. Brady did not respond to requests for comment last night.