Craig Cannonier resigned as Premier last night over the political firestorm surrounding the long-running Jetgate row.

Deputy leader Michael Dunkley will be sworn in this morning as his replacement by Governor George Fergusson.

Mr Cannonier said that he believed his resignation was the best way forward for Bermuda, and insisted that he had done nothing illegal.

“This controversy has called into question my integrity, my leadership and the confidence of my colleagues, the support of my party — threatening the good work of the Government going forward,” he said in a recorded statement.

“Let me first say nothing illegal was done, but I accept there was a failure over time to be to be completely transparent. This is a fundamental component of good governance and a core principle upon which the One Bermuda Alliance was founded.

“As a result — and after days of close counsel with my colleagues, more importantly with my family — I have decided to resign my position as Premier of Bermuda, and have advised the Governor of my decision.”

But he added: “I want you to know that everything I have done in my public life was done solely with the intention of moving Bermuda forward as rapidly as possible.

“I want success for our country and your Government and I am very disappointed with the way things have turned out.

“In saying that, I want to make one thing completely clear: no Cabinet colleagues have done anything wrong in this or any other matter. As the leader, I accept responsibility.

“In closing, I want to say how proud I am to have been your Premier. The support I have received from people all across the island has been a source of daily inspiration and strength.”

Mr Cannonier’s resignation was the culmination of a whirlwind 48 hours in which the OBA held several emergency meetings in a bid to stave off an embarrassing departure.

The Party leadership met again yesterday evening, and by about 9pm, Mr Cannonier’s fate was sealed.

Ultimately, the Jetgate row and his alleged dealings with Nathan Landow proved his undoing, and last night he left Cabinet Office for the last time as Premier to tender his resignation to the Governor.

Mr Cannonier thanked wife Antoinette and his family for their support during his 17 months as leader of the country. “It has been a privilege to have been your Premier,” he said. “You have my best wishes.”

The former Premier, who leaves the Island on vacation today, threw his support behind Mr Dunkley and asked that the public do the same. He also pledged to return to the backbenches as MP for Devonshire South Central and to continue to support the OBA administration.

Mr Dunkley said on the steps of Government House after being sworn in as interim Premier: “This is a bittersweet moment.

“Craig and I are good friends so not only was it very difficult for Craig but for me.

“One thing that has come out of this is that Craig is committed to the One Bermuda Alliance and he’s going on vacation tomorrow — he will remain a backbencher.”

Mr Dunkley added that the Cabinet and Senate team would remain unchanged.

The new Premier is expected to serve in the top job until later in the summer, when OBA MPs and members will take part in a poll to elect a new leader.

“The Hon. Michael Dunkley has informed me, following a meeting of his party colleagues, of his intention to form a Government,” Mr Fergusson said last night.

“I am satisfied that Mr Dunkley is best able to command the confidence of a majority of the members of the House of Assembly.

“I have asked Mr Dunkley to continue in the role of Acting Premier, pending a formal swearing in as Premier of Bermuda tomorrow morning.”

The saga took a decisive twist last weekend in the wake of the Opposition Progressive Labour Party calling for the Premier and his Cabinet to resign after fresh allegations over the year-long Jetgate affair.

The crisis deepened last week after Mr Landow confirmed that he and a group of other American businessmen had donated about $300,000 to assist the 2012 OBA election campaign — although the money was reported to have been given to a group called the Bermuda Political Action Club and not directly to the OBA.

Three months after the December 2012 election victory, Mr Cannonier, along with Tourism Minister Shawn Crockwell and Attorney General Mark Pettingill, as well as Stephen DaCosta, the Premier’s business manager, flew for a meeting in the US with Mr Landow and his associates.

Mr Cannonier repeatedly denied any wrongdoing, but the pressure on him and the party, elected on promises of clean and open government, proved too much to stand.