Opposition Leader Michael Dunkley has urged Premier Ewart Brown to explain "serious allegations" published in a newspaper yesterday that the construction of his luxury Smith's mansion was part-paid for by Bermuda Housing Corporation.

The claims were made in the Mid-Ocean News, which said leaked financial papers, including bank statements and copies of cheques, showed that BHC paid $400,000 to Bermuda Composite Construction (BCC) after the Premier refused to pay the same company for cost overruns of a similar amount on his home at 29 AP Owen Road.

BCC was hired by Dr. Brown in 2000 to build his house and by BHC to build 20 low income housing units at Southside. Yesterday's report follows a previous story in the Mid-Ocean, The Royal Gazette's sister paper, in June based on a leaked Police file on an investigation into corruption at BHC.

The story in June said sacked BHC general manager Raymonde Dill told detectives that outstanding costs owed by Dr. Brown on his AP Owen Road home were "buried" in the Southside project.

Yesterday's Mid-Ocean story alleged that $400,000 from BHC was used by BCC to pay off vendors and sub-contractors owed money for work on Dr. Brown's house.

BCC was run by four directors — one of whom was Zane DeSilva, current Progressive Labour Party election candidate for Southampton East Central.

The Royal Gazette was unable yesterday to reach either Dr. Brown or Mr. DeSilva for comment. Mr. Dunkley said at a press conference at United Bermuda Party headquarters that the allegations were "so serious that the Premier must give the country an explanation".

He said: "The allegations could hardly be more serious. The Bermuda Housing Corporation was established to provide affordable housing for hard-working Bermudians.

"If, as this report alleges, hundreds of thousands of dollars of this public money was used to pay for part of the construction of a luxury private home for the Premier, the people of Bermuda are entitled to know the facts.

"In 11 days, the people of Bermuda go to the polls in a general election. It is imperative that Dr. Brown answers these grave allegations before the vote.

"They go to the heart of what this election is about. The people of Bermuda have a right to know if their political leaders have integrity, are trustworthy and are transparent."

He added that the story underscored previous calls by his party for a "full and transparent investigation into the Bermuda Housing Corporation scandal to establish the facts and clear up these suspicions once and for all". At the press conference the UBP denied any involvement in leaking the documents.

Claims of corruption at BHC — believed to have cost taxpayers $8 million — were investigated for two years by Police but only one person was ever charged.

Terrence Smith, a junior BHC officer, was found guilty and jailed last year on 41 counts of fraud but his conviction was quashed by the Court of Appeal last month and he is now waiting a retrial.

Yesterday, Public Safety and Housing Minister Senator David Burch appeared to suggest he would be looking into the claims, telling ZBM: "It's something I would like to have clarified and cleared up as quickly as possible."

This newspaper was unable to contact Sen. Burch yesterday evening but, in a statement released by the PLP, he said the story was part of a "dirty tricks campaign".

He also said that on October 7 the BHC question was raised in the House of Commons by 'friends of the UBP'.

He added: "On that occasion, Meg Munn, Parliamentary Under-Secretary of State for Foreign and Commonwealth Affairs said 'the allegations were fully investigated at the time by the appropriate authorities in Bermuda with support from New Scotland Yard'.

"This matter was also investigated by the CIA and USA Homeland Security. This matter is considered behind us by people at the highest levels in the United Kingdom, which paves the way for us to focus on the future and move Bermuda forward.

"The majority of the Bermudian people recognise that the recycling of the BHC investigation is nothing but a political dirty tricks campaign. It will not provide housing, education, health care, safe neighbourhoods or a brighter future for the Bermudian people; which is the concern of the Progressive Labour Party."