Bermuda Housing Corporation (BHC) general manager Raymonde Dill was silent yesterday in the face of reports of massive payments of public money to contractors and allegations of corruption.

Mr. Dill called a Press conference yesterday but cancelled it at the last minute as the BHC board met to discuss newspaper reports that a painter was paid more that $800,000 in seven months, a gardener got $68,564 in three months and a carpentry firm received $487,193 during a seven-month period.

Shadow Health Minister Michael Dunkley called for a full independent investigation into the reports and earlier claims of corruption at BHC and said the current allegations were just the tip of the iceberg.

And he accused the Progressive Labour Party Government of knowing about some of the allegations of scandal but of turning a blind eye to them.

The Mid-Ocean News published documents yesterday showing painter Paul Young received $810,940 from BHC between May and November last year.

Gardener Caven Richardson was paid $68,564 during a three-month period last year and Borden's Carpentry got 28 cheques totalling $487,193 between May and November.

The newspaper quoted an unnamed BHC source saying "inflated bills were normal" at the Housing Corporation.

A Government auditor is carrying out an audit of BHC's finances and Health Minister Nelson Bascome said on Monday that the Housing Corporation, which falls within his Ministry, is carrying out an internal investigation.

Mr. Bascome said Mr. Dill had identified two cases of impropriety. One was within three months of taking over BHC which involved "misappropriation of company property" and a second involved "amongst other things, an inappropriate relationship with a contractor".

Mr. Dunkley told The Royal Gazette yesterday: "I think we have a serious situation that needs to be addressed and this Government is just turning a blind eye.

"I am sure they were aware of some of the allegations but not all of them. There needs to be a full, independent investigation and a report to a joint select committee of the House rather than it just rumbling along with two members of staff suspended.

"Letting the BHC investigate itself is no good at all, it is like the fox watching the hen house.

"I believe that some of the allegations that have surfaced in the last few days are just skimming the surface and I believe we need this independent investigation if the public is to have confidence in this Government and the Housing Corporation.

"The current situation is not fair to the members of staff who are doing their job. Let's get to the bottom of this so we can clear it up and move forward."

Mr. Dunkley wrote a letter to Mr. Bascome yesterday requesting that an independent investigation take place into every contract awarded by BHC, its location, the contractor who carried out the work and the completion date.

The investigation should also look into all the rival bids for contracts and the reason why jobs have overrun.

He said the independent investigator should also find out if any loans or extraordinary payments had been made by BHC to past or present employees or contractors and should fully examine the reason for any employee dismissals or suspensions.

BHC board members should also be required to list any mortgages they hold as agents for real estate companies.

In his letter, Mr. Dunkley stated: "Minister, I trust you will agree to this course of action. I am sure you wish, as I do, that all the allegations directed at BHC are cleared up and we can again work to provide housing for the community free of many of the problems that have beset us in the recent past."

Mr. Bascome was scheduled to make a statement about the controversy in the House of Assembly last night, but had not done so by Press time early this morning.

Mr. Dill did not return telephone calls from The Royal Gazette yesterday seeking comment about the allegations.