The man at the centre of controversy over large payments to contractors from Bermuda Housing Corporation (BHC) has convictions for theft and possession of cocaine, The Royal Gazette can reveal.

Paul Young, a painter who received $810,940 from BHC in seven months last year, was placed on the stop list and banned from entering Bermuda in 1995, following allegations that he had been working illegally in Bermuda.

The Royal Gazette has discovered that Mr. Young had two convictions in Massachusetts in the 1980s for drug possession and theft.

But in December 1998, Mr. Young, an American citizen, successfully applied to be taken off the Stop List, allowing him to re-enter Bermuda.

The decision was made by the then newly-elected Labour and Home Affairs Minister Paula Cox, who last night said she accepted a recommendation by the Immigration Department to take Mr. Young off the Stop List.

Ms Cox said that inquiries showed there was no evidence of a police record".

She said the reason his application to be taken off the Stop List had been accepted was because the claims that he had been working illegally were "spurious".

When asked if she was surprised that Mr. Young's criminal convictions did not show up, she said: "It would be surprising if anyone had convictions that were recent and didn't show up."

The Royal Gazette understands that before making the application, Mr. Young married Bermudian Dale Place (now Young).

Auditor General Larry Dennis this week embarked on a full investigation into the finances at BHC following allegations from the United Bermuda Party of corruption at the corporation and controversy over large payments to contractors including Mr. Young.

He has promised to pass his report, which will be made public when it is presented to the Speaker of the House of Assembly, to Police if he finds any evidence of criminal activity.

BHC's board met yesterday but the corporation continued last night to refuse to comment on the controversy.

Mr. Young, 44, was convicted at Waltham District Court, Massachusetts, in May 19, 1986, of possessing a class B illegal substance and fined $140, an official at the court's clerks office told The Royal Gazette yesterday.

And in September 1981 he was fined $50 at Boston Municipal Court after pleading guilty to larceny, a court official confirmed yesterday.

But Mr. Young did not pay the fine and his probation was extended several times until October 1995, according to his court file. Chief Immigration Officer Dr. Martin Brewer said yesterday he could not comment on individual immigration cases.

Premier Jennifer Smith described Mr. Young's wife Dale and a group of other volunteers who helped decorate her new official home The Laurels after the 1998 election as people who "know me well and did an excellent job in reflecting my taste".

Mrs. Young was named as one of the first trustees under the Progressive Labour Party Trustees Act 2001. The trust was set up to allow the PLP to engage in the real estate business.

Mrs. Young also currently sits as chair of one of the recently announced Government boards - the National Parks Commission.

She stepped down from a position on the Development Applications Board in January following a controversy at a building project she and her husband have in Spanish Point.

And at the PLP's annual banquet last year, Mrs. Young was given the role of introducing keynote speaker Mia Motley.

The Royal Gazette has not been able to contact Mr. Young or his wife for comment.

A spokeswoman at BHC general manager Raymode Dill's office said yesterday that the BHC was currently holding a board meeting, but Mr. Dill did not return calls.

The Royal Gazette contacted BHC chairman Wentworth Christopher on Tuesday night to see if the board was meeting yesterday, but he said he had no information.