Former Bermuda Housing Corporation (BHC) general manager Ed Cowen said yesterday he was put under heavy pressure to retire after the Progressive Labour Party (PLP) won power, and claimed the scandal-ridden quango was in good shape before he left.

Mr. Cowen, who stepped down in 1999 and was replaced by Raymonde Dill, broke his silence on the controversy yesterday, saying there needed to be proper accountability for the problems which have beset the corporation since he left.

Mr. Dill was later sacked as Police continued an investigation into allegations of corruption and massive overpayments at the corporation.

Mr. Cowen said he when he left BHC it was negotiating to build 100 homes at $150 a square foot, and he “couldn't believe” the corporation had paid out $400 a square foot for the Perryville complex at Warwick.

In a speech to Hamilton Rotary Club, Mr. Cowen said after the election, new BHC chair Larry Burchall and then Health Minister Nelson Bascome (who had responsibility for housing) put pressure on him to resign.

New Housing Minister Senator David Burch said last year that about 60 percent of the problems he encountered at BHC were long-standing, but Mr. Cowen said the corporation was in good shape when he left. The problems began when he was ousted, he said.

“In 1998, when the government changed, we had a change of directors with the exception of the three ex-officio members and a change of chair,” he told the Rotary meeting at Tuscany Restaurant.

“The chair at that point left about mid-March 1999 and shortly after he left the new chair (Mr. Burchall) decided he was going to find out when I was going to retire.

“I had no intention of retiring and I told him so, but he didn't seem to get the message. In August, the Minister (Mr. Bascome) was pressuring me to find out when I was going to retire and I wasn't going to tell him. In September I went on holiday and didn't go back.”

He said would have gladly stayed on to help the new incumbent, but the new regime felt they knew what to do: “They didn't need that teaching and you can see the results,” he said.

“I recall the Premier asking for the (BHC) policy and procedures manual and I delivered it to the Premier's office and I guess they just stored it away like all the other reports,” he continued.

“There was not one thing the BHC did that was not covered by that manual. Even making mortgages was in there and you know exactly what to do and how to do it, so I guess they have just dumped all those things.

“The accountability is to the general manager and then to the board and then to the minister and I would like to see some of these people in these positions account for what went on. Obviously we can't just throw away money.”

It is understood one of the audience at the speech was a Police officer who was taking notes.

Mr. Cowen said when BHC was set up, it was given old colonial Government houses which offset a loan of around $80 million.

He said he reduced debt from $40 to $29 million. “I don't know what it is now but I have a feeling it is a lot higher,” he said.

BHC took a high level of risk with mortgages it arranged through the banks. If mortgages didn't perform, the banks would call in BHC.

He had read there were 13 default mortgages, which wasn't bad given that BHC had made about 2,000 mortgages.

“BHC has a finance department which is supposedly in touch with everything. I have to wonder what goes on,” he continued.

“In my day, I had a report on my desk every Monday showing everything that was spent in the week before and I knew what it was spent on. There were (more than 300) houses and I knew every one of those houses.”

The Mid-Ocean News reported last year that a valuer said the Perryville condominiums at Warwick were worth $225 a square foot. A builder told the newspaper he would charge $200 a square foot, but BHC paid $400 a square foot to a company called Hibiscus Development Ltd.

Mr. Cowen said: “When I left BHC, we were negotiating contracts to build 100 houses at $150 per square foot.

“When I see $400 per square foot for the development at Warwick I cringe and I can't believe that was approved by the board of directors. I would like to know how it was approved and why it was approved.”

After his speech, Rotary member Harry Kast asked him: “When you left in 1998 the Housing Corporation was in good order?”

Mr. Cowen replied: “To the best of my knowledge, doggone right it was.”

“Therefore all these problems started when the new government came to power in 1998?,” said Mr. Kast.

“That's the way I see it,” replied Mr. Cowen.

Last night Mr. Burchall agreed he had clear ideas about how BHC should be run when he took over as chairman in April 1999, which he had discussed with Mr. Bascome.

And he said Mr. Cowen had a “reasonable expectation” there would be change with a new chairman and board.

“The BHC should be run like any other business entity. Change does happen, and no CEO has a lock on life in any organisation. That's a global reality,” he said.

“I was the first chair appointed by the PLP and I had a clear sense about what I wanted to do. As of April 1, I was no longer a silent voice (having been an understudy).

“Anyone operating to a board ought to expect some kind of change when a new chairman takes over. It would happen at American Express, Microsoft or American Airlines.

“It was reasonable for the CEO to expect there might well be some change once a new chair and a new government was in place. I did have some clear ideas which I had discussed with the minister.”

Neither Sen Burch nor Mr. Bascome returned a call seeking comment yesterday.