Shocked Auditor General Larry Dennis has slammed a Police raid on his office yesterday as an "over-display of power".

Mr. Dennis — the Island's independent financial watchdog — first saw his premises searched five months ago by officers investigating how details of their Bermuda Housing Corporation investigation got leaked to the media.

Denying that he had anything to do with the leak, Mr. Dennis, 63, said during yesterday's swoop: "It seems, apparently, if the Commissioner of Police wants to do something he has the law behind him. Maybe he has the Army too, I don't know. He has everything I have. I've told him the truth from the very beginning. Obviously the facts are not what he wants to hear.

"I think this is a terrible situation. It's a shock to me that we actually experience it in 2007. My staff are now very shaken."

Expanding on those remarks after the conclusion of the operation, Mr. Dennis told The Royal Gazette: "There were so many Police officers there I thought maybe he needs to call up the Regiment and have them come in there. It was an over-display of power."

Seven officers descended on Victoria Hall in Hamilton at 10.35 a.m. with a search warrant. They spent just over two hours conducting a sweep of the premises and took several documents away with them. Mr. Dennis said he was "very upset" by the incident, which he believes is an attempt by the Police to link him to the leak — something he vigorously denies.

The Police have stated that the master copy of the dossier — which names Premier Dr. Ewart Brown and other Government figures as among those investigated — has gone missing. They allege that it has been stolen and an international investigation into its disappearance has been going on for several months. The US Secret Service has been called in to examine documents seized by the Police so far.

Mr. Dennis was arrested on June 18 during the first raid on his office on suspicion of handling stolen documents and refusing to reveal his source. On that occasion, detectives seized a folder containing 77 photocopy documents relating to the BHC inquiry. His wife, Nancy Dennis, later attended his office in Victoria Street, Hamilton, and handed a further 1,597 copy documents to the Police.

He is currently on Police bail and must report back to Hamilton Police Station on December 4.

Mr. Dennis stressed yesterday that he has only ever had copies of Police documents relating to the BHC in his possession, never originals. Nonetheless, he believes the Police are trying to link him to 'Son of the Soil' Harold Darrell who has admitted giving portions of the Police dossier to the press.

"They're trying to get something that's not there. I'm sure they're looking for the original documents. They are trying to look for proof that I have given the information out," he said. "I did not feed this information to Mr. Darrell or to the press. The documents I received stayed in my office."

Mr. Dennis said the Police removed an invoice from his office showing the purchase of three binders on May 18. The binders contained copies of BHC-related documents seized on June 18.

He said the officers also took the guest book for his office, other invoices and internal documents from his files. He claimed they refused to let him take copies of the documents they removed.

As the search took place around him and Police attempted to move members of the media from his office, Mr. Dennis said: "I think it's ridiculous. My staff have not been able to work, this is disruptive."

Police spokesman Robin Simmons said of the raid: "The Bermuda Police Service will not comment at this time as is standard practice during ongoing investigations."

Attorney General Philip Perinchief and Commissioner of Police George Jackson mounted a bid earlier this year to gag the media from further reports on the contents of the leaked BHC dossier. On October 29, however, Bermuda's highest court, the Privy Council in London, ruled for the media.

In The Royal Gazette's sister paper, the Mid-Ocean News, yesterday, whistleblower Mr. Darrell said: "I gave parts of the Police dossier to the press so that they could inform the public of two things — the Government officials identified by the Police as the wrongdoers in this scandal, and also the apparent cover-up of the investigation by higher authorities."

He added he will not leak further details about the probe unless Government attempts to smear him or target him for revenge. Mr. Darrell, a businessman, is currently on bail pending an inquiry into the alleged theft of the dossier. He has refused to comment on how the documents came into his possession.

When the Police BHC probe ended in 2004, the then acting Director of Public Prosecutions Kulandra Ratneser said some of those investigated could only be accused of bad ethics due to Bermuda's antiquated corruption laws.

Since the BHC scandal — believed to have cost taxpayers $8 million — one person has been convicted. Terrence Smith, a BHC officer, was jailed last year on 41 counts of fraud. He is currently appealing his conviction.