A couple once thought central to the Housing Corporation probe have saw all fraud charges dropped against them in Magistrates' Court yesterday, adding a new twist in the scandal.

Indictable charges against Terrance P. Smith and Veronica Agatha Smith were discontinued in Magistrates' Court when they appeared for mention.

The Smiths, of Tee Street, Devonshire, had been separately charged with two counts of false pretences with intent to defraud Capital G Limited of $595,000 and $245,000.

Former housing officer Terrance Smith was sacked from BHC in the wake of the scandal that hit the front pages in March 2002.

Mr. Ratneser told The Royal Gazette that he could not comment yet about why he had dropped the charges against the Smiths.

He said that he would inform the public about how the proceedings were going to develop over the next couple of weeks.

The BHC scandal investigation has been ongoing for two years and only last month, Mr. Ratneser said he would make an announcement soon about who was to be tried.

In court, Crown counsel Cindy Clarke yesterday said in court the DPP had decided to discontinue proceedings against the pair.

Ms Clarke told Acting Senior Magistrate William Francis to call Mr. Ratneser if he wanted to find out why this action had been taken at the highest level of the DPP.

Lawyer Elizabeth Christopher promised to attempt to get back legal costs that had to be paid by the Smith's since August 19.

Ms Clarke said hearings for a long form preliminary inquiry had been adjourned a total of eight times since then.

She also said that Mr. and Mrs. Smith never had to make a plea. Mr. Francis said that this matter had been going on for “a very long time”.

The Smiths' case over legal costs will appear for mention next Friday, June 11 at 11.30 a.m. in Magistrates' Court.