wanted him axed from Cabinet amid allegations of a sex and drugs probe were yesterday denied. The counter-claim came after Environment Minister Pearman insisted there was a conspiracy to get rid of him.

Mr. Pearman said that the dirty tricks campaign started with allegations of drug abuse -- and moved on to claims of him paying cash to keep a man quiet about his "sexual activity'' and that another man allegedly stole from him because money was owed for "sexual favours.'' The Minister categorically denies any drug use or sexual impropriety.

Acting Premier Jerome Dill said: "I have now had a full discussion with the Governor and he informs me he has never asked for Mr. Pearman's resignation and neither has Commissioner of Police Colin Coxall.'' But last night Mr. Pearman remained convinced a cabal was out to get him -- probably because of his opposition to the extension of Mr. Coxall's three-year contract, which runs out in September, although he declined to identify anyone as acting against him.

The allegations were made in a front-page article in yesterday's edition of the Bermuda Sun.

Mr. Dill said, however: "As was reported in the Sun, the Governor has offered to meet Mr. Pearman but what he also informed me was that Mr. Pearman has not been under investigation, is not under investigation and the matter is now closed.

"Mr. Pearman says certain allegations were made to the Police but it was judged that there was no evidence to support them.'' The Sun article quotes Mr. Pearman as saying that Premier Pamela Gordon had told him that Mr. Masefield had told her that "three wise heads'' had convinced him that Mr. Pearman had to go.

Governor denies asking for Pearman's resignation But Mr. Dill said: "I took that up with the Governor and the Governor informs me he has never made any of the remarks quoted in the Sun.'' And Mr. Dill appeared to criticise Police handling of the controversy.

He admitted: "The problem is that the story broke that there were these people who were concerned with Irving Pearman and that there was a suspicion that he was under a cloud.

"Rather than someone coming out from the Police and saying `it isn't true'....that never happened.'' Referring to Mr. Pearman's threat to resign from Cabinet and sit as an Independent if he was not completely and publicly cleared, Mr. Dill said: "I understand Mr. Pearman feels very much affronted.

"But I certainly hope that it doesn't come to that. Certainly he has the support of the Premier and his Cabinet colleagues.'' Deputy Governor Peter Willis confirmed that the Acting Premier and Mr.

Masefield had met and that the Governor denied asking for Mr. Pearman's resignation -- but declined to comment further.

A spokeswoman for Mr. Coxall said he also would have no comment to make on the row.

Mr. Pearman said: "Unless I totally misunderstood the Premier, three wise heads had looked at this and said this man had to go.'' He insisted the Premier had asked for tangible proof in the wake of claims Mr.

Pearman was involved in drugs -- but was given a fresh set of allegations of a sexual nature instead.

The original drugs claims are believed to have originated with two men arrested during the Police drugs crackdown Operation Cleansweep. The other allegations -- dating from last year -- surfaced later.

Mr. Pearman said: "I put it down to a conspiracy and I'm determined to find out who is behind it. I don't care what Mr. Dill or anybody else says.'' The 70-year-old Minister -- who was instrumental in having Mr. Coxall appointed to the Commissioner's job -- said that he had no problem with Mr.

Coxall.

But Mr. Pearman added that he had said publicly at the time of Mr. Coxall's appointment that he would only be in post for three years -- and that should be stuck to.

But he added: "A Commissioner of Police managing things this way will have to go.'' He added: "It's a whole new set of circumstances -- the Governor acted as judge and jury acting on the advice of I don't know who -- this is not over yet.

"The issue right now is the Governor. I haven't had a statement. I don't know what he said, but if Mr. Dill is speaking on his behalf, I will not comment further.'' Mr. Pearman declined to say what course of action would satisfy his desire to have any suggestions of misconduct quashed.

But he added: "I suppose something from them that the matter has been totally put to rest -- but not a statement that they are not proceeding because there is insufficent evidence.

"That suggests I am guilty as sin -- but that they can't prove it.'' PEARMAN -- "I put it down to a conspiracy.'' POLITICS PTL