Illegal it apparently wasn't but Ewart Brown's involvement in the Bermuda Housing Corporation scandal has certainly raised questions about the behaviour of the man who is fighting so hard to keep a lid on the Police revelations.

Dr. Brown's involvement goes back to his alleged repeated attempts to get the Bermuda Housing Corporation to buy a home he owned in Flatts for $500,000 — well above the estimated market rate at the time of between $230,000 and $330,000.

According to revelations in the Mid-Ocean News, Dr. Brown's campaign included a private lunch where he thrust a purchase agreement at BHC General Manager Raymonde Dill, and a meeting attended by Housing Minister Nelson Bascome and an architect where again pressure was applied.

Mr. Dill later told the press it wasn't a particularly suitable property for the BHC because it was directly on the road, which made it awkward for families with children.

He said: "I had turned down that property on more than two occasions from Dr. Brown and his agent. He kept coming back.

"I am sure he wanted it brought to some conclusion but it was not ideally suitable — and it was also occupied. The final straw was that it became empty."

Mr. Dill said the Corporation twice turned down offers to buy the run-down property — but finally agreed when it became apparent both Dr. Brown and Housing Minister Nelson Bascome were "anxious" for the sale to go through.

Mr. Dill relented in 2001 with a figure of around $440,000 agreed upon after BHC had already spent $152,000 on renovations with total costs, including incidentals, totalling $610,000, according to reports.

He said he gave in because of the dire need for housing but he could not say why Dr. Brown did not simply sell his property privately after the first rebuff.

Mr. Dill later told the press the fee of more than $600,000 was a fair price and that it had been independently evaluated – contrary to claims in Auditor General Larry Dennis' report.

Mr. Dennis found BHC had bought the property without first getting the cost independently appraised and without Dr. Brown declaring his interests or the full board having its usual oversight. Mr. Dennis said the apparent intention – although no written agreement can be located – was for the corporation to manage the renovated properties in Flatts on behalf of Dr. Brown and use the excess of the rental income, once the lease and maintenance costs had been accounted for, to pay off the cost of the renovations.

The property on North Shore Road consists of two small units – a downstairs unit with two bedrooms and an upstairs unit with one bedroom. However, the apartments were not suitable for being rented out without work, so the BHC hired a construction and maintenance company to carry out a substantial refit –on the understanding that it would be later compensated for the financial outlay.

Mr. Dennis said documentation should have been available to demonstrate, as a minimum, that such business was transacted at reasonable commercial prices. The auditor added: "It is not inappropriate for Members of the House and Government officials to transact business with Government. When property sales like these are negotiated, however, as the Code of Conduct infers, the documentary evidence retained should demonstrate that the prices and arrangements arrived at are beyond question and reproach."

In August 2004, Dr. Brown offered to buy back that property for the same $602,000 which the BHC had spent and said there was nothing unethical or untoward about the manner in which that project was handled.

That offer took no account of massive property inflation in Bermuda – which some sources at the time estimated to be ten to 20 percent per annum.

Dr. Brown said his parents had gifted him the property at 18 North Shore Road.

Speaking in 2004, he said: "The first allegation is that I should have disclosed my participation in the transaction.

"To this allegation, I say that at no time was my name or identity concealed. The property was in my name and conveyed to BHC in my name.

"At all times during the transaction between myself and the BHC, all parties, including the Government, were fully aware that I was the seller and the BHC was the buyer. There was never any attempt to hide behind trusts or companies."

The transaction and his specific involvement in it, was disclosed to Cabinet, said Dr. Brown and he said BHC paid a fair price, "if not below market, price for the property".

He added: "Any reference to this transaction as one where Government officials took from the public coffers or received unusual benefit from an inside deal is erroneous and patently unwarranted.

"Any claim this transaction was in any way dishonest is scurrilous. Everything about the transaction was above board, and, further, there was a distinct benefit to the public."

With that he declared an end to the matter while the BHC declined to sell him back the property.

But Mr. Dennis wasn't the only one with concerns. Then-Housing Minister David Burch, told The Royal Gazette he would have expected Dr. Brown to not only declare an interest, but that a higher level of scrutiny should have applied.

Late in 2003, Police came to the conclusion there was insufficient evidence to charge Dr. Brown despite a "great many irregularities" concerning the transaction. Prosecutors also concluded there was no case to answer as the case rested on Raymonde Dill who was not a credible witness.

Indeed while Mr. Dill had told Police the property was worth only around $350,000, he later told the press it was worth the $600,000-plus that was spent on it.

Acting Director of Public Prosecutions Kulandra Ratneser told Police: "I cannot see any evidence to suggest Dr. Brown has done anything improper. He certainly got a good price for his property. That by itself does not make it criminal."

He said there was some indication Dr. Brown had not paid for the renovations and the BHC should have considered civil proceedings to recoup the money.

Dr. Brown has claimed he was exonerated by the BHC investigation. But unanswered questions include:

¦ Did he attempt to coerce BHC boss Raymonde Dill into buying that Flatts property for more than it was worth?

¦ Did he fail to pay the $150,000 renovation bill carried out by BHC before the home was sold and if so will he now pay it?

¦ Will the PLP carry out its earlier pledge to strengthen Bermuda's anti-corruption legislation?