The Institute of Chartered Accountants is investigating a complaint from shareholders about an audit carried out at controversial Harbour Gardens Limited, The Royal Gazette has learned.

In a separate development, Police who launched an investigation in 2001 into allegations that more than $100,000 was stolen from the company have recently met Director of Public Prosecutions Kulendra Ratneser to discuss the case.

The complaint to the Institute of Chartered Accountants of Bermuda was filed by shareholder Anne Spurling in July last year, but so far the matter has not been dealt with. Mrs. Spurling, one of eight non-voting shareholders, complains the audit carried out by Craig Christensen of Arthur Morris Christensen does not present an accurate picture of the state of the company.

Harbour Gardens was set up in 1996 to convert one wing of the former Palm Reef Hotel in Paget into nine town houses, which sold for between $570,000 and $660,000, with Arthur Jones, the owner and director of Coldwell Banker JW Realty, and president and secretary of the Institute of Bermuda Architects Fraser Butterworth as directors. The shareholders, who each invested to purchase a condominium, were to receive 999-year leases when the company was handed over to them unencumbered of debt.

The development has been mired in controversy and civil action is still pending between some shareholders and the company.

Alan Bissell, the executive director of the Institute of Chartered Accountants of Bermuda said: "It (the complaint) has not been resolved but it is under active investigation. "I believe they (investigating committee) have interviewed the complainant and the person complained about."

Mr. Christensen told The Royal Gazette: "Whether one is guilty or not, the Institute is obligated to review that, to which I have fully complied.

"As of right now, it is under review and we are fully satisfied we have done everything appropriate."

Another Harbour Gardens non-voting shareholder who spoke to The Royal Gazette said he was perfectly happy with the situation and had no complaints.

Commercial Crime Unit detectives completed an investigation in December, 2001 into theft allegations at the company and sent a file to then Director of Public Prosecutions Khamisi Tokunbo to decide whether to prosecute.

The Royal Gazette has learned that Police have recently met new DPP Mr. Ratneser to discuss the case.

Neither Police nor Mr. Ratneser would comment yesterday.