Progressive Labour Party stalwart Winters Burgess is a major player in the construction firm tipped to pick up the $70 million Berkeley Institute contract, it was claimed last night.

Sources told The Royal Gazette the former PLP Hamilton branch chairman takes care of the steel work involved in projects carried out by Pro-Active Management Systems Ltd.

Controversy has surrounded the project to build the new school since March of this year.

First, Works and Engineering Minister Alex Scott came under fire for putting up $250,000 of taxpayers' money as an incentive to get the contractors to hire more Bermudians on the site.

For every local it employs, the contractor will be paid a cash bonus.

But Government has ran into more criticism over which of the five bidding companies will be awarded the contract.

The two favourites are BermudaTech, which put in the lowest bid at $65 million and is experienced in developing schools on the Island, and Pro-Active, which bid $70 million.

Pro-Active has only been registered for a year and is little known, but it is rumoured to be the front-runner.

It has built apartments on the Island, but has no experience of building projects as big as this one.

Claims have been made that Government is under enormous pressure to award the contract to Pro-Active because principals of the company are heavily entrenched in the Progressive Labour Party.

It has led to an outcry among people on the Island, and BermudaTech has threatened to seek some kind of recourse if they do not win the deal, claiming they have been treated unfairly.

And yesterday, even contractors who had nothing to do with the project claimed they were unhappy with the way it had been handled.

One owner of a Bermudian construction firm, who did not wish to be named, said: "Government is going to have to have one damn good reason for paying $5 million more than they needed to for this job.

"And they are taking an enormous risk going with such a little- known firm.

This is a massive project. What makes Government so sure they can deliver on time and on budget? "There is something strange going on. BermudaTech claims Government has an ulterior motive to grant the contract to Pro-Active and that is the way it looks to a lot of contractors. Members of the industry are not happy.

"It is almost like it was a done deal.'' Pro-Active has refused to speak to the Press about the project.

Berkeley contract controversy But The Royal Gazette has learned that the three directors, president Arthur Ebbin Jr, vice president Cavon Steede, and Gavin Simmons, who had equal shares in the firm, have recently moved their stocks to a different holding company.

The joint 12,000 shares were held with Ambar Holdings (Bermuda) Ltd, until May 8 of this year, when they were transferred to Limestone Nominees Ltd, which is operated by King and Associates.

It is believed they opted to move their stocks to Limestone, which is operated by King and Associates, because it would enable them to get more financial security as cover for the massive project, and maybe more flexibility.

Companies bidding for contracts must put up a sufficient bond to cover the project. If they do not have it, it could mean they lose the job to a competitor.

But similar claims have been made against Government in recent weeks over the awarding of the $3 million airport security contract to little known firm Guardwell Security Services.

The electronic media claimed nepotism had played a role in Guardwell winning the three-year deal. However, that claim was categorically denied by Transport Minister Dr. Ewart Brown.