The United Bermuda Party last night called on Health and Housing Minister Nelson Bascome to resign because he had responsibility for the Bermuda Housing Corporation (BHC) scandal.

Opposition Leader Dr. Grant Gibbons noted Auditor General Larry Dennis will not be making his report into BHC public now because it could prejudice a criminal investigation into events at the organisation.

Dr. Gibbons said it was now clear that Mr. Dennis had uncovered serious problems at BHC - which Police and Department of Public Prosecutions Office are investigating - for which Mr. Bascome should carry the can.

He said under the Westminster system, Ministers resign for "gross negligence or mismanagement" and that Premier Jennifer Smith should sack Mr. Bascome if he refuses to step down.

Mr. Bascome told MPs he did accept responsibility for BHC, but the legal processes had to be followed to allow Police and the DPP's office to find out if anyone should be prosecuted.

Dr. Gibbons quoted a letter from Mr. Dennis - who was instructed to carry out a probe into allegations of corruption, overpayment to some contractors and kickbacks - saying his report should not be made public yet in case it prejudiced a criminal case. He said under the 1980 Bermuda Housing Act, the Minister had to appoint civil servants as ex-officio members of the BHC quango, to represent him on the board.

BHC officials could not be removed without the Minister's permission.

"It is very clear from this that the Minister has responsibility for housing and has a lot responsibility for providing direction," said Dr. Gibbons.

"It is very clear from the Act that by his appointment by the Premier, Mr. Bascome is accountable for what goes on in BHC and to the people of this Country and this Parliament for anything that goes on in BHC."

He said Government had made "desperate efforts to try to put the problems at arms' length".

"The Premier and Mr. Bascome have essentially said to the Auditor: `You deal with it'. It is time for this Government to take responsibility.

"The Auditor can't absolve Mr. Bascome of his responsibility under the Act. He has direct responsibility." He said Government had "blamed everyone else for their problems", from the UBP to taxi drivers, or anyone else.

"What is the Minister going to do to take responsibility for what we now know is such a serious state of affairs that the Auditor can't release his report because it might prejudice a criminal investigation? The Minister has been guilty, according to the Auditor, of gross negligence and mismanagement. Under the Westminster system, (those guilty of) gross negligence have to do the right thing and resign.

"The Premier should do something about it. We now have enough information to know that this is the time for something to be done."

Although there had to be a balancing act between prejudicing a trial and public interest, Dr. Gibbons urged that the report be released soon so the Bermudian public could find out what had happened at BHC.

"There is a public interest in knowing what the Auditor General found in his investigation and we hope the Auditor, without too much delay, is allowed to release his report on the mismanagement in BHC because it is the public's right to know what happened, and it clearly isn't a pretty picture if a dossier has been handed to the Police."

Mr. Bascome replied that the Auditor had the ability to audit the accounts and had been doing so for years. "If the reports haven't been received by Government and the Auditor is told to go back to his boss and that there are instances that are under investigation by the Police, then the Police have to proceed so that they prosecute," he said.

Mr. Bascome questioned why there was a "rush to justice". He said Government wanted to Auditor, Police and DPP to do their work.

"We will allow the Auditor's report to go the legal way it's supposed to go, that is to the DPP, and if there needs to be prosecutions, there will be prosecutions.

"The Minister is responsible, but it is also a quango in which a chair is appointed and there is a CEO and general manager running that organisation," said Mr. Bascome.

"I take full responsibility. There has been talk about me resigning. One thing I wish I had responsibility for was to go back to make the audits."

He said a BHC report from the late 1980's showed the accounts had not been audited for three years.

"When the Opposition leader talks about responsibility, we should not have Opposition in this House," said Mr. Bascome.

He said there had been criticism that Bermudians had not progressed under the PLP.

"I can almost agree. Dunkley's Dairy, the Gibbons Company, AS&K, The Reefs (are progressing)," he said. Yet the homeless people in Salvation Army shelters were mostly black.

BHC had done a "lovely job" in providing homes for Bermudians and it was absurd for anyone to say they hadn't been working.

Mr. Bascome said 128 units had been completed by BHC under the PLP, and there were 178 people on the emergency list. Bermuda had a "monopolistic" economy where ordinary Bermudians were employed by big companies. "Companies benefit from shareholding and Mr. and Mrs. Bermuda don't share these profits, but members of the UBP know about shares in these profits," he added.

The Premier made no reference to UBP calls for her to sack Mr. Bascome during the motion to adjourn.

But Attorney General Dame Lois Browne Evans accused to the UBP of attempting to "make political hay" by quoting a letter Mr. Dennis sent to the party explaining that his report will remain under wraps because it may prejudice a criminal case.

She said the UBP was engaged in rumour mongering and will probably continue to do so even when the BHC investigation is completed.

"It is my regret that the members of the Opposition for political reasons have constantly dragged the Auditor General's name, if not his position, into this matter - to make political hay."

Dame Lois also reminded her colleagues that the Auditor General had sworn an oath of secrecy. "I would have thought that it would behove him not to be giving letters to the Opposition... If we then make it a political football we could say he's lying."

Speaker of the House Stanley Lowe said Mr. Dennis's report was confidential until it is eventually presented to him.