annual report.

But credit union manager Mr. Calvin Smith this week hit back, saying the institution emerged from the recession "very liquid'' and the Authority appeared to be breaching confidentiality in its report.

The Authority's report and accounts for 1992 said the Bermuda Industrial Union Credit Union's affairs remained "far from acceptable''.

"Efforts will continue towards remedying inadequacies in the operations of that financial institution,'' the report said.

It further stated the results were disappointing, in light of improvements hoped for in last year's report.

At that time, the Authority said statutory reporting from the Bermuda Industrial Union Credit Union had come "to a virtual standstill''.

The 1991 report noted that Finance Minister the Hon. David Saul had issued the credit union with reporting deadlines "to bring the accounts and operations of the credit union into better order and bring about compliance with the requirements of the Credit Unions Act 1982.'' "It is hoped that the results will prove themselves through 1992,'' last year's report said.

In the past, reporting failures have been attributed to a lack of administrative manpower, rather than any financial shortfall.

This week Mr. Smith would not comment on whether the credit union had missed reporting deadlines, but said its reserves were "well above'' the 20 percent of assets required by law.

"We came out of the worst of the recession in a very highly liquid position.'' Because information related to financial institutions is so sensitive, details of dealings between the credit union and the Authority should not be made public, Mr. Smith told The Royal Gazette .

"I'm surprised that they'd be making those kinds of comments, given the confidentiality requirements of the Credit Unions Act 1982,'' he said.

When the subject was raised in the House of Assembly on Saturday, Opposition Leader Mr. Frederick Wade admitted it was "not a glowing report''. But "we were in the middle of a recession,'' in the year of the report, Mr. Wade said.

"I'm satisfied with the progress being made.'' Since only BIU members can belong, the credit union's income is "totally dependent upon the climate on the labour front,'' he added.

Mr. Smith said the credit union's annual general meeting would be late this year because its new auditor Mr. Myron Binns Jr. only recently came on board.

Hunter and Co. resigned as the credit union's auditors last year.

MR. CALVIN SMITH -- `we came out of the recession in a highly liquid position.'