Opposition Leader Grant Gibbons has called on Government to use its own legislation to name and shame those responsible for the illegal loan made by the BIU Credit Union to Union Asset Holdings.

Financial statements from the Credit Union in 2003 showed a loan of nearly $3 million made to UAH, the BIU-owned subsidiary which provided the completion bond for the new secondary senior school.

The unauthorised loan contravened sections of the Credit Union Act although auditors noted no disciplinary action was taken against the Credit Union other than ensuring UAH repaid the money.

On Monday Finance Minister Paula Cox accused Dr. Gibbons of playing politics with the issue and she said regulators the Bermuda Monetary Authority should not publicise matters relating to institutions they regulate.

But Dr. Gibbons said this was absolute nonsense.

"In fact, it contradicts recent legislation brought by the Finance Ministry itself," he said.

"The Investment Business Act 2003 ? which was debated in Parliament by Ms Cox herself ? calls for public censure as a step in the disciplinary process if a provider is in violation of the law.

"It also informs investors that there is a violation that they should be aware of.

"Contrary to Ms Cox's assertion, the issue of the illegal loan is not 'too important' for politics, because inappropriate political influence is at the heart of this controversial issue.

"The Finance Minister is, after all, a politician, who makes political as well as policy decisions, and she is not above having those decisions questioned. Like it or not, she, too, should be held accountable for her actions.

"The PLP Government and the Finance Minister have put political interest above the interests of the credit union members.

"Without legal sanctions, without even naming and shaming, there is no reassurance for credit union members that the same illegal activity won't happen again.

"After all, if a person knows he can get away with a crime, why wouldn't he do it again?"

He called on Ms Cox to tell the whole truth about the illegal loan made by the BIU Credit Union.

It has been alleged a senior member of the BIU ordered the loan. Dr. Gibbons is demanding to know who authorised the Credit Union loan officers to proceed with the illegal loan, what steps have been put in place to prevent it happening again and why Minister Cox has not taken disciplinary action against those responsible, even though legal sanctions are clearly specified by the Credit Union Act 1982.

He added: "Why was there not even a whisper of the illegal loan mentioned in the BMA's annual report or its regular public updates?"