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Burch refuses to respond to allegations

Housing Minister Sen. David Burch will not respond to allegations made in the Mid-Ocean News about Bermuda Housing Corporation (BHC) condominiums allegedly built for twice the going rate.

A Government spokeswoman said Lt. Col. Burch would not be addressing the issue because he had made clear in his first press conference that he was committed to cleaning-up BHC.

The weekly newspaper reported last Friday that BHC paid a contractor $406 a square foot for the Perryville complex in Warwick, but an experienced builder said it should have cost no more than $200 a square foot.

The Government spokeswoman told The Royal Gazette: "Everything he (Sen Burch) will say in response to the Mid-Ocean News, he has addressed in his initial, inaugural press statement.

"He will address all the issues as he promised to do in that press conference."

At the press conference last month, Sen Burch said accounting and ordering procedures at the scandal-hit quango had been tightened-up and he would not tolerate any abuses.

He also said Government would sue contractors who had been over-paid, admitting a "substantial" amount of cash had been over-paid to an undisclosed number of companies.

The Mid-Ocean News reported that Hibiscus Development was paid $4,197,518 for the 12 two bedroom condominiums in Warwick.

The newspaper said a mortgage report done for BHC directors appraised the work at between $200 and $225 per square foot, not including the land.

But BHC documents showed Hibiscus Development, which was also given the BHC contract for the Southside Development, were paid $406 a square foot.

Gilbert Lopes of GL Construction told the newspaper: "Without seeing the plans its difficult to say, but I would have thought for a project like that, you are looking at about $200 a square foot."