XL Capital this week refuted a recent newspaper article that reported it was involved in the financing of a proposed Mobile, Alabama housing project.

The project, which has not yet got off the ground, has been tainted by reports that it may have ties to a man who is reportedly parading as an engineer despite having no qualifications to do so.

XL's name was linked to the development project - one that a Mobile minister, Rev. Wesley James, is trying to get underway as low and middle-income housing - in a report by area newspaper Mobile Register. This week XL issued a brief statement saying it had no financial involvement with the project.

"XL Capital Ltd has no financial participation in the Hillsdale housing project in Mobile County, Alabama, either as a lender, borrower, credit enhancer or buyer."

Under fire is Mohammed Baheth, a man reportedly fined in years past in Louisiana for practising as an engineer without a licence and for overstated academic credentials. More recently, Mr. Baheth has been given work by Mobile County, said the newspaper, adding that letters stated that Mr. Baheth could have a proposed role in the Hillsdale redevelopment. The newspaper also reported that there was a history of XL executive Marc Helpern having business ties with Mr. Baheth.

The news story - running in the Alabama newspaper which reaches between 220,000 and 275,000 readers daily - claimed that the redevelopment of the Hillsdale housing area in Mobile County, Alabama, was to be financed by a division of XL Capital.

In saying that, the newspaper quoted Rev. James who reportedly said: "We were trying to get the financing together and I asked him Baheth to see if XL would have an interest in participating," James said. XL is now going to be "totally involved" in Hillsdale, James said.

While XL said it could have done some consulting in connection with the project - through its subsidiary XL Environmental - that was now over.

The company's statement continued: "XL Environmental, which is part of the XL Capital Ltd group and specialises in environmental consulting and insurance, offered certain consulting services to entities connected with the project but has decided to disengage from the project for a variety of reasons."