Auditor General Larry Dennis is considering legal proceedings against union activist and Progressive Labour Party Pembroke South West candidate LaVerne Furbert over allegedly libellous comments in her newspaper column.

Mr. Dennis, the Island's independent financial watchdog, is angry Ms Furbert accused him of criminal conduct in her column in the Workers Voice.

She is the second member of the Progressive Labour Party he has accused of libelling him during the election campaign.

The Royal Gazette reported on December 5 how he is also taking steps against Immigration Minister Derrick Burgess over remarks at a Progressive Labour Party rally on November 29.

Mr. Burgess alleged Mr. Dennis received stolen goods in the form of a leaked Police report about allegations of corruption at the Bermuda Housing Corporation.

Ms. Furbert made similar remarks in the November 30 edition of The Workers Voice.

She further alleged that Mr. Dennis has entertained Harold Darrell, who has identified himself as the source of the leak, in his office "which is paid for by the taxpayer."

Mr. Dennis, who has strongly denied any wrongdoing in relation to the BHC leak, has come under fire in recent years by members of the PLP who have accused him of pro-Opposition bias.

He said yesterday that he has contacted his lawyer Alan Dunch in respect of Ms Furbert's editorial.

"I think my being quiet, they have just taken advantage of it. The Auditor General is not prime target during election time. I would not release a report during election time. It's cowardly taking potshots during election time. They need to take the Auditor General seriously," he warned.

He described Mr. Darrell as a friend of 30 years, but stressed he has only hosted him during breaks from work and never at taxpayers' expense.

"Sure he has been in my office. I think he comes in once a week but so can anyone else from the public. Mr. Darrell has never had one cup of coffee when he comes to my office," he said. "When a friend becomes controversial, I don't believe you would discard them."

Mr. Dunch said the Auditor General asked him to review the contents of Ms Furbert's column and advise him accordingly, but had not come to a decision.

He also revealed that Mr. Burgess has been asked to issue a retraction and apology by December 14, but had not done so yesterday.

Ms. Furbert declined to comment.

The Auditor General has seen his office raided twice this year by Police hunting their BHC missing dossier. In the first swoop on June 18, detectives also searched his home and detained him for 24 hours in custody.

Mr. Dennis was arrested on suspicion of handling the allegedly stolen file, which is an allegation he has always denied. Mr. Darrell was also arrested but both had their Police bail lifted on December 4.

A Bermuda Police spokesman said at the time that inquiries are ongoing.