No politicians will be charged in relation to the Bermuda Housing Corporation (BHC) fraud scandal, The Royal Gazette can reveal.

Despite rumours that present and past Cabinet members had been implicated in the controversy at the quango, it is understand Police did not interview any MP because there was not sufficient evidence.

Acting Director of Public Prosecutions Kulandra Ratneser told The Royal Gazette yesterday: "I have not been presented with any file disclosing any criminal conduct by any politician."

In the House of Assembly last year Opposition MP Maxwell Burgess said he had heard rumours that arrest warrants had been issued against two Government MPs.

A number of informed sources told this newspaper that although detectives carried out a thorough investigation lasting more than two years, they did not interview any MPs because they did not uncover enough information to justify this. Mr. Burgess came under fire from Progressive Labour Party MPs for giving voice to rumours and for potentially hampering the right to a fair trial if MPs had been arrested.

Police spokesman Dwayne Caines said the force would not comment on the BHC investigation.

Mr. Ratneser said yesterday he has recommended to Police that one person be charged with fraud resulting from the scandal and he was considering whether another should be charged.

Former Shadow Health Minister Michael Dunkley, who exposed the scandal more than two years ago, said he was not confident the Police investigation had answered all questions and the UBP would continue to push to ensure the problems are now "swept under the carpet.

"We are not confident the investigation has come up with much in the way of answers to what really took place," he said.

"The course of justice seems to be slowly running its course without much results and we will follow it until the end.

"It is our job to hold Government up to the highest standards of conduct and we believe there are serious issues that still need to be answered and we won't rest up until that takes place.

"We are not so much concerned about who gets charged. The most important think we in the UBP have focused on from the very beginning was that this mess gets cleaned up.

"It appears there is nothing much going to come out in the courts and that makes us concerned about this matter and we won't let it rest and will continue to push for answers.

"The former Housing Minister Col David Burch was making very bold statements that he would get the money back and we've heard nothing.

"He stood up at a press conference and puffed up his chest and said this. What's happened to that commitment? Has Government forgotten about that commitment and swept it under the carpet? "Former BHC general manager Raymonde Dill and property manager Terrence Smith were sacked after the scandal of alleged over-charging and double billing first emerged.

In a separate matter, Mr. Smith, of Tee Street, Devonshire, and his wife Veronica were charged with defrauding Capital G Limited of $595,000 and $245,000.

But last week at Magistrates Court, the DPP's office dropped the fraud charges against the couple.

At the time, Mr. Ratneser said he could not comment on why the charges had been dropped.