Government claimed yesterday that doctored copies of cheques had been created to imply that money had been paid to Ministers from the contractors on the Police/court building.

And Government House last night confirmed Police were now investigating the matter which was described as "urgent".

Works and Engineering Minister Derrick Burgess said that his Permanent Secretary, Robert Horton, had been looking at the books in response to queries from the Auditor General.

At an extraordinary press conference held at Cabinet Office, attended by a slew of Cabinet Ministers and top civil servants, Mr. Burgess said: "The Permanent Secretary saw in the Ministry's files records of two cheques which he found immediately of interest:

¦ A Landmark Lisgar Construction Ltd. cheque numbered 0123 in the amount of $14,780 in favour of 'Dr. E. Brown', and

¦ Another Landmark Lisgar Construction Ltd. cheque, this one numbered 0170 in the amount of $10,000 in favour of 'D. Burgess'."

Mr. Burgess went on: "These purport to be of completed cheque transactions sent by the Bank of Bermuda to Landmark and subsequently submitted by Landmark Lisgar Construction Ltd. to my Ministry.

"As part of our investigation, however, we had asked Landmark Lisgar Construction Ltd. now LLC Bermuda, to produce the entirety of their actual bank records. It took very little time to discover that the two cheques to which I have just referred never existed."

Mr. Burgess claimed the copies contained in the Ministry's records were fabrications of the true originals which themselves were:

¦ Another Landmark Lisgar Construction Ltd. cheque bearing the same number 0123 in the same amount of $14,780, but this time in favour of Scorpio Construction Ltd, and

¦ Another Landmark Lisgar Construction Ltd. cheque bearing the same number 0170 in the amount of $10,000, but this time in favour of Chester Management.

Mr. Burgess added: "We have confirmed that the versions of the cheques which are in LLC Bermuda Ltd.'s possession are identical to those held by the Bank of Bermuda."

He said the funds arising from these cheques were never deposited into the account of any Cabinet Minister. "These funds reached their intended destination," he added.

Mr. Burgess said Landmark had confirmed that the only version of its bank records that it would supply are the original records supplied by the bank and still in their possession.

And he said Landmark insisted that no cheque has been issued, and no payment has been made, by them or to any Cabinet Minister at any time.

Mr. Burgess said rampant speculation in the community over the issue had been very hurtful indeed.

"With the deepest outrage and feeling of insult, we come immediately to the public via this press conference in order to reveal this information, to express that outrage and, now through the Premier Dr. the Honourable Ewart F. Brown JP MP, to discuss actions which this Government has taken and which we intend to take in the immediate aftermath of this shocking and deeply disturbing discovery."

Dr. Brown said it was right to bring the matter to the public's attention immediately.

He added: "The matter will also be the subject of a thorough Police investigation to determine what crimes may have been committed by the fabrication and falsification of these documents and their distribution by a person or persons unknown."

Those acts were clearly committed with the intention that they should be used to sully the reputation of the Government and to damage, if not destroy, reputations, said Premier Brown.

He added: "It is clear that they may also have been used to support and to catalyse invasive, costly and time-consuming investigations into Government's actions in relation to the Court/Police station project.

"Let the word go forth that no stone will be left unturned in this Government's efforts to uncover the source and purpose of these foul acts."

Opposition Shadow Minister for Legislative Reform and Justice John Barritt said: "This is very serious stuff. They used the word 'fabrication'.

"In actual fact what we are talking about now, is forgery, which is a very serious criminal offence. There ought to be a full investigation as to what's happened here. It sure seems like a tangled web when it need not be – if from the outset we simply had open books around this place when it comes to Government contracts. If anyone needs convincing then surely this is it."

A Government House spokesman said last night: "At a meeting with the Governor at Government House on February 4, the Premier registered his concern about a serious matter involving two cheques associated with the new Police/Magistrates' Courts building project.

"This morning, February 5 the Governor met senior officers of the Bermuda Police Service and a Police investigation is now underway. The investigation is urgent."

Works and Engineering Permanent Secretary, Mr. Horton, produced copies of the cheques at the press conference yesterday.

He said Landmark/Lisgar had been required to produce invoices, cheques and any other documents to support a payment request and he had discovered in Government files copies of the cheques.

He said: "I have spoken to senior personnel at HSBC/Bank of Bermuda Ltd. upon which bank the cheques were drawn, and they have confirmed that the actual cheques which they received are as follows: cheque number 123, which was made out to $14,780, was not in fact made payable to a Dr. E. Brown, in fact it was made payable to Scorpio Construction.

"Similarly, cheque number 170 was not payable to a D. Burgess, instead it was payable to Chester Management."

Yesterday the Bank of Bermuda was asked whether it could confirm Government's story. A Bank of Bermuda spokesperson said: "The bank is unable to comment as this matter is under Police investigation."

Mr. Horton would not say when he was first made aware of the cheques. He said Scorpio was a construction company and LLC could say what Chester Management was.

Mr. Horton said he didn't know who sent the false cheques.

Asked if he could state that no minister or their business had been paid any money from this project, he said: "I can state categorically that without equivocation, yes – to the best of my knowledge. I have been going through it with a fine-toothed comb and have certainly seen no evidence of that. I don't believe that's the case."