Asbestos and radioactive material accidentally sent to the US from the Club Med site is now back in Bermuda and being dealt with, a Government official said last night.

An inquiry was launched after the US authorities discovered the materials on a ship that arrived in New Jersey earlier this month. They sent them back to Bermuda amid safety concerns.

Robert Horton, Permanent Secretary to the Ministry of Works and Engineering, explained at the time that one container was supposed to have contained scrap metal from the demolition of the old hotel.

An error meant that a container of asbestos destined for the Government quarry was shipped instead.

A second container with a boiler from Club Med was shipped correctly. However, tests after it arrived in the US revealed that it had low levels of radioactive materials present. Both shipments were turned back.

In a statement last night giving an update on the situation, Mr. Horton described the asbestos incident as "an unacceptable and most regrettable error". He confirmed that the containers arrived back on the Island on Sunday August 10.

"The container with the asbestos has been taken to the Government quarry where it is now being stored in conditions approved by the Department of Environmental Protection.

"The container with the boiler has been returned to the site of the former Club Med Hotel in St George's where it is being examined by scientists of Bermuda Water Consultants Limited [BWC].

"BWC, following consultation with the Department of Environmental Protection, will provide advice with respect to appropriate disposal of radioactive material found in bricks that comprise the boiler's lining. We have been advised that there are extremely low levels of radioactivity showing, levels that pose no threat to individuals' health and safety," he stressed.

Mr. Horton gave no information as to the outcome of the inquiry into the mistaken shipment or any resultant action, and could not be contacted for further comment.

The Club Med site in St. George's has been derelict for over 20 years. It is being demolished to make way for a new Park Hyatt hotel and golf course, with an "implosion" scheduled for Monday August 25.