Controversial Bermuda College vice president Dr. Donald Peters has been paid off six-months early.

And Dr. Larita Alford, who was due to take over from him in December, will start her employment tomorrow.

College chairman Randy Horton said: "The Board of Governors and Dr. Peters have reached a mutual agreement on the conclusion of his existing employment contract.'' Dr. Peters, who has landed a post at the State University of New York, was forced to apologise in September after he branded a colleague a racist in a memo distributed only to black members of staff.

He also called for Bermuda's public education system to be disbanded after revealing that standards were so low that 70 percent of students applying to join the college did not meet the requirements.

However Mr. Horton's statement paid tribute to Dr. Peters for his work in setting up the new student government structure, the prior learning assessment, the University of Kent/Bermuda College law programme and the recently opened Centre for Education.

Mr. Horton said: "The chairman and members of the board of governors therefore wish to thank Dr. Peters for the contributions which he has made to Bermuda College's development as an educational institution of recognised substance, stature and academic standing locally and internationally and wish him every success in his future endeavours back in the United States.'' Bermudian Dr. Alford will have responsibility for all academic programmes and student services.