with an investigation into the Bermuda Bakery Ltd. has not contravened any provision of his Police bail, contrary to broadcast reports.

And Police said they do not consider the man, believed to be former Bakery controller Mr. Earl Fithian, to be "on the run''.

He is not being sought overseas by the authorities, and would not be, unless he failed to appear in Bermuda to answer conditions of his Police bail later this month, official police sources said.

But authorities would not say which day this month the man is required to appear.

Under such provisions, suspects sign a bond and are released at their word that they would return to a specified place at a specified time on a specified day.

The Police spokesman said broadcast reports that claimed the man had already broken Police bail by leaving the Country were not true. He was not compelled to surrender travel documents or remain in this jurisdiction.

Police also scotched broadcast reports that "hundreds of thousands of dollars'' were involved in their enquiries, saying it was "dead wrong.'' A spokesman said: "Police are aware that he is overseas. He has not jumped bail. He is on Police bail, so he is allowed to travel.'' Meanwhile, Bermuda Bakery chairman, Mr. James Pearman, has confirmed that Mr.

Earl Fithian, the sacked company secretary and financial controller, is a company shareholder.

But he said that if extensive enquiries, launched by company auditors and Police that led to Mr. Fithian's arrest and subsequent Police bail, turn up any wrongdoing on his part, the company will go after his assets.

Mr. Pearman assured: "If we can determine that he did indeed take money from us or caused us damage, then we would take every step possible to get hold of such assets that he had.

"And he had shares in the Bermuda Bakery, for example. I don't know how many shares he had. I haven't quite worked that out. But he certainly was awarded shares as a bonus, as part of his employment each year. I believe that he may have bought some on his own accord in the market. So I don't know.'' When asked about Mr. Fithian's family or Bermuda connections, Mr. Pearman could only say: "There was a rumour that he had a fiancee and was getting engaged to be married. I've never met her, although it was understood that she had visited Bermuda once or twice.'' He doesn't believe that Mr. Fithian has any other connection with Bermuda.