Suspended Bermuda Housing Corporation (BHC) finance manager Robert Clifford is suing the controversy-stricken Government quango, The Royal Gazette has learned.

A writ was filed yesterday afternoon in Supreme Court naming Mr. Clifford in an action against the BHC.

Mr. Clifford is represented by Appleby Spurling and Kempe but yesterday lawyer Kelvin Hastings Smith would only confirm that proceedings had been initiated and refused comment on the substance of the matter.

Efforts to contact BHC acting general manager Deborah Blakeney, both at the quango's offices and her home, were unsuccessful yesterday.

Contacted at his home yesterday afternoon, Mr. Clifford also refused to comment on the matter.

Mr. Clifford was suspended with full pay on March 20 of this year the day after the BHC board suspended general manager Raymonde Dill.

The suspensions followed the launch of an Auditor General's investigation into BHC's operations amid allegations of corruption, kickbacks and overpayments to contractors at the corporation.

At the time of the suspensions of Mr. Clifford and Mr. Dill, the BHC board issued a statement saying the move did not imply any wrong-doing on the part of either man.

“The board has taken this action to protect Mr. Clifford in his professional capacity and to protect the integrity of the investigation,” the board said in a statement on March 20.

After a months-long investigation, Auditor General Larry Dennis turned his files over to the Bermuda Police to investigate possible criminal proceedings.

And last week, The Royal Gazette revealed that a team of officers from Scotland Yard's fraud decision have been brought to the Island to assist local Commercial Crime officers.

The two Scotland Yard officers, one of whom is a Chief Superintendent, were to spend a week in Bermuda, reviewing the investigation and giving advice on which lines of inquiry might be worth pursuing further.

No criminal charges have yet to be laid in relation to the scandal which was first raised in the House of Assembly early this Spring by Opposition MP Michael Dunkley.

Mr. Dill was sacked from his position as general manager last month, however, and has said he intends to fight his dismissal.

Mr. Dill also launched allegations of improper behaviour against two Cabinet Ministers - Dr. Ewart Brown and Housing Minister Nelson Bascome.

Following the publication of Mr. Dill accusations in the Bermuda Sun, Premier Jennifer Smith said she intended to meet with the two Ministers and would later inform the public about how she intended to deal with the matter.

The Premier has yet to make a public statement, however, although both Dr. Brown and Mr. Bascome returned to the Island early last week.

Last night, The Royal Gazette was unable to confirm whether Mr. Clifford is still under suspension from BHC with pay.