OPPOSITION MP Grant Gibbons is questioning why a police inquiry into alleged financial irregularities involving a Government ministry has apparently stalled.

An investigation into the use of $700,000 of public money given to former Berkeley school contractor Pro-Active Management Systems is still not complete - four years after detectives were alerted to the controversy.

Auditor General Larry Dennis raised the alarm over the transaction in 2002 when the Ministry of Works & Engineering failed to provide a receipt proving how Pro-Active had spent the money. It was intended to pay for a performance bond ? a type of insurance policy on the project to build the new school ? from Union Asset Holdings Ltd., a subsidiary of the Bermuda Industrial Union. Pro-Active was later sacked from the trouble-hit project after failing to meet deadlines and cost targets and subsequently took legal action against Government seeking compensation for breach of contract.

In his inquiry Mr. Dennis said he could find no evidence that the funds had been used appropriately. He subsequently passed on his findings to police in January 2003.

In January 2006, Director of Public Prosecutions Vinette Graham-Allen told this newspaper that the findings of the police inquiry had been passed on to her office. But when asked this week if any further action would be taken, a DPP spokesperson said that the case was still in the hands of fraud squad officers. Detectives later confirmed that their inquiries were ongoing.

Yesterday Dr. Gibbons said he was concerned that the inquiry was taking so long, adding he was anxious the matter was not "swept under the carpet".

He said: "Why is this taking so long to be resolved?

"Given the length of time that this has been going on, I think the only conclusion that any reasonable person can reach is that it's being swept under the carpet."

Dr. Gibbons said the result of the legal battle between Government and Pro-Active should also be made public. The arbitration talks, held behind closed doors at the behest of Government, were expected to wrap up last month, although the has been unable to find out if a final ruling has been made.

"There is a cloud of suspicion hanging over this whole affair; it's important for the tax payer that it be resolved and made public," Dr. Gibbons said.