RAYMONDE Dill was arrested by Bermuda Police last week in connection with the investigation into the Bermuda Housing Corporation, the Mid-Ocean News has learned.

Three different Government and police sources confirmed that the former general manager of the BHC was arrested early last Friday morning.

Mr. Dill was reportedly questioned by police officers and was later released on police bail. Bermuda Police Service chose to make no comment when asked about the arrest yesterday.

The police inquiry into the publicly funded Corporation began after a special audit was carried out at the request of Premier Jennifer Smith by Auditor General Larry Dennis.

Mr. Dennis completed his investigation last May and his findings were passed on to the Director of Public Prosecutions and a police investigation ensued.

Two British police officers were brought in from Scotland Yard to help with the investigation last September at the request of the Bermuda Police Service.

Mr. Dill, along with two other BHC employees, was suspended on full pay, from March last year. He was then dismissed from his job as general manager in August.

Former BHC property officer Terrance Smith was also fired in August and finance manager Robert Clifford, who has been suspended since March, is suing the BHC having filed a writ against the Corporation last September. The Corporation has never publicly stated the reasons for the sackings or suspensions.

Mr. Dill told the Bermuda Sun last September: "To my knowledge there is nothing he (Mr. Dennis) could have found in the transactions of the BHC that were of a criminal nature.

"The Auditor General may have had issues with some of the processes and some of the procedures, but these are policy issues to be dealt with internally, not criminal issues."

The police investigation into the BHC is continuing.