Bermuda Commercial Bank yesterday rebutted a weekend news report that it had not followed proper procedures with the Bermuda Monetary Authority in its appointment of a board director.

On Friday, the Mid-Ocean News revealed that Finance Minister Paula Cox, in response to questions from the newspaper, had said the bank did not tell the BMA in sufficient time about the appointment of the late Stephen Curtis to its board last December.

In a press statement yesterday, BCB said it would like to ?correct the false and sensational assertions made in the May 21 issue of the Mid-Ocean News?.

Mr. Curtis was appointed to BCB?s board last December but in March of this year he was killed in a helicopter crash while being taken to his castle home on the English south coast, the news report said.

The cause of the crash is reportedly unknown and under investigation by UK authorities.

Mr. Curtis? BCB appointment came a month after he took over as managing director of Menatep, a $30-billion holding organisation used by Russia?s wealthiest man Mikhail Khodorkovsky.

Mr. Khodorkovsky is now behind bars after charges of fraud and tax evasion were launched against him last October by Russian president Vladimir Putin .

The Mid-Ocean News report said the bank was in ?hot water? after the late director?s Russian crime links were exposed.

But yesterday the bank refuted the claim and stood behind its late director.

?Stephen Curtis, a well-respected English lawyer, was elected to the board of directors of BCB at the annual general meeting held on December 12, 2003,? the bank statement said.

?BCB is not in ?hot water? over this election; all information regarding Mr. Curtis? directorship was properly reported to the BMA in accordance with Bermuda law.?

The bank also claimed that, contrary to the Mid-Ocean News report, there was no case being taken up by the BMA against BCB.

The bank said it followed normal procedures when it advised the chairman of the BMA in writing on December 2 of last year of Mr. Curtis? proposed election to the board at its annual general meeting, which it said fell on December 12 in one paragraph and December 10 in another.

BCB?s press statement added: ?In accordance with the Banks and Deposit Companies Act, and in accordance with discussions with the BMA staff, the appropriate questionnaire for senior executives, controllers and directors was completed and signed by Mr. Curtis, and was duly filed with the BMA.?

It added: ?Contrary to the statements and impressions created in the Mid-Ocean News story, at no time has the BMA questioned or challenged whether BCB correctly and timely informed the BMA of Mr. Curtis? election to the board and, at no time, has the BMA asserted any ?case? against BCB in regard to this matter.

?To allege or report otherwise is false and misleading, and potentially harmful to the reputation of Bermuda Commercial Bank, its officers and the islands of Bermuda.?

Yesterday Mid-Ocean News editor Timothy Hodgson said: ?Our information that the Bermuda Monetary Authority had taken up the matter with the Bermuda Commercial Bank came from Finance Minister Paula Cox. The Mid-Ocean News stands by its story.?