A former Heddington Insurance executive -- sacked from his job in Bermuda over a race scandal -- is still in legal wranglings with Texaco.

J. David Keough was dumped January 1997 as chief financial and administrative officer of Heddington, Texaco's Bermuda-based captive.

He was suspended and later fired as a result of an investigation into tapes allegedly recording company bosses uttering racial slurs and discussing destroying documents needed for a racial discrimination lawsuit.

Some of the executives -- but not Mr. Keough -- could allegedly be heard uttering racial slurs against black employees.

But Mr. Keough hit back with a lawsuit alleging libel, wrongful termination and `international infliction of emotional distress', among other charges.

A Texaco spokesperson said the company filed a motion to dismiss his claims last December, but both sides were stuck until the judge made a ruling.

Texaco yesterday announced its selection of the Chisholm-Mingo Group as its new partner for the development of an African-American corporate communications effort presently underway in the US.

The New York-based, black-owned and operated advertising and public relations firm, will link with Texaco's general market campaign.

The agency will assist Texaco in engaging the African-American community in a dialogue with the goal of building positive interest in the company.

As part of the settlement Texaco reached in November, 1996, with its current and former black employees, the company agreed to a spend $35 million on a task force to recruit black workers, monitor discrimination and develop diversity and sensitivity training.

But the Texaco spokesperson said there was no connection between the selection of the Chisholm-Mingo group and the discrimination suit.