The Premier’s warning that Government could “suspend further business” with the Governor was not an idle threat, a source close to the country’s leader claimed last night.

Ewart Brown said in a television and radio broadcast that his Government would lose confidence in Sir John Vereker if the Governor did not take swift action to discover who leaked a highly confidential Police file containing allegations about Dr. Brown and other Government MPs to the media.

“In that event, we will have no choice but to suspend further business with him,” warned Dr. Brown, in what is believed to be an unprecedented threat from a Bermudian Premier.

His statement on Friday evening was dismissed as “posturing” and “nonsense” by two constitutional law experts at the weekend. But the insider — himself a legal expert and former parliamentarian — told The Royal Gazette yesterday: “The Ewart Brown I know does not posture. You find one instance in the entirety of his political career, particularly as Cabinet Minister, where he has threatened something or promised something that he hasn’t done. He does not cock a gun unless he is willing to pull a trigger.”

The broadcast followed publication on Friday in the Mid-Ocean News — The Royal Gazette’s>sister paper — of the contents of a secret Police file on an investigation into alleged corruption at Bermuda Housing Corporation (BHC).

The newspaper claimed Dr. Brown, former Premier Dame Jennifer Smith, Government backbenchers Renee Webb and Nelson Bascome, former PLP MPs Arthur Hodgson, Arthur Pitcher and El James and construction boss Zane DeSilva were investigated during the probe by fraud squad officers. None have ever been charged with any offence concerning BHC.

Mr. James, former Bermuda Cricket Board president and national team manager, said he had never been contacted by the Police concerning BHC and described the Mid-Ocean stories as “malicious”.

He said he did help some out-of-work men form a group which was awarded two BHC contracts when he was a backbencher. But he added: “I did not receive any money from it. The money went to the boys. It looks like it’s a lot of mess being stirred up pre-election to try to sway the voters.

“It was a shock to see my name. I have never been contacted by the Police or by anyone. This maliciousness is really out of control. I stand on my integrity and feel maligned by such garbage.”

Dr. Brown said publication of material purported to be extracted from confidential official files of a criminal investigation showed blatant malice in intent and raised profoundly serious questions about how the newspaper came into possession of documents to which only a limited number of officials had access.

He said he had previously raised directly with the Governor the security of the BHC files but alleged that Sir John “did nothing to protect” him and his MPs from “character assassination”.

The source said that Dr. Brown would take his dissatisfaction with the Governor “to the bridge”.

“We have got a leader in the PLP who is just not going to put up with it,” he said. “He will take it to the absolute nth degree of where it needs to be taken.”

He said that could mean Cabinet asking the British Government to recall Sir John or the British Government instructing the Governor to dissolve Parliament and call an election.

“You can be pretty well assured that there won’t be some kind of heavy colonial hand,” he said. “I certainly don’t see the British gunboats coming up here and forcing the Premier to meet with the Governor. That’s like the 1940s. There would be diplomatic discussions.”

The source said that if the public voted the Government back in after the promise of such a “showdown” it would give the PLP a clear mandate to act.

Sir John said last night that Government House would not be adding to a statement made on Friday by Acting Police Commissioner Roseanda Young.

She said the leak of the file appeared to be an attempt to discredit the Police and embarrass Government.

A Police spokesman said yesterday that the investigation into the leak was ongoing.

Mr. Bascome would not comment. Mr. Hodgson said: “There is nothing to respond to.”

Dame Jennifer, Ms Webb, Mr. Pitcher and Mr. DeSilva could not be contacted.

Opposition Leader Michael Dunkley will make a televised statement on the BHC issue on Wednesday evening at a time to be announced.