PREMIER Ewart Brown is facing an internal party revolt from both MPs and grass-root supporters over the Bermuda Housing Corporation scandal, according to a Progressive Labour Party source.And yesterday Dr. Brown declined to answer questions about his involvement in the affair.

The insider claimed that up to five MPs met with the Premier this week and asked him to resign following revelations that he was at the centre of a police investigation into corruption at the Government quango.

The source, who asked not to be named, added that party officials are now considering postponing a pending General Election until the end of the year.

But yesterday PLP spokesman Wentworth Christopher said he did not know of any MPs making demands on the Premier to quit.

“I have not heard any information that there’s been any interaction of that nature between the Premier and Parliamentarians,” he said.

One member of Cabinet contacted by the Mid-Ocean News also said he was unaware of a possible move to oust Dr. Brown.

The contents of the police dossier collated during the two-year long probe into corruption at the BHC were first made public by the Mid-Ocean News last week.

The documents showed that detectives suspected that offences involving Government Ministers occurred at the quango in a scandal that was labelled ‘Bermuda’s Enron’.

The inquiry, which wrapped up in 2004, unearthed evidence which suggested that top-ranking Government MPs, including Dr. Brown, employed tactics of manipulation and abuses of power for their own financial gain.

Despite the extensive police investigation, only one man was ever convicted of any offences related to the scandal — BHC housing officer Terrence Smith, who was jailed for eight years last year after being found guilty of several counts of fraud.

Officers obtained evidence which suggested that Premier Brown, who was Transport Minister at the time of the inquiry:

[obox] Cajoled BHC boss Raymonde Dill into buying his Flatts property at an inflated price.

[obox] Did not pay a $150,000 bill for renovation work carried out by BHC on his Flatts property before it was sold.

[obox] Was in line to receive financial rewards from business associate and construction boss Zane DeSilva who was planning to broker a deal with Government involving the shipment of asbestos to Cuba.

The dossier also contained a letter from then-Acting Director of Prosecutions Kulandra Ratneser, who concluded that police did not have sufficient grounds to question Dr. Brown about the allegations.

Asked if he would comment on those allegations yesterday, Dr. Brown told reporters: “No. This matter is being handled for the Government by the Attorney General.”

The Mid-Ocean News yesterda>also e-mailed a list of questions concerning the allegations to the Premier’s press secretary Glenn Jones. Mr. Jones said he believed Dr. Brown would be making no further comment on the issue at present.

But a constitutional crisis appears to have been diverted after Dr. Brown revoked a threat to sever relations with Governor Sir John Vereker.

Dr. Brown first made the threat in a televised address last Friday after the Mid-Ocean News broke the story.

Claiming that the Governor, as head of the police, had failed to prevent the top-secret dossier being leaked, Dr. Brown urged Sir John to take “swift and meaningful action against the perpetrators of this nefarious scheme” adding that, if he failed to do so, Government would “have no choice but to suspend further business with him”.

The stand-off was fuelled by Public Safety Minister David Burch, who revealed in the Senate on Wednesday that he had written to the Governor asking him to relinquish his duties as head of the Bermuda Police Service.

When questioned by reporters yesterday morning, Dr. Brown described the matter as “growing pains in a colonial environment”.

“It won’t be long before this will be resolved and it won’t be all that exciting,” he said.

A joint statement released by the Premier and the Governor yesterday afternoon read: “We met yesterday evening, at the Governor’s request, to share our concerns about possible damage to Bermuda arising from recent unauthorised disclosure of material relating to the police investigation into the affairs of the Bermuda Housing Corporation.

“The Governor assured the Premier, as he had done in a letter at the beginning of the week, that he deplored any unauthorised disclosure of correspondence between the Police Service and the Director of Public Prosecutions, and that an investigation would be pursued diligently. The Governor has advised the Commissioner of Police to seek outside assistance from Scotland Yard.

“The Premier assured the Governor that he and his Government intended to continue to collaborate with Government House, in the best interests of Bermuda, in accordance with their oaths of Ministerial office.

“The Governor and the Premier took the opportunity to reaffirm their joint commitment to working with the Bermuda Police Service in accordance with their respective responsibilities.”

Premier and Governor issue joint statement