Police have arrested two men in connection with the leaked Bermuda Housing Corporation files.

It is understood the pair were picked up last night and spent the night in custody where they remained as of this afternoon.

Police spokesman Dwayne Caines would only say: "There are people in police custody assisting with Police inquiries."

The hunt for the leakers led Government to call in top cops from Scotland Yard in Britain and to gag the media after revelations from the secret documents were aired on ZBM news and the Mid-Ocean News.

The file is said to run to thousands of pages of interviews, e-mails and bank statements while the original copy of the dossier, which is far larger, has gone missing.

The contents of the un-published sections of the dossier have not been revealed during this week's court hearing on the media ban.

However the portions already printed by the Mid-Ocean News reportedly revealed that Premier Ewart Brown, former Premier Jennifer Smith and former Ministers Renee Webb and Arthur Hodgson were all investigated by Police looking into the BHC allegations.

Construction boss Zane DeSilva was another prominent person investigated as part of the probe into allegations of corruption at the BHC, the documents reportedly showed.

When the investigation finished in 2004, then acting Director of Public Prosecutions Kulandra Ratneser said many of those investigated could only be accused of bad ethics.

Mr. Ratneser also said some of the people investigated escaped prosecution due to Bermuda's antiquated corruption laws.

Since the BHC scandal - which is believed to have cost the taxpayer $8 million - one person has been convicted.

Terrence Smith, a BHC officer, was found guilty and jailed last year on 41 counts of fraud.

Chief Justice Richard Ground is due to deliver his judgment on the gagging orders on Monday morning.