Senators have expressed concern that the arrest of the Auditor General has cast a cloud over Bermuda’s international reputation for business.

Senator Bob Richards, of the UBP, said the Island was in “grave danger” of losing its quality of life and freedoms if the situation was allowed to escalate.

However, Senator David Burch, Minister of Public Safety, said Police were simply exercising “the rule of law”. “You can’t cherry pick justice,” he said.

Auditor General Larry Dennis was arrested on Monday and detained for almost 24 hours as Police probed the source of leaked documents claiming several Government ministers were investigated over allegations of corruption at the Bermuda Housing Corporation.

Opposition party leader Michael Dunkley branded the investigation into the leak to the media as a “witch hunt” and yesterday Senators said events of the past few days had left them “very worried”.

Sen. Richards told the Senate: “Bermuda’s true natural resource and its treasure is its reputation. In just a moment of madness or carelessness that reputation can be dashed forever.”

Referring to the Profumo scandal of 1963, in which then UK Secretary of State for War John Profumo resigned over his affair with Christine Keeler, Sen. Richards said: “Reputations are hard to build and very easy to destroy.

“I think we have to be mindful of that with respect to Bermuda. We have built a sterling reputation. Former administrations and the current administration have worked hard to build and sustain that good reputation.

“We are now in grave danger of having that moment of madness, that indiscretion, that lightning event that can bring that reputation to its knees.”

Sen. Richards then pointed to a headline in Global Reinsurance magazine which referred to the BHC saga.

He said: “That poses a great danger to Bermuda’s natural resource, to its desire to sustain the standard of living we’ve all come to enjoy and expect.

“I’m very, very worried about our country at this point in time. We have the Police roaming around Bermuda raiding various institutions — institutions that are very essential for the preservation for democracy and freedom in our country. I am concerned.”

Commenting on the “enthusiasm and diligence” of the Police over the matter, Sen. Richards said: “If they were doing that with drug dealers we wouldn’t have any crime in this country, because we wouldn’t have any drug dealers.

“People in Bermuda are wondering what is next — jackboots and swastikas? I hope not.”

He then referred to Senator Phil Perinchief’s comments on dictatorship during last week’s Senate hearing.

“I found it interesting because no one around this table had mentioned this word but people out there (the public) are talking about it,” said Sen. Richards.

“There is no system that can protect against authoritarianism and totalitarianism. The only thing that can protect against this is the people themselves.

“The whole business about erosion of rights and freedoms is not something that happens overnight, it is chipped away bit by bit, not by people of authoritarian tendencies but most importantly by people who let them.

“In this country we can’t allow ourselves to be sucked into a moment of madness to destroy Bermuda’s reputation — the one thing that enables us to enjoy the standard of living and the freedoms we have come to experience.”

Senator Kim Wilson, for the Government, said that Premier Dr. Ewart Brown’s second annual bilateral trip to Washington DC last week had only reinforced “the reputation Bermuda has in the business arena”.

She said: “If you speak of reputation, our reputation as an offshore jurisdiction of choice continues to grow”.

Senator Kim Swan, Opposition Leader in the Senate, pointed to the Auditor General’s 2006 annual report — in which Mr. Dennis calls for ‘whistleblower’ legislation — and asked: “Where is the will to come forward with some ‘whistleblower’ legislation?”

Referring to comments about voter apathy among the younger generation by PLP Senator Davida Morris yesterday, Mr. Swan said: “Where is it? That would be an example that would allow young people to have the confidence to sign up to whatever party they wanted.”

PLP Senator Wayne Caines replied: “Bermuda is being governed properly. Our international reputation is stellar.”

Pointing to the Premier’s meeting with high-ranking US Government representatives last week, Sen. Caines said: “These are people who indicated clearly that Bermuda’s reputation is second to none, so let’s be clear that this Government and country is being run in a prudent fashion. No bit of scare mongering can take away from the fact that this Government is running a sturdy ship.”

Sen. David Burch, Minister for Public Safety, then said: “The Opposition proceeds to talk about a ‘witch hunt’. I wish they’d refer to the ‘BHC scandal’ in its correct terms — as ‘the five-year-old BHC scandal’.

“If we support the rule of law for everybody then clearly those people that have broken the law should be subjected to the consequences of their actions.

“There is some suggestion we (the Government) have controlled this, but like I said two weeks ago, I have no control over police operations and I don’t believe the Governor has control over who gets investigated. I know nothing as a minister or as an individual about any of this stuff. We have a Police service in this country managed by professionals who, when they are coming after us you are saying ‘come on, give them the power, let them do their job’. You can’t not have it both ways, you can’t cherry pick justice. Either you’re going to stand for justice in this country for everybody or not. I stand for justice for everybody.”

Referring to Auditor General Mr. Dennis, he said: “Nobody is above the law, particularly when you go on the radio and confess you have got stolen documents. That’s only an invitation and you should expect the Police to come knocking. You don’t need to be Inspector Clouseau to realise this,” said Sen. Burch. “We are committed to the rule of law in this country and I do not believe or expect that allegations about the Premier read by Senator Richards in a magazine will have the doom and gloom that is expected. There is a difference between accusations and evidence and convictions. You can’t in any civilised society, which I consider this society to be, cherry pick justice, and this Government will never subscribe to that.”

In last week’s Senate, Attorney General Sen. Perinchief said Opposition Senators had implied that Government was “moving towards a dictatorship”.

He said that Bermuda’s Constitution had established a system of checks and balances.

“Dictatorships or moves towards dictatorships are precluded by a proper constructed Constitution, and I like to think our Constitution will prevent any attempt at dictatorship by Bermudians,” said Sen. Perinchief. “We can’t change this. It is impossible to move towards any form of dictatorship, given the present form of our Constitution.”