The Minister for Housing has issued a statement of reassurance for those concerned about financial propriety at the Bermuda Housing Corporation.

In this week’s Senate, Sen. David Burch said the public housing organisation of today bears “no resemblance” to that of 2001.

He was referring to the controversy over a Police dossier leaked to the media which claimed several Government ministers were investigated over allegations of corruption at the BHC. On June 1, The Royal Gazette’s sister paper The Mid-Ocean News ran a story from the leaked documents.

The papers reportedly revealed that Premier Dr. Ewart Brown, former Premier Jennifer Smith and former Minister Renee Webb were all investigated by Police looking into the BHC allegations. Construction boss Zane DeSilva was another prominent person examined, according to the reports on the papers. 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. He said some of the people investigated escaped prosecution due to Bermuda’s antiquated corruption laws.Since the investigation into the BHC corruption — believed to have cost the taxpayer $8m — one person has been jailed. Terence Smith, a BHC officer, was jailed last year on 41 counts of fraud.

On Wednesday in the Senate, Sen. Burch said the BHC had received a “clean financial bill of health” for the past three years.

Sen. Burch said: “Mr. President, let me first highlight the Bermuda Housing Corporation of today — so that you and Senators can place, in proper perspective, where we currently stand.”

Referring to the Auditor General’s 2006 Annual Report, he said the BHC was among only nine Government bodies to issue their 2006 statements by the end of January, 2007.

“This fact, coupled with the clean financial bill of health the Corporation has received over the past three audit years, should provide comfort to even the greatest sceptic,” said Sen. Burch. “The Bermuda Housing Corporation of 2007 bears no resemblance to that of 2001.”

Senate President, Alfred Oughton, said: “I think the present day organisation should be commended for the turnaround that’s taken place in the last few years. They have handed in the accounts on time and I would like to pass my congratulations for their efforts — and long may they keep it up.”

Sen. Burch went on to unveil the extension of a scheme to assist tenants to buy their own homes. He said the Bermuda Housing Corporation Board has approved the conversion to Rent Geared to Income (RGI) for every tenant in a BHC property up to date with their rent — equivalent to 273 families from a total of 653 families, or 42 percent.

RGI was introduced at the 12-unit Butterfield Lane complex, where tenants pay 25 percent of their income as rent.

Sen. Burch said: “That process was so successful that we have decided to extend it to those families who make the effort to meet their responsibilities. As a result of that experience, I have suggested the Rent Geared to Income concept be modified to further enhance the programme, by increasing the amount to 35 percent. The rent will remain at 25 percent and the additional 10 percent will be saved for those families. This is to ensure that they have the savings required to ultimately graduate to home ownership or rental accommodation of their choosing.”