International business chief Cheryl Packwood last night called for Bermuda’s leaders to urgently find closure to events potentially rocking the Island’s blue chip reputation as a financial jurisdiction.

Ms Packwood said the country’s position as a premier finance centre — already undermined following several weeks of controversy over the Bermuda Housing Corporation affair — was further jeopardised by the arrest and detention of Auditor General Larry Dennis.

The Bermuda International Business Association CEO said ongoing issues — including Premier Ewart Brown and former Minister Nelson Bascome’s filing of a civil suit for libel over BHC media coverage — must be brought to a conclusion as soon as possible to protect the future of international business in Bermuda. “We are concerned by these current events and hope that our leaders will find closure to these issues as quickly as possible to avoid any damage to our reputation internationally,” said Ms Packwood.

“It is the hope of BIBA and its members that there will be a quick and final resolution to the current issues so that Bermuda and her people can move on and our country continues to be the jurisdiction of choice for international business.”

Ms Packwood was speaking after Mr. Dennis’ arrest was reported to a worldwide audience by industry publication Global Reinsurance, which described the whole investigation as a “scandal that is rocking the island”.

It is the second time this month that Ms Packwood has spoken out over potential damage to the Island’s reputation.

She previously warned that Dr. Brown was risking Bermuda’s name as a secure location for financial business by threatening to suspend dealings with Governor Sir John Vereker over a probe into the leaking of BHC documents to the press.

The Premier’s televised comments about Sir John made headlines in The Times and The Daily Mail, which sell a combined three million copies per day in the UK.

Earlier this week, international finance commentator David Marchant warned rival jurisdictions such as the Cayman Islands were ready to capitalise if Bermuda’s reputation continues to be eroded.

Since then, more reports on the situation have appeared in news groups in Austria and Jamaica.

Last night, Ms Packwood said she had confidence in Bermuda’s law courts adjudicating over the matters.

“Our legal system and our law firms are held in high regard internationally. The legal issues surrounding the Bermuda Housing Corporation investigation of 2004 by the Bermuda Police and the partial publication of its results in the local papers are now being considered by our courts.

“As one would expect in a mature jurisdiction, the appropriate legal channels are being used.”

Earlier this month, this newspaper’s sister paper The Mid-Ocean News ran a story from a leaked Police dossier centring on allegations of corruption at the BHC.

The documents reportedly revealed that Dr. Brown, former Premier Jennifer Smith and former Ministers Renee Webb and Arthur Hodgson were all investigated by Police looking into the BHC allegations.

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.

Fears of damage to Island’s financial standing