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BHC cash was used to fit out luxury home

A carpenter giving evidence in the $1.3 million fraud case against former Bermuda Housing Corporation property officer Terrence Smith yesterday continued to outline how Smith benefited from the alleged con.

Self-employed carpenter Steven Barbosa spent the whole day calmly listing the numerous occasions that he helped Smith to obtain bundles of BHC cash. He also spoke of using BHC money to obtain luxury items for the accused man?s home including a fountain and home theatre system.

Mr. Barbosa explained he had repeatedly submitted ?overpriced? invoices to the BHC for his work at Smith?s behest. During his evidence on one such invoice, the name of Cabinet Minister Terry Lister was read out to the jury in connection with a property the carpenter is said to have repaired in 2001.

The Crown?s case against Smith, 45, is that he abused his position at the BHC by rubber-stamping Mr. Barbosa?s requests for payment in the knowledge that they were false.

The carpenter has said that some of his invoices overcharged the BHC for work he had carried out, while others were claims for jobs that he did not do. He claims to have passed the ?profits? he made from this practice to Smith.

Kulandra Ratneser, Consultant to the Department of Public Prosecutions, has alleged that the BHC was induced by Smith to pay more than $1.3 million worth of cheques to Mr. Barbosa between September 2000 and February 2002. He said the carpenter retained $428,043 in payment and Smith profited by $924,668 worth of cash and services for his home on Tee Street in Devonshire.

Mr. Ratneser and fellow prosecutor Nicole Smith quizzed Mr. Barbosa about his invoices and bank statements during his third day in the witness box at Supreme Court.

The carpenter spoke of handing his overpayments from the BHC back to Smith in various forms including:

Withdrawing more than $30,000 from his bank account and handing it to Smith.

Sending a $5,000 wire transfer to an American firm named Fountains of Wayne for a fountain for the Tee Street house.

Paying $12,500 for wood for Smith?s house and $20,000 on another occasion to Sticks and Stones for a staircase.

l Handing $20,000 to Intellihome for home theatre equipment, and in a separate instance paying $25,000 to Sousa?s for landscaping.

Ms Smith questioned Mr. Barbosa about one $7,000 invoice that referred to the carpenter?s work location as Sound View Road along with a reference to current Education Minister Terry Lister.

The carpenter said he had done this job, which involved windows and exterior doors, and its true value was actually between $4,000 and $5,000.

Mr. Barbosa had previously told the court he met Smith through a client and was invited by him to do work both at Tee Street and for the BHC. Smith became a tenant at his Cambridge Road, Somerset, premises in October 2000.

An internal investigation at BHC took place after allegations came to light in March 2002, and Finance Minister Robert Clifford, General Manager Raymonde Dill and Smith were suspended from their posts.

Smith faces 46 counts of obtaining property by false pretences, all of which he denies. The case continues.