The wife of one of the contractors alleged to have received massive pay-outs from Bermuda Housing Corporations (BHC) is a close friend of Premier Jennifer Smith with ties to Progressive Labour Party (PLP), The Royal Gazette has learned.

A report in the Mid Ocean News last Friday detailed that painter Paul Young - the American spouse of Bermudian Dale (nee Place) Young - received $810,940 for work on BHC contracts between May and November of 2001.

Government has now called for an investigation into BHC operations.

All attempts by The Royal Gazette to contact Mr. Young this week have failed as the painter is said to be off the Island.

Little is known about Mr. Young, but Mrs. Young - a former member of the Development Applications Board and real estate agent - is said to be one of Premier's Smith's closest friends and even helped decorate her official residence, the Laurels.

Mrs. Young is also listed as one of the first trustees of the Progressive Labour Party Trustees Act 2001 - a trust set up to allow the party to conduct real estate business - and served a ceremonial role in last year's PLP annual banquet which welcomed Mia Mottley as keynote speaker.

According to the published notice of formation for the Progressive Labour Party Trustees Act, its purpose is to "carry on business as developers, engaging in the construction, improvement, renovation or refurbishing of houses, apartments, condominiums and other buildings."

Mrs. Young, Reginald Burrows and Earl Thomas Lightbourne were listed as the first trustees when the trust was established in December of last year.

More recently, the Youngs were at the centre of a Planning controversy earlier this year when neighbours at a Spanish Point property the couple are developing complained their objections to the project had not been heard.

Paul and Dale Young hold the Plaice's Point Road property under a trust called Joneva Trust.

The objectors claimed that Mrs. Young - who was sitting on the DAB at the time - used her influence on the board to force through renovations at the property against Planning regulations and over their objections.

The family even went to Environment Minister Dennis Lister calling for Mrs. Young to be sacked from the board.

But Mrs. Young told The Royal Gazette, when the dispute was originally reported, that she voluntarily stepped down from the DAB in January as a result of personal considerations rather than the housing controversy.

Mrs. Young was appointed to the DAB in January 1999, alternatively, her ties to Premier Smith are said to go back many years.

"The association between (Dale Young) and the Premier is so close she's considered practically invincible," one source - who asked not to be named - told The Royal Gazette.

The Premier even praised Mrs. Young for her assistance decorating The Laurels back in 1999.

"Without the assistance of a group of volunteers - Dale Place Young, Sharon Bertram, Eunice Talbot and Ianthia Butler - who shopped for all the furniture, arranged for its delivery and shipped and moved all my personal effects from St. George's, shopped for groceries and arranged to have the house cleaned, it would have been near impossible to move," Premier Smith said at the time.

She added: "They know me well and did an excellent job in reflecting my taste."

While Mrs. Young is believed to be on the Island, she did not return reporter's calls for comment yesterday.