The Bermuda Housing Corporation has backed down on its bid to award consultancy work to its chairman Charlton Dill while he remains on the board.

Upset members of the Bermuda Public Services Union had written in protest to Housing Minister Ashfield DeVent over the plan to award Mr. Dill $70,000 of work.

He had been paid more than $20,000 for three months? work last year.

Last night Mr. DeVent said Mr. Dill would remain as chairman with new deputy chairman Colonel David Burch becoming public spokesperson.

Sources said the Dill plan had been put forward by Col. Burch.

The plan would have contravened the Housing Act 1980 which says board members must not have financial interests with BHC because it could be prejudicial. Mr. DeVent said: ?The board had considered the need to expedite current projects and a number of options were considered.

?However, after reviewing the situation, they are satisfied the projects are moving at a satisfactory pace. In an effort to increase public awareness of the works it is doing, the board has appointed Deputy Chairman Colonel David Burch to be its public spokesperson. Housing is a key issue. We are making substantial progress towards meeting the housing needs of the people of Bermuda and I intend to announce the details of this progress in the very near future.

?The Board continues to enjoy my full support as it aggressively pursues its mandate, the provision of affordable housing.

?We are all aware of the challenges faced by the Bermuda Housing Corporation in the past. However, I can assure you, the board is operating entirely in its mandate and I have every confidence that irregularities highlighted recently by the Auditor General are a thing of the past.?

Police were called in two years ago after a special investigation by the Auditor General into allegations of widespread corruption and fraud at the Bermuda Housing Corporation (BHC). Since then sacked BHC Property Manager Terrence Smith has been slapped with 49 charges of defrauding the quango of almost $1.4 million while general manager Raymonde Dill and comptroller Robert Clifford also left.

Opposition Housing spokesman Wayne Furbert told : ?I am glad the Minister and board have backed down and the Minister has seen the truth of what was taking place. ?What is shows is the minister needs to talk more and get a real understanding of what was taking place with his board so this type of thing won?t happen in the future.?

Asked about the appointment of former Housing Minister Col. Burch to Deputy Chairman of BHC Mr. Furbert said: ?He?s really running the show. He?s been the Minister before.?