BHC scandal: DPP says charges to be brought
One man should face multiple fraud charges arising from the Bermuda Housing Corporation (BHC) scandal, the Crown said last night.
Acting Director of Public Prosecutions Kulandra Ratneser said he had recommended Police charge one man and there was a possibility charges may be brought against others.
The recommendations come more than two years after the scandal erupted with allegations of rampant fraud, over-charging and double billing at the Government-funded corporation.
If Police decide to charge the man, he will be the first person brought before the courts in relation to the controversy since it hit the headlines in March 2002.
The lengthy Police investigation was so complex that fraud detectives from Scotland Yard in London were flown in at one point to supervise the inquiry.
Last night Mr. Ratneser told The Royal Gazette: "I have examined the files and have recommended charges with respect to one individual for multiple offences of obtaining money by false pretences.
"He will be charged shortly, within this month. There are other possible charges against others but I cannot give a definitive answer at the moment."
Auditor General Larry Dennis conducted a lengthy investigation into BHC and his report, revealed last year by The Royal Gazette, painted a picture of an "out of control management" which ultimately lost the corporation hundreds of thousands of dollars.
The report also found: two Government MPs were heavily involved in BHC without disclosing their interests; contractors were allowed to double bill the corporation and charge what they liked, sometimes double the amounts originally quoted; the responsibilities of the board to oversee the corporation were virtually abolished; and established policies and procedures were ignored.
The report stated: "There is little or no evidence that most of these (contract) estimates represented competitive prices, and some were wildly in excess of the value of the work performed"
Former general manager Raymonde Dill and housing officer Terrence Smith were sacked in the wake of the scandal.
Mr. Dill later said the Auditor General had reached "incredulous conclusions".
In a separate matter, Smith, of Tee Street, Devonshire, and his wife Veronica were charged last year with two counts of false pretences with intent to defraud Capital G Ltd. of $595,000 and $245,000.
They are on bail and have still to face trial for the alleged offences.
