Shadow Health Minister Michael Dunkley last night questioned whether Bermuda Housing Corporation (BHC) carries out proper checks on prospective contractors after The Royal Gazette revealed that painter Paul Young had convictions for theft and cocaine possession.

Mr. Young, an American who was awarded $810,940 from BHC in seven months last year, was put on the stop list in 1995 because of the convictions in the United States. The action followed allegations he had been working illegally in Bermuda.

He was taken off the stop list in November, 1998, and it is understood he began to win lucrative contracts with BHC the following year, based on part because he would try to use young unemployed Bermudians when working on BHC maintenance jobs.

Mr. Dunkley said someone with drugs and theft convictions should not have been appointed to work with young people, particularly as there were reputable Bermudian contractors who could do the jobs.

Mr. Young's whereabouts remain unknown but it is thought he is not on the Island. BHC general manager Raymonde Dill again refused to answer questions about the controversy and allegations of corruption and kickbacks at the corporation.

The Royal Gazette understands Mr. Young has not paid all government taxes for his employees. The Tax Commissioner refused to release details, saying the matter was confidential. The Insurance Officer said no information could be released because of the investigation into BHC by Auditor General Larry Dennis.

Former Labour and Home Affairs Minister Paula Cox, who accepted Mr. Young's application to be taken off the stop list, admitted she made a mistake in yesterday's Royal Gazette when she said the Department of Immigration did not know of Mr. Young's criminal convictions.

"I erred based on memory, and I was wrong," said Ms Cox, the current Education Minister.

Acting permanent secretary at Labour and Home Affairs, Martin Law, said Mr. Young had been applying since 1995 to get taken off the stop list and the Immigration department, after carrying out its own investigations, had recommended to Ms Cox that he should be removed.

Mr. Dunkley said: "With Mr. Young, a guy who is new to Bermuda with apparently no known record of managing people, BHC should have checked his past experience and performance.

"Since he was new in Bermuda, he would not have sufficient experience here and they would have to look overseas to find out more about his past and that would have thrown up concerns about his criminal convictions.

"If they did find his criminal record, they should have (had) grave thoughts about hiring a person like that to work with young people. I would not have someone like that work with young people and be a role model.

"Have there been sufficient checks on people bidding for BHC contracts?"

At the request of Premier Jennifer Smith, Auditor General Larry Dennis this week began a full investigation into BHC and the allegations of inflated payments and kickbacks.

Mr. Dunkley accused Health Minister Nelson Bascome, who has responsibility for BHC, and Ms Smith of "dereliction of duty" for refusing to comment.

"I believe Government is trying to conduct the usual scenario of let some time go by and sweep the issue under the carpet. But that's not going to happen here."

"I believe BHC have been instructed by Government not to comment. The ball is squarely in the court of the minister and the Premier.

"When this is constantly in the Press, and rightly so, the Premier and the minister have an obligation to say something about what's going on, even if it just to shoot down misinformation."

Mr. Bascome did not return calls to The Royal Gazette.

Mr. Young, 44, who married prominent PLP activist Dale Place in the late 1990's, pleaded guilty to theft at Boston Municipal Court in 1981 and was fined $50. He was convicted of possession of cocaine at Waltham District Court, Massachusetts, in 1988 and fined $140.

Mr. Law said: "Mr. Young was convicted of a couple of minor offences in 1986. "Because it was drugs related, he was put on the stop list and began trying in 1995 to have his name removed and he employed local lawyers who made representations on his behalf.

"Since he started applying to have his name taken off the stop list, he was given permission under the previous government to come in as a tourist provided he gave prior notification to Immigration.

"All the paperwork was in place and it took some time to get his name off the list. The minister's action was on the recommendation of the Immigration department after having representation made to them, having done their own investigation and based on testimonies from lawyers.

"It was relatively routine, there was nothing out of the ordinary, and it was the way any one would petition if circumstances could be demonstrated to be changed."