Bermuda Housing Corporation has rejected Government Minister Ewart Brown's offer to buy back the Flatts property he sold the quango in a controversial deal in 2001.

In August, Dr. Brown offered to pay the same $602,000 price BHC had spent on the North Shore Road two-unit property three years earlier.

The Royal Gazette revealed the property, which consists of two small units - a downstairs unit with two bedrooms and an upstairs unit with one bedroom - had only been worth half the sale price when the original deal was completed. Since then property in Bermuda has gone up ten to 20 percent each year.

BHC Deputy Chairman David Burch said: “The offer was rejected as the property was recently valued in excess of the original pricing.” But he did not mention what the property is now worth. Opposition Housing spokesman Wayne Furbert said it was ridiculous for Dr. Brown to offer the same money for the property. He said: “BHC took the risk at the beginning. If he feels he did not do the right thing at the beginning, he should buy it back at market price.”

Dr. Brown told The Royal Gazette: “No, that wasn't the offer. Quite honestly, I have spent enough energy on this. The letter from them back to me as far as I am concerned closes the chapter.”

He said the offer to buy back the property from BHC probably didn't make economic sense for BHC. “It flies in the face of the accusation they got ripped off,” he said. The original deal was investigated by Police during the probe into corruption at BHC. The property near the Shell gas station was independently valued at $300,000 by an estate agent.

BHC had twice turned down pressure by Dr. Brown to take the property because it wasn't a particularly suitable property for BHC as it is directly on the road, making it unsuitable for families with children.

But the quango caved in when then Housing Minister Nelson Bascome said in 2001 he was anxious for the sale to go through.

Auditor General Larry Dennis had raised questions about the sale, particularly that Dr. Brown had not declared his interests when transacting with a Government quango.

BHC is to hold a lottery after being oversubscribed by people wanting to buy into the condo development on Glebe Road, Pembroke known as New Park.

BHC deputy chairman David Burch said developer Neil Inchcup was busy completing a unit so people could see the one-bedroom condos they are buying.

He said: “The units are due for completion by the end of December and are being sold at cost to the individual purchasers, which we do not expect to exceed $300,000.”