A former Bermuda Housing Corporation General Manager was the first witness for the defence of alleged fraudster Terrence Smith after the accused man exercised his right to silence.

Edwin Cowen ? GM between 1992 and 1999 ? told Supreme Court yesterday there were strict procedures in place to prevent fraud during his time at the helm.

Property Officer Smith worked at the BHC during Mr. Cowen's management, although the 45 charges he faces date from later on when new General Manager Raymonde Dill was in charge.

Smith is accused of defrauding the Corporation of $1.3 million by instructing carpenter Steven Barbosa to submit overpriced bills between September 2000 and February 2002. According to the prosecution, he gave the green light for these to be paid in the knowledge that they were false. Mr. Barbosa, it is alleged, passed $924,668 in profits from this scam back to Smith in the form of cash and goods for his home in Tee Street, Devonshire.

Giving evidence on the policies in place during his time, Mr. Cowen said that the rules on the work of Property Officers like Smith being checked by the Property Managers in charge of them were well understood.

Asked by defence counsel Larry Scott for his views on what Mr. Barbosa said were inflated figures on his invoices, Mr. Cowen said these costs were actually "in the ballpark" of what they ought to be.

He also told of how he once endeavoured to help Smith by arranging a re-worked mortgage on his home in Tee Street after he ran out of money to pay for major renovations there. Mr. Cowen said he contacted James Gibbons of Gibbons Company regarding this, but the plan did not come to fruition and Smith's mortgage was called in a short time later. Mr. Cowen did not indicate when this had occurred but said the mortgage was paid in full right up until this point.

He also gave evidence on how Police once asked to question him about BHC affairs after he had delivered a speech to the Rotary Club. Again, no date was given in court for this event, but Mr. Cowen said his response was: "After two and a half years you are going to ask me to talk to you? Forget about it. You can subpoena me and get me to come to court. Be my guest."

Under cross-examination from Kulandra Ratneser, consultant to the Department of Public Prosecutions, Mr. Cowen agreed he had no knowledge of the system in place at the BHC after his departure in September 1999.

"I just know things from what I read like everyone else ? from the newspaper ? and I have people tell me things," he added.

In answer to questions about the value of the work outlined in Mr. Barbosa's bills, he said he had not visited the properties in question since the work was done.

Mr. Ratneser also asked about a claim Smith made to the BHC board of directors in 2002 that General Manager Raymonde Dill allowed him to award contracts up to $200,000.

"During your time, would a Property Officer be permitted to make a decision on jobs up to $200,000?" asked the prosecutor.

"No," replied Mr. Cowen, who is set to continue giving evidence this morning.

Smith denies 45 charges of obtaining property by false pretences.