Government has promised a review of its boards after Auditor General Larry Dennis warned their sloppiness risked another Bermuda Housing Corporation-type scandal.

In his latest annual audit report covering April 1 2002 to March 31, 2003 he said many boards of Government entities are failing to contribute appropriately to the accountability, governance and operational effectiveness of their organisations.

He said: ?There are few governing boards within the Government of Bermuda that currently operate in the manner that satisfies even most of the criteria outlined in my last annual report.

?Some Boards are undoubtedly contributing to the success of their organisations but most could and should be doing a great deal more.

?The problems at the Bermuda Housing Corporation were the result of an ineffective Board allowing management to go out of control.?

Claims of rampant corruption and massive over-charging at the publicly-funded corporation first surfaced in April, 2002 and Police have been investigating the matter since with charges expected to be laid shortly against at least one man.

The fraud investigation was considered so serious that Police called in detectives from Scotland Yard in London to give them guidance.

Housing officer Terrence Smith and former general manager Raymonde Dill were sacked as a result of the scandal.

Mr Dennis?s team was unable to properly complete the audit on the Bermuda Housing Corporation in 2002 (see separate story).

In the appendix to the report the Ministry of Finance have promised a review this year in conjunction with the Accountant General of the terms of reference used by the Boards and Management Committees and where appropriate amendments will be made to improve Governance.

Mr. Dennis said recent corporate scandals abroad had accelerated efforts to define and increase the responsibilities of Governing boards.

Professional and business associations in the UK, US and Canada have published guidance on the roles and responsibilities of boards and who they should interact with management.

Directors needed to be the stewards of the organisation they controlled, said Mr. Dennis, and he detailed operating criteria in his last report.

Mr. Dennis said he was glad the 2003 Throne Speech and recent speeches by the Premier had taken up the theme of good governance.