Deputy Governor Tim Gurney has poured cold water on claims that Premier Jennifer Smith called the election after being shown damning reports by Governor Sir John Vereker.

VSB news reported yesterday that she had been shown reports into the building of the new Berkeley and the Bermuda Housing Corporation last Monday by the Governor which had been compiled by the Auditor General's office.

The station said she then called the election a day later, to the surprise of Cabinet colleagues, in a bid to stop the reports reaching Parliament before the election.

Deputy Governor Tim Gurney confirmed to The Royal Gazette yesterday that the Premier and Governor had their regular Monday meeting the day before the election was called.

He said: "We do not reveal the contents of the discussions between the Premier and Governor usually. To the best of my knowledge there were no discussions of the auditor's reports.

"Auditor's reports are a matter for the Auditor General."

Sources close to Government House dismissed the idea of discussions between the Governor and the Premier over potential arrests of Ministers.

Auditor General Larry Dennis said the annual audit report went to the printers last Monday. Asked if Berkeley and BHC reports went with it, he said: "Special audits go in at the same time, as usual." But he refused to comment further.

However, The Royal Gazette understands updates on the controversial work at the Berkeley site and into alleged corruption at Bermuda Housing Corporation will be included.

It is understood that under normal protocol Government gets a draft copy of the report and it is the duty of the audit committee, according to the legislation, to inform the Cabinet if there is anything in the report which might be embarrassing for them. The reports will now not be released until Parliament sits again after the election.