Two key officers from the Bermuda Housing Corporation have been sacked from their posts, The Royal Gazette has learned.

General manager Raymonde Dill and property officer Terrence Smith both lost their jobs within the past week following a months-long investigation into corruption and mismanagement at the government quango and an ongoing Police investigation.

Yesterday, acting General Manager Deborah Blakeney told The Royal Gazette Mr. Smith ceased to be employed by BHC as of last Friday while it is understood that Mr. Dill was let go on Monday.

Ms Blakeney declined to comment on the reasons for the departures. “I can confirm that they are no longer employed,” was all she would say. But she confirmed that Robert Clifford, the BHC's finance manager, remains on full-pay suspension.

Acting as general manager for the past two weeks, on a three-month secondment from her regular position as Assistant Tax Commissioner, Ms Blakeney told The Royal Gazette the decision had been made by the corporation's board and she had no direct knowledge of the circumstances.

The Royal Gazette understands from other sources that Mr. Smith was fired however, and electronic media were reporting last night that Mr. Dill intends to fight his dismissal.

Mr. Smith's name first came to public attention when a contractor who had worked on his personal home revealed he was sacked from BHC jobs after billing the property officer for the personal work.

Contractor Kevin Pilgrim of SOHO Applications is now suing Mr. Smith for over $30,000 in unpaid fees and extras from work his company did on the million-dollar Tee Street home.

He told The Royal Gazette in March he believed Mr. Smith expected SOHO to work for free on the home in exchange for BHC jobs.

Mr. Pilgrim also told The Royal Gazette he'd spoken about the matter with Mr. Dill to no avail before the corruption scandal hit the headlines.

Weeks later, it was revealed Mr. Smith had been running a freelance architectural business from his BHC desk - a breach of civil service rules which most government affiliated organisations follow.

The sackings follow revelations last week that Mr. Smith had been off work - on sick leave since May - and news of the resignations of two other BHC officers.

Floyd Forth and Jerry Robinson resigned from their posts at BHC last month and the corporation has been advertising for their replacements.

Both Mr. Clifford and Mr. Dill were suspended with pay soon after allegations that corruption and kickbacks were rife at BHC had been raised in the House of Assembly by Opposition MP Michael Dunkley.

Auditor General Larry Dennis was called in by Premier Jennifer Smith to investigate the allegations against BHC following media reports of massive payouts of public funds including over $800,000 during a seven-month period to one painting contractor.

Mr. Dennis assembled a team of seven investigators to comb BHC records during his months-long investigation and eventually passed his findings on to the office of the Director of Public Prosecutions.

A Police investigation of the matter is now underway.

“No comment will be made on the BHC until the investigation is completed,” Police spokesman Dwayne Caines said yesterday when asked the status of the Commercial Crime Unit's work.

The announcement of the suspensions of Mr. Dill and Mr. Clifford in March said the action did not imply wrongdoing on the part of the men but had been carried out to protect their reputations and the then-ongoing Auditor's investigation.

Richard James - a Works and Engineering officer - was appointed acting general manager but two weeks ago was replaced by Ms Blakeney.

Nas Jetha has been filling the role of BHC finance manager since Mr. Clifford's suspension.

Attempts to contact Mr. Dill last night for comment were unsuccessful.