The Foreign and Commonwealth Office (FCO) in London has been made aware of controversy over the progress of the new secondary school site, The Royal Gazette understands.

Sources said the Foreign Office is aware of the development of the new Berkeley Institute, as well as of the report on the project produced by Auditor General Larry Dennis, and the reaction that followed.

Mr. Dennis was accused of acting outside of his remit when he claimed in his report that the $68 million school project was likely to be several months behind schedule.

And he was heavily criticised by Works and Engineering Minister Alex Scott and Bermuda Industrial Union (BIU) president Derrick Burgess when he raised major concerns over the authenticity and enforceability of the performance bond (insurance) that had been put in place by a subsidiary of the BIU to guarantee the project.

It led to Mr. Burgess releasing a lengthy statement, in which he claimed Mr. Dennis was racist when putting together his audit and suggested that the auditor had criticised the bond purely because it had been put up by a working class organisation.

In turn, Mr. Dennis released a lengthy response, in which he stuck by all of his concerns and said he would not be cowed into a corner with race allegations. Both of those statements were given to Governor Sir John Vereker, and it is highly likely that they have since been sent to the Foreign and Commonwealth Office for attention.

Deputy Governor Tim Gurney refused to comment on the issue when contacted this week.

He would only say that the remit of the Auditor General, who is appointed by the Governor, is clearly laid out in the constitution.