Allegations of shady dealings at the Bermuda Housing Corporation (BHC) was the United Bermuda Party's (UBP) primary concern during debate on the Health and Social Services Ministry budget for the coming year in the Senate yesterday.

Just 45 minutes of allocated debate time remained when Government Sen. Calvin Smith wrapped up a three hour presentation on the Ministry.

But Opposition Sen. Leonard Santucci responded with what amounted to a 35-minute sermon on troubles at BHC, saying he feared that the ongoing investigation could end in a cover-up and the taxpayer will have to fork out extra cash for compensation if the investigation confirms allegations that some BHC mortgage holders have been overcharged.

"I still remain concerned because there are some folks who have obtained mortgages, have received money, have had said money utilised but are now complaining that cabinets are falling off the walls, the rooms haven't been squared up... their children are now doing the work that they paid money for somebody else to do... paid from taxpayers' money."

Brandishing recent newspaper reports and a copy of the BHC's latest annual report he said he hoped the affair would not turn out to be "Bermuda's Enron" because the Enron scandal in the United States was characterised by shredding of documents.

"The Minister has indicated, according to the headlines... that heads would roll... I believe, at the end of the day, that heads will roll, but my concern, Mr. Chairman, is that they might roll at the wrong level. And they may roll as a means of covering up the articulation of policy that was employed by persons in the Housing Corporation."

Of all Government departments, the Health Ministry gets the most money - close to $132 million, or some 22 percent of the Government's spending Budget. BHC accounts for just over $3 million.

Senator Santucci quoted from the BHC annual report which said the integrity of the financial statements were the responsibility of the Corporation's management.

"It is their integrity, it is their objectivity and it is this management that is now under the media spotlight because we are concerned about how they have utilised and distributed funds they have handled under their supervision."

He pointed out that the Corporation has been managing roughly $40 million. "But what we're now finding is it may not just be an issue of management. It may also be an issue of mismanagement."

The Senator was warned to stick to generalities and not make specific accusations or derogatory comments on the matter since an independent audit is being conducted by the Auditor General.

"The issue of affordability and ownership for some people is now being threatened," he said, referring again to a newspaper report in which a homeowner complained of shoddy work done at inflated prices by BHC on her home.

"I agree with the honourable senator that a report will bear these things out. I'm particularly interested in how this Government might seek to go about making redress on behalf of persons who might have been adversely affected based on either management or potentially mismanagement as it relates to persons mortgages and person's private sums of money," he added.

"I'm concerned, Mr.Chairman, because in order for the Government to bring about redress, it would have to use more of the taxpayer's money to address persons who possibly have been... disadvantaged by these possible actions."

Referring to the BHC philosophy "people helping to find solutions for people", he said: "Some of the people of this country are now finding that workers on behalf of the Government may not have brought them a solution, they might have brought them a problem wrapped up in the form of what they perceived as a solution. In the church we would call them a wolf in sheep's clothing."

He then paid tribute to BHC "fine work" saying: "I don't believe people's characters should be assassinated... that people's contributions should be negated. And I don't believe people's heads should roll inappropriately.

But let me say with respect to the fine work that has been done by the dedicated staff. But somewhere in the midst of it all, Mr. Chairman, something went wrong. We the people of Bermuda are going to probably be left with another bill or another allocation because something went wrong."