Senior Government figures will be questioned by Police within weeks over the Bermuda Housing Corporation scandal, The Royal Gazette has learned.

The 20-month investigation into corruption at the quango is understood to involve key persons within the Progressive Labour Party administration.

It is also understood that others are likely to be arrested in connection with the scandal by mid-January.

The Royal Gazette also understands that Police officers working on the corruption investigation have travelled to London's Scotland Yard in the past few weeks to consult with senior fraud squad officers there ahead of any charges being brought.

A number of files mentioning a string of junior and senior figures involved in the housing scandal, including serving and former Government Ministers, are understood to be either completed, or nearing completion, and ready to be passed on to the Department of Public Prosecutions.

It is understood that, due to the seniority of those involved, and with Acting Director of Public Prosecutions Kulandra Ratneser off the Island, there is unlikely to be movement on the case until early in the new year.

A team of seven officers from a number of different Police units has been put together to work on the sensitive inquiry over the past 20 months.

Bermuda Police have remained tight-lipped over the details of exactly who is under the finger of suspicion and have consistently refused to release any details of the inquiry to the Press.

This policy remains in place, but The Royal Gazette understands that very senior Government figures are set to be interviewed under caution in the next few weeks with the first charges expected to be brought thereafter.

It is understood bank records of serving and former Government Ministers are among the hundreds of documents compiled by officers as part of the investigation.

Last September, two Metropolitan Police fraud squad officers - a Detective Superintendent and a Detective Sergeant - flew to the Island for five days to assist Bermuda Police with the complicated, document-based inquiry.

And now, The Royal Gazette has learned that two of the leading officers on the Bermuda team flew to England for a week at the end of November to meet again with the Scotland Yard officers.

Police were initially called in two years ago after a special investigation by the Auditor General into allegations of widespread corruption and fraud at the Government quango.

Bermuda Police Service and Scotland Yard spokesmen have both refused to comment on the imminent arrests or give any details on the inquiry.