Government yesterday released the Auditor General?s report on the Bermuda Housing Corporation.

And, says Premier Alex Scott, it contains no ?smoking gun? but important recommendations that have been taken very seriously by the Government.

In short, controls are now in place and the country will not see a rerun of the BHC scandal.

As expected the two year old report found a series of improper practices and mismanagement at the BHC, some of which resulted in a waste of taxpayer?s money.

In a statement accompanying the report Premier Alex Scott said that Government was pleased that the Auditor?s investigation and the ensuing Police investigation were over.

Quoting from the report he noted that while Auditor General Larry Dennis had found evidence of ?improprieties ?that may have been the result of poor internal controls and gross mismanagement?,? his probe into the quango did not produce ??indisputable corroboration that kickbacks of other fraudulent activities had occurred?.?

Neither had the recently concluded Police investigation found evidence of criminal activity ?although they did find that established practices had been abandoned which created an environment that could have enabled criminal offences to occur,? the statement continued.

Mr. Scott went on to say that Government supported the Auditor General?s ?condemnation of... a culture of mismanagement at the BHC and believe it would have been helpful if he had also clarified just how long this culture existed there.?

He said ?deficiencies in a number of areas throughout Government? were among a number of things inherited by the Progressive Labour Party when it came to power in 1998.

?Some of these deficiencies came to light through our own reviews ? others, unfortunately, like the BHC?s problems first came to light in the public sphere.?

Mr. Scott said that BHC has already rectified most of the problems, and implemented most of the Auditor General?s recommendations and that their ?new management practices can withstand the highest scrutiny?.

?These recommendations include a full orientation for all Board members on their role and responsibility... stricter policies and procedures to provide checks and balances in all areas of expenditure, authorisation levels, ordering procedures, certification of contractors and verification authorisation for payment procedures,? the statement continued.

?There are stricter procedures for tendering of major projects to ensure that contractors are qualified and in good standing with the Bermuda Government with regard to payroll taxes, pension payments; safeguards are in place to ensure that all BHC projects are supervised by a quantity surveyor and that the corporation only pays for work that has been satisfactorily completed.?

And he also noted BHC Deputy Chairman David Burch?s recent comments that the quango will take legal action to recover money if its lawyers suggest and if there?s a ?reasonable chance of payback?.

Mr. Scott then addressed calls by the Opposition to release ?what we regard as sensitive and unsubstantiated opinions, assumptions and allegations with respect to this inquiry?.

He said not only did Government not have access to such information but it would have been ?highly imprudent, irresponsible and irregular? to heed the Opposition?s call while the Police investigation was ongoing. Further, he said, it would have been illegal.

He assured the public that the country had ?sound leadership and sound fiscal management policies?.

?Your Government is committed to ensuring that every necessary financial control is in place not only at our quangos but throughout all of Government. The affairs of Government are and will continue to be conducted in a fair and ethical basis.?

Hours before the report?s release, Mr. Scott said that Government would benefit from all the points made by the Auditor General.

?We take no exception to anything that he said and in actual fact we will thank him for his due diligence ? remember he was asked to step in by the PLP Government and it?s just for me to follow through and see that the points made are points taken.

?You will not find any smoking gun in there. He does not point the finger at any individual but he does raise questions about mismanagement and we will take that seriously.?

Auditor General Larry Dennis was asked to probe the troubled quango by then-Premier Jennifer Smith in 2002 after concerns were raised about possible mismanagement and corruption.

She sent the report back to Mr. Dennis because of a pending police investigation. With that investigation now over, Mr. Scott asked the Governor for a copy and it was perused by Cabinet before being made public.