Unethical, but not illegal, is the final ruling on the Bermuda Housing Corporation scandals, Police and the Director of Public Prosecutions revealed yesterday.

While the case of former BHC housing manager Terrence Smith is still before the courts, and the DPP?s office is still reviewing files which may lead to further criminal charges, Police closed their investigation.

Police said yesterday that evidence gathered over the past two years was not enough under existing legislation ? legislation which is nearly 100 years old ? to accuse many of anything other than bad ethics in a scandal involving public funds which ran into the millions.

When asked if the outcome of the investigation may have been different had that legislation been updated before today, consultant to the DPP, Kulandra Ratneser replied: ?Yes, the outcome could have been different?.

It is now up to the public to decide what is unethical and what is not, Auditor General Larry Dennis pointed out ? and what unethical behaviour should be made illegal.

Mr. Dennis will be reviewing the findings of the Police to apply them against current rules and regulations.

Depending on the results of that exercise, he will make a report to the House of Assembly ? where MPs may take further action based on his report.

Police Commissioner Jonathan Smith and Mr. Ratneser also confirmed yesterday that no Members of Parliament or Government Ministers were interviewed under caution during the BHC investigation.

A preliminary investigation of the BHC first revealed ?apparent control weaknesses? in early 2002, leading Government to order the Auditor General to conduct a full investigation into the matter.

Mr. Dennis? findings sparked a two-year Police investigation culminating in a Press conference held at the offices of the DPP yesterday.

?Our responsibility was simply to establish if there was evidence of any criminal offences,? Mr. Smith said at the conference.

After more than 50 search warrants, the seizure of 40,000-plus documents, interviews with more than 160 people, the search of more than 50 homes and buildings, three arrests, 12 interviews under caution and 26 ?data storage devices? forensically reviewed, the Police found much the same as the Auditor General, the Commissioner said.

However, he added, those findings were not enough.

?We have conducted an investigation and after a review by the Acting Director of Public Prosecutions (Mr. Ratneser) it was determined that no criminal charges would be forthcoming.?

Mr. Ratneser added that no criminal offences were exposed to justify the questioning under caution of Government Ministers. ?Failure to comply with the standards of the BHC do not make actions criminal.?

As for whether or not the information regarding Government officials has been passed on to the Premier, Mr. Smith said a decision had not yet been made. He said he wanted to wait on advice from the Governor and Auditor General before deciding when and if to do so.

As for files which Mr. Ratneser is still considering, neither he nor Mr. Smith would reveal who or what they involved.

?It is fair to say that none are within the political sphere, however,? the Commissioner said.

Both Mr. Ratneser, who held the post of Acting DPP during most of the BHC investigation and will continue to exert control over the case from the DPP?s office now that new DPP Vinette Graham-Allen has taken over, and Commissioner Smith stressed that they were under no external control during the course of the matter.

?I must make it abundantly clear that my decision whether to prosecute or not was not in any way influenced by any external consideration, least of all political considerations,? Mr. Ratneser stated.

And the Commissioner added: ?I was, at all times, free to exercise my authority as provided for in the Police Act, 1974 ... I look the camera in the eye and say that. The investigation has found what it found and none of us can alter that.?

However, Mr. Smith pointed out, success is not necessarily measured by how many people are brought before the courts.

Investigations such as this can lead to changes in procedure and systems, he said, expressing his pride in the work of the Bermuda Police Service, particularly Det. Insp. Robin Sherwood, who headed up the BHC investigation.

Police are now considering recommending changes in the law to the Ministry of Labour, Home Affairs and Public Safety, he said, while a multi-disciplinary team of professionals under the direction of the Attorney General is already drafting new legislation to update provisions in the Criminal Code regarding theft and acquisition of cash or property by dishonest means.

Yesterday, Mr. Dennis told he will look at the documentation supporting the opinion that no criminal charges could be made, and if he believes it is reportable, he will do so.

Pointing out that Jamaica recently passed new legislation in this area which is very up-to-date, he said that if Police and the DPP had not seen that legislation already they should as it could be very ?informative?.

Noting there are rules against unethical behaviour, Mr. Dennis said Bermuda must be more conscious of such behaviour.

It is up to the public to decide whether certain behaviours are unethical or not, he said ? and, while there is no law against incompetence, it is up to the country to decide whether or not certain unethical behaviours can be made illegal.

His role, however, is to look at what happened and apply events against the existing rules and regulations, then report those findings to the House of Assembly, he said. ?They take it from there.?

Housing Minister Ashfield DeVent did not return a call from yesterday, while members of the Opposition declined to comment on the matter.