A defence lawyer yesterday accused a local businessman of trying to frame his financial comptroller.

Lawyer Mark Pettingill said Norman Davison, the president and managing director of Davison's of Bermuda, had granted far more authority to his financial controller, Colin Clive Andrew Cave, than he had admitted.

Cave has denied 36 charges of stealing more than $54,000 from his employer and creating false accounts during his employment with the holding companies of the Davison's retail stores.

Earlier in the Supreme Court trial, Mr. Davison told Crown counsel Peter Eccles the 49-year-old made numerous unauthorised withdrawals and fund allocations from company accounts.

The transactions were used to pay for travel and entertainment, credit card and overseas insurance payments and contributions to store petty cash boxes.

Mr. Davison also told the nine-woman, three-man jury he had no fore-knowledge of and had never sanctioned a business trip during which Cave met with bankers and real estate brokers in Baltimore.

But Mr. Pettingill questioned Mr. Davison's description of the events. He suggested that the two men had met and discussed plans for the company's US expansion as early as Cave's application interview.

"In light of that information, Mr. Cave went to the bank on behalf of Davison's to discuss the financing and opening of a new store,'' said Mr.

Pettingill.

"And you, sir, knew about it,'' he added.

Mr. Pettingill also said Mr. Davison had been "desperate'' to acquire a financial controller because of a previous incompetent accountant. And, he added, only a verbal contract had been agreed to so as to protect Mr.

Davison's arrangement.

"You agreed to all of the terms Mr. Cave suggested so you could get this highly qualified man into the Island to fix your mess,'' he charged. "When he was done fixing the mess in December, you just got rid of him.

"By getting rid of him, you didn't have to pay the rest of the money due to him for the rest of that year.'' Mr. Pettingill went on to say the $25,000 of company money which Cave transferred to his personal account was a legitimate and candid attempt to receive his salary.

"He clearly set out he was taking the money and he set out why,'' said Mr.

Pettingill. "It clearly relates to Colin Cave and it's obvious it's Colin Cave who did this.'' Mr. Pettingill also suggested Mr. Davison and his accountant had used financial records in an attempt to discredit Cave.

"He was easy to frame because it was all there,'' he said. "Yesterday, by identifying that handwriting as Mr. Cave's, you were again trying to bolster your claim against Mr. Cave and make him look bad in front of the jury.'' But Mr. Davison denied the defence lawyer's claims.

And he said he had never responded to an invitation from Cave's American attorneys for discussion because "the letter did not make any sense whatsoever''.

According to the letter, Mr. Davison had promised Cave salary payments in US funds, full medical coverage for his family, a three-year contract, and a travel allowance.

Mr. Davison said: "To sit down and try to answer something that you know makes no sense whatsoever is an exercise in futility. "And the Police department wasn't going to drop their investigation.'' The trial continues before Puisne Judge Richard Ground.