the administrative structure has received a "severe reprimand'', it was revealed yesterday.

But outraged College staff said academic vice president Donald Peters had gotten away with a slap on the wrist from the College board of governors and continued to demand his resignation.

Dr. Peters has apologised in writing for branding chief financial officer Barbara Green a racist and white supremacist.

The board also found that Dr. Peters had been guilty of "dereliction of duty'' by circulating Ms Green's confidential proposals to shake up the way the College is run to a small number of unauthorised college officials.

And the board distanced itself from the race row, exclusively reported in The Royal Gazette last week.

A College insider said: "The man has no credibility left -- he should do the honourable thing and resign.

"He's been let off lightly. And a lot of people -- black or white -- aren't going to want to work with him after this.'' A short statement issued by the College cleared chief financial officer Barbara Green of Dr. Peter's allegations.

The statement said: "The Board of Governors has concluded there is no foundation in the allegations of racism levelled by the vice president against the chief financial and operations officer on account of her recommendations for revising the college structure.

"The vice president has unreservedly apologised in writing for his baseless interpretation of the CFO's confidential memorandum.'' The statement added: "The board of governors has also concluded that the vice president's actions in circulating a confidential and internal document in the manner in which he did, constituted dereliction of his responsibilities as an executive officer of the Bermuda College.

"At this time, therefore, the board of governors has caused a severe reprimand to be placed in the vice president's employment file.'' College board chairman Randy Horton denied Dr. Peters had gotten off with a minor punishment.

He said: "We call it more than that -- we think that when something like this happens you have to win back people's trust and I think, based on the apology, that he will.

"I am sure he will do that and we will work hard at the College to make sure that happens.'' Mr. Horton added: "I'm very happy we're getting to the bottom of this -- we need to get past these things and focus on what we're there for at the College.

"Dr. Peters has indicated he's going to work with his colleagues with mutual professional respect and I expect others to do the same.

Peters receives severe reprimand The college statement said: "The board of governors believes it to be obvious that the College abhors and condemns acts or statements which may be constituted as racist in nature of motivation as having no place whatever in an institute of higher learning.

"The College's support for the principles of diversity both within the college and the community at large is demonstrated by the championing of the Diversity Skills Development Programme and is further illustrated by the on-going support for the recently-established Diversity Institute of Bermuda, as well as the launching of diversity educational programmes both inside and outside the college.'' A College spokeswoman added that the official statement would be the only comment on the affair. Ms Green could not be contacted for comment.

Dr. Peters last week denied he was a racist -- but did not retract his allegations against Ms Green.

And he predicted that the community would be "surprised'' at the outcome of the internal probe into the memo affair.

It is understood Dr. Peters later went on a witch-hunt to track down the college mole -- and falsely accused staff members of being responsible for the leak.

The row broke out after Ms Green submitted a discussion memo with proposals for a new look to the college's administration.

The proposals included removing some operational responsibilities from the academic VP and adding some to the chief financial officer's role, with a new title of VP Finance and Administration.

But Dominican-born Dr. Peters, like Ms Green a US citizen, accused her of "empire building'' and undermining his role, due to be taken over by Bermudian Larita Alford next year.

And he alleged her memo was an attack on black people -- and of believing she was superior because she was white.

Ms Green denied the allegations -- and was backed by both black and white staff at the college.

Dr. Donald Peters DISCRIMINATION DIS