The Bermuda Industrial Union looks set to write off a $40,000 loan made to a discredited promoter who was hired to organise an international conference on the Island.

The leak came after it was announced that the World Conference of Mayors convention, due to take place next week, has had to be dramatically scaled down because of a lack of participants.

Yesterday it was also revealed that to date, no local businesses and organisations have signed up to take part.

At a press conference in September, following months of speculation, BIU chief Derrick Burgess confirmed the Union had donated $40,000 to organiser Bonnie Marshall to kick start the convention.

Mr. Burgess emphasised the cash was simply a loan and that the union would eventually be repaid in full by Ms Marshall's company, the Afro-American Global Trade and Tourism Council.

When questioned about the loan yesterday, union vice president Chris Furbert described it as "an investment'' and repayment would come not in the form of cash but through conference spin offs.

At a press conference Mr. Furbert said: "When the BIU put in some money we explained that the money was an investment and we are seeing some benefits out of that money such as the international labour roundtable workshops -- I don't think we can put a price on that.

At this point World Conference of Mayors founder Johnny Ford stepped in saying that he would do what he could to get the union's money returned -- but he could not offer any guarantees.

"We expressed our appreciation to the Union for having the foresight in investing in the conference,'' he said.

"These resources went to Bonnie Marshall and this is between them, but my position is that, if she is not able to work out the repayment that she owes them on their investment then the World Conference will do what ever we can to satisfy that commitment.'' Mr. Ford went on to say that perhaps as many as 150 delegates, from the US, the Caribbean and Africa, could be attending and would include mayors and union and business leaders.

Although the Elbow Beach Hotel, which is hosting the convention, yesterday confirmed that only 55 rooms had been booked for the event, Mr. Ford said he believed more reservations are in the pipeline.