The man accusing Health Minister Nelson Bascome of stealing from the business they ran together has told Magistrates' Court he does not know why payments were made from it to restaurants, a liquor store and the Progressive Labour Party.

Robert Smith, who was a partner in the Natural Business Company with the PLP member for Pembroke East Central, told prosecutor Paula Tyndale there was no reason he knew for the Natural Business Company to incur expenses with the Sea Horse Grill, Primavera restaurant, Court Street Liquors, the Southampton Arms, CableVision and Bascome's political party.

Bascome, 52, stands accused of stealing more than $60,000 by funnelling a bank loan meant to be spent on the Natural Business Company into his own pockets instead.

He denies any wrongdoing and is on trial before Senior Magistrate Archibald Warner.

In evidence to the court on Friday, Mr. Smith, of Bailey's Bay, made claims that Bascome had been dishonest with him over the financial dealings of the company, which was set up to do contract work incorporating a water filter Mr. Smith had invented.

He explained that his role was to carry out the physical work while Bascome looked after the finance side of things and that he did not know much about what was going on with the finances as Bascome did not provide information. In further allegations yesterday, Mr. Smith claimed his partner spoke of paying $60,000 to a company in Korea to make water filters for them — but when that company went out of business, he contradicted himself by saying he was glad he hadn't paid out the money.

Mr. Smith claimed Bascome also paid $6,000 for a car for him to carry his tools, saying it was his personal money.

Mr. Smith paid him back but alleged that he later found out Bascome had deducted that sum from the company account.

In addition, he alleged that his partner put $100,000 of a $175,000 business loan into his own personal bank account, with Mr. Smith only originally being aware of the $75,000 which went into the company account.

He told the court that when he became suspicious about Bascome, he made inquiries at the bank and found out about the rest of the money.

Explaining how he came to make a formal complaint to the Police about Bascome in May 2005, resulting in the current charges against him, Mr. Smith said he tried to negotiate with his partner over a request that Mr. Smith buy him out.

However, he said Bascome refused to give his daughter receipts in order for her to understand computer printouts on the company finances he provided. In addition, he said, he became "really suspicious" when Bascome told him water filters for the company would cost $132,000 to make up and ship in to Bermuda.

His own inquiries of the shipping company revealed the cost to be just $60,000.

Mr. Smith told the court he did not know anything about the company finances at the time he made the complaint to the Police as Bascome had not provided him with information. "What I know today, I never dreamt was going on," he alleged.

In cross examination, defence lawyer Victoria Pearman accused Mr. Smith of making up his evidence as he went along — something he strenuously denied.

He agreed he got angry with Bascome over the first joint venture they engaged in — renovating a bathroom at the house of the MP's cousin Donald Smith in Hamilton Parish.

Robert Smith said he was upset that Bascome agreed to do the work for $3,000, when in his opinion the value of the job was $25,000. However, he denied Ms Pearman's suggestion that he came down to the job site with a machete and threatened Bascome — or that it was his work that caused complaints and resulted in Bascome charging his cousin just $3,000.

Mr. Smith further denied Ms Pearman's claim that Bascome bought him the $6,000 car because he did not want him using a company van for non-business purposes.