Police are probing possible corruption in the handling of Government building contracts says Auditor General Larry Dennis.

He would not reveal which contracts were being investigated but said his office was assisting.

It's thought the Police probe is focusing on possible wrong-doing within the Civil Service.

Asked about Police involvement Mr. Dennis, who retires on Monday, told The Royal Gazette: "They are working on something and this office is definitely part of that and will be part of that after I go.

"We are working on some of the construction contracts."

But Mr. Dennis said contractors had every right to push for the best deal they could get as he lambasted Government for a tendering process he labelled "a sham" and which routinely costs the taxpayer millions in overspend.

In a wide-ranging interview Mr. Dennis said his biggest regret as he left office was the collapse of the protocol for how Government dishes out public contracts.

"The tendering process in Bermuda is really a sham.

"We have very few open tenders, it's always a closed tender and you know before the tendering process finishes exactly who is going to get it."

He cited the Berkeley contract and the Police/court building contract both times the company given the job was not one chosen by Government's technical advisors.

And both times there were considerable problems with the work resulting in the contractor being changed.

In the Berkeley school deal it took three or four years to sack builders ProActive, said Mr. Dennis.

"Then they try to take credit for solving that problem, getting rid of this company that wasn't doing its job, having ignored the fact that the Government was the one that picked the company in the first place."

That job came in three years late and more than $57 million over budget.

He said the same thing happened with the Police/court building contract, with Government ignoring expert advice and plumping for a contractor who then had to be removed from the job.

In that case Canadian partner Lisgar left after delays and waste on the $78 million job.

"Now the Minister takes big pride in solving the problem. But that was the company picked in the first place."

Each time the taxpayer picks up the large tab for political blunders, said Mr. Dennis.

Asked if he had concerns about other recent construction projects, Mr. Dennis replied: "Offhand, I can't think of one which was proper. I really can't.

"If you don't have an open competitive tendering process you can't decide if you have got the best prices."

Mr. Dennis explained that open tendering was the process whereby anyone could bid. Closed tendering was where only certain firms were invited to bid.

"And eventually those companies which are serious about tendering and playing by the rules will drop out of the process, leaving only the favoured few to tender.

"Now you can't have any faith in the tender."

Next came the huge price hikes. "Something that is tendered for $35 million goes up to $50 million, that is absolutely impossible. It just doesn't come like that."

Whereas a ten percent overage was acceptable, he said building jobs were routinely blowing budgets by huge margins.

"Over and above ten percent there is definitely something wrong."

Police yesterday did not respond to a request for comment however Civil Service head Kenneth Dill said: "I am not aware of any Police investigation regarding corruption within the Civil Service; although I am aware of a matter which I personally brought to the attention of the Police and by extension, the Auditor General's Department regarding the questionable activities of a former civil servant.

"At this point in time, I have no further comment."