SYLVANUS Petty has resigned from this role at the Water and Sewerage Corporation at the request of Prime Minister Philip "Brave" Davis.

The news was announced in a press statement on Wednesday afternoon by the Office of the Prime Minister.

The statement said: "The Prime Minister has requested and accepted the resignation of Sylvanus Petty as executive chairman of Water and Sewerage Corporation. Acting Prime Minister Chester Cooper accepted the resignation on behalf of the Prime Minister. We thank Mr Petty for his service."

The move comes after sources told The Tribune that the Prime Minister had requested that a contract be cancelled that was given by WSC to Mr Petty's daughter, Sylatheia Gierszewski.

The news of the contract emerged when Mr Petty was cross-examined while appearing as a witness at the Adrian Gibson corruption trial, when Mr Petty said he did not discourage awarding contracts to people known by members of the WSC board, saying: "Everyone in The Bahamas was family."

He said he did not frown on nepotism and had no problem with the company entering into contracts with political allies if they were capable."

FNM chairman Dr Duane Sands had called for Mr Petty to resign, although Mr Davis said afterwards: "I know what I have to do and we are looking at the matter. We will not be dictated to by the FNM."

Mr Petty has made no comment.

The deputy chairman of the WSC will serve as acting executive chairman, according to the statemetn from OPM.