Above: Former Bermuda Premier Craig Cannonier (Photo: CC)

In a statement, Fergusson said Cannonier “called on me this evening and tendered his resignation, which I have accepted.”

“I have asked the Deputy Premier, the Hon. Michael H. Dunkley, JP, MP, to carry out the role of Acting Premier on an interim basis,” he said.

Later Monday night, Fergusson said Dunkley informed him of his intention to form a government.

“I am satisfied that Mr Dunkley is best able to command the confidence of a majority of the members of the House of Assembly,” the Governor said. “I have asked Mr Dunkley to continue in the role of Acting Premier, pending a formal swearing in as Premier of Bermuda tomorrow morning.”

There were concerns that Cannonier would resign over the weekend, following a renewed controversy over concerns about an alleged meeting Cannonier had with an American developer last year on the latter’s private jet.

But the brewing controversy became too much, with Cannonier choosing to hand in his resignation on Monday.

In a video announcing his resignation, Cannonier said “nothing illegal was done” but that he said he accepted that there had been a “failure over time to be completely transparent.”

“As a result, and after days of close counsel, with my colleagues, more importantly, my family, I have decided to resign my position as premier of Bermuda and have advised the governor of my decision. In so doing, I am asking you as a community to agree with me and support my deputy, the Hon Michael Dunkley, who will serve as Premier.”

Cannonier said he would, however, remain as a member of the One Bermuda Alliance party and a Member of Parliament.

Cannonier’s One Bermuda Alliance won the British Overseas Territory’s December 2012 elections with 19 of 36 seats contested, ousting the ruling Progressive Labour Party after it had won three consecutive elections.