Photos recently appeared in a Bahamas newspaper showing Gibson in bed with the former Playboy Playmate and embracing her. Both were fully clothed, but the pictures stoked a controversy because Gibson had fast-tracked Smith's application for permanent residency on the island chain.

"I want to apologize to all persons who may in any way have been offended by anything that I have said, done, or perceived to have said or done," Gibson said on state TV.

"To the extent that my beloved country has in any way suffered from anything that I was perceived to have said or done, I want to apologize to the Bahamian people as a whole," he added.

However, Gibson denied any wrongdoing and said he did not have a sexual relationship with Smith.

Smith died on Feb. 8 in Hollywood, Fla. She had based her residency application upon her claimed ownership of a waterfront mansion in the Bahamas. However, the ownership of the property is disputed.

Prime Minister Perry Christie said he had accepted Gibbon's resignation.

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