Paul Allen accused of destroying protected coral reef with yacht

A luxury mega-yacht owned by multi-billionaire and Microsoft founder Paul Allen obliterated a protected coral reef in Cayman Islands when it dropped anchor, local media say.

Allen's five-deck, 92.4 metre vessel, the 49th largest in the world, damaged nearly 1300 square metres of the reef in West Bay early this month, according to the Cayman News Service.

The damage is believed to have been caused by the yacht's chain, causing damage to reefs which are considered vital for marine life to flourish, as they help protect coastlines from big waves and tropical storms.

The accusations came five months after Allen, who has a reported net worth of $24 billion and is a noted wildlife and conservation philanthropist, pledged to support research into restoring coral reefs.

A spokeswoman for Allen, Alexa Rudin, said the Microsoft founder was in the Cayman Islands early this month but the crew of the yacht complied with all environmental requirements.

"When its crew was alerted by a diver that her anchor chain may have impacted coral in the area, the crew promptly, and on their own accord, relocated their position to ensure the reef was protected," Ms Rudin said.

Ms Rudin also questioned the 80 percent damage number.

The Cayman Islands Department of Environment will issue its findings next week.

Allen faces fines if he is found to be responsible, despite the Cayman Islands government being criticised in the past for not collecting fines from yacht owners for past damages.

Allen founded Microsoft with Bill Gates in 1975.