I was thinking you're right, but I couldn't remember the details. But the internet always comes through for us! I found it in a transcript:

JOSEPH: Close to the Kandyman, were you?
GILBERT: I made him.
JOSEPH: Really? How very interesting.
GILBERT: Only his body. His mind was very much his own.
JOSEPH: I certainly don't recall the chap ever arriving.
GILBERT: He was born in the Kandy Kitchen.
JOSEPH: Whereas you came from Bazsilf, if memory serves.
GILBERT: I was exiled from Bazsilf. I brought his bones here in a suitcase.
JOSEPH: Exiled, you say?
GILBERT: I made a mistake. I was working in the state laboratories. Without realising it, I invented a deadly new germ. The disease wiped out nearly half the population.
JOSEPH: Still, hardly your fault. Can't you just pack him up and start again?
GILBERT: Not this time. He's better off this way. The Kandyman's gone.

God, I love that episode, in all its bizarre, brilliant insanity. :)