Preheat oven to 350F. Heat margarine in skillet. Add leeks and saute, cover until wilted. Add red pepper saute 5 min.
Combine matzos with water in bowl, soak 3-5 min. until soft. Drain, squeeze out excess water.
Combine leek mixture and matzos with remaining ingredients, except cheese and chives. Stir until fully mixed. Pour into an oiled shallow 2 qt. casserole. Sprinkle cheese over top followed by chives. Bake 35 to 40 min, or until top golden. Let stand 5 to 10 min and cut.