Wragge report: Scandal-hit Sandwell Council to take pension back

It was one of several measures outlined by bosses in the first public meeting over the infamous Wragge report, which exposed a series of code of conduct breaches levied at former deputy leader Mahboob Hussain.

While Standards chiefs investigate a number of issues concerned with the disgraced councillor, including accusations of reducing parking tickets for family members and claims he bullied a council worker, on Wednesday the Audit Committee focused their attentions on the 2012 sale of three toilet blocks to one of Mr Hussain's friends for £35,000 – even though they had been valued for £130,000.

The report, carried out by law firm Wragge & Co (now Gowling WLG), branded it a 'serious breach of the council's internal financial regulations' and now the council has confirmed it is looking at ways of recovering the difference as well as further legal costs incurred by the probe which are estimated to exceed £250,000.

Darren Carter, chief finance officer, said: "The council is considering options at the moment in relation to recovering that difference. We have done that in previous instances where we have found irregularities. We have pursued that in the past and consider that as an option to pursue now."

Concerns were raised about the fact senior council surveyor David Willetts, who was involved in the sale and was allegedly 'bullied' by Hussain, had since retired from the authority.

But assistant chief executive Melanie Dudley assured their was still a mechanism for recovering any money from him.

She said: "Mr Willetts is no longer employed by the council and has retired which was pre-agreed before these issues came to light. Where it is felt by the Audit Committee the funds should be recovered that would be done by the pension paid to the individual concerned."

Also involved in the sale was Councillor Ian Jones, although the Wragge report concluded he had no case to answer describing him as a 'passive bystander' in the matter.

Yet the Audit Committee expressed its intention to haul all of those involved, Councillor Jones and Mr Willetts as well as Councillor Hussain, before them at a later date to explain their actions. It also emerged a council officer, who was mentioned in the report but not identified publicly has been suspended for their part in certain alleged discrepancies.

Ms Dudley said more details were likely to be revealed on that case within a month.

The committee sought to outline a number of measures to prevent council property being sold at a significantly lower price than valued in the future.

A new 'sales protocol' is being drafted which will be brought back to the panel in August.

But councillors requested the new framework makes it clear what the consequences are for breaking the rules.

They also called for sales of a certain value to be subject to a consultation or even referred to the cabinet.

There will also be a review of all other council land sales which took place between 2011 and 2013 to compare the valuations with the sale prices.

Some measures have already been implemented and approved including requiring an external valuation on sales and purchases involving council employees, members their relatives or associates.

A director will also have to sign off on any deal now.

In addition extra checks have been introduced to the council's money laundering policy and a 'central register' has been created to record declarations of interests of councillors and authority staff.

Councillor Ann Jaron, on the committee, said: "This matter has blackened the reputation of all of us. Most of us keep our standards well within the code of conduct and work hard to do it. So to have our name sullied in this way is deeply disappointing. Frankley it is a betrayal of colleagues."

The Wragge report was commissioned by the former council leader the late Darren Cooper in October 2014. The majority of findings have been echoed in a separate report by James Goudie QC.

Mr Hussain, who was chairman of the authority's asset land and disposal committee, has disputed the probe's findings declaring he is the victim of a 'political witch hunt' and vowing to fight the matter.

And although Councillor Jones was vindicated he too has said some of the findings have been misunderstood and misinterpreted.

Mr Willetts was unavailable for comment.