Sandwell Council fraud claims referred to West Midlands Police

Councillor Hussain and Councillor Babu Bawa were involved in potential collusion and fraudulent practice against the authority over a dodgy Compulsory Purchase Order (CPO) scheme, a new report alleged today.

The matter has been referred to West Midlands Police Regional Organised Crime Unit, along with an allegation that Mr Hussain defrauded the authority over the allocation of 10 council-owned properties to members of his family.

A previous police investigation into fraud at the council closed last April with no charges being brought.

The new report to the council's Audit Committee reveals details of an internal investigation that covers matters stretching back as far as 20 years.

It was launched in the wake of the Wragge report, which accused Oldbury councillor Mr Hussain of a number of code of conduct breaches.

The latest report also alleges that Councillor Ian Jones removed the sale of a plot of council-owned land from a public auction in order to sell it to a member of Councillor Mohammad Rouf's family.

Had the sale gone ahead, it would have seen the land sold at 'significantly below the value' it achieved when it was later sold to another close family member of Mr Rouf in February 2012.

"Various allegations and investigations have been ongoing since 2014.

"I have been convinced for some time that the council's actions against me are purely politically motivated and are an attempt to smear my character to the media.

"These investigations have come at great expense to the public purse.

"The latest cynical move to publish allegations which have not been properly investigated or put to me, reinforces this view.

"I will cooperate fully with any investigation, as I have always done, because I have done nothing wrong."

The report says there is some evidence to suggest that Mr Jones was acting under instructions from the then council leader, the late Councillor Darren Cooper.

The matter has been referred to the council's Monitoring Officer for further investigation.

Two other issues will not be pursued further as they involve former Great Bridge councillor Derek Rowley, who retired last May.

The report raised concerns that Mr Rowley sold a number of council owned containers from Jubilee Park to a member of the public. The deal may have cost the council up to £8,000, it says.

It also alleges that Mr Rowley charged the authority for marquee hire from his personal business.

Councillor Eling said: "This report that will understandably cause a lot of concern for the people of Sandwell.

"I want to reassure the public that Sandwell Council is not overrun with crooks.

"I want to make it clear that my aim is to clear the swamp and ensure that any allegations of misconduct and fraudulent behaviour are thoroughly investigated and acted upon."

Jan Britton, chief executive of Sandwell Council, said: "The Council treats all allegations of wrongdoing or impropriety with the utmost seriousness.

"For that reason, we have carried out extensive investigations into a number of issues relating to land sales, housing allocations and other matters that have been brought to our attention.

"We are pleased to be bringing a report detailing the outcome of reviews into these allegations to the upcoming meeting of the Council's Audit Committee.

"Several of the allegations date back many years and have come to light following more recent investigations.

"The report concludes that some of the issues require further action while others make recommendations to improve the council's procedures.

"We have worked extensively to get to the bottom of any alleged wrongdoing as promptly as possible and it's important to the Leader and me, to the Cabinet and to the Council as a whole that we take action where necessary and move on from this."

The council's Audit Committte will consider the report on January 26.