Sandwell Council launch investigation into fresh allegations over corrupt house allocations

Leader Steve Eling confirmed the issue is among a series of matters now being probed by the council's internal audit team, which also include land and property sales.

It comes in the wake of the publication of the Wragge Report earlier this year.

The independent publication came after allegations surrounding former deputy leader Mahboob Hussain, amid claims that he had breached the council's code of conduct.

It found Councillor Hussain 'agreed to ignore' a £130,000 valuation by a district valuer for three public toilet blocks.

Two days later they were sold as a job lot for £35,000 to one of Mr Hussain's friends.

Internal interviews following the report have resulted in this latest investigation, with the findings expected in a report next month.

Councillor Eling said: "A number of things following the Wragge Report are being internally investigated by the council.

"The reports over this will appear in January."

He added: "This could relate to a number of people. If there is wrong-doing about council house letting, then no member of the council would be able to do it on their own, they would have had to engage with officers also."

Councillor Eling said it was difficult to say how many people are allegedly involved and how many council houses it is allegedly connected to.

Council chief executive Jan Britton added: "A number of audit investigations are continuing into issues identified in the recent Wragge Report or related matters.

"While we cannot discuss the details of particular cases, the subjects under investigation include land and property sales and purchases, and housing allocations.

"When completed, these investigations will be reported to the council's audit committee. We expect these reports will be presented to the committee early in the New Year."

Revised rules for councillors have since been introduced following the Wragge Report, tightening descriptions of family members and close associates.

Councillor Eling said: "I said back in the late Spring 'now is the right time to bring out the dead, I don't want this to go on for years'. If anything needs sorting out, let's get it done."