THE District Auditor has described the City Council's role in the disastrous Crinkley Bottom fiasco as unlawful, impudent, irrational and mistaken.

Three years and seven months after an objection was first lodged, auditor Clive Portman has issued an explosive statement outlining his initial investigations into the £2 million debacle.

After examining hundreds of documents and conducting exhaustive interviews the auditor has expressed his " provisional views" and declared that:

the decision to renegotiate the original contract with Noel Edmonds was irrational and unlawful

the decision to grant early retirement with an enhanced pension to the then Town Clerk was unlawful

a side letter deal set up by the Council was imprudent

the decision to later terminate the deal with Noel Edmond's Unique Group and go to court was mistaken.

The statement has been issued as a matter of public interest and Mr Portman has stressed that he will consider further representations before reaching any findings of fact.

He has yet to make any decisions with regard to allegations of wilful misconduct and has yet to consider whether any member of the council should be surcharged to make good some of the £2 million losses.

Councillors and officers involved in the deal between 1994 and 1995 now have until April 22 to respond.

In the statement issued by Mr Portman's solicitors it says: "The District Auditor has completed his preliminary investigations into the principal objection.

The Objector alleges that the Council acted unlawfully at various stages of the Crinkley Bottom venture and that the Council has suffered losses caused by the wilful misconduct of certain members and officers.

The District Auditor must therefore give a decision on the various allegations of unlawfulness and, if he finds that the Council has suffered financial loss through its participation in the Crinkley Bottom Theme Park, consider whether any member or officer of the Council should be surcharged."

It adds: "The allegations made by the Objector are serious.

In the course of his investigation the District Auditor has carried out 24 interviews, involving 20 individuals.

He has obtained and reviewed many hundreds of documents both from the Council and the Unique Group.

This is a matter of significance and it is important that the DA should have taken time to obtain and review the extensive documentation and take legal advice from time to time as his enquires have progressed."

Current members of the council discussed the auditor's preliminary investigations at a meeting on Wednesday and decided to set up a Unique Response Committee.