AN under-fire tenants' group has been given a financial clean bill of health after being called to account by council bosses.

Housing chiefs called for an inquiry after Padiham and Hapton area management committee was accused of misusing funds and spending £3,300 in three weeks.

Councillors came within a whisker of suspending the body, which represents more than 800 council tenants, and warned that unless there was a satisfactory explanation of the group's accounts, they would launch a full inquiry.

But last night Burnley's housing committee pulled back from the brink after the tenants group came up with a detailed explanation of its spending.

Housing chairman Rafique Malik said details had been circulated to all committee members, inviting responses if there was cause for concern.

He said he had received no adverse comment and added: "There is no evidence of impropriety on the part of Padiham and Hapton Area Management Committee."

Converted for the new archive on 14 July 2000. Some images and formatting may have been lost in the conversion.