FRANK MCGRATH, Deputy leader of Preston Council in the Thatcher years, is getting help from the political activist who spent 13 years trying to wreck his career in 'a truly fiendish plot'.

Michael Murrin, a Preston insurance agent and former owner of a fish and chip shop in Longridge, ran an undercover campaign from his home in Goodwood Avenue, Fulwood, against the Labour councillor and his friend the millionaire tycoon, Owen Oyston.

But last week, over cups of tea at McGrath's home in Fulwood, the two men agreed to co-operate on a case in which McGrath has been given legal aid to sue, among others, the chief constables of Lancashire and Merseyside and two former Tory government ministers over the theft of his income tax secrets.

The meeting between McGrath and Murrin followed the sudden death in hospital in August of the Blackpool property millionaire, Bill Harrison.

Murrin said his campaign against McGrath and Oyston had been partly-funded by Harrison, who had hosted Mrs Thatcher at his home on several occasions.

"I have been trying for years to find out who and what was behind this plot", said McGrath.

"During one of the many court cases, I learned from the Crown Prosecution Service that my political opponents had been reading my personal income tax files. I believe this was a breach of the Official Secrets Acts and that my records were illegally bought and sold."

Initially, Murrin's name was included with former Blackpool MP Lord Blaker and MEP, former South Ribble MP Sir Robert Atkins and Bill Harrison on the list of people being sued by McGrath.

"But", said McGrath, "Michael Murrin agreed to come and talk to me about the dirty tricks campaign and show me his documents and tape recordings which reveal how a truly fiendish plot was mounted against me and my associates.

"The meeting went well and I have promised Michael that in view of the help he is giving me, I will be indemnifying him against any actions brought against him in the case.

"Although he was a persistent and dangerous political opponent I have discovered that I like him. It was just an accident that we ended on opposite sides of the political battle lines."

For years Murrin campaigned to prove that McGrath, his leader Harold Parker, a former Mayor of Preston, and the Labour leader of Lancashire County Council, Mrs Louise Ellman were being influenced by friendship with the "socialist millionaire" Owen Oyston. In 1987 McGrath had become a millionaire through his personal investment in Oyston's Red Rose Radio. However, on August 7, 1991, a 20-man team of police detectives on "Operation Angel" conducted 19 raids on Preston Town Hall, the business offices and homes of Frank McGrath and Harold Parker and council officials.

Police revealed later that Murrin was one of the informants behind "Operation Angel".

Twenty-one people, including Preston's chief executive, deputy chief executive and deputy Labour leader were charged with various offences of corruption, conspiracy and theft.

But in the six years since the Angel raids, the only people convicted of any offences have been the owners of four small businesses and two minor council officials, all but one of whom had already been reported to police by the council before the police operations began.

Lord Justice Nolan found that all the raids and searches on the council leaders were unlawful and all those charged under Angel with deception, corruption and conspiracy to defraud have had the charges dropped by the CPS or have been found not guilty in court and awarded defence costs out of public funds.

Deputy Chief Executive Hugh McClorry, who was sacked and charged with conspiring to defraud the Department of the Environment of £650,00, had the case against him dropped at Crown Court, won compensation for unfair dismissal and got a declaration from the council that there was "no incompetence and no misconduct" in his work. He is now the Town Clerk of Kendal.

When the CPS withdrew charges against Deputy Labour leader McGrath at Liverpool Crown Court, Mr Justice Forbes determined that all charges against the councillor had been "concluded in Mr McGrath's favour". No councillor was convicted of any offence.

McGrath said: "In December 1993, I was told that the cost of the investigations into my cases alone had passed the figure of £7.8 million. Angel police salaries alone, paid out by a hard-pressed force which has had to make many budget sacrifices, must have cost more than £3.5 million."

He said the Angel team, which has run under two Chief Constables and three Commerce Branch chiefs, at times included 36 detectives, who visited Germany, Spain, Jersey and the Isle of Man in their investigations. "The amazing size of the investigation and its paltry fruit demand explanations from those in authority."

This week Murrin said his long investigations had "cost me 14 years of my life and two businesses; I have been involved in three sets of bankruptcy proceedings. I haven't a penny to hire lawyers." It was time, he said, for "a full inquiry" and promised McGrath every assistance.

McGrath said : "The death of Mr Harrison will not seriously affect my legal action. I will sue his estate."

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