BURNLEY Council has a major fraud problem and needs a special scrutiny panel of councillors to oversee investigations, claims Independent leader Harry Brooks.

Coun Brooks listed eight alleged fraud cases over the past year.

He told the town council: "The council and the town really does have a serious problem arising from both the number of cases of alleged fraud and corruption, the cost of investigations, the apparent ineffectiveness of those investigations and the lack of openness with which these difficult, indeed disgraceful, matters are approached."

He said that in the past eight months alone the council had paid out nearly £18,000 to staff suspended on pay while investigations were carried out.

There was an additional substantial amount for sick pay to an employee in a case where proceedings were halted on medical grounds.

None of the investigations, he said, had resulted in the dismissal of a single member of staff, although at least two had been allowed to resign. "Are we creating the impression that the worst that can happen is that you can simply pack in your job?"

He called on the council to work towards ending the "culture of secrecy" surrounding incidents of fraud and corruption within the council.

But council leader Stuart Caddy said there was nothing wrong with the council's procedures which were swift and effective.

Coun Stephen Wolski rejected Coun Brooks argument, stating every organisation had the odd individual who tried to cheat and they had to be rooted out.

Finance chairman Peter Kenyon said the Independent's move was primarily for the purpose of electioneering.

Councillors rejected Coun Brooks' move and, instead, backed a Labour motion noting with approval measures taken during the past year to address issues of ethics within the council.

These involved the adoption of a code of conduct for employers, the adoption of a whistle-blowing policy and the approval of a policy for combating fraud and corruption.

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