A SPECIAL report on allegations that council houses in Burnley were unfairly handed out to tenants will go to the Ombudsman and the District Auditor, councillors have been told.

Council chief executive Roger Ellis says he has now completed the six-months-long investigation, set up after claims by a town hall employee that councillors intervened to help people queue-jump the housing waiting list.

The allegations sparked the suspension of two councillors from the council's ruling Labour Party, and the investigation has already resulted in the suspension of a housing office manager.

In a report to tonight's policy and resources committee, Mr Ellis says the next stage is to finalise his report by drafting conclusions and recommendations.

"I shall then consult the council's chief finance officer, the district auditor and the Local Government Ombudsman on the report.

"As soon as I have received their views I shall incorporate them into the report which will be published shortly thereafter."

The long-running investigation followed the suspension of two housing employees and the subsequent sacking of one of them following claims that she unfairly allocated a council flat to a relative.

The woman was subsequently re-instated at a lower grade following an appeal hearing at which she made claims which triggered the present inquiry.

Mr Ellis' investigation has involved interviews with many councillors and staff and study of scores of housing applications.

In tonight's report, Mr Ellis says councillors who were referred to personally during interviews have been asked to comment on what was said about them.

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