A COUNCILLOR who admitted a £3,000 benefit fraud revealed he offered to quit the Liberal Democrat group when he was first questioned.

But Coun Arif Waghat said he was persuaded to remain a Shear Brow councillor by bosses.

Critics have crticised Waghat - himself a former benefits advisor - for remaining a councillor after he admitted helping to cheat the public purse at Burnley Crown Court on Wednesday.

After the case, he resigned from the Liberal Democrat group for Blackburn with Darwen.

But will remain a councillor, unless he is jailed for more than three months - the point at which he would be automatically be struck off.

Waghat, of Buncer Lane, Blackburn, who was deputy leader of Liberal Democrats, has been warned by a judge he faces jail.

Speaking yesterday, Coun Waghat confirmed that he had resigned from the party.

And he added: "I offered to resign when I was first interviewed about this, in May 2006, but it was felt that I had not been found guilty of anything and I should continue as a councillor."

Coun Waghat declined to comment further on the case before he is sentenced by a judge later this month.

Labour leader Coun Kate Hollern said Waghat was committing benefit fraud before he stood for election in 2006.

The first charge the councillor admitted related to an income support claim, running from January to November 2005.

The income support claim, included in the second charge, dated from June 2005 to April 2006.

She said: "This does bring into question the judgement of LIb Dem leader Coun David Foster and Conservative leader Coun Colin Rigby.

"They have been particularly naive.

But Coun Rigby, the Tory leader of the Lib Dem, Conservative and For Darwen coalition that runs the borough said: "He has accepted the fact that he has committed a crime.

"And he has taken the sensible view in resigning from the Liberal Democrats.

"I think now he certainly understands the seriousness of what he has done.

"We will have to await the outcome of sentencing hearing now and I will make a full statement following that."

Coun Rigby declined to comment on whether Coun Waghat was right to remain as a councillor, but said he would comment further at the conclusion of the case on that matter.

Coun Foster was unavailable for comment.