CORRUPTION at Sandwell Council is being investigated by the police and external auditors after allegations of fraudulent land sales involving a cabinet member.

Powerful Oldbury councillor Mahboob Hussain has stood down as chairman of the council’s asset management and land disposal committee but remains deputy leader and cabinet member for town and neighbourhood services despite growing calls for him to resign.

An internal joint statement, which has been leaked to the News, by council leader councillor Darren Cooper and chief executive of the council Jan Britton laid bare the crisis.

The statement said: "The police have decided that an allegation they have received about some land sales by the council are sufficiently serious that they must investigate.

"The chief executive met with police officers yesterday (Monday) morning and they have begun their investigation.

"We will, of course, co-operate fully with the police investigation in every way."

Allegations concerning council land, including former toilets and the former Smethwick coroner's court being sold to Cllr Hussain's family members and associates have been made online by community blogger Julian Saunders.

Last month, Cllr Hussain had to apologise for failing to declare an interest in Five Star Taxis which won lucrative contracts from Sandwell Council.

The joint statement, posted on the council's intranet on Tuesday afternoon, said: "We jointly decided that we should instruct the council’s audit service to conduct an investigation of the allegations that have been made.

"This audit will also involve the council’s independent external auditor, KPMG and the relevant files have all been secured in order for us to conduct this investigation."

The statement added: "The council audit and the police investigations may take a considerable amount of time – and regrettably they may also bring negative media attention to the council, whatever their outcome."

"We think it is important that we both say how proud we are of Sandwell Council. We both think we have achieved amazing things in the past five years, despite huge budget cuts and increasing need for our services by the public."

Halesowen and Rowley Regis MP James Morris called for Cllr Hussain to stand down from the cabinet.

He said: “Everybody has a right to a fair trial – even politicians – but these accusations are so serious that the right thing to do must be for Cllr Hussain to stand aside from his cabinet roles while they are properly investigated.

“That doesn’t mean automatically presuming that he is guilty but it does mean recognising that these allegations – if they are proven – would represent serious criminal offences."

He added: “There needs to be a full and independent investigation so that people in Sandwell can be confident that any wrong-doing or criminal activity will be unearthed, and Cllr Hussain should stand down as deputy leader and cabinet member until that is completed.”

A long-standing critic of Sandwell Council's leadership, former independent Socialist councillor for Langley Mick Davies, is demanding answers.

He said: "The whip should be withdrawn from Hussain and he should be made to resign from the council.

"Others should go, be they councillors or officers, as soon as their roles in this shameful, shabby episode are uncovered as I believe they will. The people of Sandwell are not idiots."

Cllr Hussain confirmed he is remaining in the cabinet and as deputy leader.

He said: "I have stood down from chairing the committee to protect myself and family from repeated, unwarranted attacks on social media.

"I fully expect the audit service’s investigation to clearly show I have followed all the proper rules and procedures."

Sandwell Council leader councillor Darren Cooper and chief executive Jan Britton's joint statement in full.

"Many employees will already be aware of some allegations about fraudulent land sales and other matters that have been circulating on the internet via social media for the last few weeks.

While we have no evidence that anything unlawful has been done, these allegations are clearly serious and it would be wrong for us not to investigate them properly.

Therefore, last week we jointly decided that we should instruct the council’s audit service to conduct an investigation of the allegations that have been made.

This audit will also involve the council’s independent external auditor, KPMG.

The relevant files have all been secured in order for us to conduct this investigation.

The Police have also decided that an allegation they have received about some land sales by the council are sufficiently serious that they must also investigate.

The chief executive met with police officers yesterday morning and they have begun their investigation. We will, of course, co-operate fully with the Police investigation in every way.

The council audit and the police investigations may take a considerable amount of time – and regrettably they may also bring negative media attention to the council, whatever their outcome.

We think it is important that we both say how proud we are of Sandwell Council. We both think we have achieved amazing things in the past five years, despite huge budget cuts and increasing need for our services by the public.

We are not aware of anything having been done that is illegal.

However, what is important is that we investigate these matters and resolve them."