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Sandwell council has become a den of “incompetence, corruption and cronyism”, the House of Commons has been told.

And the Black Country authority, which serves Oldbury, Rowley Regis, Smethwick, Tipton, Wednesbury, and West Bromwich, has become “a stain on the reputation of the area”, according to an MP.

Halesowen and Rowley Regis MP James Morris demanded the resignation of council leader Steve Eling as he led a House of Commons debate, and urged the Government to intervene "and bring an end to this rotten regime".

But Coun Eling accused Mr Morris of getting his facts wrong - and said he planned to complain to the Speaker of the House of Commons.

Speaking in the Commons, Mr Morris talked of “the abuse of power by individual councillors and officers, a manipulation of processes and a culture of fear and bullying amongst those who work for and sit on the authority.”

And he said he had been forced to speak out because he had “lost faith that anything will be done soon”.

The MP asked the Ministry of Housing, Communities and Local Government, which oversees councils, to send in a commissioner to force the council to improve.

Mr Morris told the House of Commons:

Sandwell’s Children’s Services department “has been failing for years, letting down some of the most vulnerable citizens in the borough and has received damning Ofsted inspection reports”.

An inquiry found Sandwell’s former Deputy Leader, councillor Mahboob Hussain, was involved in the sale of three council-owned toilet blocks to a family friend for £35,000 - when they were worth £130,000. Cllr Hussain has denied any misconduct.

An investigation into Councillor Hussain and Councillor Babu Bawa “found potential collusion and fraudulent practice” over land sales

There are concerns “regarding disposal of a plot of land removed from public auction” in order to sell to Councillor Mohammad Rouf.

Mr Morris added: “Even more astonishingly Sandwell Council spent £200,000 on demolition of 8 terraced houses and the clearing of the site, for this to be purchased by Councillor Rouf’s son for £65,000 and then granted planning permission for a 7 bedroomed house, where Coun Rouf now reportedly lives.”

The MP highlighted “former Councillor Derek Rowley’s involvement in the disposal of a number of council-owned containers to a member of the public; the Council’s investigators could not look into this, as the individual in question is no longer a councillor, but it beggars belief that nothing can be done about such serious allegations of misconduct in public office.”

And Mr Morris told the Commons about “former Councillor Rowley’s involvement in the hire of marquees which allegedly involved the ownership of a company which was not declared and had done business directly with Sandwell Council.”

Mr Morris said Sandwell Council leader Steve Eling had pledged to “drain the swamp”.

But the MP added: “Far from draining the swamp, Councillor Eling has allowed the swamp to fester, and the smell of corruption and cover up is as strong as ever, and I have come to the conclusion that Cllr Eling must resign immediately as Leader of Sandwell Council.”

And he said Coun Eling and his colleague Coun Richard Marshall had “tried to enlist the support” of a campaigning blogger, Julian Saunders, who runs the Sandwell Skidder’s blog.

The blog had published WhatsApp messages showing that the two councillors attempted to encourage Mr Saunders to attack council staff.

Mr Morris said: “They include both Coun Eling and Marshall asking the blog to give the Assistant Chief Executive a ‘kicking’ and supplied information relating to her personal life

“Messages were also sent in respect to the senior officer’s employment, including that she had been sent home to ‘consider her position’.”

The MP added: “Councillor Marshall has also been subject to a bankruptcy order, but continued for a substantial time as a Cabinet Member ... I cannot see how an elected official can stay in office while being declared bankrupt.”

He said nearly all the allegations had been reported to the Labour Party, but there had been “hardly any movement”.

And he criticised MP Tom Watson, who represents West Bromwich East in the Sandwell borough and is Labour’s Deputy Leader.

(Image: Julian Hamilton/Daily Mirror)

“Right on his very doorstep there are allegations of fraud, misconduct in public office, sexism, and bullying – and he has hardly breathed a word.”

Tom Watson responded by saying: ‘Mr Morris is perfectly aware that a number of allegations have been made against councillors in Sandwell and that they have been investigated by the ethical standards committee and they will now be dealt with by the Labour’s disciplinary procedures in line with party rules.

"If he has specific allegations about criminality he must hand them over to the police."

Mr Morris urged the Ministry of Housing, Local Government and Communities, the Government department responsible for councils, “to make the strongest intervention possible into the capabilities and governance of Sandwell Council.”

He said an independent commissioner should be appointed by the Government to oversee changes “which would see public trust and confidence restored”.

Coun Eling said: “I certainly wont be resigning but i may call for James Morris to resign.

“I will be complaining to the speaker about a breach of Parliamentary procedures because he’s made a series of unevidenced allegations.”

He added: “To do that is an absolute disgrace.”

Coun Eling said a “peer review” of the council by the Local Government Association, to be published soon, would show that Mr Morris’ claims about the council were wrong.

Warley MP John Spellar (Lab) accused Mr Morris of "muckraking".

He said: "It was a use and abuse of Parliament"