Sandwell Metropolitan Borough Council

Mike Wood Excerpts

Thursday 25th January 2018 Commons Chamber

[James Morris]

The Sandwell Council misconduct hearing found that Mahboob Hussain had broken the rules in a sale of public toilets. It said that the councillor “ignored” a £130,000 valuation, and instead sold them for £35,000 to a family friend. Councillor Mahboob Hussain has denied any misconduct, and of course he has the right to defend himself. West Midlands police have said that there is “insufficient detail” to launch a criminal investigation into the breach. However, James Goudie QC, who chaired the hearing, found that the councillor had breached the code of conduct a total of 12 times. He summarised that by saying that Mr Hussain

“compromised the integrity of other council officers by exercising complete control over the action of the sale of the toilet block…The councillor’s actions brought the council into disrepute.”

I am aware that the Wragge report was a contested document, and there are serious questions about its cost and how it was commissioned. As I have said, it was intended never to be made public, and it has reportedly cost the authority about £185,000—a substantial sum of money. Since the publication of the report in 2016, further historical allegations about a number of individuals have come to light. In January last year, an audit report brought to the public’s attention further and more widespread allegations, all of which are in the public arena and have been published on Sandwell Council’s website. Some of them have not been investigated properly, and where wrongdoing has been proved, that has not resulted in any action being taken. I do not take a view about the nature of the allegations; I merely describe them to give the House a perspective on the level of allegations that have been made about the conduct of some councillors in Sandwell Council.

[Mike Wood (Dudley South) (Con)]

Given the serious questions that have been raised about the disposal of council land in Sandwell, does my hon. Friend agree that the council should also investigate the case of my constituent, Patricia Barlow? Her late mother repeatedly tried to buy a piece of land next to her house, only to find out—after years of asking—that the council had disposed of that land to another business without even notifying her. Should the council look at the price at which that land was sold, and at whether it was all above board?

[James Morris]

I agree. My hon. Friend is right, and I will come on to describe other allegations that have been made about land sales in Sandwell metropolitan borough. Those allegations include land sales to Councillor Bawa and Councillor Hussain, for which an investigation found potential collusion and fraudulent practice in public office. Only Councillors Bawa and Hussain, and their immediate family members, submitted bids for those plots in September 1999, and those bids gave the impression of potential cover pricing and bid suppression. For one plot, four bids were received, all from Councillor Hussain and members of his family, without any declaration to the council that that was the case. Two plots that were sold in March and April 2000 were sold at a value below the guide price, and contrary to the agreement at the time the scheme was approved.

Councillor Bawa failed to declare his role as a councillor when a planning application was submitted on his behalf in October 2007, and there are concerns about the disposal of a plot of land that was removed from public auction in order to sell it to Councillor Rouf. Potential breaches of the financial regulations and the members’ code of conduct have also been found. Furthermore, a council house was allocated to Councillor Rouf, even though he had just sold a house for £125,000. Even more astonishingly, Sandwell Council spent £200,000 on the demolition of eight terraced houses and the clearing of the site, only for that to be purchased by Councillor Rouf’s son for £65,000. He was then granted planning permission for a seven-bedroom house, where Councillor Rouf now reportedly lives.

Former Councillor Derek Rowley was allegedly involved in the disposal of a number of council-owned containers to a member of the public. The council’s investigators could not look into that because the man 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. Another allegation was about former Councillor Rowley’s involvement in the hire of marquees that allegedly involve the ownership of a company that was not declared and had done business directly with Sandwell Council. Again, the council has not been able to do anything about the issue. It has decided to strengthen members’ and officers’ protocols, but—