Nottingham City Council abandons its investigation into council house abuse

CITY council chiefs have abandoned an investigation into widespread abuse of Nottingham's council housing system.

The city's housing service wrongly gave homes to some employees, their friends and families between 2003 and 2005, according to council watchdog the Audit Commission.

Tens of thousands of pounds of public money was spent improving houses which had been allocated wrongly.

The Labour-run council has been investigating the issue since the commission report was published two years ago but has now decided to drop the matter.

None of the homes have been repossessed, most of the suspended staff have returned to work and only one member of staff has been given a "final written warning".

The senior managers employed by Nottingham City Homes when the homes were misallocated have left their jobs for a number of reasons.

Liberal Democrat councillor Tony Sutton said: "The wrongful allocation of housing was the most disgraceful episode in the history of the council.

"Now they have swept it all under the carpet."

Council leader Councillor Jon Collins, said in 2009 that he was "appalled" by the auditors' findings, promised a full investigation and insisted the council would "not hesitate" to take disciplinary action.

But the council now says it has taken all "reasonable steps" to pursue legal action, spending �100,000 on in-house legal advice in the case, but cannot take the investigation further.

Glen O'Connell, the council's director of legal and democratic services, said: "We've gone as far as we can go without spending a great deal of resources with extremely uncertain outcomes."

The district auditor has said this is a "reasonable approach" and the police will not pursue any cases.

FULL STORY: Decision to drop homes inquiry is 'a scandal on a scandal'

POST COMMENT: A scandal on a scandal for city council houses

READ MORE: City council leader was 'appalled' over homes scandal

EXPLAINED: The 'serious failings' found by Audit Commission investigation

EXPLAINED: How the council housing system benefited its employees

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