AN “INCREDIBLE” amount of taxpayers money is being spent by cash-strapped Sandwell Council as a result of long-running fraud allegations, the News can reveal today.

As well as paying KPMG accountants to conduct an internal investigation, which is now eight months old, council chiefs have hired Wragge, Lawrence, Graham and Co solicitors to deal with the legal ramifications of the allegations into dodgy land deals which surfaced last summer.

A Sandwell Council insider said: “Every week that passes costs the taxpayer more money, the amount of money that will end up being paid to outside accountants and lawyers is incredible considering the cuts which are having to be made to services. The combined bill could easily be £1 million.”

The police investigation into the allegations of fraudulent land sales by the Regional Fraud Team is ongoing.

In February Oldbury councillor Mahboob Hussain resigned from the cabinet along with cabinet member for jobs and the economy Cllr Ian Jones to “clear their names”.

The resignations were sparked over an allegation concerning the sale of council land containing blocks of public toilets in Albert Street, Oldbury, Jervoise Lane, Stone Cross and The Shambles, Wednesbury.

And in April Cllr Hussain’s son Azeem Hafeez was arrested after the police mounted raids on two addresses in the borough.

One of the properties was the home of Cllr Hussain.

Wragge, Lawrence, Graham and Co was formed last year when Birmingham’s Wragge and Co merged with London law firm Lawrence Graham.

The firm represented Sandwell Council in several high profile cases including the multi-million pound law suit with BT and the building of the controversial West Bromwich development Providence Place.

Wragge, Lawrence, Graham and Co refused to comment concerning its work with the council. Sandwell Council was unable to provide a comment as the News went to press.