The long-awaited report was handed over to representatives of the Concerned Citizens Group at the coastal town yesterday.

The probe followed a petition by the group and an ensuing plea to the Office of the Prime Minister to investigate suspicions of fraud, maladministration and favouritism.

Allegations of autocratic leadership, bad communication and the moral conduct of the Mayor were also made in the petition.

The team sent by the Minister of Regional, Local Government, Housing and Rural Development to investigate found that, although most of the allegations were unfounded, there was a "self-enrichment scheme prevailing at the town".

In one incident, a resident testified that he was sent to a councillor's house where he was told to copy a list of building materials in his own handwriting.

He was then handed a municipal cheque made out to him, which he promptly cashed at the bank.

When he left the bank, the councillor and other members of the Town Council were waiting and took the cash from him.

According to the particular councillor, the cheque was paid in return for building material.

The audit team found, however, that the councillor had no contract for the supply of building material with the man.

The report states further that the Build Together programme was badly managed and allowed councillors to benefit from the programme although they did not meet the criteria to qualify for such loans.

Several councillors were awarded loans although they should not have qualified for various reasons, the report states.

Upon inquiry, councillors who benefited claimed they had not known the regulations governing the programme.

Original applicants whose loans were approved by the ministry were removed from the list of beneficiaries, apparently because of outstanding municipal fees.

According to the audit team, there is "a very strong bond" between councillors and managers of the municipality.

It was also found that a car scheme for municipal managers was being exploited at the considerable expense of the municipality.

The behaviour of Mayor Paulus Iimbambah also came under scrutiny.

Apparently the business community has alleged that he sets a bad example for youngsters.

The Mayor says his private life has nothing to do with his job.

The investigators said he evaded their questions, but they concluded that the disciplinary action requested by the Concerned Citizens Group is a serious step and should be initiated by the councillors rather than the ministry.

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