Bradford Councillor Imdad Hussain has been suspended for two years by the Labour Party after it found he failed to disclose he had been banned as a company director.
An investigation by the party at a national level has concluded he breached party rules.
Coun Hussain will not now be allowed to stand as a Labour candidate when his seat on Bradford Council comes up for re-election in 2014. The 42-year-old councillor continues to sit as an independent in the Heaton ward.
Coun Hussain was disqualified as a company director for seven years after his company went into liquidation last year. Earlier this year he was suspended by the Labour Party while national party officials began an investigation into his business dealings.
Yesterday a Labour Party spokeman said: “Following a detailed investigation, a Labour Party panel has concluded that Mr Hussain did breach party rules by failing to disclose information about his business activities when he stood for selection to become a Labour candidate.
“As such, he has been suspended until September 2014. This means that during this time he will not be allowed to represent the party in any capacity, nor will he be eligible for nomination to any panel of prospective candidates.”
A Bradford Council spokesman yesterday said Mr Hussain remained an independent councillor and his suspension by his party did not affect the make-up of the Council.
Coun Hussain, of Bingley Road, Bradford, was disqualified as a company director in March last year. He ran Claimwise Legal Services Ltd, of Manningham Lane, Bradford. But the Government’s Insolvency Service said he failed to provide accounting records, and stated: “Claimwise has been left with an unexplained deficiency as regards creditors totalling £314,873.”
In April, Bradford West Respect MP George Galloway called for Coun Hussain to stand down, though he accepted that disqualification from running a public company did not disqualify anyone from public office.
Yesterday Coun Hussain could not be contacted for comment.
He has previously issued a statement to the Telegraph & Argus, in which he made it clear the law of the land stated there was no prohibition or restriction on anyone holding public office because of a disqualification as a director.
He said: “Like many other companies, my company also went into liquidation due to financial difficulties.” He said he had nothing to hide, and added: “I became a councillor, in 2010, with the support of many local people. I have worked hard in my public office.”