Bradford's Racial Equality Council is being investigated over allegations of financial irregularities.

A team of auditors swooped at the offices in Oak Avenue and retrieved accounts and records.

Today Director Ishtiaq Ahmed said he was baffled by the investigation, which had been complied with fully.

Bradford REC, which advises and campaigns on race issues, was set up in 1976 and has grown from an organisation receiving £2,000 in annual funding to one dealing with £208,000 in grants from the local authority, £76,000 from the Commission for Racial Equality, as well as Lottery funding.

The allegation was made to police, sparking Bradford Council to call in auditors who arrived on Monday afternoon.

A spokesman from the CRE said: "Bradford Council and the district auditors have gone in to look at the books of the local REC and we as the CRE will be waiting for the findings of that inquiry."

Mr Ahmed said: "Our chair was informed that the district auditors wanted to come in and they came in. They said some allegations have been made against the REC, without telling me the nature of them, and they wanted me to hand over the records. I said 'Take them and please yourself'."

Mr Ahmed said he was not told who the allegations were against, who had made them, or what they were.

He added: "In no way do I want to hide or cover up anything. I am not worried, but I have been in this business 20 years and if nothing else I take a lot of pride in my personal and professional integrity.

"I am cheesed off, because whatever is alleged, the person or persons wouldn't even tell me. It's extremely mischievous.

"A number of individuals and organisations have an axe to grind and we have a very high profile in race relations and we have no problem in expressing people's inadequacies. It might be in people's interests to be bringing us into disrepute."

Council leader Ian Greenwood said: "Information was received by the Council and the Commission for Racial Equality which generated concern.

"KPMG are investigating the financial records. The auditors were brought in by the Council and the CRE."

A police spokesman said: "Information has been received regarding the running of Bradford REC. That information has been passed on to the CRE which is conducting its own inquiries."

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