OPPOSITION councillors claim there was "managerial incompetence" over a controversial council land deal that prompted a police inquiry.

Liberal Democrat members on Labour-run Durham City Council are calling for a full debate in the council's scrutiny committee on the District Auditor's critical report about the deal.

A fraud squad inquiry ended with no charges being brought against council chief executive Colin Shearsmith and businessman Robert Fulton.

The deal centred on the property swap and cash deal by which the council acquired land Mr Fulton owned in Claypath that it needed for its flagship £25m Millennium City development.

Liberal Democrat leader Sue Pitts said: "This report shows up many areas of managerial incompetence and bad judg-ment.

"It is essential for the well-being of our city that this never happens again.

"We must ensure that proper procedures are put into place to guarantee openness and accountability."

Councillor Pitts said that the District Auditor's suggestion that a working group of councillors oversee the project had not yet been acted on.

But Mr Shearsmith said: "It is law that the District Auditor's report goes to council. Mrs Pitts has asked for it to also go to scrutiny committee and it will.

"There is no management incompetence or bad judg-ment. The proof of the pudding is in Millennium City itself - now well under way, on time and on budget."

Council leader Maurice Crathorne said: "These comments are rich coming from a group who struggle to understand the scheme and had to have the funding for Millennium City explained to them again only two weeks ago.

"Flinging unsubstantiated insults about the city council fills in the time, but does not do a bit of good for Durham, or the people who live there.