Probe into cut-price sale of Poplar Old Town Hall
The sale of Old Poplar Town Hall is under investigation after Tower Hamlets councillors claimed a cut-price deal had cost taxpayers millions.
The building was sold as office for £867,000 - little more than a terraced house nearby - and its value was further increased when developers were given clearance to become a hotel - a decision made without the scrutiny of elected councillors.
Mayor Lutfur Rahman also came under fire from Labour and Tory councillors for "unanswered questions" about his relationship with the current owner-occupiers.
An emergency resolution which triggered the investigation by the District Auditor says that hotel company Dreamstar is "well known to the Mayor and members of his administration".
The district auditor and acting chief executive will now investigate the propriety of the decisions and any undisclosed conflict of interest.
Mayor Lutfur Rahman said: "There is no truth to any allegation of wrongdoing. It is a shame the district auditor's time is being wasted on an election stunt."