Racism investigation is damned as cover-up

One of Britain's best known equality campaigners has issued a withering attack on a London council mired in claims of institutional racism.

Lord Ouseley, former chairman of the Commission for Racial Equality, accused Southwark of driving out black and ethnic minority traders to " regenerate" one of Britain's most deprived boroughs.

He had been hired by the council to investigate its race relations policies after it was found guilty by an ombudsman of maladministration in relation to a black nightclub which is also a youth centre.

Southwark planning officers failed to inform the Imperial Gardens club of proposals to build housing on adjacent land and denied it the right to object. The club was later forced to close.

The local government ombudsman found no evidence of racial discrimination but ordered the council to pay ?1,000 compensation and reform its procedures.

A separate report by the district auditor also ruled against the council.

But Lord Ouseley said his own inquiry had merely been a "front" to allow the Liberal Democrat administration to cover up wider allegations, and accused its "dominant white hierarchy " of failing to implement his 35 recommendations for change.

In his commentary, below, Lord Ouseley says: "I now feel that, intentionally or not, I may have been used not so much to uncover any wrongs but to help cover them up." His inquiry heard many aggrieved black and ethnic businesses telling "agonising stories of their appalling treatment".

But Southwark has refused to publish their full evidence on its website, claiming it could be defamatory. Instead a "savagely censored version" appeared.

The CRE has threatened a formal investigation unless Southwark proves by the end of the month it is taking seriously the issues raised by Lord Ouseley's inquiry.

His recommendations included appointing an external watchdog and compulsory training for staff in "equality and diversity competence".

Mayor Ken Livingstone, who described the report as "damning", is conducting his own enquiries. These focus on alleged discrimination relating to the ?1.5 billion regeneration of Elephant and Castle.

Today Southwark said it had made progress in acting on the recommendations, all of which it accepted. Council leader Nick Stanton said: "There is no bias. The frustration about local government is that people who complain the loudest are the ones who get the publicity."