Mr Belgrave, who was responsible for community safety, has lodged a formal complaint with the district auditor.

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They are proposing to refer the matter to the district auditor.

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But the District Auditor who has been looking into the deal has discovered that the legal rules governing primary care trusts prevent the arrangement from going ahead.

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Prior to becoming Auditor General, Mr Black was a local authority chief executive for ten years, first with Stirling District and then with Tayside Regional Council until just before its abolition in 1996.

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