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Mike Mogul pic: Picture Partnership

A Croydon councillor who swapped his political allegiances last week is facing allegations he lobbied for a development company while a member of the planning committee.

Councillor Mike Mogul is facing a Standards Board investigation and is accused of paying for tickets to a Labour Party gala with a cheque from a company which has an outstanding planning application lodged with the council.

Labour councillors said they had been looking into allegations of misconduct by Coun Mogul since last summer and they were set to send their findings to the councillors' watchdog.

The company at the centre of the allegations is DPS Property Holdings Limited, which is appealing against rejection of a retrospective planning application for a building in Theobald Road, Broad Green.

Coun Mogul is a director of Mogul International Management Consultants. He admitted promoting DPS while sitting on the planning committee for Croydon Council. There is no record of Coun Mogul's business in the register of members' interests at the town hall.

He is also accused of handing a £600 cheque in the name of DPS to Labour Party workers at a dinner last month. The cheque was banked but the Labour group said it later returned the money. When asked, Coun Mogul said he had no knowledge of the cheque.

Labour group leader, Councillor Tony Newman said Coun Mogul had lobbied ward councillors and members of the public in support of the DPS scheme. The development is not in his ward but Coun Mogul said he put "time and effort" free of charge because the company had agreed to social housing in the block.

Coun Newman said: "A clear link has now been made between Coun Mogul and DPS property developers, in my view this is unacceptable behaviour for a member of the planning committee."

DPS built a block of flats in Theobald Road after being granted planning permission in 2005. But it has since made alterations to the original design and was forced to resubmit the application, which was refused in May last year.

An appeal against this decision is again recommended for refusal at this week's planning meeting.

A paragraph in the council agenda for the meeting said: "Works on site continued and the applicant did not appeal against the refusal. There was no further direct contact from the applicant, although he did approach Councillor Mogul who has approached officers of the sic on his behalf."

Coun Mogul said: "I have no business connection with DPS, whatsoever. I have not received a single penny for my input and my work is purely for the benefit of my community."

7:19am Wednesday 26th March 2008

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