A COMMUNITY group which represents thousands of Hyndburn residents has accused Hyndburn Council of secrecy over its £1.8million cash crisis.

Hyndburn Community Empowered Network (Hycen), which represents more than 150 community groups in the borough is requesting an independent examination of the council's accounts.

Hycen has the backing of opposition deputy leader Councillor David Myles and is to write to the council and deputy Prime Minister John Prescott demanding action.

The organisation decided to act after a board meeting where concerns were raised about the potential impact of the deficit on the voluntary sector.

Members want to know how the potential overspend was created, and why it was not picked up by external auditors.

They are also asking why no information has been released about the cause of the deficit and measures taken to stem it.

The council has until the end of March to balance its books. So far it has managed to reduce the deficit to £750,000 but has not revealed details about how, although a recruitment freeze was introduced last week.

Much of the deficit - £500,000 - is blamed on poor performance by the now defunct works department and a computer benefits error.

Hycen is an equal partner on regeneration body Hyndburn First and is funded through the Neighbourhood Renewal unit to champion community groups in Hyndburn.

Joanne Smith, project co-ordinator for Hycen, based in Cannon Street, Accrington, said: "The board members of Hycen would welcome the intervention of an administrator to investigate this apparent mystery in the council's financial affairs. Hycen does not wish to see this budget deficit have a negative impact on service delivery, or support for the voluntary and community sector diminish.

"There has been quite a lot of secrecy about it. The only way we have found anything out is through the Press."

Miss Smith says members are worried about the knock-on effect of cuts and charges for services. She has spoken to council director David Welsby but is now writing to him and sending the letter to the Office of the Deputy Prime Minister, MP Greg Pope, Government Office North West, and council leader Peter Britcliffe.

"This has obviously been going on for some time," she said. "We want to know why it hasn't been picked up in previous years The books have to be signed off by an auditor.

"David Welsby said the council was hoping to reduce the deficit to £750,000 but couldn't or wouldn't tell me how."

Coun Myles said: "The council seems to have lost so much money we have got to be as open and honest as possible. We definitely should have someone from the outside to come and look at us."

Coun Britcliffe said: "I'm surprised they haven't contacted me. There is a legal entitlement for people to look at our accounts so if Miss Smith wants to come in I would gladly make her an appointment. It's also published on the web site. If they ring 380165 I will arrange a meeting for her with our chief finance officer."