THE first fully independent inquiry into the Waltham Forest Council’s mismanagement of millions of pounds will now take place.

An investigation, headed by three public sector stalwarts, wlll be launched into the use of money under the Better Neighbourhood Initiative (BNI), which is financed through the Neighbourhood Renewal Fund (NRF).

Last month the council’s chief executive, Andrew Kilburn, ordered the widening of a probe into a long-term systemic failure to administer and monitor funds for deprived areas.

Now it appears calls for a public inquiry have been heeded and officers, councillors and other parties close to BNI/NRF will be independently investigated.

According to a well-placed source, Sir Rodney Brooke CBE, former chair of the General Social Care Council, Lucy de Groot CBE, executive director of the Improvement and Development Agency and Peter Rogers, chief executive of the London Development Agency, will oversee the investigation.

They will appoint independent investigators who will ‘leave no stone unturned’.

A commitment has been made to publish the findings of the investigation in full.

The Guardian understands council internal auditors have been asked to review findings from their previous investigations and are currently carrying out town hall interviews in the presence of a solicitor.

There has also been “disagreements” about ongoing lines of enquiry.

Audits have uncovered evidence that, over a number of years, laws to prevent fraud were regularly ignored and renewal funds were spent without proper monitoring.

Despite concerns being raised as early as 2004, the culture of mismanagement continued for a number of years.

The Local Strategic Partnership, which is responsible for monitoring NRF/BNI spending, was chaired by council leader Clyde Loakes.

He has constantly denied any responsibility for the fiasco and has blamed council officers for ignoring rules.

A police investigation into allegations that EduAction, the private company which used to run education in the borough, used NRF to boost profits is ongoing.

Nick Tiratsoo, whose research uncovered many of the failings, said: "We have yet to learn the full details of what is planned, but it looks as if the Council is finally realising that the NRF/BNI fiasco is a serious issue which needs urgent attention.

"The stakes are high. So far there have been six Council inquiries into aspects of this affair, costing several hundred thousand pounds (while, of course, a separate police inquiry is also still ongoing).

"We are little further forward - indeed, questions still dwarf answers.

"I sincerely hope that this new team of investigators will be genuinely independent, examine councillors as well as officers, and not be deterred from uncovering the truth by anyone, however senior."