HOUSING officers have still to explain exactly how £2.5 million was lost in a Swindon Council housing department bank account for nearly 20 years.

The Advertiser revealed on Monday that the discovery of £2.5 million hidden away in the account was pure luck.

Council leader Mike Bawden (Con, Old Town and Lawns) admitted that a "few feathers had been ruffled" by the story, which is likely to feature high on the agenda at tonight's cabinet meeting where all senior council officers and councillors will be present.

Coun Bawden attributed the discovery of the money to his new Star Chamber a committee of councillors charged with quizzing senior officers about their departments and their spending.

He said: "There was £2.5 million in the housing department budgets that members were not aware of.

"We have gone to officers and asked them to tell us exactly what is where, what assets we have and what our liabilities are.

"We're calling them to account because one of the criticisms made in the Audit Commission's inspection last year was that members didn't get involved in enough detail.

"It's fair to say that a few feathers have been ruffled on both sides. I'll always remember when former Swindon town clerk David Murray John said to me 'It's my job to fully brief members it's your job to vote'. I think that sums it up pretty well."

The council's head of housing finance, Hayden Jones, was not available to speak the Advertiser last evening.

But council spokeswoman Sarah Deacon said: "Swindon Council confirms it has unallocated capital funds worth £2.5m within the Housing Revenue Account.

"The majority of the £2.5 million alleged to have been in a 'missing bank account' has actually come from the sale of council houses to its tenants through the Right to Buy Scheme."

The discovery of the money, which can only be used for repairs, main-tenance and upgrades to the council's stock of 11,000 houses, was branded as 'incompetent' by opposition leader Kevin Small (Lab, Western).

The former council leader said that he would have used the money to fund a raft of improvements to the council's housing stock if he had known the money was available.

Chris Shepherd (Lib Dem, Freshbrook and Grange Park) added: "It's terrible that money should disappear and I'd like to know what on earth council officers are playing at."