A COUNCIL chairman who has been accused of borrowing cash belonging to a voluntary association has stepped down from his post.

Alex Clements yesterday distanced himself from his role as chairman of Wear Valley District Council, in County Durham, while investigations into the claims were carried out.

Councillor Clements, who lives in St Helen Auckland, has also been suspended from representing his local Labour Party branch amid claims he borrowed cash from a community association in his Bishop Auckland ward.

In a statement yesterday he said: "It is with regret that I have offered to stand aside as chairman of Wear Valley District Council whilst my involvement with two local organisations is under review.

"I have long supported the integrity of local people and the ward I represent. It is the driving force of my life.

"Nevertheless, I do believe that my intention to stand aside is in the interests of all at this time."

Deputy chairman of the council Eddie Murphy, who represents Crook South, will take over.

Councillor Clements' decision has been backed by the council's chief executive, Iain Philips, and council leader Neil Stonehouse.

Councillor Stonehouse said: "The council notes the circumstances, which have led Councillor Clements to offer to stand down from his position as chairman of the council.

"It is clearly appropriate that he has made this offer and that the council accepts it whilst matters are under review."

Mr Philips said the decision to step down would start with immediate effect.

Councillor Clements will still be able to represent his constituents in Henknowle, near Bishop Auckland, but has been suspended from doing so as a member of the Labour Party.

A spokesman for the Labour Party North said last night: "Councillor Clement has been administratively suspended from the party pending the outcome of any possible investigation."

It is believed Coun Clements borrowed money from Henknowle Community Association, which he served as treasurer, but the undisclosed sum of cash has since been returned and he has resigned from his role on the association.

His involvement with Playdays, a charity which benefits disabled children, is also under review.

Durham Police have confirmed that officers are looking into concerns about the running of Henknowle Association, which were brought to their attention last week.

Coun Clements, 59, is a well respected figure in the Bishop Auckland area, having served as a councillor for the Henknowle ward for the past five years.

He is chairman of governors at Henknowle Primary School and took up his post as chairman of Wear Valley District Council in May this year after serving last year as its deputy chairman.