PUBLICLY-OWNED properties collectively worth millions were sold off for lower amounts to an associate of former Mayor Ray Mallon by Middlesbrough Council in "flawed" tender deals, a former senior executive has claimed.

Karen Whitmore, once assistant director of organisation and governance at the council, says she was bullied and threatened when she raised concerns over the deals, was eventually made redundant from her job in a "flawed process" and was "escorted from the office".

Her claims form part of an employment tribunal against Middlesbrough Council over alleged unfair dismissal and sexual discrimination. She says there was a "laddish, locker-room" culture at Middlesbrough Council, with some women being referred to as "posh birds", a Nazi salute allegedly made in one meeting, and one woman being called "fatty" by the chief executive.

Middlesbrough Council strongly denies all the allegations.

Ms Whitmore was tasked by auditors Deloitte to look into the council's sale of Grade II-listed Acklam Hall for £1.2m after the Department for Communities and Local Government received a complaint about alleged improper dealing.

An independent audit last year raised questions into the processes around some of the sales, but found no wrongdoing by the council.

She said current Mayor Dave Budd "seemed to recall being in the room when former Mayor Mallon was on the phone to a property developer, and had undertaken to ensure a reduction on the purchase price of Acklam Hall".

She added, in her statement to the tribunal: "When I indicated how serious this was, and asked for further details, he said he may have been muddled and couldn't recall what it was all about.

"He said he often heard Mayor Mallon on the phone to Nasser Din, Mr Mallon's former election agent, talking 'deals' with him."

She said the reduced rate of £1.2m for Acklam Hall was agreed by officers, but there was no delegated authority in place to allow officers, rather than councillors, to accept the reduction.

Ms Whitmore told the hearing that Tony Parkinson, now the interim chief executive but then her line manager, told her the Mayor, Chief Executive and Mr Mallon didn't want the fact released. She claims that she was told: "I must find a way to hide it".

Mr Parkinson said Kevin Parkes (the director of economic regeneration) had "completely screwed up" but the Mayor didn't want to be embarrassed.

She said the audit trail, governance and recording of decisions over Acklam Hall sale were all "very poor", but that she had come under pressure to cover this fact up, with senior executives telling her she might not be the right person for her job if she didn't.

Ms Whitmore also raised concerns over the sale of the TAD centre, on Ormesby Road, to Nasser Din for £400,000, when it had once been valued at £1.5m. It was then reported to be worth up to £900,000 on the open market, but was sold by private treaty, a "method rarely used at Middlesbrough Council".

She said this "needed explaining" and objected but was told the Mayor, Dave Budd, "just wanted the TAD centre sold".

Her statement said that another deal, a property in Gilkes Street, was to be sold to the lowest bidder – Mr Din – but when this was prevented by the finance officer, it was withdrawn from sale and put back out to tender with a consideration of scheme quality, not just price.

She claimed there were "many flaws" in the criteria for assessing bids, and the winning bid was from Mr Din.

Ms Whitmore said a later statement from the council's principal solicitor Steve Vickers called the process "tainted and flawed" and "mostly raised questions as to the propriety of the sale".

The tribunal continues.