TEESDALE District Council's chief executive says he has seen an anonymous letter which alleges that his authority has been involved in a cover-up over the resignation of a market manager.

Charles Anderson told the D&S Times that he was aware of the existence of the letter, which is circulating in Barnard Castle, although he had only received a copy second-hand.

The document, which is unsigned, has been produced on a computer, and from the content appears to have been written by a member of the council staff. It carries the heading, "The Great Teesdale Cover-Up", and makes a number of allegations relating to the operation of the weekly Wednesday market. Several councillors are understood to be in receipt of the letter which Mr Anderson said contained a great number of distortions and inaccuracies.

"Even the somewhat emotive heading is completely wrong," he added. "Given that the police were called in at a very early opportunity, how does that square with the concept of anything to hide?"

The allegations surround Tom Jackson of Startforth, who was an employee of the council for 22 years until his resignation last month. He collected rent from stallholders at the weekly market and counted pest control among his other duties.

Mr Jackson was suspended some weeks ago and police this week confirmed that he was arrested at that time following an allegation by the council that he had been carrying out work after his suspension.

Det Con Eamonn Clarke, of Bishop Auckland CID, said that after an internal meeting at the council, Mr Jackson subsequently resigned. No charges resulted from his arrest.

"Issues are still ongoing with the council in relation to an internal audit, but at this moment in time he is not involved in that," he added.

The letter, which several recipients received by post, claims: "Despite this debacle no-one is accountable. Backs are well covered and all has been carefully swept under the carpet.

"The effect on me and my colleagues has been demoralising," it goes on. "No doubt those responsible will be well pleased and relieved at the quiet way it has all been shelved."

But although Mr Anderson said he was unable to expand publicly, the matter was not necessarily at an end. He confirmed that market stallholders would meet a council official on Wednesday and account would be taken of everything they wished to say.

The D&S Times spoke to Mr Jackson earlier this week to gauge his reaction to the letter and its contents, but he would make no public comment.