An investigation into the financial management of Bradford Festival has been called for by the Council's Labour group.

It is contacting external auditors KPMG asking them to examine what has happened to the running of the city-wide cultural event which in summer attracts thousands of people.

Their call follows six hours of meetings in City Hall on Tuesday night which, as previously reported, resulted in the Council continuing the contract with Bradford International Festival Company, which produces the many events.

Leader of the opposition Labour group, Councillor Ian Greenwood, said the financial management of the Festival had been "unacceptable".

The company, which receives a £328,000 grant from the Council, is in deficit and Councillor Greenwood said this fact had only just been revealed to Council committees.

A variation to the contract last year required the company to reduce a deficit on its accounts by the end of this year's Festival.

But two Council committees - the executive and regeneration and culture scrutiny - have just learned of the deficit and contract amendments.

The committees were told this week the company accounts were £192,000 in deficit and the situation had not improved from the previous year.

Members were asked to consider whether it was a breach and serious enough to consider ending it. But they decided to continue the contract after receiving private additional information from the company.

But there a was anger from Labour councillors that the decision to vary the contract and a financial report had not been ratified by the executive committee last year.

Chairman of the regeneration and culture scrutiny committee Councillor Andy Mudd said he was also furious that his committee had examined the festival at meetings attended by large numbers of people and not known the full circumstances.

Deputy chairman and Labour Councillor Val Slater said the committee had been treated "with contempt."

Councillor Greenwood stres-sed they were not criticising the company or officers.

He added: "A number of people are going to the auditors and we will be writing to KPMG and we because a large amount of public money is involved and we feel the financial management has been unacceptable.

"It is absolutely wrong that a key decision involving large amounts of public funds should not go to the executive committee. There has been a complete lack of political accountability."

The Council's director of finance Steve Morris said: "We as ever will be happy to work with the auditors should they contact us."

Bradford International Festiv-al Company said after the meeting this week it was robust and on target financially for the stage it had reached in the three year contract.

External auditors working for local authorities deal as a matter of course with complaints about how funds have been spent and managed, and can criticise and recommend changes.

The company won the contract in 2000 to produce the festival with a £328,000 annual grant.