A COUNCIL executive sacked from his post following allegations of an £18 million fraud has lost his appeal against the dismissal.

Jugal Sharma had the original decision to dismiss him from his job as Brighton and Hove City Council’s head of housing upheld at an appeal hearing yesterday.

The council has now announced it will be setting up a review into issues raised during the disciplinary procedure around the authority’s handling of procedure, governance, accountability and working environment.

Mr Sharma was originally suspended from his post in January last year after allegations around payments made to his brother Ashley Parker’s property services firm.

He was subsequently questioned by Sussex Police officers in August and four other men were arrested in connection with the alleged improper awarding of city council contracts.

Mr Sharma was dismissed from his £82,000-a-year post as head of housing in November and lost his rearranged appeal hearing yesterday.

Council officials have been informed the authority will start a “formal organisational learning review”, calling in former Hertfordshire County Council chief executive Caroline Tapster to head it up.

Mr Sharma was temporarily replaced by Angela Smithers, who was paid £716 a day and left the council in December.

A new temporary head was appointed in January but the council has now indicated it will begin recruiting for a new “substantive” head of housing.

The Sussex Police investigation into the alleged fraud continues.