The head of a controversial multi-million pound community regeneration project has resigned.

Graham Maunders, the director of eb4U, which was given £47.2 million of public money to regenerate parts of east Brighton over ten years, gave in his notice yesterday.

The organisation has attracted growing criticism that it is increasing its property portfolio instead of spending its funds on community projects.

A panel of city councillors set up to investigate the organisation recommended last November that its directors should be retrained.

Their report also called on Brighton and Hove City Council leader Alan McCarthy to step down from the eb4U board while a whistle-blowing policy was adopted.

Mr Maunders said his resignation was his own personal choice and not prompted by the panel report.

He told The Argus: "Having been involved with the programme for seven years, five as director, I have decided after considerable thought that it is an appropriate time I hand in my notice.

"In many ways there is never a perfect time but with the programme on track, delivering key improvements, achieving two national and one regional award in recent months and with our performance assessment likely to achieve an excellent rating, I believe it is an appropriate time.

"It has been a privilege to hold the position and to help tackle the many entrenched issues that have arisen over decades. There has been considerable achievement and I leave in the knowledge there is a highly skilled team in place to continue the work. I am extremely grateful for all the hard work, help and support of the many dedicated people involved."

Mr Maunders leaves in May.

Alan Teague, chairman of eb4U and a Whitehawk resident, said: "We are extremely sorry Graham has decided to leave us, but reassured he leaves behind a strong team, achieving results and an organisation that is in really good shape."

But Tony Greenstein, of the Brighton Unemployed Workers Centre, said: "His resignation is long overdue and if things were on track, why is he leaving? Goodbye and good riddance."