LEADING Labour city councillor Hassan Ahmed will not stand at the forthcoming local elections, the Post can reveal.

His decision comes as the District Auditor is understood to be preparing a report into the £10 million Future Jobs Fund programme in Nottingham, which was part of his employment and skills portfolio.

The job creation scheme aimed to find 12 month employment placements for 1,000 people in the city, with wages and training costs met through the city council during 2009-10.

The Post understands the auditor cannot sign off the council's entire accounts for that year until her investigation is concluded.

It is understood Mr Ahmed was interviewed by audit staff in relation to this inquiry.

The initial findings have not been made public, and the auditor is required to circulate her findings to all involved before she publishes them.

District Auditor Sue Sunderland said: "I am investigating a number of issues around the Future Jobs Fund, and I have no further comment to make at this stage."

Mr Ahmed has denied his departure is connected to the investigation by the District Auditor. He said he was leaving because of "family commitments and health concerns".

"I would like to take this opportunity to thank all my constituents and Nottingham City Council colleagues who have given me tremendous help and support during my time with the council," he said.

Mr Ahmed's sudden decision to stand down has shocked Labour colleagues, including his running mates in his own ward of Berridge, whom he told at the weekend.

It means Mr Ahmed will cease to be a councillor after the May 5 poll and leaves the local Labour branch just three weeks to select a new candidate.

Councillor Graham Chapman, deputy leader of the Labour led Nottingham City Council also refused to discuss the auditor's investigation.

He said: "I am not going to talk about anything like that."

In a statement, Mr Chapman said he was "disappointed" Mr Ahmed was not contesting the election. In a tribute, he said: "We will miss his hard work and dedication."

Mr Chapman said his colleague had made a significant contribution in the reorganisation of the council and renegotiating staff terms and conditions.

He credited Mr Ahmed with saving 100 jobs in the council's budget round, helping to create 200 apprenticeships at the local authority, the implementation of an "equalities framework", and promoting schemes to find employment for 2,000 people.

Mr Ahmed was elected to the council in 2007. He became a portfolio holder in 2009, after the Labour leader of the city council, Jon Collins, created a new post for employment and skills within the council's executive.

The Labour group voted for those who would be in the executive and Councillor Collins proposed Mr Ahmed for employment and skills portfolio.

In September 2009, the Post revealed how Mr Ahmed had failed to register interests in five companies involved in training, enterprise and community development.

The Standards Board for England subsequently found Mr Ahmed had breached the council's code of conduct by failing to register all his outside interests, but it decided to take no further action.

The Post also raised concerns about Mr Ahmed's links to a sixth company, Central Education and Training. Mr Ahmed told the Post he had no involvement in running the company since 1999, but that was incorrect.

In fact, Mr Ahmed had signed contracts, been involved in projects, and attended meetings on behalf of the company. He had also signed CET letters and written on the company's headed paper, with the job title chief executive.

Mr Ahmed said he had been acting in an advisory or voluntary capacity for the company and had done nothing wrong.

Mr Ahmed's decision to stand down at this election took his Berridge ward colleague, Councillor Mohammad Ibrahim by surprise. He said: "Suddenly out of the blue he came to us and told us he was not going to stand. It was a shock.

"He told us on Saturday in our ward surgery."