A £1m DEAL between supermarket giant ASDA and Bromsgrove District Council is being investigated by independent auditors.

The firm, KPMG, was asked to look into the matter by the leader of the opposition Labour group on the council, Cllr Peter McDonald (Uffdown and Waseley).

He said the deal involved the council giving ASDA an undertaking that the Victoria Ground will never be sold to a competitor, and that the car park opposite ASDA'S store in Market Street would never be developed. The council's decision to accept £1m in return was taken behind closed doors earlier this year but the details were reported in the Advertiser/Messenger.

The conditions form part of the supermarket's plan to expand and build a three-level car park at the side of the store.

However, accepting cash to keep out competitors is seen by some as stifling competition to the detriment of consumers.

Cllr McDonald said: "ASDA wants to control land worth many millions of pounds they don't even own. I'm very pleased the matter is now being investigated."

Council leader Cllr Nick Psirides (Con, Norton) replied: "All the processes we have gone through to reach agreement with ASDA have been carried out with Labour members present.

"We would not dare to do anything illegal, because all council business is subject to examination by the Audit Commission, which is an outside body, also our own in-house auditors and the Ombudsman."