Labourrun council has been severely criticised by an independent inquiry for its handling of a paedophile scandal.

The inquiry, headed by former Cambridgeshire County Council chief executive John Barrett, criticised the way Hackney Council in east London dealt with allegations that one of its social workers, who later died of an Aids-related illness, was abusing children in his care but said there was no political cover-up.

The report revealed widespread incompetence and mismanagement at Hackney in dealing with the Mark Trotter affair but it cleared the council of corruption.

The inquiry centred on allegations that Trotter, a social worker who worked for the authority from 1981 to 1993, abused children in his care. He was about to be arrested over allegations of sex abuse when he died of an Aids-related illness in 1995, aged 34. Trotter was thought to have sexually abused at least twelve children during a fourteen-year career as a social worker in Liverpool and Hackney.

The report is highly critical of the way the council carried out an internal investigation following Trotter's death and its handling of four complaints of sexual abuse of children in Hackney and Liverpool made against Trotter while working for the council.

It said Hackney's handling of these two matters amounted to impropriety but ruled out allegations that the Trotter affair had been covered up because he was a Labour activist.

The inquiry was triggered by allegations in the Evening Standard and caused a row within Hackney's ruling Labour group. Seventeen Labour councillors subsequently resigned, and were later expelled, thus causing the party to lose control of Hackney Council in September 1996.

Labour no longer had control of Hackney Council but the party's group leader, John McCafferty, said "I am pleased the independent report has concluded there was no cover up. Hackney Labour was wrongly accused." adding "This accusation has been completely rebutted by this independent inquiry."

The Liberal Democrats said while the report was good in places, questions must be answered by the Labour Party about its handling of the affair. It was claimed that Trotter, who was openly gay, had strong links with the then-ruling Labour group and stayed in his job despite being suspected of child abuse.

When Mark Trotter was first interviewed in September 1981 as a houseparent for a children's home in Hackney the panel which appointed him were impressed and described him as a "pleasant young man who appeared quietly determined".

But only three months later a young man in Trowbridge House alleged Trotter had "interfered" with him. A month later there was an allegation of indecent assault made by another boy. Trotter was suspended but after a full disciplinary hearing in June 1982 when the case was "not proven" he was returned to duty at Trowbridge House.

Two years later in 1984 Hackney heard that Merseyside Police and Liverpool Social Services (where Trotter had worked previously) were investigating another incident. In 1987 there was yet another allegation from a young woman in Hackney. The police were informed and investigated, but the allegation could not be substantiated.

Little happened then until 1993 when Trotter retired on health grounds, dying in July 1995 aged 34 of an Aids-related illness. Merseyside police were just about to question him about sexual abuse of five young men in Liverpool.

When Hackney social services were told of this they commissioned a social worker to trace as many young people as possible with whom Trotter had worked. He was meant to report by December. That deadline was missed. The second was also missed and the report, a mere seven pages, was not received until the following July. A year since the council were first alerted, only a fraction of the children had been traced, four of whom had died, one from an Aids-related illness.

The story finally hit the media. The warfare within the Labour group at Hackney meant that it was perceived as a cover-up because Trotter had been a Labour party activist. And a delay in setting up an investigation split Hackney's ruling Labour group with 17 members walking out amid claims of the cover-up. The Liberal Democrats requisitioned a special council meeting which finally voted at 1am to set up an independent inquiry.

All hell broke loose when Hackney Council were reported in the Independent newspaper. They claimed that when questions were asked at the London care home for children, the staff were too scared to speak out. Another boy aged 11 was sexually abused by Labour Party activist Mark Trotter and was told by the paedophile to keep his mouth shut or else. In fear, the child had no other choice but to comply as he had no guardian to get help from.

The results of the AIDS test of the Seven children that were molested by Trotter will never be known for confidentiality. Trotter had full blown AIDS and died Two weeks before London's police special Unit for protecting children went to arrest him for child abuse. Questions were raised, Hackney Borough Council who had a Majority of about 85% of the Council seats and who ran the Borough were asked why Labour controlled Liverpool City Council did not inform them of Trotter's 'lifestyle'. Since the death of Trotter, we will never know why a predatory Labour Party Paedophile was allowed to be moved from one care home to another.

A programme on BBC2 called 'First Sight' showed the depravity of this predator.