A political row has broken out between Oldham Liberal Democrats and the council after the party allegedly made "false" financial claims to "smear" the deputy mayor.

The Lib Dems have accused Dr Zahid Chauhan OBE, Oldham's deputy mayor, former healthcare cabinet member and the practice manager of Royton Medical Centre, of failing to declare a series of payments from the council.

The party said the Labour councillor's "company", Bardoc Ltd, received 14 separate payments over a period of nine months throughout 2021/22, totalling £637,042, which he "failed" to declare.

However, Dr Chauhan "vehemently" denies the allegation, claiming his interests have always been transparent and that Bardoc is not a company he owns.

The council also confirmed to The Oldham Times that Dr Chauhan's employment at Bardoc was declared and that he was not involved in the decision-making process on the contract.

Lib Dem shadow cabinet member for health, Louie Hamblett, who pointed out the series of payments, said: "The rules are clear - if you have a contract with the council, you’re meant to declare it before it happens.

“Cllr Chauhan failed to do this before each of the nine months that the fourteen payments took place.

“Instead, he filed paperwork a year late.

“Because of a loophole which means you don’t have to declare past payments, only future ones, all of these payments effectively remain hidden.”

Lib Dem shadow cabinet member for economy, Cllr Mark Kenyon, added: "While Labour were decrying dodgy Tory Covid deals, Oldham Council paid over £600k to a healthcare company owned by the Labour cabinet member for health.

"The payments were made to Bardoc Ltd, which claims to return all the profits to the community.

"Yet their latest accounts detail that no profit was made on a £13 million turnover, despite £107,000 paid to Cllr Chauhan directly and another company, AZ Medics, which is owned by Cllr Chauhan."

While the Lib Dems said they recognise Dr Chauhan did in fact declare his interests to the council and "his close colleagues", they said the GP should have declared his interest to the people of Oldham "of whom he is accountable".

The councillors said they are not accusing the deputy mayor of criminal misconduct but have demanded he proves Bardoc either made no profit on the contract or "he returns all the profits to the council".

But the council suggested this would be unnecessary since the contract was made with Bardoc without Dr Chauhan's involvement.

Dr Chauhan further stated that he has always reported any conflicts of interest and that he was not involved in Bardoc's bid for the contract having removed himself entirely from the decision-making process.

He said he has always "acted with integrity" during his public service and sought advice and approval from the council.

Dr Chauhan, who donated his entire annual Deputy Mayoral Allowance to Oldham Foodbank, said: "Bardoc is not 'my' company as the Liberal Democrats seek to suggest and I did not receive any personal payments in relation to the contract for swabbing services.

“I consider the false allegations made by the Liberal Democrats nothing but an attempt to smear my reputation.

“I vehemently deny any wrongdoing.

“The council has also confirmed it is satisfied by my removal from any decision-making process.

“Finally, I am very proud of all the not-for-profit medical providers who stepped up during the pandemic to keep people safe and get our country through Covid – not driven by profit or gain but because of the call of public service.”

A spokesperson for the council added: "Bardoc was contracted by Oldham Council to provide vital community testing to support us during the Covid-19 pandemic.

"That contract was approved in March 2021 for 12 months and extended for a further 12 months in February 2022.

“The council is satisfied that both at the point that decisions were made around the original contract and at the point the contract was extended Dr Chauhan declared his interest as an employee of Bardoc and removed himself from the decision-making process.”