Cyril Olsen, Shirecliffe community director of Southey and Owlerton Area Regeneration Board, said: "I am deeply concerned about the current problems besetting BNDfC and its board's response to them.

"Many people give their time and effort working in the voluntary community sector. It would be a pity if the good reputation of Sheffield community organisations was tarnished by these issues not being resolved."

Mr Olsen made his comments in a letter to Sheffield Council's new Liberal Democrat leader Coun Paul Scriven, in which he voiced support for Coun Scriven's threat to withhold the rest of BNDfC's funding if it did not resolve issues identified in a highly-critical audit report. The report stemmed from an investigation ordered by councillors after The Star revealed BNDfC had hired Bill Husband as interim deputy chief executive for six months - just a year after he had been dismissed for gross misconduct from the same position at another regeneration agency.

New Deal also hired Husband's former boss Jack Davies - who had resigned after also being found guilty of gross misconduct. Both men were each paid more than £55,000 to work in Burngreave.

The report revealed poor management arrangements, and that BNDfC's outgoing chief executive John Clark had personally recommended use of Husband and Davies.

Husband was never questioned about his dismissal at his job interview with Burngreave New Deal.

The Star asked for details of expenses paid by BNDfC to staff including Mr Clark - who is being made redundant - and Husband, but was refused.

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