The land at the centre of the affair currently has a golf course on it
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A council is set to launch an internal inquiry amid fears that millions of pounds have been lost through insider trading over a land deal.
North Lanarkshire Council sold 84 acres of land near Cumbernauld.
But the day after the new owners assumed control, the land was rezoned for housing, causing its value to soar.
In a confidential report obtained by BBC Scotland, the council said there had been a lack of transparency over property deals it had conducted.
The land involved in the controversial deal, which lies close to Palacerigg Country Park, was originally zoned for leisure use and currently has a golf driving range and nine hole course on it.
A company called Multi Link Leisure had been leasing it from the council under an agreement that included an option to buy.
The company opted to exercise the right to buy on 8 October 2008 – before the land was rezoned for housing under the council’s Local Plan the following day.
BBC Scotland understands the value of the land is now estimated at between £5m and £10m.
The affair led to fears that someone in the council may have passed information informing Multi Link Leisure that the land was about to rezoned.
The deal is now at the centre of a legal battle after the council attempted to either have it struck down or renegotiated.
As a result of the Palacerigg deal, the council commissioned a review group to look at number of other land deals involving the council.
The review group’s report said: “Concerns were raised about the ability to identify a clear audit trail for some decisions and recommendations being made and which officers were involved at each stage”.
It also called for a review of both the people and procedures involved in the Property Services Department, and added: “This review should be carried out as a matter of urgency”.
A spokesman for North Lanarkshire Council said it would be “inappropriate to comment” because of the ongoing legal action.
Multi Link Leisure, which has their registered office at a lawyer’s firm on Douglas Street in Glasgow, did not respond to telephone calls or e-mails from BBC Scotland.
