POWERFUL Oldbury councillor Mahboob Hussain has apologised for failing to declare he had a stake in a taxi firm which was included in a multi-million pound contract.

Cllr Hussain, who is also deputy leader of Sandwell Council, said he had "made a mistake on a form" when failing to declare he and his wife had shares in Five Star Taxis.

The Dudley based cab firm was one of 47 companies to be awarded a contract by Sandwell Council last year in a combined £3.5 million deal which will run until February 2017.

Sandwell Council's Chief Executive Jan Britton investigated the matter and did not censure Cllr Hussain explaining the form was "quite technical."

He said: “I have investigated the decision-making process for the recent taxi contracts and I am satisfied Councillor Hussain played no part in it, and nor did he seek to influence decisions in any way.

“The contracts were subject to open competition in an online auction and in every case the work was awarded to the company that made the lowest bid, except in a small number of contracts where the company later withdrew, in which case it went to the second lowest bidder.

He added: “I have no reason to disbelieve Councillor Hussain when he says that not declaring his beneficial interest in Five Star Taxis was simply a mistake.

"This seems to be borne out by the fact he twice referred to his interest in this company elsewhere in his declaration of interests, and therefore I cannot see how it might have been his intention to deceive anybody."

He added: "The form was only introduced in 2012 and the questions are quite technical."

Former Langley independent socialist councillor Mick Davies is scathing about the Cllr Hussain's mistake and the investigation.

He said: "It's not as if you can forget you have a taxi firm.

"There's obviously been no scrutiny here."

Cllr Hussain, who was first elected in 2004, said: "I'm very sorry.

"I have declared an interest for many years and a lot of people know I have a link to the taxi trade in Dudley."

According to Companies House Cllr Hussain's wife Nasreen Begum was a 20 per cent shareholder before the contract was awarded, while Mr Hussain held no shares in the taxi firm then.

However, documents this year show Mr Hussain has a 30 per cent share in the company while his wife has a 20 per cent share.