THE Scottish Office refused to confirm yesterday that members of

Monklands District Council would not be surcharged over the costs of a

public inquiry into allegations about the way the council has been

running its affairs.

There is now a question mark over the inquiry.

The council had decided on Thursday to go ahead with it provided

Scottish Secretary Ian Lang guaranteed members would not be surcharged

to meet the costs involved.

The council has been accused of nepotism, sectarianism, and a spending

bias in favour of Coatbridge and against Airdrie. It denies the

accusations.

Its chief executive, Mr Maurice Hart, who has written to Mr Lang

outlining the reasoning behind the decision, said yesterday the council

was anxious to have an inquiry because it believed adverse publicity

generated by the controversy had had a detrimental effect on inward

investment and the local economy.

He said: ''The council is well aware that the ultimate decision about

surcharge rests with the Secretary of State. Consequently, we are asking

him to give an undertaking that no such surcharge will be made.''

However, a Scottish Office spokesman said yesterday: ''As Monklands

District Council should be perfectly aware, the Secretary of State is in

no position to give any such assurance on surcharging.

''Surcharging on local authority elected members and officials arises

from recommendations made by the Accounts Commission following the

identification by auditors of illegal or improper expenditure.''

A council spokesman later refused to speculate on the implications of

the Scottish Office statement. He said he would prefer to wait until an

official response to Mr Hart's letter was received from Mr Lang.

He added: ''In the event of the Accounts Commission recommending a

surcharge, the Scottish Secretary would ask the council to justify why

it had held an inquiry.

''The council has spelled that out in advance of an inquiry and I

don't think it is unreasonable to ask Mr Lang to make a decision now,

rather than after the event.''

The three SNP councillors in Monklands said the council should decide

to proceed with an inquiry regardless.