LONDON DESK

The London Development Agency under Ken Livingstone according to a "forensic audit panel" established by current mayor Boris Johnson has concluded that money had was misspent on a "massive scale".

The investigation headed by Patience Wheatcroft also said that, "in many ways the LDA was there to serve as the mayor's cheque book".

Wheatcroft also called for the LDA to be "significantly slimmed down" and for its role in the responsibility and delivery of the 2012 games to be curtailed.

The LDA was at the epicenter of the highly damaging allegations that cash was given to projects closely linked to Lee Jasper, the former Mayor's race adviser that according to the FT "provided little or nothing in return".

The report however exonerates Lee Jasper of corruption or breaking any rules with Wheatcroft saying that the LDA's problems lay down to "ineptitude rather than corruption".