FORMER MP Sir Cyril Smith headed a probe into Preston's Liberal Democrat group after it was suspended amid allegations of rigged votes.

The local branch was suspended in December last year by the party's executive, the Citizen can reveal, and was not reconvened until July 2000.

After the seven-month internal investigation, Sir Cyril Smith cleared the group of any wrongdoing but attacked councillor Mick Moulding -- the group's main whistleblower -- as a 'troublemaker' and 'racist'.

In an open letter to the group, Sir Cyril said: "He (Mick Moulding) is a troublemaker . . . and I am quite sure that it is in the best interest of the party to expel him, and indeed the only way forward for the Preston Lib Dem party".

He added that councillor Moulding's expulsion from the group on Monday (September 18) was justified.

Ironically it was allegations made by Coun Moulding which first prompted Sir Cyril's investigation. Coun Moulding claimed that hundreds of 'block' ballot papers had been sent to an address in Deepdale -- owned by an Asian businessman.

The votes, claims Moulding, were rigged so senior executive members of the party could remain in power.

Sir Cyril's letter continued: "He (Moulding) wrote an abusive letter concerning the 'block vote' issue which clearly meant the 'black vote' and I do consider him to be racially biased in a non-Liberal way".

Councillor Moulding fired back at Sir Cyril's comments by saying: "It's absolutely crackers -- how can he make assumptions like this.

"I'm going to sue Cyril Smith for suggesting that I'm racist. These allegations have hurt me deeply.

"I strongly deny any allegations of racism and challenge any one of the group to prove that I am a racist."

He added: "I'm going to see my solicitor over criminal prosecutions against senior figures in the party who have accused me of racism."

Leader of Preston's Lib Dem party Bill Chadwick, said: "Each one of us in the group co-operated with Sir Cyril Smith's inquiry.

"In the end, our patience was exhausted (in light of the allegations) which culminated in councillor Moulding's expulsion."