The local authority which saw the UK's worst race riots for a decade has been accused of failing to promote good race relations.

Oldham Borough Council's leadership is accused of being weak and unsuccessful in creating stable communities.

The criticism comes in a report on the council by the Audit Commission (AC) which was called in following an independent inquiry into the violence in May 2001.

The council said it accepted the report, but the "fundamental change" required would take time.

However, opposition parties called for the council's Liberal Democrat leadership to resign.

Communities are at war with one another because the council is not prepared to face the issues properly

David Jones Labour group leader

More than 100 people were injured - 86 of them police officers - in the disturbances.

Last year the Ritchie Inquiry into the violence criticised the council for not addressing segregation in the area.

The AC report said: "Oldham Council needs to develop a sense of community leadership and vision.

"The council has failed to generate a purposeful debate on race and community cohesion."

David Jones, leader of Oldham's Labour group, called for the council leadership to resign.

He told BBC GMR: "Over the last 12 to 18 months what people have wanted is real leadership.

'Community cohesion'

"Communities are at war with one another because the council is not prepared to face the issues properly."

But the report's authors noted that Oldham Council, which has a Lib Dem majority, had made "tentative steps" towards improvement, including reducing the number of racist incidents.

Council leader Richard Knowles said: "I accept... there is a need for greater emphasis on community cohesion.

"That is why we have been working hard to change the ethos and culture of the council. However, the fundamental changes required take time."

Fifteen people have been sentenced for their part in the rioting and another 37 have still to come before the courts.