TESCO heiress Dame Shirley Porter last night vowed to fight the £31.6 million surcharge she and her five colleagues must pay for their actions in the Westminster City Council "homes for votes" scandal.
Called a liar for her part in the affair, Dame Shirley said she had been the victim of "a miscarriage of justice" and would appeal.
As expected, the former council leader and her colleagues were yesterday found guilty of "wilful misconduct" and of using taxpayers' money to finance a vote rigging plot aimed at maintaining Conservative control of the council in the 1990 local elections.
District Auditor Mr John Magill delivered his verdict at the end of a seven year inquiry, prompting Labour demands for a public investigation into "the biggest single financial scandal in the history of local government" in Britain.
Mr Magill unveiled a catalogue of deceit, obstruction, evasion and delay as he found the former Tory leader and her colleagues guilty of a deliberate policy of gerrymandering".
In a 2,000 page report, Mr Magill upheld his preliminary finding that the council once the jewel in the Tory crown tried to fix election results in marginal wards by exporting homeless people and selling vacant council houses at knockdown prices to people thought more likely to vote Conservative.
The three former councillors and three former officials were held "jointly and severally" liable to meet the costs to the council resulting from the "designated sales" policy.
But there was speculation last night that Dame Shirley one of the wealthiest women in Britain and worth about £50-£60 million could end up meeting most of the bill since she alone has access to the sums involved.
The District Auditor calculated the council's loss against the costs of discounts on council homes which were sold, grants to tenants encouraged to move out, the provision of temporary housing for the homeless, and consequent loss of rents.
And under the rules governing surcharges, Dame Shirley could be expected to make up the shortfall after the other five have contributed what they have been judged able to afford.
And in yesterday's report Mr Magill made it clear that Dame Shirley was the scheme's prime motivator, accusing her of misusing her power and influence. Mr Magill concluded. "Councillor Lady Porter knew that it was unlawful and wrong for the council to exercise its powers to secure a electoral advantage for any political party or to gerrymander, in pursuit of such advantage for her party, she was at least recklessly indifferent as to whether it was right or wrong."
Dame Shirley faced angry protesters when she appeared outside her barrister's chambers to read a brief statement. To cries of"write a cheque, Shirley" she said. "Mr Magill's investigation has been blatantly unfair. One man has been prosecutor, judge and jury.
"He already prejudged this case two years ago when he pronounced us guilty before hearing our evidence. This investigation is a miscarriage of justice. I shall appeal against it and I am confident that we will win in court when the evidence is heard by a proper judge."
The Prime Minister, Mr John Major, cited the prospect of that protracted legal battle in the Commons yesterday, when he repeatedly rejected Labour invitations to condemn the Tory figures involved in the Westminster scandal.
Plainly angry, Mr Major told Mr Tony Blair he was prepared to condemn cases of proven malpractice and people found guilty in court but this case had still to go before the courts, and the people involved had vehemently declared their innocence.