A COUNCIL official has been suspended as an inquiry began into how an unlicensed island bus operator took children to school for 20 months.

It follows severe criticism of the Western Isles Council by Scottish Traffic Commissioners who attacked transport officials for being ''economical with the truth''.

Council sources in Stornoway yesterday revealed that Mr Les Watson, the transport official responsible for bus services, was suspended on Monday. He was told to clear his desk and sent home as an investigation was launched into the nature of evidence he gave to the Scottish Traffic Commissioners.

It had emerged at the licence application hearing last week that Harris bus operator John Angus Morrison took children to school for 20 months without the required licence.

In his hard-hitting summing up last Friday, commissioners' chairman Michael Betts recommended that the islands' council should determine whether internal disciplinary action was appropriate.

Mr Betts said there was no justification for the council knowingly letting a school-run contract to someone who did not hold the statutory public service vehicle licence.

The hearing heard that Mr Morrison, of Cluer, Harris, trading as Morrison's Coaches, did not have an operator's licence when he was awarded a school contract in 1996.

He ferried children to and from Sir E. Scott School in Tarbert, Harris, in an 18-seater coach and minibus without proper passenger service vehicle (PSV) documentation.

The commissioners found that Mr Morrison had borrowed two PSV discs from Angus Morrison, of West Tarbert.

Angus Morrison later took back the loaned discs after receiving a guidance note from the traffic commissioners.

The commissioners found that John Angus Morrison, while still having the school contract but no licence, then borrowed discs from two other island bus operators, Alasdair Maclennan, of Laxay, and Mrs Margaret Mackay, of Dalbeg, as the illegal bus operation dragged on for 21 months.

An official spokesman for Western Isles Council would yesterday only confirm an investigation had begun.