Rival bidders have called for an urgent investigation into the award of Birmingham's local TV licence to a consortium led by former city council spin doctor Debra Davis.
YourTV and Made Television issued statements of concern in the wake of the granting of the licence to BLTV a firm incorporated just 24 hours before the Ofcom deadline of August 13.
Meanwhile, the Post can reveal that Ms Davis emailed consultants in her capacity as chief executive of City TV Broadcasting on Friday August 17 informing them that the company had pulled out of the bid due to insufficient funds.
But only four days previously, on Monday August 13, Ms Davis had sent a round robin e-mail to supporters and associates telling them the City TV Broadcasting application had been safely submitted 'just before' the Ofcom deadline.
The bosses of rival bidders for Birmingham's local TV licence which comes with funding from the BBC licence fee have called for Ofcom to look into the winning bid.
Jim Manson, group managing director of YourTV, said: "YourTV has already expressed its disappointment to Ofcom about the decision regarding the award of the Birmingham licence.
"We felt we had an exceptionally strong bid, with a highly experienced team based in the city with a programme schedule that was geared to the community.
"As applicants we are obviously subject to the due process and clarification and look forward to Ofcom explaining their specific reasons for this licence award."
Jamie Conway, chief executive of Made Television, said: "We can confirm we have written to Ofcom to ask a number of questions about the awards process and the assessment criteria. Ofcom have confirmed they have received our queries and have said they will respond to our queries shortly."
Documents reveal that a new company BLTV was incorporated the day before deadline, with Ms Davis director and Birmingham City Councillor Alan Rudge shareholder.
Meanwhile, another company, City TV Broadcasting (Birmingham) was incorporated on August 17 2012, with Alan Grindley as director and shareholder.
The application to Ofcom states: "BLTV Ltd was registered as company No 08177384 on 12 August 2012 as a clean vehicle ready for investor support.
"All work done to date in connection with City TV Broadcasting Ltd's planned application for a local TV licence including, but not limited to, has been transferred to BLTV Ltd and will trade as City TV Broadcasting (Birmingham) or City TV."
The Birmingham Post has seen copies of email correspondence which confirms that Ms Davis said the City TV Broadcasting bid was being scrapped despite years of intensive lobbying.
Ms Davis's consortium was awarded the licence by Ofcom last week in the face of rival bids from YourTV backed by former BBC Trust chairman Sir Michael Lyons, national broadcaster Gary Newbon and ex-BRMB executive Mike Owen and Made in Birmingham, with former Central TV news editor Peter Brookes.
On Monday August 13, Ms Davis e-mailed a group including Councillor Alan Rudge, Heart DJ Ed James, BBC presenter Adrian Goldberg, former BBC presenter Ashley Blake, Alan Grindley, Lee Benson and others: "Just a quick note to let you know that the application, financial spreadsheets, endorsements, supporting letters and documentation were duly submitted to Ofcom today just before the deadline.
"I want to thank you all for your support and commitment to City TV. We could not do it without you all behind our vision and support. I am hoping that we will be able to gather soon to raise a glass."
But just four days later Ms Davis wrote to consultants: "On our side, regrettably, City TV Broadcasting Ltd was not able to raise the necessary business development funding or any investment for its proposition. The company has therefore abandoned its bid."
An Ofcom spokesman said: "Ofcom received an application for the Birmingham local TV licence from BLTV Ltd, which has subsequently been awarded the licence.
"According to the company's application, City TV Broadcasting (Birmingham) is intended to be the trading name of the company."
Ms Davis said: "This is not about an email. This is about a rival bid partnered with the Post and Mail.
"All relevant information is in the public domain on the Ofcom website, and we have followed standard business practices."