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The mother of murdered toddler James Bulger is demanding an Department of Justice inquiry after it emerged that one of his killers had sex with a woman at secure unit months before he was released.
Jon Venables was aged 17 when he had the illegal affair with the woman who was responsible for his care at the Red Bank Community Home on Merseyside.
His relationship with the woman happened while he was living in detached house within the grounds of Red Bank, which is run by St Helens Council.
The house is a separate unit at the former borstal, and is designed to get inmates used to living a "normal life" prior to release.
At the time of their parole in 2001, Venables and the other killer, Robert Thompson, were almost 18 and the oldest inmates ever to have been held in secure children's homes in the UK.
When Lord Chief Justice Woolf made Venables and, the other Bulger killer Robert Thompson, eligible for parole in October 2000 he referred to reports that said they had made excellent progress while in secure units.
Now that it has emerged that Venables engaged in sex with a member of staff at Red Bank, Denise Fergus wants an inquiry to establish whether there was a covered-up to withold damning information from the judge.
Jon Venables, now aged 27, was recalled to prison under life licence last February and is serving two years after admitting paedophile pornography offences last July in a trial at the Old Bailey.
James' mother Denise has made a Victim Impact Statement to a parole board that is due to hear an application from Venables for early release as h comes up to having served a year of his new sentence.
Denise reacted with shock and anger to the latest disclosures.
Speaking at her home in Kirkby, Merseyside, Denise, 43, said: "This calls into question the original decision to parole Venables and Thompson.
"The Parole Board should go back to 2001 and review its decision on Venables since it was clearly based on lies and deceit.
"I sat in the court in October 2000 and heard Lord Woolf saying he had been handed glowing reports on them.
"The main the reason he gave for allowing them to be released early was their supposed good behaviour.
"He also said did not want them exposed them to the 'corrosive atmosphere' of Young Offenders Institutions and made it plain that he believed they were models of good behaviour.
"But now we know that was not the truth and it is clear that the reports sent to Lord Woolf were rubbish.
"Venables and Thompson were trained to lie while they were in those secure homes and they have kept on lying since they were released.
"But it is quite outrageous and that the officials lied to the Lord Chief Justice in 2000 and to Dame Justice Butler-Sloss in 2001 when she granted them anonymity.
"That is surely something that the Justice Department can't simply ignore because it makes a laughing-stock of the whole judiciary.
"I want a full inquiry to get to the truth about what went on while they were in those secure homes and how false reports were given to the judges.
"I was told at the time they were like holiday camps behind bars and that those evil pair had not been rehabilitated.
"Now we know that a woman who was supposed to be in charge of Venables had sex with him and was suspended and sacked.
"She should have been prosecuted for having sex while in a position of trust and if she wasn't, we ought to know why.
"I always said they were determined to release those two no matter what they did. Now that has been proved correct.
"There must be an investigation to find-out how far the official cover-up went. Was it at Redbank, or St Helens Council, or the Home Office itself?
"If they covered this up, who knows what else they have hushed-up along the way with both Venables and Thompson?
"It stinks and it's high time the secrecy was removed entirely from this case so we can know the real truth."
Venables lived under a new identity when he was released in 2001 after serving seven years and eight months of a life sentence for killing toddler James, two, in 1993, in Liverpool, with his accomplice Robert Thompson.
Venables was re-arrested in February last year after he called his parole officer warning that he had blown his secret identity while drunk.
The officer caught him trying to destroy his computer and police recovered warped child sex images from its hard drive.
