MADRID, April 4 (Xinhua) -- The Spanish government on Tuesday dissolved the local council of the Mediterranean resort of Marbella, following the arrest of Marbella mayor and 20 other town officials implicated in a multi-billion-dollar corruption scandal last week.

    The decision, unprecedented in Spain's history, was taken by an extraordinary cabinet meeting. A caretaker administration will run the town until the next nationwide municipal elections, scheduled for May 2007.

    The measure is based on the constitution which allows the dissolution of a local body "whose management is considered against the general interest and its constitutional obligations," Deputy Prime Minister Maria Teresa Fernandez de la Vega said.

    Police arrested Mayoress Marisol Yague and several councilors on March 29 over charges of embezzlement of public funds, bribery,conspiracy, influence peddling, and illegal price fixing as they probed a long-standing housing boom at the sea resort.

    Police have seized property worth more than 2.4 billion euros (about 2.9 billion U.S. dollars) in connection with the probe. About 1,000 bank accounts have been frozen. Enditem