Council investigation referred to the police

An investigation into potential fraud at a North East council has been referred to the police. The Local Democracy Reporting Service (LDRS) revealed in April that a probe was under way at Newcastle City Council concerning possible fraudulent activity within the council's transport department.

- DANIEL HOLLAND

The local authority confirmed on Tuesday morning that the “financial irregularities”, understood to relate to potential overclaiming involving an unconfirmed number of employees, has now been passed to Northumbria Police to look into further. It comes at a time of political instability and uncertainty within the civic centre’s corridors of power.

A Newcastle City Council spokesperson said: “We can confirm that, following an initial investigation into financial irregularities in one part of the transport division, the matter has been referred to Northumbria Police. We will offer any support that the police require during the course of their enquiries but we are not in a position to comment further at this time.”

A police spokesperson added: “We can confirm we received correspondence from Newcastle City Council on June 23. We are currently reviewing that material.”

City councillors were informed of the development in an email from chief executive Pam Smith on Tuesday morning. The council also confirmed that its transport division has been moved out of the portfolio of the council's director of investment and growth, Michelle Percy, until further notice.