Hackney in new fraud scandal
Hackney Borough Council has suffered a further embarrassment as it struggles to contain accusations of fraud and misconduct.
Last week the audit special investigation unit at the London borough was closed down for 24 hours while managers consulted with staff following accusations of fraud by a whistleblower.
A spokesperson for the council refused to comment on the allegations though it is believed they involved a number of incidents stretching back several years.
But the spokesperson denied the police were involved, saying that no evidence of fraud had been uncovered.
The latest investigation comes after the Metropolitan police’s fraud squad was brought in to investigate recent allegations of housing benefit fraud at the council.
Last year Hackney was severely criticised by the Audit Commission over the parlous state of its finances and was forced to put in place a desperate action plan to cut its £40m deficit.
At the same time, Deloitte & Touche was brought in to find seven interim managers to take control of the council’s finances.
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Hit squad moves in to save Hackney