Fraud Investigation of Newcastle Council

National World - LocalTV

The council has confirmed that an internal investigation into “financial irregularities” within its transport division has now reached a new phase, with the findings formally passed to Northumbria Police for further review

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00:00The heart of Newcastle's local government is once again under scrutiny, this time over potential fraud.

00:07The council has confirmed that an internal investigation into financial irregularities within its transport division has now reached a new phase,

00:15with the findings formally passed to Northumbria Police for further review.

00:20While the exact details remain unclear, it's understood the concerns relate to possible over-claiming by an unconfirmed number of employees.

00:29The matter is now in the hands of police, who say they are reviewing the material submitted by the council on the 23rd of June.

00:37The council says the issues are isolated to one part of the transport department and do not involve members of the corporate leadership team.

00:47Nonetheless, senior staffing changes are already underway.

00:51Michelle Percy, the council's director of investment and growth, has been relieved of responsibility for the transport portfolio,

00:59which is now temporarily overseen by Christine Herriot.

01:03Percy has since taken a leave of absence.

01:06To keep operations running, the council has had to bring in external support staff,

01:11something officials say is standard practice when additional capacity is needed.

01:16This investigation adds to growing unrest within the council.

01:20It follows a string of high-profile departures, including the resignation of former council leader Nick Kemp,

01:26amid an unresolved bullying complaint from Miss Percy.

01:30Several other councillors have raised similar concerns about the workplace culture inside the civic centre.

01:35And with the Labour Party now running a minority administration, having recently lost its majority,

01:41the political picture remains fragile.

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