Council investigates potential fraud by staff
LDRSAn investigation into potential fraud has been launched by a local authority looking at its own staff.
The probe is under way at Newcastle City Council concerning possible fraudulent activity within its transport department.
It is thought to relate to potential overclaiming involving an unconfirmed number of employees.
The Labour-led authority confirmed it was looking into the "irregularities" and said it could not comment any further.
The council's chief internal auditor Phil Slater told members of the council's audit and standards committee on Tuesday his department was behind on its annual body of work due to a staffing shortage.
After concerns were raised by Liberal Democrat councillor Greg Stone regarding the potential impact that could have on the ongoing "fraud" investigation, Mr Slater confirmed a report on that issue was still being worked on, the Local Democracy Reporting Service said.
A Newcastle City Council spokesperson said: "As part of due diligence on our business we are currently investigating some irregularities.
"As this is ongoing and could lead to further action it would not be appropriate for us to comment any further at this stage."
The committee was also told that the council's external auditors EY would be assessing the local authority's recent acquisition of the Crowne Plaza hotel.
The council took ownership of the hotel, near Central Station, in late March after its previous owners racked up a debt of nearly £40m to the council and were placed into administration.
EY's Caroline Mulley said the firm was also planning to look at the moves to bring control over housing and parks back within the council over the past year, with the authority having moved to take over from Your Homes Newcastle and Urban Green.