Newcastle City Council launches investigation into potential fraud among own staff

The Local Democracy Reporting Service understands that a probe is underway at the civic centre concerning possible fraudulent activity within the council’s transport department.

The ongoing investigation is thought to relate to potential overclaiming involving an unconfirmed number of employees.

A Newcastle City Council spokesperson confirmed: “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.” 

Phil Slater, the council’s chief internal auditor, told members of the council’s audit and standards committee on Tuesday that his department was behind on 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 that a report on that issue was still being worked on.

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.

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The council took ownership of the hotel, near Central Station, in late March after its previous owners racked up a debt of nearly £40 million 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 back control from Your Homes Newcastle and Urban Green.

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