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| 'No evidence' in Tower Hamlets fraud probe, says Met | 'No evidence' in Tower Hamlets fraud probe, says Met |
| (about 1 hour later) | |
| There is "no credible evidence of criminality" in files from an east London borough to suspect fraud, the Metropolitan (Met) Police has said. | There is "no credible evidence of criminality" in files from an east London borough to suspect fraud, the Metropolitan (Met) Police has said. |
| It follows allegations broadcast on BBC Panorama that grants were made to charities in return for electoral support in Tower Hamlets. | It follows allegations broadcast on BBC Panorama that grants were made to charities in return for electoral support in Tower Hamlets. |
| Three files of material were handed to the police by the Department of Communities and Local Government. | Three files of material were handed to the police by the Department of Communities and Local Government. |
| The Met said it would "not be investigating at this point in time". | The Met said it would "not be investigating at this point in time". |
| Panorama had alleged the council, run by directly-elected mayor Lutfur Rahman, had diverted £3.6m of grants to Bangladeshi and Somali-run charities in return for political support. | Panorama had alleged the council, run by directly-elected mayor Lutfur Rahman, had diverted £3.6m of grants to Bangladeshi and Somali-run charities in return for political support. |
| A Scotland Yard spokesman said the files had been reviewed by a team of officers over the past six days. | |
| It said: "In addition, officers have liaised with Pricewaterhouse Coopers LLP (PWC) who are conducting a full and wide-ranging audit of financial matters at The London Borough of Tower Hamlets. | |
| "We will continue to liaise with them should their audit uncover any evidence of criminality." | "We will continue to liaise with them should their audit uncover any evidence of criminality." |
| A Tower Hamlets spokesman said: "The news from the Metropolitan Police is to be welcomed and Tower Hamlets will continue to work with the auditors and DCLG." | A Tower Hamlets spokesman said: "The news from the Metropolitan Police is to be welcomed and Tower Hamlets will continue to work with the auditors and DCLG." |
| BBC Panorama had said it found Bangladeshi-born Mr Rahman had more than doubled funding recommended by officers for Bengali-run charities. | |
| In a statement, it said: "We continue to stand by the programme's findings which uncovered serious concerns about the use of public money, which are still being investigated by the government. | |
| "Our programme did not say there was evidence of criminality. The allegations relate to potentially unlawful expenditure, not to a criminal matter." | |
| The inspection by PWC is continuing to look into the authority's payment of grants, the transfer of property, spending decisions in relation to publicity, and other contractual processes, from 25 October 2010 to the present day. | |
| It has been asked to report back to Communities and Local Government Secretary Eric Pickles by 30 June. | |
| Mr Rahman was initially selected to fight the 2010 election as the Labour candidate but was removed by the party's National Executive Committee and chose to run as an independent. | |
| Of the borough's 51 elected councillors, 26 are Labour, 14 Independent, seven Conservative, two are Respect councillors, with one Liberal Democrat and one Labour Independent. |