Police probing suspected fraud and money laundering at Tower Hamlets council

"Police are investigating suspected fraud and money laundering by a former member of staff at Tower Hamlets Council, according to a report. Documents presented to the council's audit committee say the allegations involve inappropriate procurement and approval of services and payments involving undeclared conflicts of interest. The council says the alleged crimes date back to 2018 and that a police investigation is ongoing. The town hall launched an internal investigation called Operation NextWage after police alerted it to the potential crimes."

"However, the EY report says its auditors challenged the adequacy and extent of the council's internal investigation. It suggested the council needed to do more to understand how the opportunity to commit fraud had arisen. It also suggested the council should have done more to investigate if others may also have been able to commit similar criminal acts. In response, a council officer's report said the authority was taking further procedures to investigate if there has been any additional wrongdoing."

Police are investigating suspected fraud and money laundering by a former Tower Hamlets Council staff member. Allegations involve inappropriate procurement, approval of services, payments and undeclared conflicts of interest dating back to 2018. The town hall launched Operation NextWage after police alerted it, and the council dismissed the individual involved. External auditors EY said the offences may have caused significant loss and challenged the adequacy of the council's internal investigation. EY urged further work to establish how the fraud opportunity arose and whether others were involved. The council said it will pursue targeted forensic email reviews and assess the investigations team's structure and capacity.

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