Lutfur Rahman: police find 'no credible evidence' of Tower Hamlets council criminality after mayor's office investigated

 
Lutfur Rahman: the Mayor of Tower Hamlets says he welcomes the investigation
Alexandra Rucki16 April 2014

Scotland Yard says it can find no “credible evidence” of criminality after examining files seized in raids on Tower Hamlets council.

Government inspectors swooped on the headquarters of elected local mayor Lutfur Rahman earlier this month amid allegations of fraud and financial mismanagement.

Today the Met said officers had spent six days combing through material seized but could find no evidence offences had been committed “at this stage”.

Mr Rahman has denied accusations, including claims he doubled recommended funding for Bengali-run charities in an attempt to buy influence. Tower Hamlets Council insisted it had “seen no evidence” its processes had been run inappropriately.

A BBC Panorama programme accused Mr Rahman of doubling public funding to Bangladeshi and Somali groups from £1.5m to £3.6m in the face of recommendations from council officers.

The mayor has always denied the allegations, claiming they were the result of racism and Islamophobia.

Last Friday police said they received three files of material from the Department of Communities and Local Government relating to Tower Hamlets Council. Police said they were referred to material from a member of the public and the BBC Panorama programme.

Officers worked alongside Pricewaterhouse Coopers LLP (PwC), who are conducting a full audit of financial matters.

A statement from Scotland Yard said: “There is no credible evidence of criminality within the files to provide reasonable grounds to suspect that fraud or any other offence has been committed at this stage.

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“Therefore the MPS will not be investigating at this point in time and believe that it is appropriate for the material to be reviewed further by PwC and DCLG. We will continue to liaise with them should their audit uncover any evidence of criminality.”

Communities Secretary Eric Pickles ordered a full examination with the PwC requested to report back by June 30.

Mr Rahman said he welcomed the probe in an initial statement. He said: “This will refute the scurrilous and ill founded allegations recycled by Panorama and demonstrate that the Council acts in the best interests of all Tower Hamlets residents.

"I have written to the Secretary of State inviting him to visit the borough. I hope he will make an early visit and observe for himself the great things the Council, community organisations and businesses are doing working together with all our residents."

Before the programme was screened documents were leaked to Mr Rahman by a researcher. The unnamed woman, 24, triggered an investigation into possible breaches of data protection laws when a 1,000 word report was handed to the mayor.

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