Potential fraud claim shakes up Newcastle
Financial irregularities in the council’s transport division has led to a reshuffling within departments, as the matter is passed to Northumbria Police for investigation.
An internal probe into the issue, understood to relate to alleged fraudulent activity and potential overclaiming by an unknown number of staff, led to Newcastle City Council referring the matter to the police on 23 June.
The allegations are thought to relate to employees from the transport division rather than members of its corporate leadership team, according to an email referenced by The Chronicle, sent to staff by Newcastle chief executive Pam Smith.
This has resulted in the transport division being moved from the investment and growth portfolio into the city operations, neighbourhoods, and regulatory services department, for the time being.
Michelle Percy, the director of investment and growth, has gone on a period of leave. She is not being investigated.
A Newcastle City Council spokesperson said: “We can confirm that, following an initial investigation into financial irregularities in one part of the transport division, the matter has been referred to Northumbria Police.
“We will offer any support that the police require during the course of their enquiries but we are not in a position to comment further at this time.”
Northumbria Police confirmed they are reviewing the material.
Percy has been approached for comment.
