Police called in over project 'irregularities'

The move comes after a damning audit report recommended a full investigation and the council, potentially, being forced to hand back some 250,000 in grant money it was awarded.

The council has called in the police based on an investigation report which was handed to the council recently.

Craigavon Borough Council was made the lead organisation in implementing a major environmental project which installed biomass boilers at five organisations and on its own properties.

Grants were awarded by the Special EU Programmes Body (SEUPB).

In a previous report the accountants FPM, acting on behalf of the SEUPB audited the council and found missing paperwork and irregularities in the way organisations were tendered for and appointed to carry out work. That audit recommended the subsequent investigation report

Auditors found there was ‘no evidence’ of vital documents, such as original invoices or evidence of proper tendering carried out or value for money being achieved.

The report stated that the council said the important paperwork was taken by a former council employee. It also stated the same employee held shares in one of the companies that was awarded a significant amount of funding. In conclusion the auditors said they had ‘a significant number of concerns that had to be 'adequately addressed’.

It also recommended a full review be carried out by the SEUPB.

Finally it said it did not accept any expenditure in relation to the projects and recommended the SEUPB clawback funding as ‘appropriate’.

As most of the work has been implemented and completed the council could face a hefty bill for 211,778.

The 'MAIL' understands that the comprehensive investigation recommended by the auditors has been completed, however, the council has refused to discuss the matter or release the report.

In a statement it said: "This issue is still undergoing investigation and is sub judice therefore we cannot make any further comment at this time."

A police spokesperson: "Detectives in Lurgan can confirm they are investigating following concerns highlighted in a report into the allocation of funding during a project administered through Craigavon Borough Council in 2005.

"Police enquiries into the matter are continuing and it would be inappropriate to comment further at this time."