22 April 2005
Scotland Yard detectives are investigating an allegation of serious fraud at the Office of the Deputy Prime Minister believed to involve almost £1m, the Metropolitan Police has confirmed.
The police were called in after a £850,000 hole was spotted in the department's accounts.
A spokeswoman for the police said: 'Three people, a man and two women, were arrested on April 5, 2005 and subsequently bailed to return on a date in May. Inquiries continue.
'It appears that the offences occurred over a seven-month period from January 2004.'
The alleged fraud is said to centre on a ghost company, which received cheques from the department made out to a non-existent member of staff, according to one newspaper. Two of those arrested are believed to be a married couple and one is thought to be an ODPM employee.
A spokeswoman for the department said: 'I can confirm that there has been an allegation of serious fraud that is being investigated by the police. It would be inappropriate to comment further at this stage but none of our work programmes have been compromised as a result.'
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