11 July 2003
The London Borough of Tower Hamlets has suspended two senior regeneration officers following allegations of large-scale misuse of public funds at organisations linked to two borough councillors.
The council has also severed links with the Youth Action Scheme, (Yas) and Dame Colet House Ltd, which are both based in Stepney, east London.
Yas is chaired by Kumar Murshid, a Tower Hamlets councillor and an adviser to London Mayor Ken Livingstone.
The move follows the cessation of payments in January to the Millennium Advanced Technology Training Company, which is at the centre of a Scotland Yard serious fraud investigation into the misuse of cash earmarked for regeneration initiatives.
Allegations of fraud escalated after private auditors uncovered 'a lack of transparency' in using public cash, including the alleged use of fictitious invoices.
Murshid's role on the mayor's advisory Cabinet has so far been unaffected by the investigations. Murshid and a second councillor, Nasir Uddin, were earlier suspended from the council's Labour group, pending investigations.
PFjul2003
