Criminal investigation launched into “serious internal housing fraud” at London borough

The findings were revealed in a quarterly counter fraud update considered by the London borough's Audit and Governance Committee on Wednesday (5 November), which also noted that the council is pursuing civil recovery action in relation to the homes.

The report said: "The matter involved a staff member who manipulated housing allocation systems to improperly assign 35 properties intended for use as temporary accommodation to ineligible individuals.

"The member of staff was dismissed and both an internal and criminal investigation are still ongoing.

"Civil recovery action is being taken to recover properties assigned in this fraud and a criminal prosecution is being pursued."

A Newham Council spokesperson confirmed that a whistleblower contacted the local authority's Fraud Team to report apparent malpractice by a housing officer.

The tip-off led to an internal fraud investigation, and the officer immediately resigned once confronted, the spokesperson added.

The statement continued: "The Council is working with the police to pursue a criminal investigation.

"In the meantime, the council is seeking to recover 35 social homes that we believe may have been inappropriately let. This is a live legal case, and we cannot comment further."

Adam Carey