Inspectors have been appointed by the government to examine allegations of "governance failure, poor financial management and fraud" in Tower Hamlets. It comes after the BBC Panorama's investigation into the east London borough, which is run by directly elected mayor Lutfur Rahman. It alleged he diverted £3.6m of grants to Bangladeshi and Somali-run charities in return for political support. A file is also being passed to the Metropolitan Police for consideration. Communities and Local Government Secretary Eric Pickles said he had "long been concerned about a worrying pattern of divisive community politics and alleged mismanagement of public money by the mayoral administration in Tower Hamlets". A Tower Hamlets Council spokesman said: "We welcome the opportunity to demonstrate that council processes have been run appropriately and to date we have seen no evidence to suggest otherwise.” The inspection, to be carried out by PwC, will look into the authority's payment of grants, the transfer of property, spending decisions in relation to publicity, and other contractual processes, from 25 October 2010 to the present day.
courtesy of The Times, Page: 2