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Could fraud crimes be behind £100m Olympic accounts black hole?

Published on 24 Jun 2009 under category: legal

An investigation is being launched to determine whether fraud crimes could be behind a £100 million black hole in the 2012 Olympic accounts of the London Development Agency (LDA).

Two senior members of staff have been suspended and KPMG is to examine the situation to determine the details about the discrepancy.

No wrongdoing is suspected and the area where the investigation is focusing on is the fund to compensate businesses required to relocate from the location.

In order to free up the site the LDA has paid an estimated £1 million per acre, with small and medium-sized businesses being reimbursed for moving to other sites.

A source told the Times: "This has gone beyond a routine audit, into the realms of a fraud investigation."

In other news, the Cambridge News Online has reported that Ospreys accountant James Hill has recently pleaded guilty to white collar offences including fraud crimes and forgery.