- 3 updates
Tower Hamlets council has said it is looking forward to demonstrating that council processes have been run appropriately after inspectors were appointed to investigate claims of financial mismanagement.
A Tower Hamlets spokesman said:
Eric Pickles has said he is taking steps to investigate alleged mismanagement of public funds in Tower Hamlets as a matter of public interest.
The Bangladeshi mayor of the borough Lutfur Rahman was accused by the BBC's Panorama programme of substantially increasing public funding to Bengali charities in return for electoral support.
Mr Rahman categorically denies the allegations and has accused the BBC of racism.
"It is a matter of public record that I have long been concerned about a worrying pattern of divisive community politics and alleged mismanagement of public money by the mayoral administration in Tower Hamlets," the Communities Secretary said.
"Following the receipt of a number of documents, I am now taking legal steps, in the public interest, to appoint inspectors to look into the allegations in respect of Tower Hamlets.
Inspectors will examine allegations of fraud and financial mismanagement made against the elected mayor of Tower Hamlets, the Communities Secretary has said.
Lutfur Rahman was accused of doubling the funding recommended for Bengali-run charities by the BBC's Panorama programme - an allegation he strongly denies.
Eric Pickles said serious concerns had been raised and PricewaterhouseCoopers is in the east London borough to carry out an inspection of the council.
A file on the claims is being passed to the Metropolitan Police today, and a Scotland Yard spokesperson said the force would be making no further comment at this time.