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Medway Commercial Group fraud investigation leads to employee being sacked

An employee of Medway Council’s trading arm has been dismissed amid concerns of wrongdoing.

As previously reported, activities at Medway Commercial Group (MCG) are being probed by the police.

Medway Commercial Group is based at the Innovation Park in Chatham (7226052)
Medway Commercial Group is based at the Innovation Park in Chatham (7226052)

KentOnline understands the staff member was sacked after a seven-month internal investigation was completed.

However, the council remains tight-lipped on the subject and will not comment at the present time.

Police have confirmed officers are still looking into worries of illegal acts but will not elaborate.

Last month, council leader Cllr Alan Jarrett (Con) told colleagues of “highly speculative ventures” at MCG.

He said these had been carried out without permission.

Cllr Howard Doe
Cllr Howard Doe

The internal investigation had been led by deputy council leader Cllr Howard Doe (Con).

He took over as MCG chairman at the start of the year around the time the sacked employee was suspended.

Cllr Jarrett told the cabinet last month that some projects taken on by MCG were a “departure from its expertise” and were a key weakness in a probe into its management and financial services.

He revealed he had mounting concerns about MCG as long as 18 months ago and eventually called in external forensic accountants.

A report produced ahead of cabinet revealed MCG made a loss of £667,000 in 2018/19 and is set for a projected loss of £400,000 in 2019.

It also found a number of additional projects “had been progressed which were outside the core business and had not provided an adequate return on investment”.

Labour has called for the investigation’s findings to be published.

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