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A serious police investigation into alleged fraud and money laundering has been triggered by the activities of a former Tower Hamlets Council staff member, according to documents presented to the council's audit committee. The claims, which reportedly involve "inappropriate procurement and approval of services and payments involving undeclared conflicts of interest," date back to 2018 and are now the subject of an active police probe.The Mayor of Tower Hamlets at the time the alleged crimes began in 2018 was John Biggs from Labour party, Daily Dazzling Dawn realized.
The scale of the alleged crimes, which council officers suggest could involve "serious offences such as money laundering," may have resulted in "significant loss" for the East London local authority, as noted in the annual 'value for money' report delivered to councillors this month by external auditors EY. This information was first reported by the Evening Standard.
Operation NextWage and the Auditor's Scrutiny-The council launched its own internal investigation, codenamed Operation NextWage, after being alerted to the potential criminality by the Metropolitan Police. This internal probe culminated in the dismissal of the individual involved, though the town hall confirmed it is still actively investigating whether any other staff members were complicit.
However, the EY report went further, raising critical questions about the depth and breadth of the council's response. The auditors openly "challenged the adequacy and extent" of the Operation NextWage investigation, suggesting the council failed to fully understand how the opportunity for fraud had arisen and whether others "may also have been able to commit similar criminal acts."
In direct response to this high-level criticism, a subsequent report from council officers stated that the authority is undertaking "further procedures" to investigate any potential additional wrongdoing. This intensified effort includes a "targeted" and "forensic" review of staff emails to uncover any hidden connections or wider systemic failures.
Further complicating the council's internal control structure, the officer's report disclosed that the experienced investigations manager who led the initial NextWage inquiry has since left the council. As a consequence, the town hall is now "reviewing the structure, capacity, and capability of the investigations team."
Wider Systemic Weaknesses Exposed-The allegations of criminality and financial misconduct are set against a backdrop of wider systemic failures highlighted in the EY report. The auditors' 'value for money' assessment identified no less than ten "significant weaknesses" across the council’s operations, with contract management and procurement processes being particular areas of concern.
EY explicitly stated that the events surrounding Operation NextWage arose directly "from potential weaknesses in the council’s arrangements in these areas." The auditors are now urging the council to "improve controls associated with payments, including segregation of duties and identification of conflicts of interest," weaknesses they observed during their audits for both the 2023/24 and 2024/25 financial years.
In defence of their performance, the council officer's report claimed that many of the weaknesses highlighted by EY "stem from legacy arrangements and historic underinvestment." They nonetheless maintain that "significant progress" has been made, particularly through a "comprehensive procurement improvement programme" currently underway.
A spokesperson for the town hall, speaking to the Local Democracy Reporting Service, stressed that the alleged crimes are historical, dating back to 2018, and emphasised their commitment to preventing a recurrence. "Project NextWage relates to historical issues dating back to 2018 and the council is making every effort working with partners and our auditors to ensure systems are now in place so it cannot be repeated," the spokesperson said, adding that they could not comment on the details of the case while it remains subject to a police investigation. The Metropolitan Police have been contacted for an updated comment on the status of their investigation.
The backdrop to this case is the London Borough of Tower Hamlets, which is uniquely characterised by its vast British Bangladeshi population. The borough is widely considered the heartland of the British Bangladeshi community, with residents of Bangladeshi origin constituting the largest single ethnic group. At the time the alleged offences began around 2018, this group comprised approximately 32% to 35% of the total borough population, a figure far exceeding any other local authority in the UK. This demographic distinctiveness—rooted in a long history of migration, particularly from the Sylhet region, to the East End—gives the council a crucial duty to maintain public trust within one of the nation's most vibrant and concentrated minority communities.When the borough repeatedly makes headlines in mainstream media for negative news, it is a source of shame for the local residents.
