Four men arrested in a police investigation into allegations of major fraud at Brighton and Hove City Council housing department have been released on bail.
The men, including a man from Ilford, were arrested yesterday morning on suspicion of misconduct in a public office and corruption, following an investigation by the council's internal audit team.
Detectives are looking into allegations of improper awarding of council contracts worth more than £18 million over the past ten years, to a property management company providing the homeless with temporary accommodation.
The arrests followed searches at five addresses at 7am yesterday morning.
The Guardian understands the home is owned by the council’s suspended head of housing, Jugal Sharma.
A force spokesman said the occupant was not in when officers searched the house. He added that they would be looking to speak to him on his return.
After being interviewed in Brighton the four arrested were released on police bail on Wednesday evening until October while the investigation continues.
A 51-year-old man arrested at an address in Balfour Road, Ilford, is on bail until October 16. The Guardian understands he is Mr Sharma’s brother Ashley Parker, formerly known as Ashone Sharma and Ashoni Parker.
He is director - and largest shareholder - of a company called KEM Property Services, based in London.
Fellow KEM director Edward Charles Parker-Bancroft, 57, was arrested at his home in Harlands Road, Haywards Heath, and is on bail to October 17.
Alan Fisher, 67, was arrested at his home in Ashvale Drive, Upminster, Essex, and is on bail to October 14. The Argus understands he is neither an employee of KEM nor the council.
A 53-year-old man arrested at an address in Elms Road, Clapham, is on bail to October 15. His identity is not yet known.
Police also searched a business address in Queens Road, Brighton. No arrests were made.
None of the men arrested are employees of Brighton and Hove City Council.
Computers, other equipment and documents were seized at each addresss for examination.
Detective Sergeant Sally Smith said police wanted to speak to anyone who might be able to help the inquiry.
Contact police via 101 or email firstname.lastname@example.org Operation Parade.