POLICE say an enquiry into alleged fraud at a charity with close links to the council is proving "complex" and no arrests have yet been made.

The O-Regen group, also known as Orient Regeneration, went into administration last month following major financial problems.

It provides training and funding for a variety of community organisations and also owns the Epicentre and Click Centre in Leytonstone, the Score centre in Leyton, and two training colleges in Walthamstow, one of which is now defunct.

The police investigation was launched following an allegation of fraud made by Hackney Council "after an audit conducted by an external company showed discrepancies in funds".

In a statement on how the probe is progressing, a spokeswoman said: "This is a complex enquiry. Enquiries continue."

Officers have refused to say whether anyone has been interviewed yet in connection with the investigation.

Earlier this month the council agreed to send a senior officer, thought to be Clive Morton, to help the charity with its financial issues.

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