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City council bosses are investigating up to 16 members of Marlowe Theatre staff for fraud.
KentOnline has learned that the workers – who it is understood deny any wrongdoing – are accused of falsifying timesheets.
Canterbury City Council has thrown a veil of secrecy around the situation and is refusing to answer any questions relating to the allegations. Bosses are also warning employees not to speak publicly about the matter.
It is understood the investigation was launched by Paul Turner, the head of finance at the Marlowe Theatre, on July 1.
David Ford, head of commissioning at the council, is overseeing the probe. Mr Turner and theatre director Mark Everett are working alongside him.
The investigation relates to theatre technicians, whose role involves building and dismantling stage sets.
On May 28, they worked overnight to dismantle the set for the hit musical Annie after a successful week-long run, filling out timesheets for the work.
However, managers believe there are discrepancies between the time actually worked and the information provided on the paperwork.
They have written to staff to inform them they have received payments for about two hours work that was not done, thereby receiving overpayments of about £80.
The investigation is being carried out under section 9.2 of the Canterbury City Council code of conduct and its anti-fraud and whistle-blowing policy.
Asked about the allegations, council spokesman Rob Davies said: “As this an ongoing internal investigation we cannot comment at this time.”
Canterbury’s Marlowe Theatre had been the penultimate venue for the UK tour of Annie, the rags to riches story of an 11-year-old orphan girl from New York.
It starred Strictly Come Dancing judge Craig Revel Horwood, Lesley Joseph from Birds of a Feather fame, while Isabella Pappas and Sophia Pettit alternated in the role of the eponymous hero.
The council is expected to complete its investigation into its employees in the coming week.