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Medway Commericial Group fraud investigation enters sixth year

A major probe into alleged financial wrongdoing at a council-owned company is still ongoing six years after police were first called in.

Specialist officers from the economic crime unit continue to investigate concerns first raised about Medway Commercial Group (MCG) in March 2019.

Medway Commerical Group was based at the Innovation Park Medway near Rochester Airport
Medway Commerical Group was based at the Innovation Park Medway near Rochester Airport

Four people connected with the business have been quizzed by officers and remain “subject to ongoing inquiries”.

Detectives are probing allegations of irregularities at the Medway Council-run enterprise between 2017 and 2019.

KentOnline understands this potentially involves hundreds of thousands of pounds, but this has not been confirmed by the local authority or police.

A spokesman for the force said: “We launched an investigation after receiving allegations of fraud.

“The investigation is complex in its nature and being carried out by specialist detectives who are continuing to follow a number of lines of inquiry, including the review of a significant quantity of financial documents.

Kent Police has been investigating since 2019
Kent Police has been investigating since 2019

“A man and woman in their 50s, both from Tenterden, and a man in his 40s from [Hoo Peninsula] were arrested on suspicion of fraud in June 2021.

“A man and woman in their 50s, both from Chatham, have also since been interviewed under caution.

“All individuals remain subject to ongoing inquiries.”

The spokesman was unable to give any guidance on any potential timescale regarding the investigation.

KentOnline recently approached the man arrested on Hoo, but he declined to comment on the matter.

Cllr Howard Doe (Con) speaking at a council meeting
Cllr Howard Doe (Con) speaking at a council meeting

As previously reported, former deputy council leader, Cllr Howard Doe, was drafted in to take over as chairman of MCG when concerns were raised.

In March 2021, the company, which was responsible for projects such as running the Towns’ CCTV network, announced it was rebranding itself as Kyndi.

Speaking last week, Cllr Doe was surprised but not shocked that the investigation has taken so long.

He said: “Some of this is really quite complicated and you’ve got to factor in the manpower they [police] have got.

“I came in after the [suspects] were gone and opened up the books to whoever needed to see them.”

Medway Council leader Vince Maple (Lab)
Medway Council leader Vince Maple (Lab)

The Tory has not had any further contact with investigators or anyone else connected with the matter since he left the board of Kyndi when Labour took charge of the council in 2023.

Current council leader Cllr Vince Maple said: “It is now six years since the initial investigation into MCG began.

“Medway Council continues to fully cooperate with Kent Police, and we will continue to ask for routine updates in what we appreciate is a complex investigation.

“In the meantime, the council has taken decisive steps to strengthen the governance of its local authority trading companies.

“We have implemented changes in line with the Chartered Institute of Public Finance and Accountancy (CIPFA) best practice to increase transparency, accountability, and public confidence in how these companies operate.”

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