£5.85m housing fraud investigation

City council officials are investigating allegations of fraud amounting to nearly £5.85 million in its housing department, The Argus newspaper reported yesterday.

They are looking into payments made to K.E.M. Property Services, which is owned by the brother of Jugal Sharma, the council's suspended head of housing.

A council spokesperson reportedly told The Argus: 'The council is continuing to conduct an investigation into the matter. We are unable to comment further on the details of the investigation.'

The investigation was reported first by Brighton and Hove Independent in January.