Claims about an ongoing police investigation by a senior Northumberland County Council officer have sparked confusion after Northumbria Police denied one was taking place.
The claims were made by the council's executive director of finance, Jan Willis, during an audit committee meeting in January.
It concerned a report by external auditors KPMG into the council's development company, Advance Northumberland.
Read more: Go here for more Northumberland news and updates from Northumberland Live
Northumbria Police said there is no investigation into Advance and Northumberland County Council have refused to comment further.
Both Advance and Northumbria Police have previously stated there was no investigation into the company after the council's CEO, Daljit Lally, claimed she had "serious whistle-blowing concerns" in an email to all county councillors in August 2020.
The email was sent just before she was suspended in a controversial decision that eventually saw former council leader Peter Jackson lose a vote of no confidence.
During the audit committee meeting, chairman Stephen Watson questioned why the report had not yet been brought to committee.
Addressing Ms Willis, Mr Watson said: "The question I had, you may remember we asked several meetings ago for a report produced by KPMG which was going to come to this committee for a review, and I think Coun (Nick) Oliver has been in communication with you recently about that report.
"We're still waiting for it. Can you give us an indication of when we might receive it please?"
In response, Ms Willis said: "Unfortunately chair, I'm not in a position to release that report because it is part of the evidence for an ongoing police investigation, and I'm afraid I'm not in a position to give a timescale about when that report might be available to be circulated to members of the committee."
Mr Watson accepted this but then asked when the investigation had been opened, pointing out the report had been requested in July.
Ms Willis replied: "It is ongoing chair. As I understand it's been ongoing for some time."
Asked whether the report was part of the investigation, she added: "Indeed. Chair, it was a forensic audit report that was commissioned specifically as part of that investigation."
However, when contacted for an update on the investigation, Northumbria Police declined to provide a statement and said the force did not have an investigation in relation to Advance Northumberland.
When this was put to Northumberland County Council, the authority responded with a statement from Jan Willis.
She said: "This is a forensic audit report into Advance and legacy issues that predated the creation of Advance and was commissioned from KPMG by my predecessor.
"It was my understanding that it had been shared with the police and could not be made public without their agreement. It would now appear that is not the case.
"The report will now be shared with the police and subject to them formally confirming to NCC that they have no objection, it will be released to the Audit Committee."
Northumberland Labour Leader Scott Dickinson said he was "really disappointed" with the officer's comments in the meeting.
He added: "Police have confirmed there is no police investigation. Members have the right to see the report."
For the latest Northumberland news direct to your inbox every day, go here to sign up to our free newsletter
