Mr Jasper said the allegations were politically motivated

The Evening Standard made claims concerning Lee Jasper, the mayor's head of equalities, and his involvement in the funding of black organisations.

The newspaper alleged hundreds of thousands of pounds paid to the groups by the mayor's London Development Agency (LDA) are unaccounted for.

The LDA conducted an internal inquiry clearing him of any wrong-doing.

The report said it did not have powers to look at claims private individuals took money from organisations to which the LDA had given funds. Therefore, it has referred these allegations to the police to investigate.

Related investigation

A related investigation by the Greater London Authority into Mr Jasper's involvement in the funding of other black community groups has found he acted appropriately.

Part of the inquiry concerned money paid by the London Development Agency (LDA) to Brixton Base, of which Mr Jasper is a patron and which is run by Errol Walters, a friend and close associate of his.

Brixton Base received �510,000 from the LDA to provide media courses to young black people.

It included �280,000 for rent, even though the LDA is the landlord, and �230,000 for training.

Funding of the Brixton Base project came under scrutiny after it was revealed that the LDA gave �300,000 to another firm, Diversity International, to set up a business website that was never built.

At the time the allegations were made in December, Mr Jasper said: "This is a purely politically motivated attack, and it is also an attack on black organisations."