More arrests over City Hall probe

Two addresses were searched in Essex

Three more people have been arrested over fraud allegations concerning organisations given funds by City Hall.

The two men and one woman were held in raids in the Chafford Hundred area of Essex on Thursday morning.

Police are investigating allegations of fraud in connection with organisations which received funding from the London Development Agency (LDA).

Three men have been arrested on suspicion of money laundering this year in connection with the inquiry.

They have all been released on police bail.

Police from the Metropolitan Police's Specialist and Economic Crime Command raided two homes on Thursday.

Internal inquiry

A 41-year-old woman and two men, aged 42 and 43, were arrested on suspicion of dishonestly obtaining property by deception and money laundering.

They currently in custody at an Essex police station.

It follows allegations about money paid by the LDA, the mayor of London's business arm, to a six organisations.

Former mayor Ken Mr Livingstone's race adviser Lee Jasper, 49, resigned amid allegations over the misuse of public funds.

An internal inquiry in January cleared him of any wrongdoing, but he was suspended by the mayor pending the police investigation.

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