POLICE are continuing to examine documents relating to concerns raised over “finance and governance” issues at development company Arch.

An internal strategic review into Northumberland County Council’s arms-length organisation was ordered when Northumberland Conservatives became the largest party on the council following the local elections in May. In October, police confirmed they had been called in to investigate.

Last month the council convened an audit committee to discuss governance at Arch, which is due to be dissolved and replaced by a new Northumberland Development Company. The board said it would establish a new operation which would solely focus on Northumberland-based regeneration, job creation, affordable housing and economic growth.

The review had found “failings in relation to the operating principles and fundamental purpose of Arch”. It was also outlined that “probity has not been at the level required” and “decisions made did not always follow appropriate procedures”.

Coun. Nick Oliver, cabinet member for corporate resources, said: “It is important we are open and transparent as possible as we progress with this process.

“We have had to be mindful that there is an ongoing police investigation and it was therefore not possible to disclose some of the details discussed in the closed meeting.

“Nonetheless, the audit committee is going to be taking an active role in learning lessons from what has happened at Arch and making sure that governance improvements are implemented.”

A Northumbria Police spokeswoman said: “Police are working with the county council concerning these matters but they are not yet subject to a full criminal investigation.”