A POLICE investigation into a report on issues at the former Northumberland development company Arch has not identified any criminal offences.

The 98-page report, which was commissioned after the new Conservative administration took over in May 2017 and made public for the first time on Friday, was handed over to police to look into potential criminal activity regarding the purchase of the former Arch chief executive's house and a generous benefits package given to a specific contractor.

The report covered five main governance areas within Arch - consultants and contractors, employees, property portfolio, hospitality and gifts, and the awards of major contracts.

The report stated: "There are two immediate primary areas of concern.

"These relate firstly to the purchase of the former Arch chief executive’s home, by Arch, at a price which appears to have been unrealistically high to deliver expected rental income yields; and secondly, to what appears to be an unduly generous benefits and remuneration package afforded to a specific contractor.

"There is potential for criminality to be indicated in respect of each of these two matters, which were correctly referred by the county council’s then interim chief executive to Northumbria Police for further examination."

However, a Northumbria Police spokesman said: "We can confirm that Northumberland County Council contacted police with concerns relating to finance and governance at Arch.

"Police have been working with the council and reviewed documentation they provided. We can confirm no criminal offences have been identified."

A meeting of the authority's audit committee is taking place on Friday to discuss the report, which can be viewed in full on the council's website.