DORSET Police has called off an investigation into the Bournemouth Development Company over allegations of fraud.

The force told the Echo its economic crime unit had been carrying out an investigation into the public/private partnership between Bournemouth council and a firm formed by the directors of Morgan Sindall Investments.

A spokesman for the force said: “In May 2018 Dorset Police received an allegation of a fraud-related offence in relation to the Bournemouth Development Company.

“Following a referral to the appropriate authority, no criminality has been identified at this stage.”

The nature of the allegations has not been revealed but they are understood to relate to the financial affairs of the company and compliance with local government regulations.

A spokesman for the Bournemouth Development Company said they had not been notified of any investigation.

“The Daily Echo has informed us of an alleged complaint against Bournemouth Development Company,” the spokesman said.

“We are unaware of any such complaint and therefore we have nothing to add at this stage.”

Meanwhile a spokesman for Bournemouth council said it had nothing to add to the company’s statement.

On paper the company is partnership between the council and a firm called Community Solutions for Regeneration (Bournemouth) Ltd, the directors of which include directors of Morgan Sindall. The contract between the two organisations is for 20 years.

It was set up to facilitate the development of public car parks across the borough, and currently has more than £210 million worth of development proposed, with sites including the Winter Gardens, Bath Road, Cotlands, Central, Richmond Hill, Town Hall Annex, Glen Fern and West Hill car parks.

In recent months questions have arisen over the programme, with concerns raised over the net loss of parking spaces resulting from the construction of like-for-like replacement multi-storey blocks on the car park sites, but alongside large numbers of high rise flats with minimal parking.

The company’s future is also somewhat uncertain with the council merger due to take place next year.

Bournemouth, Christchurch and Poole Council’s chief executive in waiting Graham Farrant told the Echo Bournemouth council’s side of the agreement would pass to the new authority, but its future would be a matter for the new members to decide.