Two arrested in London City Hall charities probe

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The investigation is looking into claims of fraud at projects funded by the London Development Agency.

Investigation: The arrests are part of a probe into corruption at City Hall

A 32-year-old man was arrested at a house in Peckham over alleged misconduct in public office.

A 33-year-old woman was held at the same address over allegedly aiding and abetting misconduct in a public office.

The Met's Specialist and Economic Crime Command is investigating six charities that received funds from the LDA, which is funded by the office of the Mayor of London.

Today's arrests bring the total arrests in the inquiry to eight.

The probe was sparked by claims in the Evening Standard that hundreds of thousands of pounds was paid to the projects, many linked to former Mayoral aide Lee Jasper, with little or nothing to show for it.

Scotland Yard has made clear that there is no evidence of criminal activity on Mr Jasper's part but the investigation into the use of public funds continues.On March 11 police searched three homes in Greater London. A 61-year-old man was arrested in Harrow for alleged money laundering and bailed.

On the same day a 45-year-old man was arrested for alleged money laundering after he attended a police station by appointment.

A week later detectives searched two properties in Dagenham and two in Liverpool. A 53-year-old man was arrested in Dagenham under the Theft Act and later bailed.

Last week, two men in their 40s and a 41-year-old woman were arrested in Chafford Hundred, Essex for allegedly dishonestly obtaining property by deception and money laundering. They were later bailed.