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| Two held in City Hall fraud probe | Two held in City Hall fraud probe |
| (about 8 hours later) | |
| A second man has been arrested by police investigating fraud allegations concerning firms given funding by London's City Hall. | A second man has been arrested by police investigating fraud allegations concerning firms given funding by London's City Hall. |
| The 45-year-old surrendered himself at Belgravia police station. Earlier a man aged 61 was arrested, with both men held on suspicion of money laundering. | The 45-year-old surrendered himself at Belgravia police station. Earlier a man aged 61 was arrested, with both men held on suspicion of money laundering. |
| The Metropolitan Police (Met) said it had also searched homes in Harrow, Croydon, Tottenham and Leytonstone. | The Metropolitan Police (Met) said it had also searched homes in Harrow, Croydon, Tottenham and Leytonstone. |
| A Met spokesperson said the 61-year-old has been bailed until Thursday. | |
| Police are investigating allegations of fraud in connection with six organisations which received funding from Ken Livingstone's office. | Police are investigating allegations of fraud in connection with six organisations which received funding from Ken Livingstone's office. |
| It follows allegations made in the Evening Standard newspaper about money paid by the London Development Agency (LDA), City Hall's business arm, to a number of black organisations. | It follows allegations made in the Evening Standard newspaper about money paid by the London Development Agency (LDA), City Hall's business arm, to a number of black organisations. |
| If people have stolen from the LDA then we would want them to go to jail London Mayor Ken Livingstone | If people have stolen from the LDA then we would want them to go to jail London Mayor Ken Livingstone |
| The Met spokesperson said: "A 45-year-old man voluntarily attended Belgravia police station this afternoon where he was arrested on suspicion of money laundering." | The Met spokesperson said: "A 45-year-old man voluntarily attended Belgravia police station this afternoon where he was arrested on suspicion of money laundering." |
| The man remains in custody. | The man remains in custody. |
| BBC London's Political Correspondent Tim Donovan said the police action concerns the Green Badge Taxi School based in south London which received about £170,000 from the LDA to train ethnic minority cab drivers. | BBC London's Political Correspondent Tim Donovan said the police action concerns the Green Badge Taxi School based in south London which received about £170,000 from the LDA to train ethnic minority cab drivers. |
| He added he expects more arrests as the inquiry develops. | He added he expects more arrests as the inquiry develops. |
| London Mayor Ken Livingstone said following Tuesday's police operation: "If people have stolen from the LDA then we would want them to go to jail." | London Mayor Ken Livingstone said following Tuesday's police operation: "If people have stolen from the LDA then we would want them to go to jail." |
| Last week the Mr Livingstone's race advisor Lee Jasper, 49, resigned amid allegations over the misuse of public funds. | Last week the Mr Livingstone's race advisor Lee Jasper, 49, resigned amid allegations over the misuse of public funds. |
| After stepping down Mr Jasper denied any wrongdoing and said he wanted a "categoric investigation" into the claims. | After stepping down Mr Jasper denied any wrongdoing and said he wanted a "categoric investigation" into the claims. |
| An internal inquiry in January cleared him of any wrongdoing, but he was suspended by the mayor pending the police investigation. | An internal inquiry in January cleared him of any wrongdoing, but he was suspended by the mayor pending the police investigation. |
| Last month the Met said they would not investigate Mr Jasper over claims of fraud because there was "no evidence of criminal activity". | Last month the Met said they would not investigate Mr Jasper over claims of fraud because there was "no evidence of criminal activity". |