Exclusive: Leeds Grand Theatre at centre of fraud inquiry - three arrested

A 51-year-old man from Harrogate, a 44-year-old man from York and a 50-year-old woman from York have been questioned and bailed following a West Yorkshire Police inquiry into suspected “fraudulent creditor payments” at Leeds Grand Theatre and Opera House.

It is understood the claims relate to the processing of suspected bogus invoices for nonexistent private companies to make payments allegedly totalling more than £100,000.

The investigation was launched after Leeds council, which part-funds the theatre and has several elected members on its board of trustees, passed information to the police as a result of its own internal probe. At least one of the arrested people is understood to be a council employee.

Both the council and police have refused to confirm that the inquiry relates to the Grand, but a well-placed source told the Yorkshire Post it was common knowledge among theatre staff.

“Staff have known about it for some time. It’s the talk of the theatre,” he said.

Coun Bob Gettings, who sits on the board of trustees, said the theatre, which opened in 1878, was operating as normal while investigations continued.

He added: “The board has met several times about this issue and, although it came as a bit of a blow, we are satisfied that the law will deal with it.”

A report to Leeds council’s governance and audit committee revealed that an inquiry had taken place into an unnamed partner organisation following “proactive fraud exercises” by internal audit staff.

“The identification of this issue prompted the need for a detailed audit investigation, the findings of which have been passed to the police,” according to the report.

As well as the police investigation, internal disciplinary procedures have been undertaken. The council is supporting the organisation to “ensure the continuation of day to day functions,” the report added.

The matter was briefly mentioned at a meeting of the governance and audit committee on Tuesday, but the organisation involved was not named and members were told they could not discuss the investigation publicly until the conclusion of both criminal and disciplinary proceedings.

Chief officer Tim Pouncey said there was a danger of jeopardising the two investigations.

“Nobody has been disciplined or found guilty at a disciplinary hearing and nobody has been found guilty in any criminal proceedings and at this stage it would be unwise to get into the principles of this particular case,” he said.

Committee member Coun Neil Taggart said he accepted that standpoint, but pressed for further details to be revealed in due course.

“I hope it isn’t going to be too prolonged because there are questions being asked and, although I’m saying nothing at this stage, at some point we have to say that there will be an account given by the committee,” he said.

The council refused to say if anyone had been suspended as a result of the investigation and said it would not comment further.

The theatre also refused to comment.