The PSNI are investigating a series of controversial deals involving the sale of Housing Executive land to developers, according to a report by the Northern Ireland Audit Office.

The Audit report suggests that the sales of land to developers has become a criminal matter, as it outlines 21 cases which are under investigation amid concerns over fraud and misconduct. The report refers to "several questionable land deals" over a number of years, and refers to an internal review which has found "widespread" problems of a similar nature.

The issues raised include the absence of justification for off-market sales, sales which were conducted without proper valuations and buyer favouritism. It also puts forth concerns over housing benefit, stating "significant levels of fraud and error" are costing nearly £30,000 a day, plus ongoing problems with work done by contractors.

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Today’s Audit Office report reveals:

• £240,000 in potential overpayments to a contractor, who was then paid £250,000 for work which had not been inspected or approved.

• Grants of £25.6m were given to housing associations during 2011/12 even though they were suspended from developing projects.

• ‘Numerous issues’ of poor work by contractors, including glass fitted inside-out and wall fittings not securely fixed.

• Some £10.2m was overpaid in housing benefit last year — equivalent to £28,000 every day.

• Contractors carrying out kitchen replacement schemes were overpaid by £500,000.

Among the most serious issues raised in the report relate to the sale of Housing Executive land; twenty-one cases were passed to the Counter Fraud and Security Unit, three have been referred to the PSNI, with another 11 still under consideration. One case in particular, a file relating to a site at Nelson Street in Belfast has already been passed to the Public Prosecution Service.

A spokesman for the Housing Executive said the Audit Office report highlighted a series of issues which the organisation and its board have been examining.

(Hmc)