Guernsey States insurance may not cover £2.6m con

A sum of £2.6m conned from Guernsey's government may not be covered by insurance, the island's deputy chief minister has said.

The money was taken fraudulently following a letter sent by a party posing as a major contractor.

Deputy Jonathan Le Tocq said it was not yet clear if there would be a payout.

He said: "There are always certain cases that are not covered and until the investigation is completed we won't be able to tell."

Last week the Treasury and Resources Minister said staff from his department thought they were settling a £2.6m bill from construction firm Lagan Construction after they were told of a change in the firm's bank details. However, the cash was paid to a third patrty bank account.

The company is involved in the £80m airport redevelopment project.