Second arrest in £2.6m Guernsey States fraud case

A second man has been arrested as part of an investigation into £2.6m being defrauded from Guernsey's government.

The money was paid out to people posing as the major contractor working on the £80m airport project.

Guernsey Police said the 39-year-old was arrested on suspicion of money laundering on Saturday. He was later released on bail.

Guernsey Police are working with the City of London Police and the Guernsey Border Agency on the investigation.

'Flagged up'

Det Ch Insp Phil Breban, senior investigating officer for Guernsey Police, said the man had been identified as a suspect after searches carried out in three UK properties on the same day last month.

He said: "We are aware of another individual who's linked to this fraud, he did leave the island very shortly I think before our raids took place purely by our misfortune.

"We have some idea of where he has gone and there are processes in place in the UK for when he returns, hopefully through the ports, he will be flagged up and arrested."

Consultants are due to appointed this month to carry out a review of States financial processes to prevent a similar occurrence.