A fraud investigation has been launched over fears that more than £200,000 in public money was mishandled in a renewable energy scheme.
Local government auditor John Buchanan said the allegations centre on a programme linked to the Department of Enterprise, and handled by Craigavon Borough Council, where grants were paid to install renewable energy boilers.
The suspected fraud in tenders for the project could amount to £202,576 and police are now investigating the allegations.
The details came to light in a report released today by Mr Buchanan which probed the mishandling of public money in local government.
The alleged fraud in the boiler scheme is to be addressed in a forthcoming report from the Comptroller and Auditor General.
Today's report quoted the Auditor General document as saying: "The Department of Enterprise Trade and Investment (DETI), with Craigavon Borough Council (CBC) as lead partner, paid grants to projects to install renewable energy boilers in CBC's area and five partner organisations located throughout Ireland.
"DETI offered funding up to €382,500 in 2004 for the project."
The installation work was said to have been completed between 2004/05.
But the report added: "DETI and CBC are investigating suspected fraud in tenders for the installation of the boilers.
"This suspicion arose following checks by funders.
"The value of public funds at risk is estimated by DETI as £202,576.
"CBC has notified the police of the suspected fraud." A DETI spokesman said it had no comment to make at this time, while Craigavon Borough Council declined to comment on the grounds that the matter is now being investigated by police.
The Local Government Auditor said he will be monitoring the outcome of the case.
PA