Arcuri inquiry on hold after police watchdog steps in

A CITY HALL investigation into Jennifer Arcuri, the US businesswoman, and her relationship with Boris Johnson has been paused following a request by the police watchdog.

The move came as Nicky Morgan, the Digital and Culture Secretary, said she would “not prejudge” a government review into the awarding of a £100,000 grant to Ms Arcuri’s Hacker House company, following allegations that she falsified her application.

Members of the London Assembly oversight committee had been due to start an inquiry over allegations that Mr Johnson showed favouritism to the former model during his time as London mayor by giving her £126,000 in public funding and privileged access to three foreign trade missions.

But at the start of yesterday’s meeting, Len Duvall, the committee chairman, announced it had received correspondence from the Independent Office for Police Conduct (IOPC) “asking us to pause our investigation”.

“I’m not clear whether they are scoping out whether to investigate or are actually investigating,” he added. “We respect the right of the IOPC … in their jurisdiction, which is very narrow in its definition, of looking at the actions of Boris Johnson in his time as police and crime commissioner during the time of some of the potential allegations.”

The Prime Minister, who has complied with a request for evidence from the committee, has previously accused his “old friends” in the London Assembly of “barking up the wrong tree”.

An IOPC spokesman said: “We are currently acquiring material as part of our assessment to determine whether it is necessary for this matter to be criminally investigated.”

In an interview on ITV’S Good Morning Britain this month, Ms Arcuri denied receiving favouritism during Mr Johnson’s stint as mayor. “Never once did I ask him for a favour,” she said.

Meanwhile, MPS on the digital, culture, media and sport committee questioned Mrs Morgan about her department’s award of £100,000 to Ms Arcuri’s digital skills training business.

Questions have been raised in the Commons about the due diligence made on the grant approval – meant to be spent on improving IT skills in the UK – after reports emerged that the outfit was based in America.

Ministers have paused the grant and the Government’s internal audit agency is conducting an inquiry. When asked whether she would forward the case to the police if Ms Arcuri was found to have falsified her address on her funding application, Mrs Morgan said she would “not prejudge the review”, adding: “I know the Companies Act fairly well … it is not unreasonable to have directors with overseas addresses but a UK company address.”