TWO senior officials at Scotland's largest local authority have been suspended amid an investigation into financial irregularities dating back several years.
Kaiser Khan, who heads a unit at Glasgow City Council dedicated to helping start-up businesses, and colleague Evelyn Beck were suspended after the emergence of an alleged 'moonlight scam' in a partnership with a further education institution mushroomed into other areas.
The investigation is focusing on allegations that officers at the council were hiring themselves as freelance consultants to firms they had assisted with grants, loans and facilities.
It is understood that the investigation within the development and regeneration services (DRS) department stretches back around five years.
Several other council officers who have not been suspended as part of the probe will be questioned over what they have known of the moonlighting operation.
Focus has already fallen on a former manager within DRS's economic development unit, who was sacked earlier this year having hired his daughter as a consultant. Another council officer who has recently left with a redundancy package is under the microscope. The cost to the council of hiring a start-up consultant for the day is around £400.
Opposition leaders within the authority have called for a full review of every grant and loan awarded by the units where both Mr Khan and Ms Beck have been employed.
A council source said: "The accusation is that council officers working with universities and colleges in incubation units for business start-ups would be appointed to advise these fledgling operations. But after that they would punt themselves as freelance business advisors in their spare time without the knowledge of the authority."
Another said: "There's suspicions that this involves more than just two people and that those who know about it aren't coming forward, I'd hope they'd confidence they can approach the internal auditors in confidence."
Mr Khan, 50, has been one of Glasgow's highest profile officers in recent years, in his capacity as head of startup nursery Digital Enterprise Glasgow and managing loan funds. He has advised the Scottish Government on minority ethnic enterprise and has a profile as a charity worker. His unit has links with universities and colleges in the city. The investigation focuses solely on council employees.
A spokesman said a number of employees had been suspended on a precautionary basis pending an investigation into "suspected financial irregularities".
Mr Khan said he had nothing to hide and would fight the allegations. He believes claims have been made as he is taking a grievance out against the council because of unfair workload. He said: "I refute these allegations and I want the opportunity to answer them.
"An opportunity I have not had at this time. I don't work for any other organisation, I haven't worked for any other organisation and I have not received any money from any other organisation."
Mrs Beck did not respond to requests for a comment.
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