Two members of staff at Cityclean have been arrested by police on suspicion of fraud.
Cityclean is Brighton and Hove City Council’s street cleaning, refuse and recycling department, based at a depot in Hollingdean.
Sussex Police said: “On Wednesday (17 April) a 36-year-old Peacehaven man was arrested, on suspicion of fraud by false representation, by Brighton detectives investigating an alleged fraud against the Cityclean department of Brighton and Hove City Council.
“After being interviewed he was released under investigation.
“On (Tuesday) 30 April a 39-year-old man from Peacehaven was arrested on suspicion of fraud by abuse of position in relation to the same investigation and, after being interviewed, was also released under investigation.”
The council said: “To protect confidentiality and to ensure all due process is fair, we cannot currently provide any information on this.
“But as soon as is possible and appropriate, we will provide any details that we’re able to.”
In the past financial year, the council started carrying out an audit at Cityclean.
At least two people including a manager and a senior GMB union shop steward were suspended.
Relations between the GMB and the council have become strained and a strike ballot is due to begin next week.
The union wants the council to agree to meetings brokered by ACAS (the Arbitration and Conciliation Advisory Service).
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