DETECTIVES investigating allegations of fraud at Keighley Town Council have now interviewed two people under caution and are preparing to interview a third, it can be revealed.

West Yorkshire Police’s Economic Crime Unit has confirmed that officers have spoken to two people as part of its probe into alleged wrongdoing at the troubled Council.

The police investigation started in December last year after Keighley Conservative MP Kris Hopkins urged the Force to step in following the publication of a damning external audit report.

That audit report highlighted a catalogue of financial weaknesses and poor governance relating to the 2012/13 accounts.

Detective Inspector Ian Lawrie, of West Yorkshire Police’s Economic Crime Unit, said: "Two people have now been interviewed in relation to this investigation, and a third person is due to be interviewed shortly.

"A report will then be prepared and reviewed, before a decision is made on how to proceed."

News of the police progress on the investigation was welcomed by Mr Hopkins.

The MP said: "I welcome news that the investigation continues to progress. Following the recent elections, Keighley Town Council now has a number of new faces in its ranks which is a positive development.

"As the local MP, I look forward to working closely with them and their colleagues in the interests of local residents."

The Mayor of Keighley Councillor Javaid Akhtar said he hoped the police investigation would be wrapped-up soon.

"To be honest the quicker the investigation is concluded the better it is for all concerned so that Keighley Town Council can move on and put the whole episode - which exposed flaws in our past procedures and governance as well as issues of transparency – behind us."

He said the Council had moved on from past errors.

"The Council has learnt from that and put measures in place to make sure the Council does not make the same mistakes.

"It's also unfair on the majority of new councillors to be associated with the past wrong doings."

Cllr Akhtar said the Council had co-operated with the police investigation.

"As to whether there was any criminality or not that is a matter for the police and not for me to comment on - but the Council has cooperated fully with their investigation," he added.

Last year Mr Hopkins called the Council’s spending "reckless" after the audit revealed a £1.1m business plan to develop a new civic centre was based on a weak business case.

The audit highlighted questionable spending in 2012 including overpayments to a contractor who was paid despite not meeting commission targets, the purchase by the Council of two horses, both later sold at a loss, and the purchase of Christmas lights for £3,000 without proper authorisation.