Customs & Excise's top solicitor was suspended last week following the latest impact assessment from the Metropolitan Police as part of its investigation into the handling of a series of 1990s diversion fraud cases.


David Pickup, the solicitor to customs, and one other top official are under investigation over allegations of non-disclosure to the court. No charges have been made against them. Mr Pickup had no comment at this time.



The fraud cases involved goods held at London City Bond warehouse which were not subject to UK excise duty on the basis that they were destined for export. The goods were then redirected to the UK. The cases collapsed after the court heard that customs officers had encouraged the offences in a sting operation.



A judicial review by Mr Justice Butterfield later criticised Customs' handling of the case, including its failure to disclose to the court whether defendants had been informants.



In a letter to the chairman of the Treasury Select Committee, John McFall, the Economic Secretary to the Treasury, John Healey, said the two officers had been suspended with immediate effect.



He said their seniority made it impossible for them to remain in their posts pending an investigation. He emphasised that the term 'under investigation' should not be taken to mean that charges would follow.