POLICE are investigating alleged fraud at Mont Cuet landfill amid fears that it has cost public funds hundred of thousands of pounds.

Two Public Services staff and a skip company director were arrested simultaneously yesterday morning.

There is no confirmation yet as to the extent of the alleged fraud, but industry sources have suggested that, given what was being dealt with at the landfill site, it could be anything up to £1m.

Some skip operators are known within the industry to have been offering rates below the norm for some time.

‘Guernsey Police can confirm that, following a lengthy investigation carried out by officers from the commercial fraud department, a number of arrests have been made,’ a spokesman for the force said yesterday morning.

‘Police coordinated the simultaneous arrest of two States Public Services employees and a director of a local refuse company concerning serious financial irregularities at the States landfill site.’ Public Services would confirm only that two of its employees had been arrested.

It is understood that the investigation centres around either undercharging or not charging for refuse going to landfill.