The BBC's Rory Maclean: "Links with prostitutes from Hull"

The women, who were helping police in an entirely seperate murder inquiry in Hull, made claims which launched an investigation into the financial management of a Rotherham-based local authority organisation.

The operation - codenamed Fear - has been looking into the National Local Government Forum against Poverty since November 1998.

The organisation is paid for by subscriptions from up to 180 local authorities all over the UK.

Suspended

As a result of the investigation, Councillor Garvin Reed, of Nightingale Court, Rotherham, has been suspended from his post of convenor of the Local Government Forum Against Poverty - and from his role as Deputy Leader of Rotherham Council.

Three council employees have also been suspended. All four deny any wrong-doing with public money.

South Yorkshire police spokesman Jim Greensmith said: "We have carried out searches of a number of premises, inclucing the council offices in Rotherham.