SFO investigates Royal Mint payments

A full criminal investigation has been launched by the Serious Fraud Office and the police into allegations that improper payments were made by the Royal Mint, the government agency that produces our coinage.

It is understood that the allegations concern payments made to foreign governments to secure contracts to produce coins for other economies. It is thought the sums involved are relatively small but the SFO has been called in because the case involves an arm of government.

The SFO was first informed about the suspect payments by the Treasury three months ago and it has now decided there is sufficient basis to launch a formal investigation. The inquiry will be conducted jointly with the Ministry of Defence Police, which provides security at the Mint, based in south Wales.

Less than 10 payments, involving tens of thousands of pounds and made by the Mint between 1996 and 1999, are the subject of the investigation. It is not known whether individuals benefited from the payments. The matter was originally uncovered by the new Deputy Master of the Mint, Gerald Sheehan.

The results of his internal investigation were passed in late June to Ruth Kelly, the Financial Secretary to the Treasury. She ordered an independent review of internal financial controls at the Mint.

The independent review was set up by the Deputy Master and carried out by an external body, to report to Ms Kelly. The SFO was passed a file to examine in June but it only announced a full investigation yesterday.