A scheme to find work for 1,000 unemployed people in the region has been cut short by the Government.
The contract with welfare-to-work company A4e has been terminated after it was decided that its continuation would be too risky.
Employment minister Chris Grayling said the Mandatory Work Activity contract to help up to 1,000 jobless people in the South East to find work would end.
He said an audit into the firm’s work found no evidence of fraud but did uncover weaknesses in internal controls.
The Mandatory Work Activity scheme was launched by the Government in May 2010 but has proved controversial with A4e the subject of a police investigation into allegations of fraud relating to government schemes.
An eighth person was arrested on Monday while seven others are on bail.
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