Vera Baird investigated after awarding £500k of taxpayers' cash to own charity

Former Redcar MP Vera Baird is being investigated after awarding more than £500,000 of taxpayers’ money to a charity of which she is a director.

The Northumbria Police and Crime Commissioner - a former Solicitor General - allocated the money to Victims First Northumbria.

Companies House records show the force’s Chief Constable Sue Sim – under investigation by Ms Baird over bullying claims – is also a VFN director.

A Ministry of Justice source said officials would be making inquiries to ascertain whether conflict of interest rules had been broken, reports The Mirror .

Ms Baird was able to hand out the cash after the Government changed the rules to allow PCCs to commission services for victims of crime.

Keith Vaz, chairman of the House of Commons home affairs committee, said Northumbria Police "appears to have developed its own soap opera".

"It is totally inappropriate for a PCC to set up any organisation in which they have an interest of whatever kind using public money," he added.

“The fact that the co-director is also the Chief Constable of Northumbria is wrong and they should cease these activities immediately.

"The Home Secretary should never have given these powers. The Labour Party is committed to abolishing PCCs.”

Vera Baird, the Police and Crime Commissioner for Northumbria Police

Ms Sim last week announced she is to retire with full pension after 30 years of service.

Ms Baird, a QC and the Labour MP for Redcar from 2001 to 2010, has appointed a judge to lead an inquiry into the allegations.

National charity Victim Support had provided the service now covered by VFN and 13 of their staff in the region are set to lose their jobs.

There are concerns that some victims who do not report crime to police will not seek help from a charity of which Ms Sim is a director.

A Northumbria Police spokesman said she would be standing down from VFN when she retires in June.

The spokesman added: “The PCC for Northumbria has determined that the most appropriate way for victims services to be delivered in the Northumbria area is through a new body, Victims First Northumbria.

“The PCC has therefore determined that a grant be made to Victims First Northumbria in the same manner that Victim Support were directly funded by the MoJ.”

He said the grant was not subject to tender.

An MoJ spokeswoman said: “The MoJ requires PCCs not to be subject to conflicts of interest when providing victims services and has the power to investigate any possible conflict of interest and to cease funding if such a conflict is established.”

Jane Robinson, clerk to the Northumbria Police and Crime Panel, who are responsible for scrutinising the PCC, said: “The panel were informed at their meeting last month that the new organisation, called Victims First, will have charitable status.”

PCCs were introduced in 2012 in a bid to increase accountability in policing.