ALLEGED financial irregularities involving arrangements between Blaenau Gwent council and a rubbish collection company are being investigated by the police.

Gwent Police were notified of "specific concerns" in relation to the council's arrangements with Silent Valley Waste Services Ltd last year by the Wales Audit Office.

The ongoing investigation has taken longer than anticipated and now means the council will publish its accounts unaudited.

The council is required to publish its accounts for the 2017/2018 financial year by September 30.

At a meting of the audit committee on Tuesday, councillors voted not to approve the accounts under delegated authority from the council.

This means the accounts will be published in time but they will be marked unaudited.

Mike Jones, from the Wales Audit Office (WAO), told the meeting that in September last year correspondence was received that highlighted concerns which were then sent to Gwent Police.

"We did not foresee that it would cause any significant delay in issuing an (audit) opinion but since then these matters were raised with the police and that has not been the case," he said.

The WAO's report of September 2017 highlighted some financial misstatements which have all since been corrected.

Mr Jones stressed that none of these misstatements related to the council's arrangements with Silent Valley Waste Services.

A council report stressed that the council has a legal requirement to publish its accounts by September 30.

But it also said that an audit opinion indicated the accounts are a "true and fair view."

It said: "The absence of an audit opinion exposes the council to reputational damage as it implies that the accounts do not present a true and fair view of the financial position and/or have not been properly prepared.

"It may also imply that the authority does not have appropriate financial governance arrangements in place."

In a statement, a spokeswoman for the council said the accounts are unable to be signed off by the Auditor General for Wales due to an ongoing Gwent Police investigation into "potential governance and financial irregularities."

She added: "It must be emphasised that this is no reflection on the council’s financial management and budget planning which is extremely robust, but relates to one specific area, our arrangements with Silent Valley Waste Services Ltd."

A spokeswoman for the WAO confirmed that "specific concerns" had been given to Gwent Police for consideration.

"I must stress that it is not uncommon for us to refer matters to the police which we consider could be of relevance to their remit, but this should not be interpreted as meaning that we are of the view that offences have been committed," she added.

Gwent Police said it is investigating a report of "alleged financial discrepancies linked to aspects of waste management services at Blaenau Gwent County Borough Council."

The force said the investigation is ongoing.

Silent Valley Waste Services has been contacted for comment.