London's deputy mayor for policing Stephen Greenhalgh was referred to the police watchdog today.
It follows a complaint made about Mr Greenhalgh's previous role as leader of Hammersmith and Fulham council.
A Mayor's office spokesman said: "The matter is the subject of an independent investigation commissioned by the council and carried out by Deloitte.
"We understand Mr Greenhalgh is not being investigated as part of this process.
"When these allegations, which Mr Greenhalgh has consistently said are politically motivated, came to light, Mr Greenhalgh offered his full co-operation to the council."
The Independent Police Complaints Commission said it is considering whether to formally investigate the complaint.
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