AN investigation is under way today amid allegations that teachers' pension funds have been plundered by an office worker.

The Northern Echo can reveal that a member of staff from Capita in Darlington has been suspended over allegations she stole £365,000.

Capita - a national company with offices at Mowden Hall and near the Asda store in Whinbush Way - looks after investments and pensions.

The company was recruited by the Government to provide "consultancy services" and "expertise and innovation", according to its website.

Last week, a 44-year-old worker was arrested after internal checks revealed anomalies in finances over a period of almost 18 months.

Sources have confirmed that a company investigation showed a huge black hole in the accounts going back to the summer of 2013.

A woman, from Darlington, has been questioned by detectives and has been released on bail while further enquiries are carried out.

Durham Police said last night: "We can confirm detectives are investigating an alleged theft from the accounts of Capita in Darlington.

“Capita reported its concerns to police following internal enquiries, and as a result a member of staff at the organisation – a 44-year-old woman from Darlington – was arrested at her home address last week on suspicion of theft.

“She has been interviewed and is currently on police bail until mid-October.

“We are liaising with Capita and police enquiries are continuing."

A spokesman for Capita - which employs 50,000 people and managed the switch to the congestion charge in London - said: “We can confirm that our routine audit activities identified a potential theft.

"This was immediately reported to the police and is now being investigated. We can confirm that there has been no impact on individual members of the Teachers’ Pension Scheme and the value of the fund will not be impacted.

“Given the circumstances, it wouldn’t be appropriate to comment further at this time.”

A source told The Northern Echo last night: "It all seems like a horrible mess that the company wishes would simply go away.

"Sadly, it seems that can't happen now, and it's an embarrassment for us because we'll all be viewed with suspicion now as a result.

"There are many, many people who work at Capita who do so with honesty and integrity."

The revelations will come an embarrassment for the company, which first won "outsource" contracts from the Government in the 1980s.