AN investigation surrounding payments made to a senior police official included a £362,000 redundancy payoff, it has emerged.

Former Cleveland Police Authority chief executive Joe McCarthy is being investigated for alleged fraud, corruption and misconduct as part of the long-running Operation Sacristy investigation into Cleveland Police.

The Northern Echo reported yesterday that payments totalling nearly £80,000 made on Mr McCarthy’s corporate credit card are being looked at.

Now it has emerged that the pay-off, along with loyalty bonus payments totalling nearly £25,000 a year, are also part of the inquiry.

The payments all received formal approval from the police authority.

But Operation Sacristy, which includes accusations against police officers and other members of Cleveland Police Authority, is looking at how the payments were presented to the authorities before being approved.

Mr McCarthy was arrested on suspicion of fraud, corruption, misconduct in a public office and money laundering more than a week ago.

After questioning at a North Yorkshire police station he was bailed until April.

When Mr McCarthy became Cleveland chief executive in 2003 his basic salary was £79,275 and in his first year of employment the only payments he received were £907 essential car user allowance and £139 in expenses.

It has been reported that by the time he left in 2010, basic pay had increased to £113,000 but in the two years before his departure Mr McCarthy received total payments of just under £190,000 and just over £188,000, which includes the loyalty bonus.

The £320,000 pay-off package included the bonus loyalty payments he would have received had he remained in post.

His replacement and the current chief executive, Stuart Pudney, receives a basic salary of £90,000 and no bonuses.

Neither Cleveland Police Authority nor Operation Sacristry would comment further due to the ongoing criminal investigation.

The Northern Echo was unable to contact Mr McCarthy for comment yesterday.