MANAGERS at one of the North-East's leading museums have agreed to offer compensation to its own supporters' group.

Beamish Open Air Museum, County Durham, has agreed to pay several hundred pounds to the Friends of Beamish after it was accepted that the charity was overcharged for photocopying.

Last year, an investigation was ordered into the conduct of the museum's former director, Peter Lewis, after it was alleged he had intercepted mail destined for the Friends.

The complaint was investigated by officials at Sunderland City Council's treasury department, but was halted when Mr Lewis retired.

The Sunderland authority is one of the main members of the museum's managing consortium.

In the annual report from the trustee of the Friends of Beamish, Dr Frank Atkinson said: "Owing to the financial nature of the irregularities affecting the Friends, the directors felt that they had a duty, on behalf of the charitable company, to pursue these matters and took legal advice.

"The Friends are negotiating an appropriate and amicable settlement which will, it is hoped, provide both recognition and a token of compensation for the financial damage suffered."

He added that he looked forward to working with the museum's newly director, Miriam Harte, who will take over the museum's affairs in the summer.

A spokesman for Sunderland City Council said: "As far as we are concerned, this was a confidential arrangement between ourselves and the Friends and we are not prepared to discuss the details."

Acting director of Beamish John Gall said he hoped the pay-out had "drawn a line" under the affair and that the museum was looking forward to the future.

Mr Lewis, 62, of Hexham, Northumberland, was director for 13 years before he retired. He was not available for comment yesterday. A spokesman for Durham police said there was no police investigation into the matter.