A council chairman's future is in jeopardy following claims that he helped himself to cash belonging to a community association.

Police last night confirmed they were looking into concerns over the running of Henknowle Community Association, near Bishop Auckland, County Durham.

It follows claims that the association's treasurer, Alex Clements, who is also chairman of Wear Valley District Council, may have borrowed money from the association.

Detective Inspector Colin Gibson, from Durham Police, told The Northern Echo: "We have received referrals of concern from both Wear Valley District Council and Durham County Council about the running of Henknowle Community Association.''

Durham County Council said it was aware of what was going on, but denied it was involved in the complaint to the police.

It is believed Councillor Clements has resigned from his post as treasurer, but remains chairman of Wear Valley District Council.

Speculation was growing last night surrounding the issue, but it is understood the undisclosed sum of money taken from the account has now been given back.

Coun Clements is well respected in the Bishop Auckland area. He has served as a councillor for the Henknowle ward for the past five years. He is chairman of governors at Henknowle Primary School and became chairman of Wear Valley District Council in May after serving as its deputy chairman last year. When he took over as chairman, he said one of his aims was to see more jobs for Bishop Auckland and the Wear Valley area.

He also vowed to raise as much money as he could for young children in the area.

Nobody from the district council was available for comment last night, but it is believed that members of the council's Labour Party, of which Coun Clements is a member, met to discuss the situation on Monday night.

County Councillor John Lethbridge, who is chairman of the Henknowle Community Association, did not wish to comment.

The Northern Echo tried to contact Coun Clements last night, but his wife told the paper they had separated and he no longer lived at the marital home in Dorset Place, Henknowle.