A police investigation into allegations of fraud and financial mismanagement by the mayor of a London council has found "no credible evidence of criminality".

Lutfur Rahman, elected mayor of Tower Hamlets, east London, was accused by the BBC's Panorama of more than doubling public funding to Bangladeshi and Somali groups from £1.5m to £3.6m in the face of recommendations from council officers.

He denied the allegations, saying they had been motivated by racism and Islamophobia.

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