Police buildings and a number of houses have been searched as part of an investigation into alleged contract corruption within the PSNI, it emerged tonight.
The inquiry was announced after a Belfast firm was awarded £400,000 (€588,000) damages earlier this month for a cancelled deal to supply vehicle armour-plating to the force.
NI Sheet Metal Works, which had supplied police since 1988, secured a three-year contract in 2001. But the work was later handed to another firm, Firth Rixson Castings, charging hundreds of thousands of pounds more.
Company boss Jim Kirkpatrick took action for breach of contract after being asked to supply further steel samples which, it was alleged, did not come up to standard.
After a High Court Judge in Belfast called for a criminal investigation into the affair, the PSNI confirmed a Fraud Squad investigation was under way.
A police spokeswoman tonight said: "We carried out searches on Thursday of PSNI buildings and some houses."
The force declined to reveal if any items had been seized in the operations.
Assistant Chief Constable Sam Kinkaid, who is heading the inquiry, is being advised by an external independent expert.
A separate independent review of the processes involved in this case is also being carried out.
PA