ESSEX Police has has offered its “assistance” to inspectors investigating the financial situation at Thurrock Council reports the BBC.
The council admitted a series of failed investments had led to a £469m budget black hole.
The shortfall is one of the largest ever reported by a UK local authority and its financial affairs are currently under inspection.
Essex Police said no criminal investigation was under way.
As well as revealing the current £469m shortfall in the budget, the Essex authority said investments worth about £274m had to be “written down”, meaning the money had effectively been lost.
Thurrock Council said it needed “exceptional financial support” from government.
A “Best Value Inspection” of the council is currently being carried out by Essex County Council, which has been appointed as commissioners for Thurrock Council by the government.
An Essex Police spokesperson said: “We are aware of the intervention and Best Value Inspection being led by Essex County Council in respect of the financial situation at Thurrock Council and we have offered our assistance to [the county council].
“There is currently no criminal investigation.”