A4e

Emma Harrison, the founder of A4e, received £1.375million from the company last year.

Harrison stood down as chair of the company in February following an outcry over her previous £8.7million dividend payment from the company, but retains 87% of the shares.

A committee of MPs investigating the government's welfare-to-work fraud detection has described checks as 'inadequate'.

The public accounts committee, which investigates government spending, has been looking in to accusations of fraud in A4e, although the company stated that a recent audit had found no evidence of fraud.

Labour MP Margaret Hodge, the committee's chairman, said that "risks remain, especially to value for taxpayers' money", with the Work Programme.

Controversial welfare-to-work firm A4e was facing fresh police investigation last night as it emerged it had once sent a jobseeker to look for work in a lap dancing club.

Three whistleblowers yesterday handed MPs a 'damning' dossier of alleged fraud at the firm, which is one of five prime contractors on the Government's flagship £5 billion Work Programme.