The Serious Fraud Office was nearly torn apart by allegations of cronyism, misuse of public funds and possible corruption against some of its top bosses, undermining its pursuit of financial crime after the banking collapse.
An investigation by The Times has found that senior figures at the agency were accused of fostering a culture in which favourites and family members were allegedly given plum jobs and expensive management consultants were used in breach of government rules.
Executives were also accused of accepting expensive free gifts from the consultants, including, on one occasion, a luxury spa weekend worth more than £1,000, confidential documents reveal.
The executives were cleared of wrongdoing by a Cabinet Office inquiry, but the allegations plunged the organisation into turmoil and severely undermined