THE senior police officer in charge at Menwith Hill reported a police colleague at the top secret base after discovering he was claiming housing allowance while living rent-free, York Crown Court has heard.

Chief Superintendent David Stephen Walker said he "immediately contacted" the force disciplinary authority after discovering Chief Inspector Graeme Drummond was receiving the benefit.

Drummond, 46, denies that he falsely claimed £12,825 in housing allowance after he was mistakenly allowed to live rent-free at his Ministry of Defence (MoD) home in Oak Avenue, Harrogate.

Officers are only entitled to housing allowance if they pay rent.

Chief Supt Walker rented accommodation from the MoD in the same street as Drummond after taking charge at Menwith Hill in August, 2001.

He said he was told by the area housing manager that he could have the semi-detached property rent-free "on the same grounds that Mr Drummond was receiving his". But Chief Supt Walker said he was "100 per cent sure" he was not entitled to this. He queried the matter with the manager and they later admitted a mistake. He later discovered from officials that Drummond was also living rent-free "by mistake" and that the matter was being remedied. The chief superintendent then asked his deputy to check whether Drummond was also receiving housing allowance.

"As his commanding officer I needed to make sure he was not receiving rent allowance," he told the court yesterday.

Chief Supt Walker said he immediately contacted the force disciplinary authority when this was confirmed to be true.

Brian Cox, defending, said that when Chief Supt Walker first moved to Menwith Hill it was Drummond who first told him about the Defence Housing Executive.

Mr Cox said it was very clear from the force regulations that making a wrongful claim was a disciplinary and potentially criminal offence.

Drummond denies three charges of obtaining money transfers by deception and two counts of false accounting.

The trial continues.

Updated: 10:56 Thursday, March 06, 2003