A MILITARY policeman who stands accused of fraudulently claiming almost £13,000 in housing benefits was so conscientious that he was expected to rise to the rank of Chief Superintendent, York Crown Court heard.

Chief Inspector Graeme Drummond, 47, 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.

Lesley Shervington, who worked for the Defence Housing Executive between 1996 and 1998, said that when Drummond moved to Menwith Hill she processed his housing transfer on the assumption he would be paying rent.

But she said that when she looked at the regulations she realised he should not be paying rent after all.

She said: "There is a regulation book and I read that if any MoD police person joined the force before 1976 they lived in a house rent-free.

"My understanding was that because of his length of service he was entitled to rent-free accommodation.

"I don't think I made a mistake. I'm sure I saw it written down."

But Brian Cox, defending, said that Drummond was aware that he was not entitled to rent-free accommodation and had told this to Mrs Shervington - a claim she denied.

Mr Cox also told the court that due to a mix-up, Drummond had been paying double council tax, sending money directly to Harrogate Borough Council and the MoD, who were due to pay the council tax bill at the end of the year.

The court heard that Drummond was brought in to head MoD police at RAF Menwith Hill, near Harrogate - a frequent target for anti-war and nuclear disarmament protesters - after a serious breach of security in 1997.

After being transferred to the base, Drummond consistently worked long hours and was successful in gathering evidence against a demonstrator for 54 breaches of an injunction, according to his line manager Superintendent William Grainger.

Supt Grainger said: "He was seen to have the potential to rise to the rank of chief superintendent."

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

Updated: 10:56 Wednesday, March 05, 2003