MP for South West Surrey, Jeremy Hunt has taken to his Facebook page to express serious concerns about the escalation by Surrey Police of the fraud investigation into Guildford Borough Council.
Waverley Borough Council and Guildford Borough Council have a joint management team and have Liberal Democrat administrations.
The investigation is now being handled by the Regional Organised Crime Unit, according to this BBC report.
A fraud investigation at Guildford's housing department has been escalated to a regional organised crime unit.
The police inquiry, which was launched in November, centres on an allegation of fraud in housing repairs.
Surrey Police said "due to the size and complexity" of the investigation, the South East Regional Organised Crime Unit would be taking over.
A council spokesperson said the authority had been working closely with police and anti-fraud investigators.
An internal housing maintenance review at the council was making "significant progress" the council spokesperson said, adding that planned works were continuing.
They added: "The police are leading on an investigation into an allegation of fraud in our major cyclical repairs programme of works within our housing maintenance service.
"The situation is a very complex one and we are working closely with the police and Reigate and Banstead accredited anti-fraud investigation unit.
"The investigation is in the early stages and, given the complexity of the investigation will take a considerable amount of time to resolve.
"As the investigation is ongoing, we're unable to provide any further specific details at this time."
They did not say how many staff were being investigated, and did not comment further on the handing over of the investigation.
A Surrey Police spokesperson said: "An initial investigation into this matter was carried out by the Surrey and Sussex Police Economic Crime Unit with the borough council to understand the nature and scale of the circumstances involved.
"Due to the size and complexity of the investigation, a decision was made to approach the South East Regional Organised Crime Unit (SEROCU).
"The investigation will be formally handed over to the SEROCU team over the coming weeks."