A suspended Ukip MEP from Chislehurst is facing a police investigation over allegations of fraud.

Janice Atkinson was due to challenge the Conservatives in Folkestone and Hythe at the general election in May.

But a Ukip disciplinary panel will now decide her fate on Monday (March 23) over whether she is to face action after a staff member allegedly overcharged expenses, leader Nigel Farage said.

The South East MEP has been removed as a general election candidate and has had the party whip withdrawn while the investigation continues.

The purported scandal relates to one of Ms Atkinson's staff obtaining an invoice from a restaurant for more than three times the actual cost of a party event.

It is claimed the intention was to claim it back from Brussels funds.

The individual in question reportedly told the manager of the restaurant: "The idea is we overcharge them slightly because that's the way of repatriating (the money)."

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Ms Atkinson 

The true cost of the event, held ahead of the party's recent spring conference in Margate, was £950 for food and drink and paid for by credit card, it is claimed.

But it is alleged the staff member negotiated and accepted an invoice for £3,150, made out to the newly-formed grouping of right-wing parties Alliance for Direct Democracy in Europe (ADDE) of which Ukip is the biggest member and its associated foundation the Initiative for Direct Democracy in Europe (IDDE).

Owner of the restaurant, The Hoy, raised the alarm when they realised tax-payer's money was at stake.

David Goulding said: "She explained to me that it was a way of them getting some funds into their Ukip account to help with their campaign.

"I didn't really have a problem with that as it was a sponsor.

"The problem for me became apparent when I found out that you and me and the rest of the British public were the sponsor because they were claiming the money back off the EU which we pay into."

A Kent Police spokesman said: "The Kent and Essex serious crime directorate has received a report of fraud. The allegation is being reviewed and the investigation is ongoing."

A statement from the party confirmed Ms Atkinson's suspension, stating: "The party is incredibly disappointed with Ms Atkinson, who appears to have exercised extremely poor judgment in acting in a way that the party has never, and would never condone.

"The party has acted swiftly and immediately.

"We always maintain a zero-tolerance attitude towards acts of this nature."

MORE TOP STORIES Mr Farage insisted he was not prejudicing the case, but commented that it appeared to be "one of the most incredibly stupid and dishonest things I've ever seen in my life".

He said: "I was deeply shocked when I saw it. It was one of the most incredibly stupid and dishonest things I've ever seen in my life.

"This was a member of staff. Exactly what the relationship between that member of staff asking for a false bill and Janice Atkinson is, I don't know.

"We have suspended Janice Atkinson and we will hold a disciplinary hearing as soon as possible, which will be chaired independently by somebody from the legal profession, and there will be representatives of the national executive of Ukip there, and we will ask the questions and we will judge."

Not the first time Ms Atkinson had hit the headlines, she came under fire in August last year after referring to a woman as "a ting tong from somewhere".

The Sun newspaper filmed the meeting.