The former vice-chairman of the Police Federation is facing a gross misconduct inquiry over the alleged transfer of £1 million to a charitable account.

Will Riches has been cleared of any criminal wrongdoing after a two-year inquiry into fraud claims. He has been on restricted duties since his arrest in March 2016 after he resigned as deputy.

Detectives were brought in at the time after the Fed raised the alarm to Surrey Police over the alleged unauthorised transfer of money from the then constables’ central committee to an external charitable account.

The Crown Prosecution Service considered if criminal charges should be brought against serving Metropolitan PC Riches, however, it concluded in May this year there was insufficient evidence.

Another Met officer, a serving South Wales officer and a retired Greater Manchester officer were also arrested and investigated and it was found they did not have a criminal or disciplinary case to answer.

The IOPC has now referred the case back to the MPS.

A spokesman for the Police Federation of England and Wales, said: “The IOPC advised us last week it had concluded its investigation into allegations of fraudulent activity by a former individual of the Police Federation of England and Wales.

“We have since fully cooperated with the police and the subsequent IOPC investigation into this matter and will continue to do so where needed. The officer concerned no longer represents us.”

In 2014 PC Riches ran to be chairman and received the same number of votes as his rival, but lost the job on a coin toss to Steve White.