Bruce Cherry, a former head of events at North Tyneside Council, was fired following an internal investigation into his handling of the Window on the World Festival (WoW).

Northumbria Police searched Mr Cherry's home and seized documents and computer equipment.

The inquiry is focusing on claims that a private company, headed by Mr Cherry, was paid to handle the festival's public relations.

Mayor Chris Morgan ordered a review of costs

A spokesman for Northumbria Police, said: "We received information from North Tyneside Council regarding allegations of a former employee and his involvement with the festival.

"We have been to his home address and that of another director of Event Wyze with search warrants."

Mr Cherry was a director of PR and events firm, Event Wyze.

A spokesman for North Tyneside Council, said: "We can confirm that following inquiries an officer of the council was sacked for gross misconduct.

Festival overspend

"It is not possible to comment further on a personnel matter which has been referred to the police."

Mr Cherry, of Rosehill Road, Wallsend, said he had placed the matter into the hands of his lawyers.

The 16th annual WoW festival attracted about 300,000 people to North Shields fish quay over the Queen's Jubilee bank holiday, with Hear'Say and Sir Bob Geldof topping the bill.

Newly-elected conservative mayor of North Tyneside, Chris Morgan, set up a review of the festival after it suffered from a 100% overspend in 2001.