Inishowen Community Radio has been on the air for 12 years and is hugely popular among the people of the peninsula, being the most listened-to station in the area.
However it has now been confirmed that an investigation has ben launched into possible misappropriation of funding at the station.
The station, which has a staff of 8, is 50% funded by advertising and the other half by Government funding, will remain on the air during the investigation.
Chairperson of the board of directors at the station, Raymond Doherty, said he could not comment further on the matter.
A staff member at the station told Donegaldaily that there was now an air of relief that an investigation had been launched.
“This has been hanging over us since around October 2010 when we were called to a meeting and told about a situation.
“Hopefully now the correct procedures can be followed and we can move on from here,” said the source.
A report on the investigation is carried in the current edition of the Inishowen Independent.
It is not known what sums of money are involved in the alleged fraud.
“It has obviously been going on for some time but we just don’t know,” added the source.
A Garda source told us today: “These are just allegations at the moment; there may well turn out to be no substance to the allegations but we are duty-bound to investigate them.”