A job seeker was sent to work in a lap-dancing bar by the employment company run by David Cameron’s “back to work czar”.
Emma Harrison’s firm A4e placed the person at X in the City, a Liverpool lapdancing club used by football stars including Manchester City striker Mario Balotelli.
The incident was revealed by the investigative website Exaro after it was described in an auditor’s study of A4e’s “welfare-to-work” activities.
The bar advertises lap dances at £5 a time, and offers a “VIP” deal in private rooms where a half-hour lapdance with champagne costs £50.
A4e auditors found the case while looking into allegations of irregularities.
Last month, the Government cleared the company of claims that fraud was widespread.
Officials at the Bootle office of A4e had placed the male job-hunter in the club as part of its contract with the Department for Work and Pensions.
The auditors did not record what job the man was asked to perform at the club but noted that he worked there for 13 weeks in 2009.
A spokeswoman for A4e said: “If that happened it would have been pretty exceptional.” She said the company had no record of the incident.