PHONEY computer software used in the war on terror was supplied to ten police forces including Gwent Police, a court was told yesterday.

Special Branch, the UK's anti-terror police, bought national security software which contained a fake version of Microsoft Office '97, it was alleged at Blackfriars crown court in London.

Security could have been compromised as the counterfeit software could have become corrupted allowing unauthorised access to secret police databanks.

Three company directors from Hampshire were said to have supplied computer disks with a false trade description to ten constabularies, including Gwent Police.

It was alleged they had broken the Trades Description Act by selling the £1.3 million made-to-order software package but yesterday Judge Charles Byers ruled it would not be in the public interest to proceed with a trial.

However, an investigation is continuing into the role of a Dublin-based firm who were the original suppliers of the discs.