Zero credibility

The Independent provides us with an improbable tale:

Warnings that police were investigating fraud allegations involving Emma Harrison's company were not passed to David Cameron before he appointed her as his "families tsar", Downing Street said yesterday.

It sought to distance the Prime Minister from the controversy as it stressed he was unaware of the inquiry into the alleged misuse of public money at her firm, A4e. The Department of Work and Pensions is understood to have been told by the company about the investigation in November.
But it appeared not to have relayed that information to Number 10. A month later, Mr Cameron appointed her an adviser on helping problem families get off benefits and into work. She was unpaid in her post, but A4e won further Government contracts worth £400,000.

Did Cameron not consult DWP before appointing Ms Harrison?  If not, why not?  If so, why did DWP not tell him about the fraud allegations?  Is the government that dysfunctional?