‘These failures will never be repeated’

PLEDGE IS MADE ON ECONOMIC GROWTH COMPANY

LESSONS will be learned from the “failures” of the Northumberland development firm Arch ahead of plans to replace it with a new company, a councillor has pledged.

An independent strategic review of Northumberland County Council’s business arm found that there were “failings in relation to the operating principles and fundamental purpose” of the company.

It also outlined that “probity has not been at the level required” and “decisions made did not always following appropriate procedures”. Councillors sitting on an audit committee held a private meeting this month to examine the way Arch is run.

They discussed governance issues at the company – but the full report of the review has not yet been released to the public.

The meeting took place after Northumbria Police launched an investigation into “financial and governance” matters at Arch.

Coun Nick Oliver, the council’s cabinet member for corporate resources, said: “It is important we are open and transparent as possible as we progress with this process.

“We have had to be mindful that there is an ongoing police investigation and it was therefore not possible to disclose some of the details discussed in the closed meeting.

“Nonetheless, the audit committee is going to be taking an active role in learning lessons from what has happened at Arch and making sure that governance improvements are implemented.

“We want Northumberland residents to know the council is committed to a bright future for the development company and we will ensure it is properly run and governed from the outset.”

Arch is set to be dissolved and replaced with the Northumberland Development Company, which will focus solely on regeneration, job creation and economic growth.

The new organisation will still be closely aligned to the council and will continue to operate as a commercial organisation and deliver profit-making schemes.