Show £20m overspend statement SNP issue call for ‘clarification’
The SNP have called for a financial statement on the £ 20million council overspent that is part of an ongoing investigation.
Last April, a corruption probe into seven council contracts was launched.
In September, internal Council Auditors produced a ‘ Report Examining Allegations of Fraud and Corruption around Aspects of the Council’s Procurement and Contracting Arrangements’.
The report revealed a £20m overspend on seven council contracts, with one contractor paid £9m on a contract valued at £1.5m.
Three senior council managers have been suspended following the report in September.
Two returned to work last week. A third continues to be suspended.
At the full council meeting on December 22, the SNP tabled a motion calling for retrieval of the £20m overspend and the council agreed to try all avenues to retrieve any money to which contractors were found not to have been entitled.
Now SNP Group Leader David Stocks has called the council’s chief executive Paul Jukes to publish all findings and clarify effects on the coming council budget for 2017-18.
Councillor Stocks said: “It’s taken a press leak for councillors to learn what is going on. We’ve now waited a further two months for any statement from the council.
“This corruption report must not be hidden away until after the local elections in 12 weeks’ time.
“We face balancing our council budget on February 23 and the auditors’ report on a £20m overspend must affect our decisions.
“If cor ruption is proven,there may also be up to £20m to claw back.
“This corruption probe has been going on for over ten months.
“It’s time for the council to finally tell councillors and the public what is going on. ”
Paul Jukes, council chief executive, said: “I have repeatedly made clear that the internal audit report will be made available to councillors only when the disciplinary process is completed. That remains the case.
“However, to be clear, there is no ‘overspend’ in relation to the contracts examined. Work was carried out within service budgets. The issue relates to the estimated value of contracts when they were approved by council and works carried out beyond that estimated value. There is, therefore, no impact on decisions around the setting of next year’s revenue budget.
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